HomeMy WebLinkAbout3B - PresentationCity of Palm Springs
MID-YEAR FINANCIAL PERFORMANCE
FISCAL YEAR 2024-25
FEBRUARY 27, 2025
Item 3B - Page 1
City of Palm Springs
GENERAL FUNDS
Item 3B - Page 2
2025 2025 2025 2024 2025 vs 2024
Q1 Q2 Total YTD Total YTD i n %
Transient Occupancy Tax 3,867 7,900 11,767 14,980 (3,213) -21%
Property Tax 0 12,643 12,643 12,047 597 5%
Sales and Use Tax 2,298 6,214 8,512 8,979 (468) -5%
Utility Users Tax 2,026 3,371 5,397 6,404 (1,007) -16%
Motor Vehicle in Lieu Tax 0 0 0 0 0 0%
Franchise Fee 0 638 638 626 12 2%
Cannabis Tax 121 333 454 1,128 (673) -60%
Other Taxes 202 292 495 746 (251) -34%
Permits, Fines, and Fees 2,805 4,314 7,118 6,671 448 7%
Interest Income 1,106 924 2,030 1,823 206 11%
Miscellaneous Income 763 3,846 4,609 2,988 1,622 54%
Total Revenue $13,188 $40,476 $53,664 $56,392 ($2,728)-5%
Amounts in Thousand USD
2025 vs 2024Revenue
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND Revenue
•TOT on cash basis is down 21% from FY24, on modified accrual basis TOT is down by 6%. Hotels were better than prior year in
November and December. Vacation Rentals were better than prior year in December.
•Property Tax is up 5%. Steady growth continues.
•Sales and Use Tax is down 5% from FY24 and is in line with the City Consultants projections. December was estimated at 5% down
from prior year, however, actuals came in at 13% greater than prior year.
•Misc. Income is up 54%, due to greater realized gains from the City’s investment portfolio in FY25 and higher Master Lease Income
from the Renaissance.
Item 3B - Page 3
2025 2025 2025 2024 2025 vs 2024
Q1 Q2 Total YTD Total YTD 2025 vs 2024 in %
City Admin & Economic Development 1,586 2,473 4,059 3,048 1,011 33%
General Government 4,448 4,909 9,357 9,582 (225) -2%
Developmental Services 3,310 3,919 7,229 7,387 (158) -2%
Tourism and Community Support 1,589 2,323 3,911 4,263 (352) -8%
Library 711 923 1,634 1,486 148 0%
Parks and Recreation 1,806 2,251 4,058 3,495 563 16%
Police Department 10,577 11,770 22,347 21,970 377 2%
Fire Department 6,860 7,583 14,442 13,378 1,065 8%
Public Works 2,832 3,715 6,547 5,370 1,176 22%
Transfers to Other Funds 5,823 5,823 11,646 10,979 667 6%
Miscellaneous Expense 0 1,976 1,976 1,659 317 19%
Total Operating Expenses $39,543 $47,665 $87,207 $82,617 $4,590 6%
Amounts in Thousand USD
Operating Expenses
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND Operating Expenses
•Generally, most departments are higher over prior year due to higher salary and benefits costs.
Public Safety is higher than others due to greater than expected CalPERS expense.
•City Admin & Economic Development is up 33% compared to FY24 mainly due to the Economic Development
transferred to City Admin in Q3/FY24
•Public Works is up 22%, mainly due to higher contractual services in FY25
•Misc. Expense is up 19%, due to the increased cost of land lease (ACBCI Master Lease)
Item 3B - Page 4
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND Revenue Forecast
•TOT projected to be down 6%. Showing some growth over prior year the last couple of months.
•Sales tax projected to be down 5%. December up 13% from prior year.
•Cannabis tax down 38% due to the tax reduced to 5% from 10%.
•Misc. Income down 59% due to year end audit entries for unrealized gains on the City’s investment portfolio.
