HomeMy WebLinkAbout5/6/2009 - STAFF REPORTS - 5.A. 2009 -- 2010 General Fund
Budget Overview
City of Palm Springs
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a a 5/6/2009 City of Palm Springs 2009-2010 Budget 1
Preliminary Projected Deficit
for 2009 — 2010
$59000,000 Estimated Revenues Reduced (for 2008-2009)
1 ,300,000 Property Tax Decrease per County Assessor
6005000 Police Mgt / MAPS / GU COLA Increase
1 ,000,000 PERS, Health, Other Increases
11300,000 Indian Gaming SDF Loss
370003000 CRA Revenue Reduction
100,000 County Homeless Shelter Support Increase
$12,300,000 Projected Deficit
5/6/2009 City of Palm Springs 2009-2010 Budget 2
Budget Reduction Plan
$'' 11 .4 million _ --
$ 1 ,332 , 000: Current vacancies — 13 FTE
u $973, 000: Voluntary Program to Leave
Service --* Net reduction of 11 FTE
$2 ,013,000 Nonpublic safety employee
furloughs = 10% compensation reduction
$300,000 City Council , City Manager, and
Department Heads = 10% compensation
reduction
$544,000: Other compensation items
5/0/2009 City of Palm Springs 2009-2010 Budget 3
Budget Reduction Plan
$ 11 .4 million
$ 1 ,030, 000: Police TBD (4% of $24.2 million budget)
$590, 000 : Fire TBD (4% of $15.4 million budget)
J $653, 000: Position lay-offs
f l $7503000 : 10% reduction in departmental
budgets ; non-personnel
LJ $975, 000 : Capital projects reductions
—�— L $500,000: Motor vehicle replacement delays
$419, 000 : Events / Contributions reductions
L� $ 1 ,450,000: Other administrative reductions
5/6/2009 City of Palm Springs 2009-2010 Budget 4
2009 - 2010
Revised- Budget Deficit
Revenues $6613003000
Expenses 78,600,000
Preliminary Projected Deficit ($ 123300,000)
Budget Reduction Plan 115400,000
Deficit After Budget Reduction Plan ($9001000)
5/6/2009 City of Palm Springs 2009-2010 Budget 5
Reserves for 2008 -09 & 2009 - 10
Projected 2- Year Reserves (in millions):
2008-2009 Beginning Reserve $11 .6
2008-2009 Projected Deficit * (5.0)
2008-2009 Ending Reserve $6.6
2009-2010 Beginning Reserve $6.6
2009-2010 Budgeted Deficit (0.9)
2009-2010 Ending Reserve $5.7
* Minimum revenue shortfall. Assumes property tax
revenues equal to amount budgeted.
5/6/2009 City of Palm Springs 2009-2010 Budget 6
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS CALIFORNIA, SUSPENDING THE
PROVISIONS OF PALM SPRINGS MUNICIPAL CODE
SECTION 2.04.020 AND 2.04.021 REDUCING THE
COMPENSATION OF THE MAYOR AND
COUNCILMEMBERS.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. Notwithstanding the provisions of Palm Springs Municipal Code
Section 2.04.020, the compensation of the City Councilmembers shall be reduced from
$2,433 per month to $2,190 per month, and any median adjustment scheduled for
January 1, 2010 is hereby suspended for Fiscal Year 2009-10.
SECTION 2. Notwithstanding the provisions of Palm Springs Municipal Code
Section 2.040.021, the compensation of the Mayor shall be reduced from $3,650 per
month to $3,285 per month, and any median adjustment scheduled for January 1, 2010
is hereby suspended for Fiscal Year 2009-10.
SECTION 3. The compensation set in Section 1 and Section 2 of this Resolution
shall be effective with the City payroll period ending May 16, 2009, and shall remain in
full force and effect through the payroll period ending June 26, 2010, unless otherwise
modified, rescinded, or extended by the City Council.
ADOPTED THIS 6T" DAY OF MAY, 2009.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
ITEM NO. � ./9. .
Resolution No.
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. _ is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs the 6th day of May, 2009, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
i
TO: Mayor and Council Members
FROM: City Manager
i
DATE: May 6, 2009
RE: Fiscal Year 2009/2010 Preliminary Budget;
Operating Fund Overview
j Attached you will find the 2009/2010 Fiscal Year Operating Fund preliminary
budget document. This Fund includes both the General and Community
Promotions revenues and expenditures, which represents the majority of City
operations.
The figures presented herein include projected revenues for the new Fiscal Year,
based upon our current year's revenue experience. This is a conservative
measure, but one that is prudent given the uncertainty of the local, regional and
national economy.
Specifically, we have seen most revenue sources become static or dramatically
decline. As we presented to Council on April 15th, budget projections for the end
of this Fiscal Year find the City with at least a $5 million deficit, which will require
the City's Reserve Fund (currently, $11 million) to cover the loss. As a result,
several cost saving measures have already been instituted, such as maintaining
current vacant employee positions and the "Incentive to Leave Program," which
Council had recently approved.
