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Home My WebLink About3C - PresentationCity of Palm Springs FISCAL YEAR 2025 CONTINUATION BUDGET ADJUSTMENT JUNE 13, 2024 2 City of Palm Springs FY25 Continuation Budget Adjustment FY22 FY 23 FY24 % Increase/ Decrease Description Final Final Forecast from PY Revenue Transient Occupancy Tax 53,900,745 53,002,407 50,359,743 -5.0% Property Taxes 28,831,512 32,492,905 34,408,589 5.9% Sales and Use Taxes 31,818,760 33,170,143 31,353,777 -5.5% Utility Users Tax 15,627,960 14,988,973 14,730,053 -1.7% Motor Vehicle In-Lieu Tax 6,141,974 6,739,528 6,718,385 -0.3% Franchise Tax 4,138,935 4,571,990 4,527,337 -1.0% Cannabis Tax 4,535,370 3,460,574 1,935,840 -44.1% Other Taxes 6,736,635 6,896,587 6,659,240 -3.4% Permits, Fines, and Fees 13,514,189 14,193,562 13,580,042 -4.3% Interest Income 419,295 2,095,940 3,357,710 60.2% Miscellaneous Income 7,598,160 3,201,124 4,265,252 33.2% Transfers From Other Funds - 1,000,000 - Operating Revenue 173,263,534 175,813,732 171,895,967 -2.2% FY24 Forecast vs. FY23 Final •Continuing to expect major tax revenue line items to level off with Sales Tax and TOT down approximately 5% from prior year. •Property Tax appearing to be stronger than expected with an increase of 6% from prior year. •Cannabis Tax down from prior year due to the Tax rate being reduced to 5%. 3 City of Palm Springs FY25 Continuation Budget Adjustment 4 City of Palm Springs FY25 Continuation Budget Adjustment 5 City of Palm Springs FY25 Continuation Budget Adjustment FY22 FY 23 FY24 % Increase/ Decrease Description Final Final Forecast from PY Expense City Admin & Economic Development 4,881,929 5,964,302 7,321,531 22.8% General Government 14,259,147 13,699,158 17,042,911 24.4% Developmental Services 16,273,561 18,054,639 17,230,932 -4.6% Tourism and Community Support 7,572,319 8,515,675 8,085,962 -5.0% Library 2,854,721 2,947,669 2,958,152 0.4% Parks and Recreation 4,968,782 6,182,388 7,014,862 13.5% Police Department 36,106,703 41,250,576 41,957,349 1.7% Fire Department 21,981,456 24,732,998 26,783,832 8.3% Public Works 8,765,090 10,397,257 10,899,719 4.8% CalPERS Annual Reserve 6,000,000 6,000,000 6,000,000 0.0% Affordable Housing Annual Reserve - 3,211,707 3,000,000 -6.6% Transfers to Other Funds 14,510,800 25,332,703 32,230,879 27.2% Miscellaneous Expense 1,641,692 1,662,906 1,641,692 -1.3% Operating Expenses 139,816,200 167,951,977 182,167,822 8.5% Operating Surplus/Deficit 33,447,335 7,861,755 (10,271,854) Grant Revenue 12,102,934 17,913,516 18,321,303 2.3% Grant Expense (1,163,506) (6,463,377) (18,321,303) 183.5% Council Set Aside Expense - (7,029,415) (4,137,002) -41.1% Total Surplus/Deficit 44,386,763 12,282,479 (14,408,855) FY24 Forecast vs. FY23 Final •Salary and Benefits up over $5 million causing increase in most departmental expenses. •Transfers to Other Funds includes $13 million for Plaza Theatre Restoration. •Grant Revenue and Expense includes $16 million Homekey grant for Navigation Center construction. 6 City of Palm Springs FY25 Continuation Budget Adjustment FY24 FY25 FY25 $ Variance from Adopt Budget to Description Forecast Adopted Budget Revised Budget Rev Budget Revenue Transient Occupancy Tax 50,359,743 51,122,534 51,122,534 - Property Taxes 34,408,589 31,636,084 34,636,084 3,000,000 Sales and Use Taxes 31,353,777 35,061,718 32,061,718 (3,000,000) Utility Users Tax 14,730,053 24,056,277 15,230,053 (8,826,224) Motor Vehicle In-Lieu Tax 6,718,385 6,695,932 6,695,932 - Franchise Tax 4,527,337 4,769,609 4,769,609 - Cannabis Tax 1,935,840 3,007,149 1,507,149 (1,500,000) Other Taxes 6,659,240 7,801,013 7,801,013 - Permits, Fines, and Fees 13,580,042 14,058,519 14,058,519 - Interest Income 3,357,710 3,623,803 3,623,803 - Miscellaneous Income 4,265,252 4,234,169 4,234,169 - Transfers From Other Funds - - 5,000,000 5,000,000 Operating Revenue 171,895,967 186,066,808 180,740,583 FY25 Revised vs FY25 Adopted •Increase Property Tax and decrease Sales Tax by $3 million each to be line with the last few years. •UUT down due to incorrect Consultant information, $8.8 million •Reducing Internal Service Fund charges to the General Fund to be in line with actual cost, $5 million. 7 City of Palm Springs General Fund Budget Review FY24 FY25 FY25 $ Variance from Adopt Budget to Description Forecast Adopted Budget Revised Budget Rev Budget Expense City Admin & Economic Development 7,321,531 7,943,752 8,958,829 1,015,077 General Government 17,042,911 17,535,866 17,940,866 405,000 Developmental Services 17,230,932 16,585,118 16,300,234 (284,884) Tourism and Community Support 8,085,962 8,618,932 8,792,682 173,750 Library 2,958,152 3,608,489 3,608,489 - Parks and Recreation 7,014,862 9,667,726 10,004,026 336,300 Police Department 41,957,349 44,583,932 44,583,932 - Fire Department 26,783,832 28,921,982 29,350,482 428,500 Public Works 10,899,719 13,529,228 14,491,150 961,922 CalPERS Annual Reserve 6,000,000 6,000,000 6,000,000 - Affordable Housing Annual Reserve 3,000,000 3,000,000 3,000,000 - Transfers to Other Funds 32,230,879 19,131,808 15,159,587 (3,972,221) Miscellaneous Expense 1,641,692 1,641,692 1,641,692 - Operating Expenses 182,167,822 180,768,524 179,831,968 Operating Surplus/Deficit (10,271,854) 5,298,284 908,615 Grant Revenue 18,321,303 5,764,478 10,636,688 4,872,210 Grant Expense (18,321,303) (5,764,478) (10,636,688) (4,872,210) Council Set Aside Expense (4,137,002) - (6,613,205) (6,613,205) Total Surplus/Deficit (14,408,855) 5,298,284 (5,704,591) FY25 Revised vs FY25 Adopted •Timing differences between FY24 and FY25, no impact on 2-year budget. Examples include Zoning Code Update, Housing Element Implementation, Parks Master Plan, Fire Dept Earthquake warning system, etc. •Transfers to Other Funds include eliminating the transfer to the Capital Fund of $2 million •New spend for FY25 proposed is adding $50,000 to the elections budget and $433,000 for encampment clean up.