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Home My WebLink About3A - PresentationCity of Palm Springs DRAFT BUDGET FISCAL YEAR 2025 -26 FISCAL YEAR 2026 -27 JUNE 11, 2025 2 City of Palm Springs Proposed Budget FY 26&27 – STRATEGIC PLAN 3 City of Palm Springs Proposed Budget FY 26&27 – DIRECTOR OF FINANCE & TREASURY COMMENTS Director of Finance & Treasury Comments: •This biennial budget has been produced using automated software pulling the financial information directly from the City's ERP system. The document produced will be a 260-page document with pages for every department and fund, debuting at the June 11th meeting. •The City can move forward with strategic plan initiatives by using funding sources other than the General Fund. •The numbers presented are still fluid but are directionally correct. •The General Fund has an operating deficit that needs to be solved. No material new spend in the General Fund. •A pause after each section presented for questions, discussion, and City Council direction. City of Palm Springs GENERAL FUND 5 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND General Fund – Updates to Budget ($1,088,435)($9,904,296) Misc. Income / Other Taxes Decrease due to trend analysis FY25 (76,500)(76,500) Permits, Fines & Fees Increase due to trend analysis FY25 285,311 289,415 $208,811 $212,915 PERS Retirement Cost Cost Savings CalPERS from large payment FY25 2,137,083 2,289,708 Transfer Out Update Debt Service Payments POB in FY26&27 (1,902,730)(2,060,628) Combined Expenses Items Updated due to cost saving efforts & trend analysis (679,490)953,847 ($445,137)$1,182,927 ($1,324,761)($8,508,459) Subtotal Expenses Changes - (Increase) or Decrease New Draft Budget GF OPERATING Surplus/(Deficit) FY 25-26 Budgeted FY 26-27 Budgeted Subtotal Revenue Changes - Increase or (Decrease) Category Explanation Previous Draft Budget GF OPERATING Surplus/(Deficit) 6 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Revenue Highlights FY26 vs FY25 : •TOT remains largest revenue line item and stays stable around $49m •Property Tax assume steady low single digit growth at 1% •Sales and Use Tax to grow 3% in FY26 •Permits, Fines & Fees stays stable around $15m FY24/25 FY25/26 FY26/27 Revenue Forecast Draft Budget Draft Budget Transient Occupancy Tax 48,990,196 49,105,600 49,586,656 Property Taxes 37,651,390 38,261,300 38,643,913 Sales and Use Taxes 29,037,700 29,839,008 30,167,739 Permits, Fines, and Fees 15,353,204 15,285,424 15,407,174 Utility Users Tax 10,986,817 11,904,900 12,023,949 Motor Vehicle In-Lieu Tax 6,695,932 7,060,800 7,131,408 Other Taxes 7,406,259 6,998,080 7,067,900 Miscellaneous Income 4,689,038 4,521,205 4,552,595 Franchise Tax 4,769,609 4,362,900 4,406,529 Interest Income 3,751,433 3,833,400 3,871,734 Cannabis Tax 1,127,412 938,100 953,481 Total Revenue $170,458,990 $172,110,717 $173,813,078 Transfers from Other Funds 5,000,000 0 0 Total Revenue & Transfers $175,458,990 $172,110,717 $173,813,078 7 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Revenue Highlights: •Top 3 Revenue Line Items continue to generate 68% of Total Revenues •All Revenue Lines expected to remain stable •Conservatively budgeted, due to uncertain economic environment 8 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Expense Highlights : •Increase in Salaries & Benefits for all Departments ($4m FY26 & $6m FY27) •Development Services increase Navigation Center ($1.4m FY26 & $4.9m FY27) •Parks & Recs increase by transfer in of Park Maint. ($2.3m in FY26) •Public Works decrease by transfer out of Park Maint. ($2.3m in FY26) FY24/25 FY25/26 FY26/27 