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Home My WebLink About2C - PresentationCity of Palm Springs DRAFT BUDGET FISCAL YEAR 2025-26 FISCAL YEAR 2026-27 JUNE 25, 2025 City of Palm Springs GENERAL FUND City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND General Fund – Revenues FY25/26 FY26/27 Draft Budget Draft Budget Previous Draft Revenues 172,110,717 173,813,078 Permits, Fines & Fees Increase to adjust the impact of fee study 892,652 1,270,657 Utility User Tax Decrease based on trend analysis FY25 -1,000,000 -1,000,000 Motor Vehicle In-Lieu Increase based on trend analysis FY25 1,000,000 1,000,000 Cannabis Tax Increase based on trend analysis FY25 100,000 100,000 Total Revenue Changes - Increase or (Decrease)992,652 1,370,657 New Draft Revenues 173,103,369 175,183,735 Category Explanation City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND FY24/25 FY25/26 FY26/27 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 16,178,076 16,677,831 Utility Users Tax 10,686,817 10,904,900 11,023,949 Motor Vehicle In-Lieu Tax 7,795,932 8,060,800 8,131,408 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 1,038,100 1,053,481 Total Revenue $171,258,990 $173,103,369 $175,183,735 Transfers from Other Funds 5,000,000 0 0 Total Revenue & Transfers $176,258,990 $173,103,369 $175,183,735 Revenue General Fund – Revenues City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND General Fund – Expenses FY25/26 FY26/27 Draft Budget Draft Budget Previous Draft Expenses 173,435,478 182,321,537 Salaries & Benefits -1,938,666 Salaries & Benefits 250,870 Repair & Maint.Vehicles -30,728 -2,835,988 Facilities Maintenance -5,285,301 -3,928,076 All Departments -561,961 Special Programs 100,000 100,000 Other Expenses 178,400 -244,268 Total Reduction of Expenses -6,976,295 -7,219,423 New Draft Expenses 166,459,183 175,102,114 Adjustments to expenses Reduction from moving 6 FTE PD Officers Transfer 0.7 FTE from Housing Fund & Benefits Reduction from moving to Measure J Category Explanation Cost Saving Contribution FY27 - 20% Increase Economic Development Reduction from moving to Measure J City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND General Fund – Expenses FY24/25 FY25/26 FY26/27 Forecast Draft Budget Draft Budget Admin & Economic Develop.9,125,918 8,173,312 8,605,496 Development Services 15,647,809 18,653,961 22,158,946 Fire Department 29,627,721 29,380,493 30,022,097 General Government 21,637,297 21,264,174 21,998,196 Library 3,260,030 3,298,491 3,355,669 Miscellaneous Expense 1,912,858 2,030,617 1,746,907 Parks and Recreation 8,463,681 11,683,072 12,033,118 Police Department 43,786,215 43,906,301 46,925,220 Public Works 14,871,544 11,212,306 10,825,131 Tourism & Community Support 9,167,576 8,147,888 8,564,867 Total Operating Expenses $157,500,650 $157,750,616 $166,235,649 Transfers to Other Funds 15,159,587 8,708,567 8,866,465 Total Expense & Transfers $172,660,237 $166,459,183 $175,102,114 Expenses City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND General Fund – Summary of Updates FY25/26 FY26/27 Draft Budget Draft Budget Previous Draft Surplus / (Deficit)-4,224,761 -8,508,459 Total Revenue - Increase 992,652 1,370,657 Total Expense - Reduction 6,976,295 7,219,423 New Draft Surplus / (Deficit)3,744,186 81,621 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND General Fund – Fund Balances Description FY 25-26 Draft Budget FY 26-27 Draft Budget Reserve for CalPERS 18,750,000 19,750,000 Reserve for Affordable Housing 12,166,762 15,166,762 Reserve for Economic Incentive 166,667 166,667 Reserve for Cannabis Programs 89,679 108,749 Minimum Fund Balance (20%)31,550,123 33,247,130 Unassigned Fund Balance 55,915,893 50,281,437 Ending Balance 118,639,124 118,720,745 City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND General Fund – Fund Balances Description FY 25-26 Draft Budget FY 26-27 Draft Budget Unassigned Funds - Beginning Balance 54,806,116 55,915,893 Surplus/(Deficit)3,744,186 81,621 CalPERS Pension Transfer (1,000,000) (1,000,000) TOT to Affordable Housing Transfer (3,000,000) (3,000,000) Increase in Reserve Cannabis (18,762) (19,070) Change in Min.Fund Balance 1,384,353 (1,697,007) Unassigned Funds - Ending Balance 55,915,893 50,281,437 City of Palm Springs CAPITAL PROJECTS City of Palm Springs Proposed Budget FY 26&27 – Capital Project Capital Project – Updates to Budget Measure J Fund Road Maintenance -2,500,000 - Community Initiated Projects -1,000,000 -1,000,000 Deferred Maintenance 5,285,301 3,928,076 Vehicle Purchases 1,230,728 2,835,988 Total Measure J Fund Updates 3,016,029 5,764,064 Measure A Fund Road Maintenance 1,000,000 - Total Measure J Fund Update 1,000,000 - RMRA Fund Road Maintenance 500,000 - Total Measure A Fund Update 500,000 - Gas Tax Fund Road Maintenance 1,000,000 - Total RMRA Fund Update 1,000,000 - Total Capital Update 5,516,029 5,764,064 FY 25-26 Draft Budget FY 26-27 Draft Budget City of Palm Springs Proposed Budget FY 26&27 – Capital Project Capital Project – Updates to Budget 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 - 1,975,000 - 2,204,716 Streets Measure A 16,112,646 8,372,277 - 15,267,489 - 9,217,435 Streets Drainage 245,867 342,300 - 565,000 - 23,167 Drainage RMRA 771,903 1,150,600 - 1,500,000 - 422,503 Transportation Quimby 3,660,550 572,000 - 2,000,000 - 2,232,550 Parks & Rec Measure J 6,997,936 22,572,500 - 22,757,404 3,135,806 3,677,226 General Capital Fund 35,221,942 36,950,000 - 42,250,000 - 29,921,942 Various Total 66,046,160 71,104,077 - 86,314,893 3,135,806 47,699,539 NOTE THAT ANY CAPITAL FOR THE AIRPORT OR WASTEWATER PLANT WILL GET FUNDED OUT OF THEIR OWN FUND City of Palm Springs Proposed Budget FY 26&27 – Capital Project Capital Project – Updates to Budget Fiscal Year 2026-27 Capital Budget Fund Beg Fund Balance Revenue Transfer In Expenditures Transfer Out Ending Fund Balance Use of Funds Gas Tax 2,204,716 1,155,784 - 675,000 - 2,685,500 Streets Measure A 9,217,435 7,892,536 - 8,626,164 - 8,483,806 Streets Drainage 23,167 345,723 - 175,000 - 193,890 Drainage RMRA 422,503 1,162,106 - - - 1,584,609 Transportation Quimby 2,232,550 577,720 - 2,000,000 - 810,270 Parks & Rec Measure J 3,677,226 34,399,838 - 26,564,064 3,137,913 8,375,087 General Capital Fund 29,921,942 31,400,000 - 32,500,000 - 28,821,942 Various Total 47,699,539 76,933,707 - 70,540,228 3,137,913 50,955,104 NOTE THAT ANY CAPITAL FOR THE AIRPORT OR WASTEWATER PLANT WILL GET FUNDED OUT OF THEIR OWN FUND City of Palm Springs A I R P O R T City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Airport Fund – Revenues FY24/25 FY25/26 FY26/27 Forecast Draft Budget 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 Fees 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 Fees 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 Transfers from Other Funds 7,859,000 8,898,295 8,977,278 Total Revenue & Transfers $80,740,986 $108,178,535 $113,167,332 Revenues City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Airport Fund – Expenses FY25/26 FY26/27 Draft Budget Draft Budget Previous Draft Expenses 107,990,026 128,871,729 Contractual Services Increase - revenue share airlines (50/50)2,572,255 2,392,275 Depreciation Increase to include in budget 4,900,801 4,899,786 Police & Fire Services Increase for charges to adjust actual trend FY25 325,000 325,000 Other Expenses Adjustments 82,819 -18,823 Total Expense Changes - Increase 7,880,874 7,598,238 New Draft Expenses 115,870,900 136,469,967 Category Explanation City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Airport Fund – Expenses FY24/25 FY25/26 FY26/27 Forecast Draft Budget Draft Budget Salaries & Benefits 19,742,329 23,576,853 24,819,330 Grants Expenses 5,991,130 28,152,776 32,148,145 Capital Improvement Projects 3,860,469 17,012,000 29,041,176 Contractual Services 10,603,430 14,847,999 14,322,063 Other Expenses 2,473,291 4,813,293 4,900,608 Depreciation 5,008,626 5,007,361 5,007,361 Administrative Services 1,690,556 2,219,015 2,219,015 Utilities Expenses 1,909,143 1,861,312 1,883,160 Motor Vehicle Purchases 9,484 0 4,300,000 Improvements, Furniture & Equipment 752,090 2,781,500 2,046,500 Loan Principal & Interests 2,499,147 2,498,750 2,495,500 Materials & 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 0 1,000,000 1,000,000 Total Expenses $50,492,919 $106,972,606 $127,492,689 Transfers to Other Funds 7,859,000 8,898,295 8,977,278 Total Expenses & Transfers $58,351,919 $115,870,901 $136,469,967 Expenses City of Palm Springs Proposed Budget FY 26&27 – GENERAL FUND Airport Fund – Summary of Updates Previous Draft Surplus / (Deficit)188,509 -15,704,397 Total Revenue - no changes -- Total Expense - Increase -7,880,874 -7,598,238 New Draft Surplus / (Deficit)-7,692,366 -23,302,635 FY 25-26 Draft Budget FY 26-27 Draft Budget City of Palm Springs DRAFT BUDGET FY 2025-26 & FY2026-27