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HomeMy WebLinkAboutJoint Meeting OCR CITY COUNCIL STAFF REPORT DATE: JUNE 5, 2023 BUSINESS & LEGISLATIVE SUBJECT: MEASURE J FUND BUDGET FOR FISCAL YEARS 2023-24 AND 2024-25 FROM: Scott C. Stiles, City Manager BY: Department of Finance and Treasury Measure J Commission SUMMARY: This item represents a review of the estimated fiscal year 2023-24 and fiscal year 2024- 25 Measure J Fund budget. RECOMMENDATION: 1) Provide direction to staff on any changes to the fiscal year 2023-24 and fiscal year 2024-25 budgets as adopted and recommended by the Measure J Commission. 2) Adopt the Measure J Budget. STAFF ANALYSIS: In Table 1 on the following page, a forecast of the current fiscal year Measure J Fund revenue and expenditures is provided, along with an overview of Measure J Fund budgeted revenue and expenditures for FY 2023-24 (FY24) and FY 2024-25 (FY25) as recommended by the Measure J Commission. Following Table 1, revenue and expense highlights are outlined to provide additional detail. JOINT MEETING - Page 1 City Council Staff Report June 5, 2023 -- Page 2 Joint Council Meeting with Measure J Commission for FY 2023-24 & FY 2024-25 Budget MEASURE J FUND TABLE 1 Measure J Fund Revenue Highlights for Fiscal Year 2022-23, Fiscal Year 2023-24 and Fiscal Year 2024-25 The Measure J Fund is expected to end Fiscal Year 2022-23 (FY23) with total sales tax revenue at $22.2 million, less than 1% increase over fiscal year 2021-22, but 9.2% over FY 23 budget. FY 24 sales tax revenue is projected at $22.5 million, which is 1.9% over fiscal year 2022-23. FY 25 sales tax revenue is projected at $23.4 million, which is 3.9% over FY24. Year-End Adopted Forecast Final Audited Budget Fiscal Year2021-2022 2022-2023 2022-2023 2023-2024 2024-2025 Beginning Fund Balance 21,142,569$ 32,744,800$ 32,744,800$ 6,208,265$ 4,726,113$ Measure J Sales Tax Revenue 22,202,207 20,352,400 22,228,489 22,520,046 23,405,226 Interest Income/Unrealized Gain/Loss (445,703) 287,762 250,000 250,000 Miscellaneous Revenue 13,955 Total Revenues 21,770,458 20,352,400 22,516,251 22,770,046 23,655,226 Existing Budget Obligations: Multi-Year Projects: Street Repairs 5,983,348 6,000,000 6,000,000 9,000,000 6,000,000 Community Initated Projects 13,275 3,000,000 972,580 1,000,000 1,000,000 Airport Reserve on Aviation Fuel Sales per FAA *- 200,000 200,000 200,000 200,000 Total Multi-Year Projects (Subtotal)5,996,622 9,200,000 7,172,580 10,200,000 7,200,000 Other Approved Projects and Expenses: Debt Service 1,402,832 3,138,500 3,138,500 3,133,279 3,133,620 Downtown Maintenance, Landscaping & Security 599,309 1,099,735 667,935 650,000 400,000 Transfer Out to Other Funds - 2,000,000 2,000,000 - - Expenditures 2,169,464 - - - Adopted Capital Projects FY22-23 Expenditures - 17,396,150 7,141,961 8,768,920 6,996,500 Cont Appropriations (Carryover)- 12,884,164 26,904,390 - - Cont Appropriations (Carryover) - CIP 2,027,420 Project Cost Over Runs 1,000,000 1,000,000 Parks and Recreation (Cap Prj Cost Over Runs)500,000 500,000 Total Expenditures 10,168,227 45,718,549 49,052,786 24,252,199 19,230,120 Net Change 11,602,231 (25,366,149) (26,536,535) (1,482,153) 4,425,106 Fund Balance Restricted for Measure J Capital 31,649,800 6,083,651 4,913,265 3,231,113 7,456,219 Fund Balance Restricted for Airport Projects 1,095,000 1,295,000 1,295,000 1,495,000 1,695,000 Total Fund Balance 32,744,800 7,378,651 6,208,265 4,726,113 9,151,219 * Note: Effective December 8, 2017, per a Federal Aviation Administration ruling, the City is required to set aside Measure J sales taxes collected on aviation fuel sales for airport project expenses. JOINT MEETING - Page 2 City Council Staff Report June 5, 2023 -- Page 3 Joint Council Meeting with Measure J Commission for FY 2023-24 & FY 2024-25 Budget Measure J Fund Expenditure Highlights for Fiscal Year 2022-23, Fiscal Year 2023- 24 and Fiscal Year 2024-25 The FY 24 and FY 25 is a continuation of the FY23 budget with only a few new items added. In FY 24, there will be 28 projects that will carry forward (see Attachment 1 for a list of projects). Those projects have a balance remaining (carryover) of $26.9 million. Two of these projects are on-going annually. The street paving and the pedestrian master plan get annual funding that is fully spent each year. Two of the projects are essentially “set- aside” funding for future construction of a Fire Station and Airport related projects yet to be determined. These 28 projects will add an additional $19.6 million to their budgets in FY 24. One new project will be added, a structure that will be able to house vehicles that have been impounded by the Police Department. The anticipated cost is $754,000. The total budget for projects is $19.6 million in FY 24. The Commission is also recommending adding $1 million for cost overruns