The URL can be used to link to this page

Home My WebLink About1/10/2007 - STAFF REPORTS - 1.A.,llpost' A J, 'MATlq-'l-U �l il I ZVI January 10, 2007 Item 1.A. BUDGET REVIEW. FY 06-07 - thru Nov 2006 TABLE OF CONTENTS Page • Budget Overview and Financial Outlook 1 • FY 06-07 Revenues - Operating Fund Graph 3 FY 06-07 Appropriations - Operating Fund Graph 4 • Revenues & Expenditures Actuals vs Target - Graph 5 • Comparative Summary of Major Revenue Sources 6 • FY 06-07 Operating Fund Expenditure Summary 7 • FY 03/04 thru FY 06/07 Historic Overview 8 Cash Reserve Estimates for FY 05-06 & FY 06-07 9 F PALM 5 OF City of Palm Springs Department of Finance and Treasury BUDGET OVERVIEW AND FINANCIAL OUTLOOK FISCAL YEAR 2005/06 The Operating Funds (General Fund and Community Promotions) ended the fiscal year with a positive balance of $696,817 compared to an estimated budget deficit of $893,180. FISCAL YEAR 2006107 REVENUES While property tax revenues are slightly below last year ($5,848) at this time, when you separate the one-time Teeter payment that was paid to the City last year, property tax revenues are actually tracking $949,849 higher over last year's figures. The December tax payment was $795,111 higher than the previous year. Sales Tax revenue is $737,151 higher than the same period last year. A significant portion of this increase is attributable to the opening of the Super Wal- mart Center. • Sales Tax -In Lieu is tracking $277,052 higher than originally budgeted • Utility Users tax revenue is $685,829 higher than the previous period last year. • Construction permits are $348,293 higher than the previous year and have exceeded the total year's estimate by $190,964 after only 5 months. • Transient Occupancy Tax Revenues are down by $66,382 from last year due to the closing of the Rivera and Ramada Hotels. Last year's final actual revenues are higher than this year's projections. • Revenues for Development related fees, except for construction permits, are $300,804 lower than last year at the same time. Projections for this fiscal year were reduced by $339,730 from last year's budget. Revenues are higher by $1,123,636 than what was projected for this time period. EXPENDITURES • No City department exceeds their target expenditure goal of 41.67% by over 5% • General Fund expenditures and transfers out are at 38.36% of their total budgeted amount at the end of November. • Community Promotions expenditures and transfers out are 34.02% of their total budgeted amount at the end of November. • Total Operating Funds Expenditures and transfer out are at 37.6% at the end of November. • Overall expenditures are $1,516,314 lower than what was projected for this time period. PROJECTIONS Based on current economic trends, staff is projecting that revenues and "transfers -in" will reach $69,773,520 at the end of the fiscal year. This is approximately $1,730,978 higher than projected in the adopted budget. Expenditures and "transfers -out' are projected to be $70,020,080 due to the completed negotiations with the remaining bargaining units and support of several special events. The projected ending deficit for Fiscal Year 2006/07 is estimated at $246,560 which is $207,611 less than projected at the adoption of the original budget. BUDGET OVERVIEW REVENUES - O,P'ERATING FUNDS MAJOR OPERATING FUND REVENUES The following graph and schedule identify the major sources of revenue for the 2006-07 adopted operating budget. Only the major revenue sources are shown. 