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HomeMy WebLinkAboutItem 3B - PresentationCity of Palm Springs MID-YEAR FINANCIAL PERFORMANCE FISCAL YEAR 2023-24 MARCH 14, 2024 PPT # Item 3B - Page 1 City of Palm Springs Mid-Year Update FY 2023-24 General Fund - Revenue •TOT is forecasted at $51 million, approximately 4% over budget. Down from prior year, but strong historically. •Property Tax is expected to exceed budget by 6%, the City levied just over $33 million in Property Taxes for this fiscal year. •Sales Tax is projected to be below budget approximately 6%,sales tax revenue remains strong historically. •UUT is down significantly from budget but flat to the prior year. City staff is looking into the budgeted number with the City’s tax consultants. 2024 2024 2024 2024 2024 2024 Achieved Q1 Q2 Q3F Q4F TOTAL FORECASTED Revised Budget % Total Revenue 16,735,842$ 46,263,502$ 53,283,785$ 74,855,704$ 191,138,833$ 194,861,839$ 98% Transient Occupancy Tax 4,111,908 11,057,651 13,367,620 22,345,091 50,882,270 48,921,085 104% Property Taxes 2,767 12,044,187 10,085,060 10,685,816 32,817,830 31,015,768 106% Sales and Use Taxes 2,153,737 6,825,668 8,862,211 13,914,205 31,755,821 33,811,056 94% Utility Users Tax 2,321,622 4,082,355 3,816,841 4,618,290 14,839,108 20,801,900 71% Motor Vehicle in Lieu tax - - 3,396,275 3,343,253 6,739,528 6,564,639 103% Franchise Fees - 626,441 473,013 3,737,620 4,837,074 4,676,087 103% Cannabis Tax 534,408 643,255 935,786 1,115,786 3,229,235 3,426,106 94% All Other Sources 4,219,169 7,592,809 7,787,228 9,976,359 29,575,564 29,182,794 101% Grant Revenue 3,392,232 3,391,135 4,559,753 5,119,283 16,462,403 16,462,403 100% Transfers From Other Funds - - - - - - Item 3B - Page 2 City of Palm Springs Mid-Year Update FY 2023-24 General Fund – Revenue cont. TOT Sales Tax Property Tax - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 General Fund Major Revenues -10-Year TOT Sales Tax Property Tax Item 3B - Page 3 City of Palm Springs Mid-Year Update FY 2023-24 General Fund Expenses •The City is forecasting a salary savings of approximately $4 million across the various departments, the City continues to aggressively fill vacant positions. •General Fund grant expenditures are forecasted to be $16.5 million, largely due to the Navigation Center’s state provided HomeKey and HHAP grants as well as the Retail Theft grant obtained by the Police Department. •The City has spent approx. $7.2 million on Council set-asides and has a remaining $10.2 million to be spent on Affordable Housing, Climate Projects, and Homelessness, most of which is committed to specific projects. •Budgeted expenses increased by $6.3 million largely due to supporting the Plaza Theater renovation project, expected to be repaid by the Plaza Theater Foundation. 2024 2024 2024 2024 2024 2024 Achieved Q1 Q2 Q3F Q4F TOTAL FORECASTED Revised Budget % Total Expense 38,409,295$ 50,991,257$ 45,126,413$ 86,029,398$ 220,556,362$ 225,017,657$ 98% General Government 7,004,480 13,047,113 9,017,103 12,894,787 41,963,483 42,027,878 100% Developmental Services 2,813,047 4,574,125 6,209,233 6,535,617 20,132,022 22,656,627 89% Public Works 1,344,169 1,590,810 1,526,178 1,873,653 6,334,811 6,415,237 99% Police 10,319,991 11,650,025 9,549,448 11,338,426 42,857,890 43,162,177 99% Fire 6,077,461 7,300,049 6,814,953 7,347,729 27,540,192 27,617,124 100% Parks and Recreation 2,524,946 3,392,051 3,629,752 4,299,319 13,846,068 15,256,717 91% PERS Future Cost Reserve - - - 6,000,000 6,000,000 6,000,000 100% Affordable Housing Reserve*- - - 3,000,000 3,000,000 3,000,000 100% Transfers 4,932,970 6,045,948 3,819,992 17,431,970 32,230,879 32,230,879 100% Set-Asides Remaining - - - 10,188,615 10,188,615 10,188,615 100% Grant Expense 3,392,232 3,391,135 4,559,753 5,119,283 16,462,403 