Expenses Forecast Draft Budget Draft Budget Admin & Economic Develop.9,125,918 8,505,393 8,926,880 Development Services 15,647,809 19,093,836 22,724,249 Fire Department 29,627,721 30,065,233 31,692,244 General Government 21,637,297 21,854,730 22,550,152 Library 3,260,030 3,444,082 3,527,535 Miscellaneous Expense 1,912,858 2,030,617 1,746,907 Parks and Recreation 8,463,681 11,913,544 12,282,441 Police Department 43,786,215 47,232,681 49,217,605 Public Works 14,871,544 12,418,187 12,190,259 Tourism & Community Support 9,167,576 8,168,607 8,596,799 Total Operating Expenses $157,500,650 $164,726,911 $173,455,072 Transfers to Other Funds 15,159,587 8,708,567 8,866,465 Total Expense & Transfers $172,660,237 $173,435,478 $182,321,537 Operating Surplus/(Deficit)$2,798,754 ($1,324,761)($8,508,459) 9 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Expenses FY26 and FY27 by Function – Governmental Activities 1 0 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Trend Expenses FY23 – FY27: •Salaries & Benefits grew from $81m to $107m •Contractual Services increased from $15m to $26m •Repair & Maintenance (incl. Deferred Maintenance & Fleet Replacement) stable around $14m 1 1 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND SUPPORT FROM OTHER FUNDS Sustainability Budget FY2025 -2026 for $1.4 million over 2 Years support the City’s Programs: •Turf Conversion (Program to match Desert Water Agency Turf Conversion Rebates) •Energy Efficiency for Low-Income Housing (Max. Insulation, efficient HVAC & Appliances to reduce fossil fuel use) •Heat and Shade Grant (Study the impact of heat on the transportation system) Beg Fund Transfer Transfer End Fund Fund Balance In Revenue Expenses Out Balance Use of Funds Recycling Fund 995,912 - 399,500 (511,299) - 884,113 Educate on Recycling Efforts within City Sustainability Fund 2,448,242 - 883,300 (834,058) - 2,497,483 Support City's Sustainability Program Air Quality Mgmt Fund 175,400 - 61,900 (100,000) - 137,300 South Coast AQMD Clean Air Programs Total 3,619,555$ -$ 1,344,700$ (1,445,357)$ -$ 3,518,897$ Beg Fund Transfer Transfer End Fund Fund Balance In Revenue Expenses Out Balance Use of Funds Recycling Fund 884,113 - 282,295 (405,632) - 760,777 Educate on Recycling Efforts within City Sustainability Fund 2,497,483 - 789,270 (734,565) - 2,552,189 Support City's Sustainability Program Air Quality Mgmt Fund 137,300 - 62,519 (100,650) - 99,169 South Coast AQMD Clean Air Programs Total 3,518,897$ -$ 1,134,084$ (1,240,847)$ -$ 3,412,135$ Fiscal Year 2026-27 Sustainability Fiscal Year 2025-26 Sustainability 1 2 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND SUPPORT FROM OTHER FUNDS These Public Safety funds provide additional funding for General Fund : •Safety Augmentation Fund = additional 1 Firefighter and 2 Police Officers (approx. $0.6m annually) •CFD Public Safety #1 Fund = additional 2 Firefighters and 1 Police Officers (approx. $0.6m annually) •Partial Funding for Firearms Training Facility ($1m FY26&27) and Fire Truck ($0.6m FY26) Beg Fund End Fund Fund Balance Revenue Expenses Balance Use of Funds Safety Augmentation Fund 3,911,345 - 1,847,000 (2,892,278) 2,866,068 Public Safety CFD Public Safety #1 Fund 2,780,820 - 1,307,500 (1,536,270) 2,552,050 Public Safety Total 6,692,165$ -$ 3,154,500$ (4,428,548)$ -$ 5,418,117$ Beg Fund End Fund Fund Balance Transfer In Revenue Expenses Balance Use of Funds Safety Augmentation Fund 2,866,068 - 1,865,470 (2,990,240) - 1,741,297 Public Safety CFD Public Safety #1 Fund 2,552,050 - 1,320,575 (1,045,007) - 2,827,618 Public Safety Total 5,418,117$ -$ 3,186,045$ (4,035,248)$ -$ 4,568,915$ Fiscal Year 2026-27 Public Safety Fiscal Year 2025-26 Public Safety Transfer OutTransfer In Transfer Out 1 3 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Non-Operating Highlights FY25/26: •Grant Funding for Police Department from BSCC (Carryover of $2.1m in FY25/26) •Grant Funding Encampment Resolution Fund (ERF) for Development Services from CA Dept of Housing (Carryover of $4.8m in FY25/26) •Grant Funding for Navigation Center from HHAP (Carryover of $3.5m in FY25/26) •Council Set Aside mainly for Desert Highland SFR Development ($2m) as forgivable loan Non-Operating FY24/25 FY25/26 FY26/27 Income/Expenses Forecast Draft Budget Draft Budget Grant Revenue 10,529,687 11,819,172 2,832,283 Grant Expense (10,529,687)(11,819,172)(2,832,283) Council Set Aside Expense (6,130,788)(2,900,000) CalPERS Payment (28,500,000) Total Non-Operating Surplus/(Deficit)($34,630,788)($2,900,000)$0 Surplus/(Deficit)($31,832,034)($4,224,761)($8,508,459) 1 4 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Summary of Trend General Fund FY22 – FY27: •Major Revenue Lines will likely be flat to small growth •Operating Expenses continues to grow •Fund Balance declines from •Annual Deficits •Transfers (CalPERS & Afford. Housing) •Large Downpayment CalPERS in June 2025 •Increase Minimum Fund Balance 1 5 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Looking Ahead: •Plaza Theater opens in December 2025 •Chick-fil-A planned opening in 2026 •In-N-Out Burger planned opening in 2027 •Fulfillment Center in North Palm Springs (740k square -foot) scheduled to open end of 2026 •Second Fulfillment Center in North Palm Springs with two buildings (1.9m square -foot) planned opening late 2026 or early 2027 •College of the Desert – Palm Springs Campus plans to open in 2027 •Convention Center Master Plan Improvements expected to be completed in 2029 1 6 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Recommendations to consider balancing the General Fund Budget: •Transfer from Measure J to General Fund •Public Safety Funds pays for 3 additional Police Officers & 3 additional Firefighters •Repairs & Maintenance Vehicles Replacement Plan over 3 Years •Facilities Maintenance – Deferred maintenance to FY28 •Affordable Housing Reserve – Reduced Transfer to Fund Balance •CalPERS Reserve – Reduced Transfer to Fund Balance 1 7 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Recommendations to improve General Fund Budget FY26: Description Scenario 1 Scenario 2 Operating Surplus / (Deficit)($1,324,761)($1,324,761) Transfer Measure J "Projects?"5,000,000 5,000,000 Public Safety Fund to absorb 3 PD & 3FF 1,147,610 1,147,610 Repairs and Maintenance Vehicle 430,123 430,123 Facilities Maintenance Service 500,992 500,992 New Operating Surplus / (Deficit)$5,753,964 $5,753,964 1 8 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Recommendations to improve General Fund Budget FY27: Description Scenario 1 Scenario 2 Operating Surplus / (Deficit)($8,508,459)($8,508,459) Transfer Measure J "Projects?"7,500,000 8,500,000 Repairs and Maintenance Vehicle 427,079 427,079 Facilities Maintenance Service 423,770 423,770 New Operating Surplus / (Deficit)($157,610)$842,390 1 9 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Other Measures to consider to balance the General Fund Budget: •Travel & Training reduction by approx. $150 -200k •Repairs & Maintenance reduction by approx.