FY25 FY 24 Variance Variance FY25 Achieved
FCST Actuals 2025 vs 2024 in %Revised Budget %
Transient Occupancy Tax 47,300 50,378 (3,078) -6% 51,123 93%
Property Tax 38,250 36,090 2,160 6% 34,636 110%
Sales and Use Tax 28,500 29,905 (1,405) -5% 32,062 89%
Utility Users Tax 11,000 13,689 (2,689) -20% 15,230 72%
Motor Vehicle in Lieu Tax 6,696 7,382 (686) -9% 6,696 100%
Franchise Fee 4,770 4,154 616 15% 4,770 100%
Cannabis Tax 1,507 2,435 (927) -38% 1,507 100%
Other Taxes 7,801 7,747 54 1%7,832 100%
Permits, Fines, and Fees 14,065 14,669 (604) -4% 14,065 100%
Interest Income 3,624 3,871 (247) -6% 3,624 100%
Miscellaneous Income 4,637 11,362 (6,726) -59% 4,274 108%
Total Revenue $168,150 $181,682 ($13,532)-7%$175,818 96%
Amounts in Thousand USD
Revenue
Item 3B - Page 5
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND Operating Expenses Forecast
•Development Services down 29% due to Navigation Center expenses in FY24, approximately $7 million.
•Tourism and Community Support has increased 6% largely due to increased support for the Tourism Bureau and Visitors Center.
•Library is up 16% largely due the increase in salary & benefits
•Parks and Recreation is up 36% due to increased salary & benefits and an increase in contractual services for completing and
implementing the Parks Master Plan
•Public Safety (Police and Fire) are up largely due to increased salary & benefits, larger than expected increase in CalPERS expense, and
increased overtime.
•Public Works is up 21% due to increased contractual services and salaries & benefits.
FY25 FY 24 Variance Variance F Y25 Achieved
FCST Actuals 2025 vs 2024 in %Revised Budget %
City Admin & Economic Development 8,958 7,806 1,152 15% 8,959 100%
General Government 18,002 19,920 (1,917) -10% 17,941 100%
Developmental Services 16,299 23,100 (6,801) -29% 16,300 100%
Tourism and Community Support 8,511 8,005 506 6%8,793 97%
Library 3,610 3,100 510 16% 3,617 100%
Parks and Recreation 10,038 7,384 2,654 36% 10,042 100%
Police Department 44,653 42,933 1,720 4% 44,584 100%
Fire Department 29,705 28,084 1,621 6% 29,623 100%
Public Works 14,490 11,956 2,534 21% 14,491 100%
Transfers to Other Funds 15,160 33,262 (18,102) -54% 15,160 100%
Miscellaneous Expense 1,976 1,642 334 20% 1,642 120%
Total Operating Expenses $171,402 $187,191 ($15,789)-8%$171,151 100%
Amounts in Thousand USD
Operating Expenses
Item 3B - Page 6
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND Operating Expenses by Category
Item 3B - Page 7
General Fund Fund Balance FY24 Actuals FY25 FCST
Beginning Fund Balance 153,685,766$ 147,988,092$
Total Revenues 181,682,091 168,149,660
Total Expenses 187,190,509 171,401,613
Operating Surplus/(Deficit)(5,508,418) (3,251,953)
Grant Revenue 17,929,542 10,529,687
Grant Expense (14,942,182) (12,993,227)
Transfers From Other Funds - 5,000,000
Council Set Aside Expense (3,176,617) (6,130,788)
Non-Operating Surplus/(Deficit)(189,256) (3,594,328)
Total Surplus/(Deficit)(5,697,674) (6,846,281)
Ending Fund Balance 147,988,092$ 141,141,812$
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND Balances
Item 3B - Page 8
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND Balances
General Fund Fund Balance FY24 Actuals FY25 FCST
Balance Reconciliation:
PERS Future Cost Reserve ($6m p.a.)40,250,000 46,250,000
Affordable Housing Reserve ($3m p.a.)6,166,762 9,166,762
Airport Reserve (Measure D)1,195,623 1,445,623
Minimum Fund Balance (20% of OpEx)37,438,102 34,280,323
Unassigned Funds 62,937,605 49,999,104
Total General Fund Balance 147,988,092$ 141,141,812$
Item 3B - Page 9
City of Palm Springs
Mid-Year Update FY 2024-25 – GENERAL FUND
Looking Ahead to FY26:
The City is anticipating the following assumptions for FY26 / FY27 budget cycle:
•Sales and TOT tax appear to be stabilizing. FY26 sees these revenues as flat
approaching the next fiscal year
•Property Tax strong, but growth should slow to 2 – 3%
•Potentially greater revenue from fees due to the fee study currently being
conducted
•Salaries and Benefits expected to climb in FY26 by
approximately 5% or $5 million
•Likely to see cost reductions into FY26 and FY27
•Economic uncertainty with the current federal administration in place
Item 3B - Page 10
City of Palm Springs
CAPITAL FUNDS
Item 3B - Page 11
City of Palm Springs
Mid-Year Update FY 2024-25 – CAPITAL FUNDS Revenue & Expenses
Capital 2025 2025 2025 2025 FY25 FY24 Variance Variance
Project Q1 Q2 Q3F Q4F Forecast Actuals 24 vs 25 in %