16,462,403 100% Surplus/(Deficit)(21,673,453)$ (4,727,755)$ 8,157,373$ (11,173,694)$ (29,417,529)$ (30,155,818)$ *Affordable Housing Reserve estimated to be $6.2 million at Fiscal Year end Item 3B - Page 4 City of Palm Springs Mid-Year Update FY 2023-24 Capital Funds Project Name Actual & Enc.Budget Status INDIAN UNION PAC RR BRIDGE*38,698,264$ 44,399,140$ Under Construction PLAZA THEATER IMPROVEMENTS**25,597,898 31,551,518 Under Construction RAMON ROAD BRIDGE 747,327 17,287,835 Constr. starts early 2025 VISTA CHINO BRIDGE WW WASH 3,560,868 15,795,662 C onstr. starts Aug 2026 S PALM CYN TAHQUITZ CREEK BRIDGE 202,664 14,238,386 Constr. starts Jan 2025 MAIN LIBRARY RENOVATIONS***1,850,789 14,120,100 Under Design STORM DRAIN LINE 20 12,344,902 12,422,704 Under Construction ANNUAL PAVING REHABILITATION - 9,000,000 Const. starts Mar 2024 NAVIGATION CENTER****9,760,000 9,760,000 Under Construction EPC PALM CYN WASH BRIDGE 519,619 9,813,936 Constr. starts June 2025 RECREATIONAL LED LIGHTING UPGRADE 5,157,772 6,194,219 Under Construction TOTAL 98,440,103$ 184,583,501$ * Excludes $13M of project funding from wastewater **Majority of funding will come from fundraising efforts and revenues provided by Plaza Theater Foundation *** Infrastructure Only **** $29.9 million of the project is funded with grants and General Fund balance primarily in the General Fund Top Projects Fund Revenue Expense Surplus/(Deficit)Use of Funds Measure J 22,431,091$ 23,047,919$ (616,828)$ Infrastructure Capital*18,581,487 11,385,346 7,196,140 Infrastructure Measure A 11,092,040 9,185,311 1,906,729 Transportation RMRA 2,884,988 1,655,803 1,229,185 Road Maintenance Gas Tax 1,238,209 3,256,995 (2,018,786) Road Maintenance Quimby 591,491 837,555 (246,064) Parks and Recreation Drainage 482,777 647,990 (165,213) Drainage TOTAL 57,302,084$ 50,016,919$ 7,285,164$ *Capital fund includes $3 million Council set-aside for playgorund equipment at various parks as well as Swim Center improvements Forecast Item 3B - Page 5 City of Palm Springs Mid-Year Update FY 2023-24 Airport - Revenue •Charges for services down approximately $13 million from budget. Airport Use and Lease Agreement with the airlines, effect July 1, 2023, is generating increased revenue offset by lower concessions revenue due to construction. •Budgeted federal grants of $56 million is expected to be spent over the next 3 - 5 fiscal years on capital projects throughout the airport. •Passenger Traffic increased 3% over last fiscal year to 3.4 million. Customer Facility Charges and Passenger charges are on budget. 2024 2024 2024 2024 2024 2024 Achieved Q1 Q2 Q3F Q4F TOTAL FORECASTED REVISED BUDGET % Total Revenue 6,216,398$ 16,375,852$ 27,570,894$ 32,132,899$ 82,296,044$ 149,425,134$ 55% Licenses & Permits 13,121 85,013 69,469 51,500 219,103 146,953 149% Intergovernmental - 1,408,292 - 5,064,306 6,472,598 5,064,306 128% Charges for Services 4,851,440 10,092,970 15,643,113 12,170,748 42,758,271 56,001,010 76% Customer Facility Charges 444,006 1,793,250 3,219,690 3,512,959 8,969,905 8,806,327 102% Passenger Charges 450,461 1,666,416 2,310,867 1,991,249 6,418,993 6,425,776 100% Fines & Forfeitures 92 557 505 280 1,433 6,000 24% Interest Revenue 454,598 818,031 1,627,427 3,241,222 6,141,278 660,000 930% Miscellaneous 2,681 1,167 3,400 683,891 691,140 69,750 991% Capital Project Grants - - 1,093,573 1,618,452 2,712,025 0 NA Capital Proj Federal Grants - 510,157 1,000,000 1,000,000 2,510,157 56,218,162 4% Airport Grants - - 2,602,850 2,798,292 5,401,142 2,602,850 208% Transfers In - - - - - 13,424,000 0% Item 3B - Page 6 City of Palm Springs Mid-Year Update FY 2023-24 Airport – Passenger Traffic 1,852,606 1,816,588 1,332,655 3,270,023 3,379,510 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 