$246k •Other Equipment reduction by approx. $200k •Materials & Supplies reduction by certain percentage based on overall City directive •Contractual Services reduction to be considered with Department Directors to identify savings City of Palm Springs CAPITAL PROJECTS 2 1 City of Palm Springs Proposed Budget FY 26&27 – Capital Project Capital Project – Updates to Budget Fund FY2026 Expenditures FY2027 Expenditures Measure J Swim Center Decrease - Include with Library Debt (4,000,000) (3,000,000.00) Additional Community Initiated Project - Dezart Performs 250,000.00 - Total (Decrease) in the Measure J Fund (3,750,000.00) (3,000,000.00) Capital Fund HSIP Cycle 9 - Increase for Traffic Signal Intersection Improvements 800,000.00 - HSIP Cycle 11 - Increase for Traffic Signal Intersection Improvements 1,000,000.00 - Total Increase in Capital Project Fund 1,800,000.00 - - Total (1,950,000.00) (3,000,000.00) Capital Project Updates after Council Presentation May 22, 2025 2 2 City of Palm Springs Proposed Budget FY 26&27 – CAPITAL PROJECTS Fiscal Year 2025-26 Capital Budget Fund Beg Fund Balance Revenue Transfer In Expenditures Transfer Out Ending Fund Balance Use of Funds Gas Tax 3,035,316 1,144,400 - 975,000 - 3,204,716 Streets Measure A 16,112,646 8,372,277 - 14,267,489 - 10,217,435 Streets Drainage 245,867 342,300 - 540,000 - 48,167 Drainage RMRA 771,903 1,150,600 - 1,000,000 - 922,503 Transportation Quimby 3,660,550 572,000 - 2,000,000 - 2,232,550 Parks & Rec Measure J 43,505,623 22,572,500 - 19,191,375 3,135,806 43,750,942 General Capital Fund 35,221,942 36,950,000 - 40,450,000 - 31,721,942 Various Total 102,553,847 71,104,077 - 78,423,864 3,135,806 92,098,255 Fiscal Year 2026-27 Capital Budget Fund Beg Fund Balance Revenue Transfer In Expenditures Transfer Out Ending Fund Balance Use of Funds Gas Tax 3,204,716 1,155,784 - 675,000 - 3,685,500 Streets Measure A 10,217,435 7,892,536 - 8,626,164 - 9,483,806 Streets Drainage 48,167 345,723 - 200,000 - 193,890 Drainage RMRA 922,503 1,162,106 - - - 2,084,609 Transportation Quimby 2,232,550 577,720 - 2,000,000 - 810,270 Parks & Rec Measure J 43,750,942 22,899,838 - 16,750,000 3,137,913 46,762,867 General Capital Fund 31,721,942 31,400,000 - 32,500,000 - 30,621,942 Various Total 92,098,255 65,433,707 - 60,751,164 3,137,913 93,642,884 NOTE THAT ANY CAPITAL FOR THE AIRPORT OR WASTEWATER PLANT WILL GET FUNDED OUT OF THEIR OWN FUND 2 3 City of Palm Springs Proposed Budget FY 26&27 – CAPITAL PROJECTS Capital Project Spend FY2026 & FY2027 •Total of $139 million FY26 & FY27 •Roads & Bridges $104 million FY26 & FY27,aligning with City Council’s goals of infrastructure improvement 2 4 City of Palm Springs Proposed Budget FY 26&27 – CAPITAL PROJECTS Project Name Expense Total Budget FY 2026 Budget FY 2027 Budget Funding Source Status Indian Union Pacific RR Bridge 15,932,883 60,773,214 14,000,000 14,000,000 Capital/Measure A/WWTP Under Construction, expected completion late 2027 Ramon Road Bridge 660,359 52,236,315 1,000,000 10,000,000 Capital/Measure A Completing Right of Way Phase, expect bid mid 2026 S Palm Canyon Tahquitz Creek Bridge 266,817 15,088,386 7,000,000 7,000,000 Capital/Measure A Under Construction, expected completion late 2027 EPC Palm Canyon Wash Bridge 476,529 12,113,936 500,000 5,000,000 Capital/Measure A Right of Way Design 2026, construction early 2027 Main Library Renovations 2,175,203 42,500,000 17,200,000 23,300,000 Capital/Measure J/Bond Construction to begin 2026, completion late 2027 Gene Autry Wind Wall 143,803 3,280,694 2,600,000 - Measure A Construction to begin 2026, completion late 2026 Demuth Dog Park 506,520 7,413,131 3,000,000 5,000,000 Capital/Quimby/Measure J Expect bid 2026, expected completion late 2027 Pickleball Courts 253,495 6,050,000 3,000,000 2,796,505 Quimby/Measure J Expect bid 2026, expected