2006-07 Revenue Comparison of Percent of Total Business License _ Property Tax Building Permits 25.2% Z0% \ Administrative Charges All Other Sources \ 1.7% 12.9% \ i _I New Development\ *Motor Vehicle In Lieu Tax 5.4% Franchise Fees— r-- - 4'2% Transient Occupancy Tax (TOT) Utility Users Tax 21.6% 8.9% **Sales & Use Taxes 1&3% includes Baclthll Itcnnbnrsemcnt *' hlcludes Triple Flip 2RAF Reimbursement Effective FY 04.05 MAJOR OPERATING FUND REVENUES ACTUAL ADOPTED ADOPTED % CATEGORY 2004-05 2005-06 2006-07 CHANGE Property Taxes S 12,729,642 $ 13,933,850 $ 16,997,000 22.0% Sales & Use Taxes ** 8,376,432 8,844,844 10,299,660 16.4% Transient Occupancy Tax (TOT) 13,024,611 14,040,000 14,591,000 3.9% Utility Users Tax 5,708,026 5,959,000 6,025,100 1.1% Franchise Fees 2,652,740 2,704,000 2,813,000 4.0% Motor Vehicle In Lieu Tax * 3,332,571 2,956,864 3,643,935 23.2% New Development 1,019,343 1,000,000 900,000 -10.0% Administrative Charges 989,880 1,047,149 1,131,147 8.0% Business License 932,829 900,000 970,000 7.8% Building Permits 1,794,709 1,574,000 1,349,000 -14.3% All Other Sources 10,388,410 9,497,514 8,722,700 -8.2% TOTALS $ 60,949,193 S 62,457,221 $ 67,442,542 8.0% 3 APPROPRIATIONS - OPERATING FUNDS OPERATING FUND APPROPRIATIONS The following graph and schedule identify the major appropriations or expenditures for the 2006-07 adopted operating budget. Public Safety 48.0% 2006-07 Appropriation Comparison Percent of Total Administration 14.1 % Growth Management i — 7.2% I Public Works & % Marketing & Tourism Engineering �� 3.5% 7.6% OPERATING FUND APPROPRIATIONS Quality of Life 13.5% ntractual Obligations 6.1 % ACTUAL ADOPTED ADOPTED % CATEGORY 2004-05 2005-06 2006-07 CHANGE Administration $ 7,564,127 S 8,380,133 S 8,373,742 -0.1% Growth Management 4,199,023 4,243,046 4,243,795 0.0% Quality of Life 6,790,605 7,541,355 8,019,527 6.3% Public Safety 26,491,398 27,353,915 28,506,810 4.2% Public Works & Engineering 4,342,644 4,085,494 4,496,631 10.1% Marketing & Tourism 1,805,379 1,871,621 2,059,105 10,0% Contractual Obligations 3,038,489 3,600,583 3,629,616 0.8% TOTALS $ 54,231,665 S 57,076,147 S 59,329,226 3.9% 4 $30,000,000 - - $25.000,000 $20.000,000 $15,000.000 $10,000,000 �. 111 111 $fl Revenues & Expenditures General & Community Funds Actuals vs Target as of Nov. 2006 L $16,186,721 $15,063,085 variance ($1,123,636) i¢F 33i � TI - F $28,083,652 variance ($1,516,314) ❑ Revenue YTD Actuals (23.96%) ❑Revenue Target (22.30%) ❑ Expenditures YTD Actuals (37.6%) ❑Expenditures Target (41%) CITY OF PALM SPRINGS COMPARATIVE SUMMARY OF REVENUE OF THE OPERATING FUNDS FOR FY 2005106 AND FY 2006107 THROUGH NOVEMBER 30, 2006 Fiscal Year 2005106 2006/07 Percentage of Budget Variance Budget 11/30/2005 Budget 11/3012008 2005108 2006107 Target Operating Funds 82,644,599 14,416,073 67,547,468 16,186,721 1,770,648 23.05% 23.96% 22.30% Property Taxes' 13,933,850 1.740,279 16,997,000 1,734,431 -5,848 12.49% 10.20% 8.00% Motor Vehicle In-Lleu/Property 2,625,364 0 3,312,435 0 0 0.00% 0.00% 0.00% Sales Tax 6,718,570 1,374,199 