HomeMy WebLinkAbout1/3/2001 - STAFF REPORTS (10) DATE: January 3, 2001
TO: City Council
FROM: Assistant City Manager, Special Projects, and Director of Finance and
Treasurer
MID-YEAR BUDGET ADJUSTMENTS
RECOMMENDATION:
It is recommended that the City Council consider mid-year budget adjustments,totaling
$459,765 to be funded from the Fiscal Year 1999-00 operating funds surplus.
SUMMARY:
This action is a request for City Council mid-year adjustments to the 2000-01 budget
based upon the City Council 12/19/00 workshop review of the 1999-00 surplus and
current needs.
BACKGROUND:
Fiscal 1999-00 year end close-out revealed a surplus of $2,620,640. A transfer of
$1,034,000 from the General Fund to the Wastewater Treatment Plant Fund was
approved on 12/20/00. At the December 19, 2000 City Council Workshop various
unfunded requests totaling over$5 million were discussed. (See Exhibit 1 attached).
Direction was given at the meeting to place a mid-year budget adjustment request on
the 1/3/01 agenda broken into the following groups:
GROUP 1: Tourism $ 161,265
Easter Bowl 15,000
Subtotal $176,265
GROUP 2: Skate Park 50,000
Desert Museum 1,500
Downtown Maintenance 60,000
Downtown Patrol 40,000
Subtotal $151,500
GROUP 3: Fire Station 2 Apparatus
Doors 20,000
Fire Station 2 Exhaust
System 25,000
Subtotal $ 45,000
GROUP 4: Senior Center 52,000
Youth Center 35.000
Subtotal $ 87,000
GRAND TOTAL 14Q 765
Details for each of the above budget items follows:
GROUP 1: Tourism ($161 265) proposes the following increased programs: (See
Exhibit 2 for complete detail).
Increased advertising $ 71,656
Increased promotions and public relations $ 25,000
Increased trade shows and sales meetings $ 14,700
Special marketing projects $ 10,000
Website development $ 25,000
Online hotel reservations 15,000
161 265
GROUP 1: Easter Bowl ($15 000). Annual event that results in over 3,500 room nights
and is a revenue producer for the City.
GROUP 2: Skate Park ($50 000). Funds to be budgeted but not spent until private fund
raising efforts match the amount.
GROUP 2: Desert Museum ($1 500). Sponsorship of a "Day at the Museum" for Palm
Springs residents.
GROUP 2: Downtown Maintenance $60 000) Maintain increased trash pickup efforts,
begin monthly steam cleaning and enhance plantings in the downtown area
would be funded as follows:
Steam cleaning (Ramon to Alejo on Palm $ 22,500
Canyon - storefront to curb)
Trash removal (afternoons Fri, Sat & Sun) $ 7,500
Landscape maintenance (Heritage Trail, increased $ 30,000
downtown plantings
$ 60,000
GROUP 2: Downtown Patrol ($45 000). Funding for the cost of additional horse and
bike patrol for Villagefest and weekends for the remainder of the fiscal year.
GROUP 3: Fire Station#2 Apparatus Doors ($20 000) and Exhaust System ($25 000).
Capital funds to supplement those budgeted.
GROUP 4: Senior Center($52 000) and Youth Center($35 000) Additional operational
funding of the organization.
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Approval of all the projects would mean that approximately $1.1 million of last year's
surplus would remain in the Operating Funds' reserves. The revised adjusted cash
balances estimated for June 30, 2001 would be about$4.6 million, or about 10.5% of
total operating fund expenditures.
Four separate budget amendment resolutions are attached for city council
consideration.