completion late 2027 Annual Paving Rehabilitation 7,903,650 18,000,000 8,500,000 9,500,000 Measure J Ongoing annual project Swim Center Upgrades - 7,650,000 4,650,000 3,000,000 Measure J Under design 2026, construction to begin 2027 Top Projects •Main Library Renovations – Complete restoration of the Main Library located at Sunrise Park and is currently out to bid. Expected to be awarded sometime in July 2025 and will be financed by debt. •Demuth Dog Park – Construction of a small and large dog park, including additional drink stations, new restrooms, with drainage improvements. •Annual Paving – Paving of local and arterial roads. •Swim Center Upgrades – Remodel the existing interior, exterior, rood and add ADA accessible ramps. 2 5 City of Palm Springs Proposed Budget FY 26&27 – CAPITAL PROJECTS All Wastewater Treatment Plant (WWTP) projects will be funded by the WWTP fund. •WWTP SCADA Improvements – SCADA (Supervisory Control and Data Acquisition) collects real-time data from field devices to monitor the process, adjust remotely and to collect water quality •WWTP Upgrade Lift Stations – Upgrade electrical, structural and meter flow systems to four of the City sewers lift stations. •WWTP Digestor No. 1 Replacement – Full replacement of the existing Digestor No. 1 and replace it with a new covered structure compliant with current seismic and building codes Project Name Total Budget FY 2026 Budget FY 2027 Budget Status WWTP Scada Improvements 8,700,000 4,350,000 4,350,000 Under design 2026, expected construction to begin 2027 WWTP Upgrade Lift Stations 11,600,000 5,800,000 5,800,000 Under design 2026, expected construction to begin 2027 WWTP Digester No. 1 Replacement 14,500,000 7,250,000 7,250,000 Under design 2026, expected construction to begin 2027 WasteWater Treatment Plant 2 6 City of Palm Springs Proposed Budget FY 26&27 – CAPITAL PROJECTS •Staff has identified over 25 deferred maintenance projects with an estimated value of $10 million over the two-year budget cycle. •Projects span over multiple city facilities and departments focusing on infrastructure improvements, equipment upgrades, and facility modernization. Fiscal Year 2025-26 Fleet & Deferred Maintenance Funds Fund Beg Fund Balance Revenue Transfer In Expenditures Transfer Out Ending Fund Balance Facilities Maintenance 17,425,843 9,903,446 - 15,723,049 - 11,606,240 Motor Vehicle 11,163,734 7,707,217 - 11,508,884 - 7,362,067 Total 28,589,577 17,610,663 - 27,231,933 - 18,968,307 Fiscal Year 2026-27 Fleet & Deferred Maintenance Funds Fund Beg Fund Balance Revenue Transfer In Expenditures Transfer Out Ending Fund Balance Facilities Maintenance 11,606,240 10,128,376 - 13,933,491 - 7,801,125 Motor Vehicle 7,362,067 7,156,496 - 12,022,584 - 2,495,979 Total 18,968,307 17,284,872 - 25,956,075 - 10,297,103 2 7 City of Palm Springs Proposed Budget FY 26&27 – DEFERRED MAINTENANCE PROJECTS Deferred Maintenance Projects FY2026 & FY2027 •Total estimate of $10 million over next 2 years •Total estimate of $2.7 million spend in Public Safety over next two years 2 8 City of Palm Springs Proposed Budget FY 26&27 – MOTOR VEHICLE REPLACEMENTS Motor Vehicles FY2026 & FY2027 •Replacement of 42 vehicles & 7 additions valuated at $8.4 over 2 years •$3.5 million in Public Safety vehicles, includes $2 million for 2 new fire trucks 2 9 City of Palm Springs Proposed Budget FY 26&27 – CAPITAL PROJECTS •Fire Station #3 (Schematic Design Only) – Design and site survey in preparation for the renovation and expansion of the historic fire station. Expected to combine Fire Station #1 into debt issuance •Belardo/Baristo Parking