as the projects get scoped and bid out. In addition to the $1 million, the Commission is recommending $500,000 for cost over- runs on Parks and Recreation specific projects. Lastly, the Commission voted to phase out the Downtown Maintenance, Landscaping, and Security line item. The FY 24 budget contains $650,000 for this purpose but will be fully phased out to zero in FY 26. This line item will be covered in the General Fund for FY26. The City is expecting to spend $19.4 million which includes the following: • $9 million on street paving • $4.7 million for LED lighting upgrades at City parks • $725,000 for Pickleball Courts The Measure J Fund also supports Community Initiated Projects (see Attachment 2 for a list of projects). The budget for those 14 projects, approved by the Council in FY 23, is $3.0 million. Currently, those projects are projected to spend a total of $1.8 million, however, as each project gets scoped and bid out, the City expects that amount to be considerably more. The Measure J Commission is recommending another $1 million be set aside in FY 24 and FY 25 for more Community Initiated Projects. The City is expecting to complete 10 of the 14 projects by the end of FY 24. In FY 25, 25 of the 28 aforementioned projects will carry forward. The City will add $14.6 million to the budgets of these projects which includes $3.6 million set-aside for future construction of a fire station. No new projects are currently planned to be added in FY 25. The Measure J Commission approved an additional $1 million to be set aside for future Library related construction. The City expects to spend $28.2 million toward these projects in FY 25 which includes the following: JOINT MEETING - Page 3 City Council Staff Report June 5, 2023 -- Page 4 Joint Council Meeting with Measure J Commission for FY 2023-24 & FY 2024-25 Budget • $7 million for the planned infrastructure upgrades to the Library ($6.5 million grant award will also be applied to this construction for a total of $13.5 million) • $6 million for street paving • $2 million to complete the purchase and installation of the Police CAD/RMS system • $1.5 million for Victoria and Ruth Hardy park restroom upgrades • $1.1 million to complete the DeMuth Park ADA access • $1 million for the Pedestrian Master Plan Overall, of the 24 active projects in Attachment 1 (28 projects less the 2 annually funded projects and the 2 set-aside funded projects), 12 are expected to be completed by the end of Fiscal Year 2024-25. ALIGNMENT WITH STRATEGIC PLANNING: This item aligns with the City Council identified major theme/principle of Forward-Thinking Governance. FISCAL IMPACT: Provide direction to Staff on any changes to the Preliminary FY24 and FY25 budgets. REVIEWED BY: Acting Director of Finance: Kristopher J. Mooney City Engineer: Joel Montalvo City Manager: Scott Stiles ATTACHMENTS: 1. Project List 2. Community Initiated Projects List JOINT MEETING - Page 4 ATTACHMENT 1 JOINT MEETING - Page 5       CITY OF PALM SPRINGS        Department of Finance        Measure J Summary        FY24 & FY25 BudgetMEASURE J FUNDEstimated Project NumberProject NameStatusBalance 06/30/23FY23‐24 BudgetFY23‐24 ExpendituresFY24‐25 BudgetFY24‐25 ExpendituresRemaining Balance16‐08 MAIN LIBRARY RENOVATIONSScope Development 4,138,339        2,921,400       1,000,000       7,059,739       1,000,000       18‐06 VICTORIA RTHHRDY RESTROOMSNot Started1,220,000        366,000          120,000          1,466,000       ‐                  18‐09 FIRE TRAINING FACILITYNot Started1,150,000        345,000          345,000          1,150,000       ‐                  18‐10 DOWNTOWN SFTY BOLLARD PH2On Hold‐                    500,000          500,000          18‐17Police Department Vehicle Impound StructureNEW754,000          290,000          464,000          ‐                  19‐16 PD 911 CAD RMSOpen1,671,980        1,078,020       750,000          2,000,000       ‐                  19‐18 JC FREY BUILDING REHABCombined‐                    1,131,000       1,131,000       ‐                  19‐23 KEYLESSS ENTRY PHASE 2Scope Development 203,348           651,000          854,348          19‐24 DEMUTH PARK ADA ACCESS PH2RFP Design Services 595,714           1,000,000       478,714          1,117,000       ‐                  19‐25 LIFE SAFETY IMPRV FIRE SPRKLRNot Started900,000           500,000          500,000          1,900,000       ‐                  19‐26 EMERGENCY GENERATORS CITYFACNot Started1,200,000        777,500          1,977,500       ‐                  19‐27 HVAC CITY WATER TREATMENT PRGMNot Started607,500           607,500          ‐                  19‐28 RECREATIONAL LED LIGHTING UPGROut to Bid4,702,213        4,702,213       ‐                  20‐03 PALM CYN INDIAN ROUNDABOUTUnder Design334,487           520,000          300,000          200,000          