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Home My WebLink About4/25/2007 - STAFF REPORTS - 1.B. FISCAL YEAR 2007-08 BUDGET CITY MANAGER RECOMMENDED POSITIONS • New Positions QUANITY POSITION GENERAL FUND IMPACT .25 Family Literacy Assistant (.50 to .75) 0 50 Recreation Program Assistant DHUC $ 23,000 4.00 Police Officer Overhires $378,596 1,00 Park Ranger $ 63,800 .50 Clerical Assistant (Public Works) $ 18,777 1.00 Maintenance Electrician (,50 Airport) $ 32.708 7.25 TOTAL NEW POSITIONS $516,881 • Deletions QUANITY POSITION GENERAL FUND IMPACT 1.0 Range Master (Overhire) <$68,758> 1.0 Senior Secretary (Police) <S57 834> 2.0 TOTAL DELETIONS <$126,592>" `Savings included in budget • Reclassifications POSITION GENERAL FUND IMPACT From: Housing Program Assistant II To: Housing Program Assistant II 0 From: Human Resource Specialist I (2 positions) To: Human Resource Specialist II $8,040 From: Senior Procurement Specialist To. Procurement Specialist II <$8,592> From: Street Maintenance Manager To. Senior Public Works Inspector <$9,000> From: Executive Services Administrator To: Executive Services Administrator $1,644 " From: Executive Secretary To: Executive Assistant Mayor/Council $2,496 From: Administrative Assistant To: Executive Assistant Admin/City Attorney $2,460 TOTAL RECLASSIFICATIONS <$2,952> NET TOTAL (Less Reclassifications) $513,929 "" In Fiscal 2008/09, additional $1,644 o44 251200 FISCAL YEAR 2007-08 BUDGET RECOMMENDED PROGRAMS Highlighted ProLrams Tourism Funding Increase (per Council direction) $266,000 Citywide Traffic Signal Synchronization Study 75,000 B.T.D. (per Council direction- reimbursed from fees) 50,000 Home improvement Pilot Program (Mayor) 50,000 Citizen Newsletter/Service Survey— Semi-annually 0 ($25,000 is included in the PIO Budget) S 441,000 Other Programs: • New City Web Site—enhanced user capabilities; Technology Fund • Single Stream Recycling (per Council direction); 850 Recycling Fund • Airport Concession Remodel— 1 and 2 year programs; Airport Fund • Palm Canyon Theater Remodel— Phase 11 (Matzner grant match); CRA Fund • Animal. Shelter (per Council direction); private fundraising/CRA Bond • Library Remodel (per Council direction); CRA Bond • Resort Golf Course lease acquisition; CRA Bond • G. 1. S. Contract—city government and public access; Technology Fund • Conv. Center land acquisition/landscaping (per Council direction); CRA Bond $100,000 Street Paving/Overlay increase; Capital Fund • City Hall Parking Lot Resurfacing; Risk Management Fund • $50,000 Additional Downtown Cleaning/Maintenance; CPA • Downtown Weekly Walks—no additional cost • Airport Master Plan/Specific Plan; Airport Fund/FAA • Park Ranger Program; General Fund • Ordinance to Allow Dogs in City Parks (pilot program) * Staff plans to apply to CVAG for CMAQ funds to help offset all or a portion of the cost of the study -2- FISCAL YEAR 2007-08 COMMUNITY REQUESTS • Fund 112 Marketing and Community Promotions REQUESTOR REQUEST AMOUNT Leadership Coachella Valley Sponsorship of Leadership Program $5,000 Opera in the Park Opera in the Park IX Festival $3,850 Palm Springs Art Museum Sponsorship of Julius Shulman Exhibit $70,000 Palm Springs Modernism Sponsorship of Modernism Week $20,000 Palm Springs Walk of Stars Sponsorship of StarFair $25,000 TOTAL $123,850 -3- 5-YEAR BUDGET HISTORY OPERATING FUND REVENUES Adopted Adopted Adopted Adopted Proposed FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 Property Taxes 11,775,000 13,176,000 13,933,850 16,997,000 19,155,760 Sales & Use Taxes 6,950,000 7,901,000 8,844,844 10,299,660 11,863,988 Transient occupancy Tax(TOT) 13,400,000 13,360,000 14,040,000 14,591,000 14,798,000 Utility Users Tax 5,900,000 5,900,000 5,959,000 6,025,100 7,375,000 Franchise Fees 2,800,000 2,600,000 2,704,000 2,813,000 2,992,000 Motor Vehicle In Lieu Tax 2,700,000 1,747,000 2,956,864 3,643,935 3,977,457 New Development 300,000 1,000,000 1,000,000 900,000 505,000 Administrative Charges 903,724 989,880 1,047,149 1,131,147 1,249,871 Business License 780,000 900,000 900,000 970,000 970,000 Building Permits 600,000 1,200,000 1,574,000 1,349,000 990,000 All Other Sources 5,508,431 8,613,617 9,497,514 8,722,700 9,103,018 TOTAL 51,617,155 57,387,497 62,457,221 57,442,542 72,980,094 -4- e Ir . , ..