A LEN F. SMOOT, AAE THOMAS M. KANARR
Assistant City Manager-Special Projects Director of Finance & Treasurer
APPROVED:
City Manager
Attachments: 1. Resolutions (4)
2. Exhibit 1 - Unfunded Projects Listing
3. Exhibit 2 - Tourism Programs Detail
EXHIBIT 1
budissue
12/18/00 UNFUNDED COUNCIL ISSUES
Item No. Description Est Cost
1 Operating Fund Reserves 1,566,000
2 Parking Fund Operations 72,000
3 Fire Station #1 Relocation 1,800,000
4 Skate Park 800,000
5 Tourism 161,265
6 Senior Center 52,000
7 Palm Trees Trimming (Power Lines) 42,500
8 Film Festival 50,000
9 Parking Structure N/A
10 Desert Museum Support 1,500
11 Downtown Maintenance 114,000
12 Youth Center 35,000
13 Ruth Hardy Park ADA Improvements 45,000
14 Historic Site Survey 100,000
15 Add1 Downtown Patrol (Horse and Bicycle) 75,000
16 Easter Bowl Tennis Tournament 15,000
17 Traffic Light Synchronization Study 25,000
18 Neighborhood Coalitions N/A
19 Aerial Photographs 50,000
20 Tachevah Mid-Block Cross walk 25,000
21 Fire Station #2 Doors 20,000
22 Fire Station#2 Exhaust System 25,000
Total 5,074,265
Total Available 1,500,000
EXHIBIT 2
PALM SPRINGS BUREAU OF TOURISM
"WISH LIST FOR ADDITIONAL FUNDING"
■ $71,565.00 - Increase Advertising—this is the amount we had to
decrease in order to adjust to our current budget. We advertise in both
consumer and travel trade publications, promoting Palm Springs as a
year-round vacation destination worldwide. Specifically, we would be re-
instating national and international advertising in consumer and travel
trade publications. This will also include:
➢ $15,000 for PGA Tournament Promotion —approximately
60,000 very affluent visitors will be here for the tournament
and by being a part of this promotion, Palm Springs will have a
30 second segment broadcast over 50 different venues,
including television, during the course of the tournament.
➢ $15,000 for a 5-minute spot on the Discover Channel
promoting Palm Springs. These programs are broadcast over
and over throughout the year and are a very inexpensive cost
for the exposure it will bring to the city, promoting us as a
year-round vacation destination.
• $25,000.00— Increase Promotions and Public Relations— new markets
have not been developed for bringing new tourism business to Palm
Springs in nearly nine years. As one market slows down, it is necessary
to have other markets in place to take up the slack. Germany, Japan and
Latin America are the fastest emerging markets for the State of California.
These visitors are already coming to Southern California, but not to Palm
Springs in the numbers they should be. As it takes two to five years to
develop a new market, it is critical to start now. In an effort to promote
Palm Springs worldwide, we joined The Visit USA committees for U.K.,
Ireland, Germany, Japan, Canada, Sweden, The Netherlands and
Australia in order to be listed in their directories. However, we do not have
the funds to participate in their trade promotions, which generate a much
higher exposure. With an increase in budget for Promotions and Public
Relations, specifically, we would:
➢ Dedicate $15,000.00 to participation in approximately 25
Visit USA Committees trade events. Visit USA
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representatives would hand out our brochures and
Visitor Guides to consumers and travel buyers at trade
shows and special events in their respective countries
over the course of a year. The exposure is extremely
high, and very effective, as we can't afford to travel to
these countries and do the number of trade shows the
Visit USA Committees do on our behalf.
➢ Dedicate $2500.00 to buy a banner ad for one year on
ReisenGermany's website. The German market is one
of the strongest potential markets Palm Springs has,
and this website is the most popular for visitor
information in their country (similar to Travelocity).
➢ Dedicate $7,500.00 to German representation. By
having a part-time representative in Germany, this
would allow us to have someone to make sales calls on
key German operators, attend trade events on the behalf
of Palm Springs and maintain our German website. This
person would also fulfill requests for information from
German visitors, thus saving us the cost of overseas
postage.