Structure Safety Study – Comprehensive assessment of two aging parking structures, including infrastructure integrity, lighting &general safety •Firearms Training Facility – Renovation of the current Palm Springs Police facility to enhance safety features to support continued interagency use Total FY26 FY27 Project Name Budget Budget Budget Funding Source Status Fire Station #3 (Schematic Design Only)100,000 100,000 - Deferred Maintenance Expect to complete 2026 Firearms Training Facility 3,000,000 1,200,000 1,800,000 Deferred Maintenance/Safety Aug Expect complete 2027 Belardo/Baristo Parking Structure Safety Study 1,218,000 1,218,000 - Deferred Maintenance Expect to complete 2026 Fire Station 5 - Space Planning Renovation 750,000 750,000 - Deferred Maintenance Expect to complete 2026 Playground (Desert Highland Park)800,000 800,000 - Deferred Maintenance Expect to complete 2026 Realtime Crime Center Buildout Prep 200,000 200,000 Deferred Maintenance Expect complete 2027 22 Police Vehicles 1,590,000 795,000 795,000 Fleet Service Expect complete 2027 1 Fire Truck (Pumper)1,200,000 1,200,000 - Fleet Service/CFD Public Safety Expected delivery 2026 1 Fire Truck (Pumper)1,200,000 1,200,000 - Fleet Service Expected delivery 2026 Top Deferred Maintenance Projects and Vehicle Replacements City of Palm Springs A I R P O R T FY 2025 Est. 3,298,020 YTD Passenger Growth Up (4.3%) FYTD Passenger Growth Up (1.3%) NEW AIR SERVICE FRONTIERDELTAUNITED JFK SFO Denver Washington Dulles PORTER Toronto 3 5 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Airport Fund – Updates to Budget $2,738,725 ($20,022,832) Advertising & Design Additional regional advertising efforts (451,888)(437,395) Airline Incentives Adjusted to reflect marketing efforts 50,000 50,000 Contractual Services Alignment with strategic goals 287,860 1,473,311 Employee Salaries & Benefits Addition of New Postions and CalPERS Adjustment (986,466)(1,039,695) Fleet Maintenance Cost savings in FY 25-26 & FY 26-27 206,845 174,981 Improvements, Furniture & Equipment Alignment with trends and strategic goals (1,456,500)4,248,500 Materials and Supplies Alignment with strategic goals (121,628)(192,324) Other Expense*Alignment with trends and industry standards (22,325)146,530 Utilities Expense Adjusted to FY 24-25 Trend (56,113)(105,474) ($2,550,215)$4,318,434 $188,509 ($15,704,397) Subtotal Expenses Changes - (Increase) or Decrease New Draft Budget Surplus/(Deficit) Category Explanation FY 25-26 Budgeted FY 26-27 Budgeted Previous Draft Budget General Fund Surplus/(Deficit) ALL NEW CONCESSIONS TRIO Sonny Bono Concourse ALL NEW CONCESSIONS Vino Volo Courtyard ALL NEW CONCESSIONS Las Casuelas Terraza Coachella Valley Coffee ALL NEW CONCESSIONS Cactus to Clouds Sonny Bono Concourse ALL NEW CONCESSIONS Nine Cities Craft The Pink Door NEW RETAIL Hey Joshua Las Palmas Oasis InMotion Uptown Essentials The Pink Door Duty Free 42 Airport – Revenue F&B vs. Retail City of Palm Springs Proposed Budget FY 26&27 – AIRPORT 4 3 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT 4 4 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT Revenue Highlights: •First time ever to surpass $100M because of grant revenue to pay for the Baggage Handling System •Key sources of revenue – Rental Car Fees, Airline Fees and Parking Fees are steady with slight increases Revenue FY24/25 Forecast FY25/26 Draft Budget FY26/27 Draft Budget Rental Car Fees 23,185,403 23,341,328 23,574,342 Grant Revenue 3,952,869 28,152,776 32,148,145 Landing Fees 6,960,158 6,994,958 7,064,908 Parking Fee 6,301,392 6,332,898 6,396,228 Passenger Facility Charges 6,098,189 