�.vM1,�u� � ,�+�.�Iw.<wd�nrM,r�+HM• �,...��MM I NNMr . ...•��„i� •�wHwhWyMxWMR '�!+�.WS..hll 11 �rr. rywypr.r, a IsTieliminary Budge BRA+ ` hIl FU N D OVERVI EW MAI 10, jo Ilk It r11NJ a w�Yl�l'w�.r•, � �_1 � - �'�--�/�^��Ali• � � .w. 1,/ly��,p ��. r}. ,�,y., c Table of Contents Major Revenue Funds................. ............. .................page 1 Appropriations........................ ........ ................... .....page 2 Summary of Operations..............................................page 3 Expenditure Detail......................................................page 4 Cash Balances...........................................................page 6 Budget Calendar April 25, 2007 City Council Study Session Presentation of Preliminary Budget for the City's Operating Fund May 9, 2007 City Council Study Session Budget Study Session May 16, 2007 Regular City Council Meeting Budget Study Session June 6, 2007 Regular City Council Meeting Public Hearing for Budget Fiscal Year 200$ Preliminary Budget MAJQR',RE,VENUE'EUNDS' Operating Fund 11 rr 11: .- •.a REVENUES Property Taxes 16,997,000 17,724,000 19,155,760 12.7% Sales and Use Taxes 10,299,660 11,266,788 11,863,988 15.2% Highlights Transient Occupancy Tax 14,591,000 14,610,000 14,798,000 1.4% • Total FY2008OperafingFund Utility Users Tax 6,025,100 6,985,606 7,375,000 22.4% revenues are expected to Franchise Fees 2,813,000 2,903,000 Z992,000 6.4% increase $5,537,552, This is Vehicle In-Lieu Fees 3,643,935 3,687,457 3,977,457 9.2% an 8.2% increase over Administrative Charges 1,131,147 1,131,147 1,249,871 10.5% approved FY 07 revenues. Business Licenses 970,000 950,000 970,000 0% • In FY 08, 26% of total Building Permits 1,349,000 1,349,000 990,000 -26 6% Operating Fund revenues are Development Tax 900,000 610,100 505,000 -43.9% expected to come from All Other Sources 8,722,700 9,505,588 9,103,018 4.4% property taxes. This is an Subtotal 67,442,542 70,722,686 72,980,094 8.2% increase of 12.7% from FY Transfers In 600,000 600,000 600,000 0.00% 2007. TOTAL $68,042,542 $71,322,686 $73,580,094 8.2% • For each dollar paid in sales tax, the City receives Where the Money Comes From approximately $0.01 cent. That equates to 1% of the 7.75% paid at the time of sale. The Development Tax State receives the vast majority 1 i (87%) of that 7.75%. Administrativechg All other Sources 2% 13% • Transient Occupancy Tax aldg Perm it revenues represent 20% 1 Property Taxes ($14.8 million) of all Operating Dus Licenses zsi Fund revenues. Since FY 1% _ 2000-01, TOT revenues have Motor vehicle increased by 27% or In-Lieu Fees — $3.1million. This increase is 6/0 due largely to the TOT rate Franchise Fees Sales R Wes Tax change for group meeting 4% 16% hotels that was approved by voters in 2001 to pay for the Utility Users Tax Translent Convention Center expansion. 1004 Occupancy Tax 20% • Development related revenues are tracking approximately 4% under FY 07 estimates. Based on current market and economic trends development related revenues have been lowered by 21% in FY 08. *Operating Funds includes'General Fund(001)and Community Promotion Fund(1J2). City of Palm Springs—FY 2008 Preliminary Budget 1 Fiscal Year 2008 APPROPRIATIONS Preliminary Budget fr ff ir : , - Operating Fund EXPENDITURES Administration 8,373,742 7,319,231 8,533,081 1.9% Growth Management 4,243,795 4,283,500 4,178,853 -1.6% Quality of Life 8,019,527 8,118,970 8,494,993 5.9% H_ighlighls Public Safety 28,506,810 30,247,215 31,081,904 9.0% Public Works& 4,496,631 4,522,760 4,595,716 2,2% • Operating Fund Expenditures are Marketing & Tourism 2,059,105 2,141,915 2,335,605 13.4% projected at $63,214,152, an Contractual Obligation 3,629,616 4,830,000 3,994,000 10.0% increase of $3,884,926 or 6.5% Subtotal 59,329,226 61,463,591 63,214,152 6.5% over approved FY 07 budget. Transfers Out 9,167,487 9,167,487 8,626,677 -5.9% Salary