7,814,220 2,111.350 737.151 20.45% 27.02% 25.00% Sales Tax/Property 2,126,274 0 2,485.440 0 0 0.00% 0.00% 0.00% Franchises 2,704,000 414,393 2,813.000 443.452 29,059 15.33% 15.76% 15.00% TOT 14,040,000 3,377,396 14,591,000 3.311,014 -66,382 24.06% 22.89% 22.OG% Doc Transfer Tax 900,000 328,102 800,000 201,138 -126,964 36,46% 25.14% 41.67% New Deveopment Tax 1,000,000 316,174 900,000 277,738 -38,436 31.62% 30.86% 41.67% Utility Users tax 5,959,000 1,971.451 6.025.100 2,657,280 685.829 33.013% 44.10% 41.67% Business Licenses 900,000 442.834 970.000 410,682 -32,152 49.20% 42.34% 41.67% Building Permits 1,574,000 561.042 1,349,000 472.013 -69,029 35.64% 34.99% 41.67% Construction Permits 500,000 153,471 310.800 501.764 348.293 30.69% 161.44% 41.67% Zoning Fees 150,000 139,308 207.400 38,562 -100.746 92.87% 18.59% 41.67% Subdivsion Fees 200,000 91,953 207,400 85,902 -6,051 45.96% 41.42% 41.67% Motor Vehicle In-Lleu 331,500 137,319 331,500 125,527 -11,792 41,42% 37.87% 41.67% Building Plan Check Fees 600,000 307.442 621,800 276,026 -31,416 51.24% 44.39% 41.67% Engineering Plan Check Fees 600,000 340.171 676,750 304,026 -36,145 56.70% 44.92% 41.67% AdministrativeSvc Charges 1,047,149 436.312 1,131,147 471.311 34,999 41.67% 41.67% 41.67% Miscellaneous Filing Fees 563,000 248,400 583,470 308.822 60,422 44.12% 52.93% 41.67% Tourism Contribution -Tribe 434,000 180,833 434,000 180,833 0 41.67% 41.67% 41.67% Other License and Permits 511,000 214,186 501,700 194,993 -19,193 41.92% 36.87% 41.67% Other Intergovernmental 1,276,456 162.732 594,477 162,189 -10,543 12.75% 25.60% 41.67% Other Charges for Services 2,371,991 616.338 2,286,629 619,199 2,861 25.98% 27.08% 41.67% Fines and Penalties 377,000 124,518 363,800 116,817 -7,701 33.03% 32.11% 41.67% All Other 1,098,445 737,220 1.239,400 1,191,652 454,432 67,11% 96.15% 41.67% Totals 62,541,609 14.416.073 67,547,468 16.186,721 1,770.648 23.05% 23.96% 22.30% FY 05-06 includes $955,697 of one time back Teeter payments CITY OF PALM SPRINGS FY 06-07OPERA7YNG FUND EXPENDITURE SUNIAIARIF 2006 - 07 2006-07 2006-07 % YTD ADOPTED RE'1TSED YTD NOV, TO General Fund (001) Dcpts. BUDGET 'BUDGET **NOV. REVISED CiryCouncil 402,688 416,359 177,303 42,58% City Manager 542,215 550,051 256.456 46.620/o Public Affairs 124,414 131,014 59,853 45.6S% Administrut'ive Services 217,340 217,340 90,635 41.70% Development Services 12S,979 129,226 50,077 38.75% Information Technology 1,377,460 1,409,449 651259 46-210/u City Clerk 443.064 450,767 201,000 44.810/u Human Resources 451,729 451,729 162,844 36.05% Rent Control 41,238 41,238 12,020 29.15910 City Attoruv 731,141 747,641 137,527 18.39% Unallocated Comp 866,000 798,727 (9,276) -1.16% PSCTV Operations 171,945 195,551 87,781 44.890,,'n Document Management 547,652 547,65'_ 197,734 36.110/6 Finance 2,010.462 2,027,208 793,063 39.12% Procurement & Contracmig 489,360 558,248 244,969 43.88 % Community & Economic Develop. 