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HomeMy WebLinkAboutStaff Correspondence - PresentationCity of Palm Springs FISCAL YEAR 2022-2023 Proposed General Fund budget APRIL 25, 2022 1 Overview of Budget Process FY 2023 Budget Process New Financial Software manufactured by Tyler Technologies – Tyler Munis Software allows for all Department Heads (DH) to enter their own budget except for positions/salary. Finance can adjust positions/salary at the direction of the City Manager. City Manager and Finance met with most of the Department Heads to discuss their budget. Finance Director went through each budget and discussed any unusual spikes in cost with each DH. City Manager and Finance met on several occasions to discuss strategy and make adjustments. 2 2 Overview of General Fund Revenue Highlights and 5 Year Trend General Fund Revenue Highlights – FY23 Projected Budget General Fund revenue growth driven mainly by increased tax revenue Transient Occupancy Tax, Sales & Use Tax, Property Tax, and Utility Users Tax experiencing the most growth FY23 has approximately $31M of Grant revenue. FY22 has approximately $15M 3 3 Overview of Major Tax Trends 4 4 Overview of Transient Occupancy Tax (TOT) Trend Estimated 5 5 Overview of Expenditures Highlights and 5 Year Trend General Fund Expenditure Highlights – FY23 Proposed Budget The City maintained good cost control during, and coming out of, the COVID-19 pandemic. FY22 and FY23 the City expects to continue to fill positions that were frozen during the pandemic, increasing personnel expense. FY23 contains more maintenance expense for facilities and vehicles to catch up from the lack of during the pandemic FY22 and FY23 contain dollars for the purchase of vehicles to catch up for the lack of during the pandemic 6 6 Overview of FY23 Ending Fund Balance General Fund Ending Fund Balance FY23 Beginning Unassigned Fund Balance for FY22 was $52.4M FY22 projected surplus is $22.3M Ending Unassigned Fund Balance for FY 22 projected at $74.7M FY23 projected surplus is $8M Ending Unassigned Fund Balance for FY23 is projected at $82.7M $30M of Unassigned Fund Balance is the Required Minimum $52.7M of Fund Balance set aside for City Manager Recommendations Total Unassigned and CalPers Fund Balance ending FY23 is $113.9M 7 7 Overview of FY23 City Manager Recommendations 8 8 Overview of FY23 City Manager Recommendations Continued 9 9 Overview of FY23 City Manager Non - Recommendations 10 10