and benefits costs represent the majority of the TOTAL $68,4960 713 $70,631,078 $71 840>829 4.8% overall increase at $2,681,145, Of this increase, $1,237,136 is the Where the Money Goes cost of negotiated wage and salary adjustments for several bargaining units in order to remain competitive in the marketplace. Contractual Marketing Obligations • 49.17% of the FY 08 Operating Tourism 6% Administration Fund budget is allocated to public 7°r° 4% 14% safety services (police and fire). Public Works J �GrowthMgmt • Operating expenditures are Engineering / 7% proposed to increase by 6.5% over the FY 07 budget. 13'6 quality of Life • The reduction in Growth " I Management from adopted FY 07 F l to the proposed FY 08 budget is due to a reduction in the use of Public outside contractors for planning 4,S services. • The increase in Marketing and Tourism in FY 08 is primarily due to the sponsorship agreement that was entered into with the Bob Hope Chrysler Classic to sponsor the golf tournament through 2009. • Contractual Obligations increased the adopted FY07budget column represents appropriations of,$59,329,226. by 10% over the FY 07 budget The amended FY 07; which include mid;ye'ar CouneN approved amendments, due to an annual payment related to a new sub-lease agreement off setting budget adjustments, continuing,appropriations and carry-over g I purchase orders,'reflects appropriations of$63,566,272.� � j i (Triangle parcel). City of Palm Springs—FY 2008 Preliminary Budget 2 Fiscal Year 2008 Preliminary Budget SUMMARY OF OPERATIONS FY 00 Operating Fund °' "° ' Approved Summary Revenue 67,44Z542 70,722,686 72,980,094 Fiscal Condidons Transfers In 600,000 600,000 600,000 • Includes a salary and benefit savings factor oft%. Appropriations 59,329,226 61,670,870 63,499,152 • Reallocates $1.3 million in debt Pension Obligation Bond -- <207,279> <285,000> service costs on the convention • ° m ° center to the CRA. Transfers Out 9,167,487 9,167,487 8,626,677 • Reflects decreases in development Continuing Appropriations -- c 262,000> — related fees and taxes. • Allocates property insurance costs Surplus(Deficit) <$454,171> $429,608 $1,739,265 based on the appraised value of Transfers In each facility instead of using payroll General Fund (001) numbers to achieve a net reduction in costs to the General Fund. FROM: Gas Tax 600,000 • Reduces retirement (PERS) costs Transfers Out by about $285,000 with issuance of General Fund (001) Pension Obligation Bond. • Eliminates transfer from Library TO: Debt Service Trust Fund to Operating Fund that Police Building 123,834 4 was used to supplement Library Traffic Signal Lamps , Parking Structure 61010,000000 operations. All Other 77,016 Capital Project Fiscal Outlook General Capital Projects 540,000 Measure Y 400,000 • Total Operating Funds revenues Parking Fund Operations 215,000 are expected to grow approximately Master Lease Fund 150,000 8-2% for the coming year- Assessment District#155 140,000 Retiree Health Insurance Fund 900,000 • During the first eight months of FY 07, TOT revenues totaled $8.46 Community Promotion Fund (112) million, which was $114,900 or 1% less than the same period in FY 06 TO: Debt Service despite the loss of 600 rooms from Convention Center 2,593,313 (A) the closure of the Rivera and Convention Center Expansion 2,100,000 Ramada hotels. Golf Course Fund 700,000 (A) $1,300,000 of Convention Center Debt Service will be paid by Redevelopment Merged Area 91 City of Palm Springs—FY 2008 Preliminary Budget 3 EXPENDITURE DETAIL. (by Department) Adopted Proposed Department Budget FY 06/07 Budget % Change FY 06107 Projected FY 07108 FY 07-08 Administration City Council 402,688 400,200 436,875 8.49% City Manager 542,215 573,100 531,951 -1.89% Public Affairs 124,414 150,000 136,393 9.63% Administrative Services 217,340 219,100 251,877 15.89% Development Services 128,979 122,300 143,793 11.49% Information Technology 1,377,460 1,420,000 1,436,015 4.25% City Clerk* 443,064 457,220 514,912 16,22% Human Resources 451,729 403,200 469,781 4.00% Rent Control 41,238 38,900 42,190 