■ $14,700.00- Trade Shows and Sales Missions— We had to cut several
consumer trade shows, gay/lesbian trade shows and travel trade shows in
order to keep the budget in line. The fastest, most effective way to gain
exposure in the marketplace is through trade shows as we are there to
talk with potential visitors and hand out our information. Specifically, we
would re-instate:
➢ Gay/Lesbian Travel Show— San Francisco - $3500.00
➢ Gay/Lesbian Travel Show—Washington, D.C. - $3500.00
➢ American Bus Association Travel Show— Baltimore -
$2500.00
➢ Visit USA Show/Brussels (in conjunction with ITB and
partnering with the state California Tourism Office) -
$1500.00
➢ Trade Mission France (in conjunction with ITB and
partnering with the State California Tourism Office) -
$1500.00
➢ Seattle Consumer Show - $2200.00
• $10,000.00— Special Marketing Projects— It is imperative to keep up
with current trends and develop continuing reasons for visitors to come to
Palm Springs to spend the night, especially during our soft and shoulder
seasons. Specifically, these funds would be used for Special Events: ?AO
➢ Develop and promote "Gallery Shop/Hop" Weekend.
This package would revolve around our antique and
consignment stores and art galleries promoting one
weekend a month where they would stay open and we
will build packages around it - $2500.00
➢ Develop and promote a "Celebrity Reun ion/Fan Fare"
Weekend. This package would include former
musicians and artists who played with Elvis Presley and
other well-known Palm Springs musicians and artists.
There would be a "reunion" of these celebrities and a
"FanFare" where visitors and locals could get
autographs signed, pictures taken - $5000.00
➢ Help to develop and promote "The Taste of Palm
Springs" weekend. This venue would include our top
restaurants providing samples of their specialties
(similar to the Taste of Newport Beach). Entertainment
would be provided throughout the weekend, and
visitation to our attractions would be included in this
package - $2500.00
■ $25,000.00— Website Development— The Palm Springs Bureau of
Tourism's website is less than adequate (compared to other tourism
destinations), and not near the level it needs to be to attract computer
users researching vacation destinations. These funds specifically, will:
➢ Enhance our website, providing separate pages for Tour
Escort Notes, links with Tour Operators, both domestic and
international, who are selling Palm Springs packaged travel
and F.I.T. programs
➢ Integration of other domain names we own in order for Palm
Springs to be the first site pulled up
➢ Have our website translated into Japanese and French.
Research from the Travel Industry Association of America
shows that nearly 70% of international visitors do their
research via the internet, and over 50% of domestic travelers
utilize the web to determine where they will travel to.
PALM SPRINGS BUREAU OF TOURISM
VISITOR CENTER AND HOTEL RESERVATION CENTER
• $15,000.00— Development of an online hotel reservation system. The
Visitors Center is self-funded, depending on hotel reservations as its
primary source of funding. Unfortunately, the current system allows
reservations between the hours of operation (9:00 am — 5:00 pm). We are
aware that we are losing many potential reservations by not having the
capability of a 24-hour online booking service, as most hotel reservation
services offer. The financial stability of the Visitors Center hinges on the
customized development of our website to offer this customer service.
We are faced with ever-increasing competition from other vendors around
the Coachella Valley offering hotel reservation services. If we don't stay
"one step ahead" we will lose the business to these other companies, thus
decreasing the funds we generate to support the Visitors Center.
TOTAL: $161,265.00
v
RESOLUTION NO. 19968
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2000-01 FISCAL YEAR.
WHEREAS Resolution 19817 approving the budget for the fiscal year 2000-01 was
adopted on June 21, 2000; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to
record inter-fund cash transfers as required in accordance with this Resolution, and that
Resolution 19817, adopting the budget for the 2000-01 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS - GROUP 1
Fund Activity Account Amount
112 2017 43240 $161,265
Community Tourism Other Contract Ser.
Promotion 2018 XXXXX $15,000
Special Events Easter Bowl Tennis
Purpose: To provide additional funding for LMI/SMG Tourism, and to provide a
contribution to the Easter Bowl Tennis Tournament.
SECTION 2. SOURCE Operating Funds' surplus for Fiscal Year 1999-00.
FUND Activity Account Amount
No.112 29301 $176,265
Title: Community Fund Balance
Promotion
Adopted this 3rd day of January , 2001.