Capital *8,091,507 569,277 6,564,327 5,075,037 20,300,148 40,920,657 (20,620,509) -50%
Measure J 1,818,858 5,227,443 5,522,694 8,818,627 21,387,623 23,863,148 (2,475,526) -10%
RMRA 228,753 345,200 326,280 335,740 1,235,973 1,299,460 (63,487) -5%
Gas Tax 262,852 394,427 231,746 263,087 1,152,112 1,213,165 (61,053) -5%
Measure A 335,742 753,664 1,496,672 2,982,320 5,568,397 6,324,247 (755,850) -12%
Drainage 70,629 63,293 102,292 105,251 341,465 314,850 26,615 8%
Quimby 278,272 109,272 98,000 110,000 595,544 547,209 48,335 9%
Total Revenue 11,086,613 7,462,576 14,342,012 17,690,062 50,581,262 74,482,737 (23,901,474) -32%
Capital 4,718,432 10,087,542 6,964,000 6,341,216 28,111,191 32,583,154 (4,471,963) -14%
Measure J 5,751,919 2,794,752 1,255,018 3,199,281 13,000,970 19,427,851 (6,426,881) -33%
RMRA 976 651,982 361,945 482,209 1,497,112 851,786 645,326 76%
Gas Tax **33,000 516,808 533,697 525,253 1,608,759 124,945 1,483,813 1188%
Measure A 187,180 894,555 894,555 894,555 2,870,845 3,332,780 (461,935) -14%
Drainage 246,655 421,653 334,154 135,000 1,137,462 913,191 224,271 25%
Quimby 19,367 70,072 200,041 400,081 689,562 634,985 54,577 9%
Total Capital Project Expense 10,957,530 15,437,364 10,543,409 11,977,595 48,915,899 57,868,691 (8,952,792) -15%
Surplus/(Deficit)129,082 (7,974,788) 3,798,603 5,712,466 1,665,363 16,614,046 (14,948,682) -90%
* Capital - In FY24 $20 million transferred from the General Fund ($12.5M) and Measure J ($7.5M) to cover Plaza Theatre expenses
** Gas tax - Increased funding for Annual Slurry Seal Maintenance streets program in FY25
Item 3B - Page 12
City of Palm Springs
Mid-Year Update FY 2024-25 – CAPITAL FUNDS Top Projects
Project Name Expense Budget Funding Source Status
Indian Union Pacific RR Bridge 14,309,297 59,784,356 Capital/WWTP Under Construction, expected
completion late 2026
Library Renovation 2,004,190 40,000,000 Measure J Under Design, expect to bid in April-
May 2025
Ramon Road Bridge 668,414 33,348,036 Capital/Measure A Completing Right of Way Phase,
expect bid mid 2026
Plaza Theatre Renovation 13,525,979 32,000,000 Capital/General Fund/Measure J Under Construction, expected
completion October 2025
S. Palm Canyon Tahquitz Creek Bridge 239,030 14,888,386 Capital/Measure A Under Construction, expected
completion late 2026
Storm Drain - Line 20 12,023,415 13,469,940 Capital/Drainage Completed
South Palm Canyon Bridge 87,630 7,957,963 Capital/Measure A/Gas Tax Expect bid April-May 2025
Street Maintenance - Slurry 1,451,535 5,147,504 RMRA/Measure A/Gas Tax Completed This Years Project
Pedestrian Streets Master Plan 345,051 4,500,000 Capital/Measure A/Measure J Ongoing - Multiple Projects
HSIP Cycle 8 Traffic Signal Improvements 3,565,858 4,322,965 Capital/RMRA Completed
Public Safety CAD RMS 151,452 2,750,000 Measure J RFP to be issued soon
Top Projects
Item 3B - Page 13
City of Palm Springs
Mid-Year Update FY 2024-25 – CAPITAL FUNDS Top Projects
Looking Ahead to FY26:
Continuation of major road and bridge projects:
Project Name Status Funding Source
Indian Canyon under construction Capital/Measure A/Wastewater
South Palm Canyon at Tahquitz under construction Capital/Measure A
South Palm Canyon at Arenas Canyon under construction Capital/Gas Tax/Measure A
FY26 Street Paving $6.5 million under construction Measure J
Gene Autry Wind Wall under construction Measure A
Indian Canyon Sewer from Garnet to Tramview under construction Measure A/Wastewater
City Wide Sign Inventory and Replacement underway Gas Tax
Item 3B - Page 14
City of Palm Springs
Mid-Year Update FY 2024-25 – CAPITAL FUNDS Top Projects
Looking Ahead to FY26 (cont.):
New projects:
Project Name Funding Source
Pickleball at Demuth Park Measure J/Quimby
Library Renovation Project Measure J/State Grant
Dog Parks, Parking Lot, and Restroom construction at Demuth Park Measure J/Capital/Quimby
S. Palm Cyn & Racquet Club Rd. Reconfiguration Design Completion Measure J/Measure A/Capital
Other new and significant projects
Project Name Funding Source
Fire Station #1 renovation/expansion Measure J
Swim Center Renovation Measure J
Yearly Traffic Calming Projects Gas Tax/Measure A
Item 3B - Page 15
City of Palm Springs
AIRPORT
Item 3B - Page 16
City of Palm Springs
Mid-Year Update FY 2024-25 – AIRPORT Revenue
•Airport Charges for Services is up 30% year-to-date due to nonaeronautical services like the rental car
revenues, advertising and ground rental leases.
