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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 - Page 8