754,487          20‐04 SUNRISE PLAZA HVAC IMPROVEMENTSNot Started400,000           650,000          696,500          1,746,500       ‐                  21‐16 DEMUTH DOG PARKScope Development 202,000           202,000          ‐                  21‐17 ARNICO TRACT SEWER PHASE 4Completed Design 684,950           684,950          ‐                  22‐11‐2PARK BENCHESOpen10,000              10,000            22‐11‐3 PAVILION LANDSCAPINGOpen10,000              10,000            22‐16 CONVENTIONCTR HOUSTON PLAZA UPGRADEScope Development‐                    ‐                  22‐19 RELOCATE FIRE STATION 1Not Started1,600,000        ‐                       500,000          3,600,000       4,700,000       N/A 260.2 DOWNTOWN MAINTENANCE, LANDSCAPING, ETCOpen‐                    650,000          650,000          400,000          400,000          ‐                  22‐20 COMMUNITY INITIATED PROJECTS In Process2,027,420        1,000,000       328,920          1,000,000       3,698,500       22‐21 PEDESTRIAN STREETS MASTER PLANScope Development 500,000           500,000          500,000          500,000          1,000,000       ‐                  22‐24 PICKLEBALL COURTSScope Development 150,000           575,000          725,000          ‐                  22‐25‐1 DOWNTOWN PROJECT‐DSRTFASHIONPLAZAOpen8,863                8,863              22‐26 SAN RAFAEL DRIVE TURF CONVERSIONNot Started150,000           150,000          22‐32‐1 PROPERTY MAINTENANCE/LANDSCAPEOpen95,121              95,121            22‐37‐1AIRP RES‐FUEL FAAOpen1,295,000        200,000          200,000          1,695,000       PAVING ANNUAL PAVING REHABILITATIONUnder Construction 3,000,000        6,000,000       9,000,000       6,000,000       6,000,000       ‐                  18‐04 ‐MEAS JPLAZA THEATER ‐ TRANSFERRED TO GENERAL FUNDCompleted38,872              38,872            14‐20OTHEROn Hold8,582                8,582              SUBTOTAL26,904,390$    19,618,920$  19,374,797$  14,596,500$  28,221,239$  13,523,774$  Measure J Interfund ItemsDEBT Measure J Debt ServiceN/A‐                    3,133,279       3,133,279       3,133,620       3,133,620       SUBTOTAL‐$                      3,133,279$    3,133,279$     3,133,620$    3,133,620$      ‐$                     TOTAL 26,904,390$    22,752,199$  22,508,076$  17,730,120$  31,354,859$  13,523,774$  Cost Over Runs 1,500,000       1,500,000       GRAND TOTAL 24,252,199$  19,230,120$  JOINT MEETING - Page 7I ATTACHMENT 2 JOINT MEETING - Page 6        CITY OF PALM SPRINGS         Department of Finance         Measure J Community Initiated Projects (Proj. 22‐20)                 Fiscal Year 2023‐24 and Fiscal Year 2024‐25 BudgetNumberNameStatus FY22‐23 Budget FY22‐23 Expenditures  FY23‐24 Expenditures  FY24‐25 Expenditures  Remaining Balance 1Drainage at the boys and Girls ClubScope Development72,500$                 6,080$              66,420             ‐$                    2 Shade Structure over the playground at Victoria ParkDesign Development58,000                   ‐                    58,000             ‐                       3Fencing between the Pool and PavillionRFP Design Services87,000                   40,000              47,000             ‐                       4Repair Existing Exercise Equipment at Desert Highland ParkNot Started32,625                   ‐                    32,625                5Add 4 New Pieces of Exercise Equipment at Desert Highland ParkNot Started71,775                   ‐                    71,775                6 Hiking Trail Maintenance and Trailhead SignageNot Started145,000                 ‐                    145,000              7 Shade Structures at Animal ShelterBid ‐ Over Budget280,500                 280,500            ‐                       8Demuth Dog Park Upgrades to address immediate needsIn Process362,500                 362,500            ‐                       9 Resurfacing the Walking Path at Desert Highland ParkPending a quote72,500                   ‐                    72,500             ‐                       10 Swim Center Locker RoomsRFP Design Services145,000                 60,000              85,000             ‐                       11 Palm Canyon Theatre Maintenance RepairsAgreement in Process 280,575                 ‐                    280,575              12 Visitor Center Up LightingAgreement in Process43,500                   43,500              ‐                       13 Wellness Centers and Local Schools (4 schools)Check Issued 100,000                 100,000            ‐                       14 School Gardens at Local Schools (4 schools)Check Issued 80,000                   80,000              ‐                       SUBTOTAL         1,831,475$           972,580$         328,920$        ‐$                 529,975$            JOINT MEETING - 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