•Airport Capital Project Federal Grants is down 78% when compared to prior FY24 due to the submittals of
reimbursable federal grants.
•The Airport Operations & Maintenance fund transferred $7.2 million to fund airport capital projects.
Licenses & Permits 56 110 166 98 68 69%
Charges for Services 7,656 11,642 19,298 14,901 4,397 30%
Customer Facility Charges 434 1,831 2,265 2,237 28 1%
Passenger Charges 404 1,560 1,964 2,117 (153) -7%
Fines & Forfeitures 1 1 3 1 2 327%
Interest Revenue 1,120 1,066 2,185 1,273 913 72%
Miscellaneous 26 530 556 48 508 1067%
Capital Proj Federal Grants - 113 113 510 (398) -78%
Transfers In 3,622 3,622 7,244 - 7,244
Total Revenue $13,319 $20,475 $33,794 $22,592 $11,202 50%
Amounts in thousands
2025 vs
2024 in %
2025
Q1
2025
Q2
2025
Total YTD
2024 Total
YTD 2025 vs 2024Revenue
Item 3B - Page 17
City of Palm Springs
Mid-Year Update FY 2024-25 – AIRPORT Expenses
•IT Expenses Up 115% due to infrastructure upgrades, increased staffing for common use, and
expanded contractual services.
•Aviation Security Up 215% driven by federally mandated Aviation Worker Screening costs.
•Other Expenses Up 103% reflecting department growth, including the new Planning & Engineering
division.
Administration 1,520 1,827 3,346 2,749 597 22%
Airport IT 179 238 416 194 222 115%
Law Enforcement 739 1,117 1,856 1,739 117 7%
Aviation Security 68 185 253 80 173 215%
Airside Operations 984 1,843 2,827 2,742 85 3%
Rescue - Fire 1,068 1,512 2,580 1,967 613 31%
Landside Operations 244 745 989 761 229 30%
Grounds Maintenance 94 150 244 221 23 10%
Terminal Building Ops 1,387 2,247 3,634 2,078 1,556 75%
Other Expenses 1,805 5,544 7,349 3,625 3,724 103%
Transfers Out 3,622 3,622 7,244 - 7,244
Total Expense $11,709 $19,031 $30,739 $16,157 $14,582 90%
Surplus/(Deficit)$1,610 $1,445 $3,055 $6,435 ($3,380) -53%
Amounts in thousands
2024 Total
YTD 2025 vs 2024
2025 vs
2024 in %Expense
2025
Q1
2025
Q2
2025
Total YTD
Item 3B - Page 18
City of Palm Springs
Mid-Year Update FY 2024-25 – AIRPORT Revenue
•Charges for Services (Airport Operation) is projected to end FY25 at $50.5 million;
15% higher than FY24
•Customer Facility Charges and Passenger Facility Charges are forecasted to remain the same
as FY24
FY25 FY25 Achieved
FCST REV. BUDGET %
Licenses & Permits 356 204 152 74%159 224%
Intergovernmental 5,064 1,408 3,656 260%-
Charges for Services 50,589 43,840 6,749 15% 68,734 74%
Customer Facility Charges 8,956 8,928 28 0%9,011 99%
Passenger Charges 6,464 6,143 321 5%6,575 98%
Fines & Forfeitures 7 3 4 134%7 104%
Interest Revenue 4,365 3,232 1,133 35%698 625%
Miscellaneous 1,120 1,256 (136) -11%202 553%
Capital Proj Federal Grants 4,825 2,061 2,763 134% 67,995 7%
Transfers In 7,244 615 6,629 1078% 41,988 17%
Total Revenue $88,990 $67,691 $21,299 31% 195,370 46%
Amounts in thousands
VARIANCE
2025 VS 2024
VARIANCE
IN %Revenue FY24
ACTUALS
Item 3B - Page 19
City of Palm Springs
Mid-Year Update FY 2024-25 – AIRPORT Expenses & Surplus/(Deficit)
•Salaries & Benefits increased due to addition of new positions, including the creation of the
landside division.