214,481 423,228 100,805 23.82% Planning Services 1,632,115 1,664,918 539,984 32 43% Building & Safety 2,397,199 2,403,529 881,581 36 651/. Library 2,411,726 2,503,606 94S,334 37.8W. Parks & Parkways Mantenance 2,769,330 2,780,671 1,057 241 38.020/0 Downtown Maintenance 540,963 589,452 177,948 30,19% Recreation Programs 2,084,667 2,098,701 824,921 39.31 % Tennis Center 0 10,000 10,000 3 00.0% Palm Springs Slcaie Park 133,295 134,073 49,275 36.75 % James O. Jessie DHUC 4-48,564 457,749 172,282 37 64% Police 16,120,520 16,624,071 6,998,230 4210% Jail Operations 719,074 729,074 310,103 42 53% DotvntoNim Experience - Police 723,271 723,271 306,059 42.32% DUI Enforcement Grant 0 90,770 19,090 21 03% Animal Control 542,465 544,592 225,SSS 4148% Dispatch Center 1,438,194 1,440,436 567,929 39,43% Fire 8,902,320 9,359,311 3,854,181 41.18% Disaster Preparedness 50,766 69,732 4,399 6.31% Engmccdn3 1,691,235 1,763.530 701,629 39.670/; Street Maintenance 854,210 854,210 311,721 36.49% Traffic Maintenance 365,968 36S,011 151,022 41.04% Street Clezining 20,000 10,f)Of) 6,563 32.81% PM10 Removal 22,115 22,115 4,215 1906%6 Street Lighting 955,640 1,040,199 305,384 29.36% Railroad Station 46,500 48,000 10,590 22 06% Total General Fund (001) Budget 53,640505 55,440,446 21,653,620 39.06% Transfers Out 2.910.742 2,910,742 727,686 25.00% GRAND TOTAL 001 w/ TO & Savings 56,551,247 58,351,188 22.381,305 38.360/., Community Promotion Fund (112) Dept PSDR Convention/Visilors Authority 1,210,000 1,210,000 728,321 60 19% Visitor Info Center Muintenance S,000 12,500 5,428 43.42% Tourism 1,611,000 1,611,000 500,000 31,04% Special Events 670,000 779,536 219,092 28,11% Spcciul Contributions 120,105 120,105 82,480 68.67h Convention Center 2,069,616 2,314,369 1,086,5.16 46.95% Total Community Promotion Fund 5,638,721 6,047,510 2,621,847 43.35% Trunsfur Out 6,256,745 6256,745 1,564,186 25.00% Total Community Promotion Fund w/TO 11,945,466 12,304,255 4,186,033 34.02 % TOTAL OPERATING FUNDS (001 + 112) 68,496,713 70,655,443 26,567,338 37.60% aRevised Budgct column includes continuing appropriations and encumbered funds rolled forward from FY 05-06 F'Nov YTD funds excluded outstanding encumbrances. 7 Revenue Special Revenue Transfers In Expenditures Transfers Out Surplus or (Deficit) CITY OF PALM SPRINGS HISTORICAL OVERVIEW FY 03-04 FY 04-05 FY 05-05 Actuals Actuals Actual 55,051,465 60,949,193 66,405,008 300,000 852,000 610,233 748,103 (49,384,274) (6,137,136) 382.055 (54,231,665) (7,752,337) (424,576) (56,589,885) (10,166,407) :PI:I:�iG1 FY 06-07 Adopted Projected 67,142,542 68,873,520 300,000 300,000 600,000 600,000 (59,329,226) (60,852,613) (9,167,487) (9,167,487) (454,171) (246,580) 9 CITY OF PALM SPRINGS CASH RESERVE ESTIMATES FOR FY 05-06 & FY 06-07 OPERATING FUNDS* ADJUSTED CASH BALANCE, 6130105 y 6IIF7_1 WA 9,219,694 Revenue** 66,405,008 Special Revenue# 300,000 Transfers In 748,103 Expenditures (56,589,885) Transfers Out (10,166,407) Surplus or (Deficit) 696,819 Reserve for Encumbrances (314,567) Continuing Appropriations (731,437) Repayment of CRA Loans' 385,942 Loan to Pavilion Theater (300,000) ADJUSTED CASH BALANCE AVAILABLE, 7101106 8,956,451 FISCAL YEAR 2006-07 Projections Revenue 68,873,520 Special Revenue# 300,000 Transfers In 600,000 Appropriations (60,852,613) Transfers Out (9,167,487) Surplus or (Deficit) (246,580) ESTIMATED ADJUSTED CASH BALANCE, 6130/07 8,709,871 General Fund and Community Promotion Fund ** Includes $955,697 one-time Teeter Fund Payment from County *** Includes repayment of CRA Loan made in Fiscal Year 04/05 # Installment payment for Suitt Property Lease over 5 years L•1