6,128,680 6,189,966 Airline Terminal/Joint Use Fee 6,817,158 6,851,243 6,919,756 Charges for Services 5,356,310 5,522,562 5,553,541 Non-Airline Terminal Rent 4,458,976 5,231,248 5,395,707 Other Revenue 1,213,187 1,534,420 1,549,518 Interest Revenue 4,112,888 4,113,172 4,154,306 Other Transportation Fees 2,171,052 2,811,277 2,955,303 Gate Fees 2,254,405 2,265,677 2,288,334 Total Revenue 72,881,986 99,280,240 104,190,054 Transfer In From Other Funds 7,859,000 8,898,295 8,977,278 Total Revenue & Transfers 80,740,986 108,178,535 113,167,332 4 5 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT Revenue Highlights: •Grant revenue shows dramatic growth, surging to $32M by FY27 after a significant FY24 dip. •Rental car fees remain the largest stable revenue source, growing from $15M to $24M (FY22-27). •Most other revenue streams show modest but steady growth, maintaining consistent airport income. 4 6 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT Revenue Highlights: •Non-Aeronautical Revenues include public parking fees, rental car fees and concessions •Represent 67% of revenue •Aeronautical Revenues includes airline landing fees, gate fees and terminal fees. •Represents 33% of revenues 4 7 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT FUND Expense Highlights: •Increase in Salaries & Benefits for all Departments •Capital and Project expenditures are increasing significantly, combination of airport- funded and federally- funded projects Expenses FY24/25 Forecast FY25/26 Budget FY26/27 Budget Salaries and Benefits 19,742,328 23,469,667 24,823,926 Grants Expense 5,991,130 28,152,776 32,148,145 Capital Improvement Projects 3,860,469 12,712,000 29,041,176 Contractual Services 10,603,430 12,563,604 11,629,788 Other Expenses 1,980,950 4,224,800 4,889,835 Depreciation 5,203,626 106,560 107,575 Administrative Services 1,695,931 2,219,015 2,219,015 Utilities Expense 1,909,143 1,861,312 1,883,160 Motor Vehicle Purchases 9,484 4,300,000 4,300,000 Improvements, Furniture and Equipment 752,090 2,781,500 2,046,500 Loan Principal & Interest 3,335,268 2,498,750 2,495,500 Materials and Supplies 1,358,938 1,500,647 1,608,731 Advertising & Design 1,442,002 1,701,100 1,701,100 Customer Facility Charge Planning - 1,000,000 1,000,000 Total Expenses 50,000,578 99,091,731 119,894,451 Transfers to Other Funds 7,859,000 8,898,295 8,977,278 Total Expenses & Transfers 57,859,578 107,990,026 128,871,729 Operating Surplus/(Deficit)22,881,408 188,509 (15,704,397) 4 8 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT FUND 4 9 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT FUND Trend Airport Expenses: •Salaries & Benefits increase by 15% from FY24-25 to FY25-26 •Grants Expense - $46m for FY25-26; $72m for FY26-27 5 0 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT FUND Trend Airport Positions: •Passenger trends align with staff increases •Proposing 6 new positions for FY 2025-26 51 Type Title FTE Change Budget Change Airport Administration Manager (MX61) To Assistant Airport Director (EX372) ADD Custodian (GU25)2 $113,404 ADD Fire Prevention Specialist (GU42)1 $172,717 ADD Maintenance Technician Ii (GU39)1 $146,324 ADD Airport Operations Supervisor (MX52)1 $195,719 ADD Maintenance Electrician (GU45)1 $161,587 RECLASS Emergency Management Coordinator (MX53) To Airport Emergency Planning Adminstrator (EX258)0 TBD Approximate Total:6 $849,418 $59,667 RECLASS 0 Airport – New Positions & Reclassed Positions City of Palm Springs Proposed Budget FY 26&27 – AIRPORT FUND 5 2 City of Palm Springs Proposed Budget FY 26&27 – AIRPORT FUND City of Palm Springs DRAFT BUDGET