•Contractual Services increased due to increased aviation worker screening requirements, runway
pavement rehabilitation, and infrastructure improvements for compliance with FAA and TSA
FY25 FY25 Achieved
FCST REV. BUDGET %
Administration 8,158 6,362 1,796 28%9,496 86%
Airport IT 883 507 376 74%1,111 79%
Law Enforcement 3,676 3,314 362 11%3,220 114%
Aviation Security 704 421 283 67%2,051 34%
Airside Operations 7,065 6,141 924 15%6,280 113%
Rescue - Fire 5,230 3,991 1,239 31%5,077 103%
Landside Operations 2,456 2,294 162 7%2,918 84%
Grounds Maintenance 599 449 151 34%675 89%
Terminal Building Ops 8,426 5,604 2,822 50% 11,545 73%
Other Expenses 15,911 11,879 4,031 34% 232,561 7%
Transfers Out 14,228 615 13,613 2213% 16,988 84%
Total Expense 67,334 41,576 $25,758 62% 291,922 23%
Surplus/(Deficit)$21,656 $26,115 ($4,459) -17% (96,552) -22%
Amounts in thousands
VARIANCE
2025 VS 2024
VARIANCE
IN %Expense FY24
ACTUALS
Item 3B - Page 20
City of Palm Springs
Mid-Year Update FY 2024-25 – AIRPORT Passenger Traffic
Item 3B - Page 21
City of Palm Springs
Mid-Year Update FY 2023-24 – AIRPORT – Capital Projects
Project Name Expense Budget Funding Source Status
1 Aircraft Rescue & Firefighting Truck 1,127,610 1,500,000 Airport Complete
2 Automated Vehicle Identification 276,384 300,000 Airport Complete
3 Common Use 2,296,478 3,003,373 Airport Complete
4 Electric Vehicle Chargers (80)295,708 300,000 Airport / AIP Grant Complete
5 Exit Lane Replacement 145,696 264,679 Airport In Progress - Expected Completion Q4 2025
6 Hot Spot Study 179,802 179,802 Airport / AIP Grant Complete
7 Main Terminal Flooring Replacement
(Design & Construction)29,282 41,500 Airport In Progress - Expected Completion Q4 2025
8 Master Plan 1,261,998 2,275,816 Airport / AIP Grant In Progress - Expected Completion Q3 2026
9 Outbound Baggage Handling System
(Design & Construction)1,801,418 3,547,349 Airport / AIP / PFC In Progress - Expected Completion Q2 2028
10 Public Restrooms
(Design & Construction)231,137 236,429 Airport In Progress - Expected Completion Q4 2025
11 Taxiway Rehabilitation W & A1
(Design & Consturction)484,838 571,158 Airport / AIP Grant In Progress - Expected Completion Q2 2025
12 Wayfinding Design Standards 136,271 659,650 Airport In Progress - Expected Completion Q3 2025
13 Wi-Fi Wireless Equipment 448,165 650,000 Airport In Progress - Expected Completion Q2 2025
14 Wildlife Hazard Assessment 132,625 133,892 Airport / AIP Grant Complete
AIP - Airport Improvement Program
PFC - Passenger Facility Charge
Top Projects
Item 3B - Page 22
City of Palm Springs
Mid-Year Update FY 2024-25 – AIRPORT
Looking Ahead:
Major initiatives to reflect Airport’s ongoing commitment to enhancing
passenger experience and long-term strategic growth:
•Zero Emission Vehicles and Baggage Handling System funded by the FAA Airport
Improvement Program (AIP) and Airport funding.
•Federal Inspection Site to accommodate international service funded by Airport funding.
•Wayfinding and Airport Design Standards funded by the Airport.
•Parking System Upgrades to improve the overall parking experience funded by the Airport.
•Rental Car Operations and Traffic Flow Study funded by the Airport.
Item 3B - Page 23