AYES: Members Hodges, Jones, Oden, Reller-Spurgin and Mayor Kleindienst
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED
RESOLUTION NO. 19969
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2000-01 FISCAL YEAR.
WHEREAS Resolution 19817 approving the budget for the fiscal year 2000-01 was
adopted on June 21, 2000; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to
record inter-fund cash transfers as required in accordance with this Resolution, and that
Resolution 19817, adopting the budget for the 2000-01 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS - GROUP 2
Fund Activity Account Amount
SEE ATTACHED
Purpose:
SECTION 2. SOURCE Operating Funds' surplus for Fiscal Year 1999-00 via the
appropriate interfund cash transfers where necessary.
FUND Activity Account Amount
001 29349 $150,000
General Reserve for
112 Contingencies
Community 29301 $1,500
Promotions Fund Balance
Adopted this 3rd day of Jan,iary 2001.
AYES: Members Hodges, Oden, Reller-Spurgin and Mayor Kleindienst
NOES: Member Jones
ABSENT:None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED qe
R19969
GROUP 2
Fund# Activity# Account# Fund Name Activity Name Account Name Amount
261 2493 51516 Capital Projects Park Improvements P.S. Skatepark 50,000
112 2018 XXXXX Community Promo Special Events Desert Museum Contrib 1,500
001 4210 43200 General Fund Downtown Exp Maint Contact Services 60,000
001 3019 40800 General Fund Police Downtown Exp Overtime 40,000
Purpose:
To provide a contribution to the proposed Skatepark, contingent upon at least matching private contributions;
for a sponsorship of a free 'open to the public'day at the Desert Museum;
for additional maintenance of sidewalks, curbs and bikepaths in the Downtown area;
and for funding for the Downtown horse and bicycle patrol.
RESOLUTION NO. 19970
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2000-01 FISCAL YEAR.
WHEREAS Resolution 19817 approving the budget for the fiscal year 2000-01 was
adopted on June 21, 2000; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to
record inter-fund cash transfers as required in accordance with this Resolution, and that
Resolution 19817, adopting the budget for the 2000-01 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS - GROUP 3
Fund Activity Account Amount
261 3600 XXXXX $20,000
Capital Projects Fire Improvements FS#2Apparatus
Doors
XXXXX 25,000
FS#2 Exhaust
System
Purpose: To provide additional funding for two capital improvements related to Fire
Station #2. There is $50,000 and $85,000 encumbered in the Risk Management Fund
for the two improvements.
SECTION 2. SOURCE Operating Funds' surplus for Fiscal Year 1999-00.
FUND Activity Account Amount
001 29349 $45,000
General Reserve for
Contingencies
Adopted this3rd day of January 2001.
AYES: Members Oden, Reller-Spurgin and Mayor Kleindienst
NOES: Members Hodges and Jones
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA qb
B 1
Y
City Clerk City Manager
REVIEWED AND APPROVED
RESOLUTION NO. 19971
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 2000-01 FISCAL YEAR.
WHEREAS Resolution 19817 approving the budget for the fiscal year 2000-01 was
adopted on June 21, 2000; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to
record inter-fund cash transfers as required in accordance with this Resolution, and that
Resolution 19817, adopting the budget for the 2000-01 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS - GROUP 4
Fund Activity Account Amount
112 2018 45700 $52,000
Community Special Events Senior Center Cont.
Promotion XXXXX $35,000
Youth Center Cont.
Purpose: To provide additional funding for the Mizell Senior Center, and new funding to
the P.S. Youth Center
SECTION 2. SOURCE Operating Funds' surplus for Fiscal Year 1999-00.
FUND Activity Account Amount
No.112 29301 $87,000
Title: Community Fund Balance
Promotion
Adopted this 3rd day of January 2001.
AYES: Members Oden, Reller-Spurgin and Mayor Kleindienst
NOES: Members Hodges and Jones
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By q1F
City Clerk City Manager
REVIEWED AND APPROVED