13-14'14-15'15-16'16-17'17-18'18-19'19-20'20-21'21-22'22-23'F23-24'PassengersFiscal Year 10-Year Total Passengers: Historical & Forecasted Item 3B - Page 7 City of Palm Springs Mid-Year Update FY 2023-24 Airport – Operating Revenues Charges for Services FY22 FY23 FY24 FORECAST Customer Facility Charges 4,215,294 8,679,303 8,969,905 Passenger Facility Charges 5,480,477 6,232,032 6,418,993 Airline Charge 6,845,659 7,469,265 12,363,628 Public Parking 5,349,941 6,193,403 6,445,844 Rental Car 11,330,331 12,550,801 10,228,529 Other Airport Charges 9,713,100 11,169,193 13,940,805 Total Charges for Services 42,934,802 52,293,997 58,367,704 Operating Revenues 42,934,802 52,293,997 58,367,704 Item 3B - Page 8 City of Palm Springs Mid-Year Update FY 2023-24 Airport - Expenses •All departments are down due to vacancy savings. The airport added more than 40 positions in the FY2023-24 budget. •Approximately $120 million (71%) of the budgeted expenses are for capital projects •Major capital projects currently underway are as follows: •Checked baggage inspection system building design – $23.1 million •Inbound baggage claim design and construction – $33.7 million •Restroom capacity and ADA renovation – $10.0 million 2024 2024 2024 2024 2024 2024 Achieved Q1 Q2 Q3F Q4F TOTAL FORECASTED REVISED BUDGET % Total Expense 7,256,385$ 14,741,992$ 15,413,689$ 12,611,200$ 50,023,266$ 168,697,507$ 30% Administration 1,075,262 1,674,228 1,555,685 1,272,833 5,578,008 8,155,945 68% Airport IT 73,387 120,455 270,419 221,252 685,514 1,026,206 67% Law Enforcement 788,919 950,429 812,715 664,949 3,217,011 3,130,981 103% Aviation Security 26,176 54,163 50,600 41,400 172,339 1,936,264 9% Airside Operations 1,046,984 1,695,098 1,502,385 1,229,224 5,473,691 5,981,668 92% Rescue - Fire 820,004 1,146,633 1,371,106 1,121,814 4,459,558 4,828,582 92% Landside Operations 161,483 599,409 440,702 360,575 1,562,169 2,217,250 70% Grounds Maintenance 79,000 142,395 129,556 106,000 456,952 691,680 66% Terminal Building Ops 994,823 1,083,197 1,372,246 1,122,747 4,573,013 8,270,483 55% Other Expenses 2,190,347 7,275,983 4,067,275 3,327,771 16,861,377 119,034,447 14% Transfers Out - - 3,840,999 3,142,635 6,983,634 13,424,000 52% Surplus/(Deficit)(1,039,987)$ 1,633,860$ 12,157,206$ 19,521,699$ 32,272,778$ (19,272,373)$ Item 3B - Page 9 City of Palm Springs Mid-Year Update FY 2023-24 Airport – Capital Projects Project Name Actual & Encumbrances Budget Funding Source Status AIRCRAFT RESCUE & FIREFIGHTING TRUCK 1,127,610 1,500,000 Airport Acquired Equipment AUTOMATED VEHICLE IDENTIFICATION 138,192 300,000 Airport In Progress CARPET REPLACEMENT - MAIN TERMINAL & TSA - 400,000 Measure J In Progress COMMON USE 1,322,192 3,003,374 Airport Under Construction EV CHARGER 295,708 499,103 Airport / ACIP Acquired Equipment FEDERAL INSPECTION SERVICES (FIS)305,000 315,000 Airport Study in Progress GATE STRIPING 599,900 599,900 Airport Complete HOT SPOT STUDY 183,802 200,000 ACIP Study in Progress INBOUND BAGGAGE CLAIM 3,008,019 33,697,747 Airport / BIL - ATP Grant Design in Progress MASTER PLAN 2,277,576 2,275,816 ACIP Study in Progress OUTBOUND BAGGAGE HANDLING SYSTEM 3,174,638 23,174,638 Airport / ACIP / PFC Design in Progress PUBLIC PARKING PAVING 1,523 2,400,000 Airport Design in Progress PUBLIC RESTROOMS 29,028 10,000,000 Airport / BIL - ATP Grant Design in Progress SEATING - MID-CENTRY OUTDOOR BENCHES - 100,000 Measure J In Progress SHADE STRUCTURE - UBER/LYFT/TAXI PICK-UP AREA - 1,000,000 Measure J In Progress TAXIWAY REHABILIATION W & A1 571,315 630,000 ACIP Design in Progress WATER FILL STATIONS - 50,000 Measure J In Progress WIFI WIRELESS EQUIPMENT 935,899 1,277,825 Airport Acquired Equipment WILDLIFE HAZARD ASSESSEMENT 137,892 273,892 ACIP Study in Progress TOTAL 14,108,294 81,697,295 Department of Aviation Top Projects Item 3B - Page 10