2.31% City Attorney 731,141 567,000 769,121 5.19% General Government" 866,000 -1,d-2,279 599,075 -30.82% Document Management 547,652 547,600 585,359 6.89% Finance 2,010,462 2,050,680 2,132,340 6.60% Procurement 489,360 512,210 483,399 -1.22% Administration Tota_I 8,373,742 7,319,231 8,533,081 1.90% Growth Management Economic Development*** 214,481 423,200 176,287 -17.81% Planning Services 1,632,115 1,429,600 1,541,336 -5.56% Building and Safety 2,397,199 2,430,700 2,461,230 2,67% Growth Management Total 4,243,795 4,283,500 4,178,853 -1.53% Quality of Life PSCTV Operations 171,945 195,100 170,708 -0.72% Parks Maintenance 2,769,330 2,870,200 2,867,037 3.53% Recreation 2,084,667 2,120,100 2,264,690 8.64% Tennis Center 0 10,000 0 Skate Park 133,295 135,350 142,408 6.84% James Jessie DHUC 448,564 460,760 418,420 -6.72% Library 2,411,726 2,327,460 2,631,730 9.12% Quality of Life Total 8,019,527 8,118,970 8,494,993 5.93% NOTES: City Clerk's program expenditures Include election costs($85,000). " General Government program expenditures have been reduced as a result of the Pension Obligation Bond Savings of$207,279 in FY 07 and$285,000 in FY 08 These savings(credff)will be distributed to their respective departments at a later date. " Community/Economic Development program expenditures reflect a reduction in overall material, services and supply costs ': ), insurance cost( ' and development related programming City of Palm Springs-FY 2008 Preliminary Budget 4 EXPEN,' DI TORE DETAIL ft be'paftihight)' Adopted Proposed Budget FY 06107 Budget % Change Department FY 06107 Projected FY 07/08 FY 07-08 Public Safety Police 16,120,520 16,902,800 17,235,304 6.92% Jail 729,074 743,500 764,806 4.90% Downtown Experience 723,271 726,600 780,760 7.95 Animal Control 542,465 555,300 541,494 -0,18% DUI Enforcement Grant 0 71,200 0 0 Dispatch Center 1,438,194 1,427,315 1,442,196 2.8% Fire* 8,953,286 9,696,500 9,994,855 11.67% SAFER Grant 0 124,000 322,489 0.00% Public Safety Total 28,506,810 30,247,215 31,081,904 9.03% Public Works Engineering 1,691,235 1,766,665 1,733,828 2.52% Street Maintenance 854,210 828,583 846,596 -0.89% Traffic Maintenance 365,968 377,800 355,709 -2.80% Downtown Experience" 540,963 465,212 595,081 10.00% Street Cleaning 20,000 25,000 20,000 0.00% PM-10 Dust Control 22,115 17,000 22,498 1,73% Street Lighting 955,640 996,500 970,742 1.58% Railroad Station 46,500 46,000 51,262 1024% Public Works Total 4,496,631 4,522,760 4,595,716 2.20% Marketing & Tourism Visitors Information Center 8,000 12,500 12,500 56.25% Tourism 1,611,000 1,611,000 1,611,000 0.00% Special Events 320,000 402,215 592,000 40.60% Special Contributions 120,105 116,200 120,105 0.00% Marketing & Tourism Total 2,059,105 2,141,915 2,335,605 13.42% Contractual.Obligations CVA 1,210,000 1,310,000 1,210,000 0.00% Convention Ctr Operations'"* 2,069,616 3,170,000 2,434,000 17.60% PS Int'I Film Festival 350,000 350,000 350,000 0.00% Contractual Obligation Total 3,629,616 4,830,000 3,994,000 10.00% TOTAL $59,329,226 $61,463,591 $63,214,152 6.50% INQTES x ®ndO ude.ne tiated s benefits.increases($985,00• p p res incl - ala- and .. D strea 9 0): Fire De arfinerif a go ry Downtown Experience rnclu_des additional m cleanin ofsidewalks a26,94 van ri df th rater 9 Sublease($®s )and --pa m rat' e:Trian p_e on, Triangle uble' t 1Q0 djustment to property insurance 00 -Y s mclud an a) a casts $245,0 City of Palm Springs-FY 2008 Preliminary Budget g CASH BALANCES ADJUSTED CASH BALANCE, 7/01/06 $8,966,451 FISCAL YEAR 2006-07 Revenue 70,722,686 Transfers In 600,000 Expenditures (61,463,591) Transfers Out (9,167,487) Subtotal Surplus or (Deficit) 691,608 Continuing Appropriations (232,00(22 Total Surplus or (Deficit) 429,608 Adjusted Cash Balance Available - 7101107 $9,386,059 FISCAL YEAR 2007-08 Projections Revenue 72,980,094 Transfers In 600,000 Appropriations (63,214.,152) Transfers Out (8,626,677) Total Surplus or (Deficit) 1,739,265 ESTIMATED ADJUSTED CASH BALANCE, 6130/08 $11,125,324 * General Fund and Community Promotion Fund City of Palm Springs-FY 2008 Preliminary Budget 6