Moreover, we have been notified by the County Assessor's Office to expect an
additional $1.3 million less in property taxes next year, and the State will not be
providing approximately $1 million in Gaming Special Distribution funds received
in previous years These and other revenue reductions, combined with expected
increases in expenditures (COLAs, PERS and health care insurance rate
increases, etc ), threaten the City with over a $12 million deficit in the upcoming
Fiscal Year, beginning July 1, 2009.
Hence, the expenditure side of the proposed budget is reflective of this new
revenue paradigm and we are proposing a set of deficit reduction measures in
the new Fiscal Year of approximately $11 million. These measures range from
employee furloughs and additional position layoffs to significant reductions in
certain Capital expenditures and Special Events/Contributions. To date, the
expenditure reductions have been primarily in the non-safety operations;
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however, to attain our deficit reduction requirements, some safety areas will also
be required to participate in cost savings. We will be presenting Council with
several alternatives to consider during the upcoming budget deliberations.
Finally, in terms of budget process, this is the beginning of a discussion which
must culminate in final budget adoption prior to the new Fiscal Year,
commencing July 1, 2009. Given the expected deficit projections and exigent
circumstances requiring additional cost saving decisions, the budget will be
agendized for discussion at each Council Meeting in May and June.
Budgets for other Funds, including the enterprise operations and the Airport,
will be submitted at the Council Meetings of May 13th and 270. The required
Budget Public Hearing will be noticed for the Council Meeting of June 3, 2009,
The Finance Department and entire staff have worked diligently to provide this
document, and I know you join me in thanking them for their efforts. Moreover,
all City employees must be recognized for their sacrifices, in furloughs and other
cutbacks, as we all work to maintain the financial integrity of Palm Springs, and
continue to serve our citizens.
Respectfully Submitted,
David H. Ready, Esq., Ph.D.,
City Manager
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O City of Palm Springs
Table of Contents
Operating Funds
Revenue.................................................................. page 1
Appropriations..........................................................page 2
Summary--........................................................... page 3
Expenditure Detail by Department...............................page 4
Special Events & Contributions.................................. page 6
Cash Balance........................................................... page 7
BUDGET CALENDAR
May 6, 2009 City Council Meeting - Preliminary Budget
General & Community Promotion Fund
May 13, 2009 City Council Study Session - Budget Discussion
May 27, 2009 City Council Study Session - Budget Discussion
June 3, 2009 Public Hearing for City Budget
511/2009
MAJOR REVENUE FUNDS
FY 08-09 FY 08-09 FY 09-101. % change
'Category Anoroved Pro ected FY 09.10
Property Taxes 20,430,000 20,430,000 19,130,000 -6,36%
Sales and Use Taxes 9,500,000 8,901,473 8,805,598 -7.31%
Transient Occupancy 15,000,000 12,500,000 12,500,000 -16.67%
Utility Users Tax 7,200,000 6,000,000 6,500,000 -9.72%
Franchise Fees 3,200,000 3,034,412 3,050,000 -0.69%
Vehicle In-Lieu Fees 4,250,000 4,134,853 4,150,000 -2.35%
Administrative Charges 1,628,364 1,628.364 1,825,547 12.11%
Business Licenses 950,000 905,808 910,000 4.21%
Building Permits 800,000 722,869 725,000 -9.38%
Interest CRA Loan 5,000,000 5,000,000 2,000,000 -60.00%
New Development Tax 400,000 106,261 120,000 -70.00%
All Other Sources 7,265,531 6,628,592 6,721,565 -7.49%
Subtotal 75,623,895 69,992,632 66,437,710 -12.15%
Transfers In 600,000 4,255,000 600,000 0,00%
TOTAL $76,223,895 $74,247,632 $67,037,710 -12.05%
Where the Money Comes From
Administrative Bwlding Permit
Charge 1"I
In-Lieu Fees Bus Licenses 27°/
1 4% Development
Motor Vehicle Tax
6.2% 2%
Franchise Fees All Other
4.60/6 �_ _ Sources&
CRAInt.
13.1%
Utility Users -
Tax
Transient Property Taxes
Occupancy Tax Sales&Uses 28.8%
18.8% Tax
13.3°%
"Operating Funds includes General Fund (001)and Community
Promotion Fund 112
City of Palm Springs FY 2010 Proposed Budget page 1
APPROPRIATIONS
FY 08-09 FY 0940 % Change
catencry Approved Pro dsed FY09-10
Administration 9,058,669 5,497,176 -39.32%
Growth Management 4,614,836 4,458,985 -3.38%
Quality of Life 8,923,541 8,256,179 -7.48%
Public Safety 33,397,478 30,474,883 -8,75%
Public Works & Eng. 5,127,944 4,816,424 -6.07%
Marketing &Tourism 2,032,568 1,655,203 -18.57%
Special Events 903,830 465,000 -48.55%
Contractual Obligation 3,495,212 2,885,779 -17.44%
Subtotal 67,554,078 58,509,629 -13.39%
Transfers Out 8,481,471 9,428,081 11.16%
TOTAL $76,035,549 $67,937,710 -10.65%
Where the Money Goes
0
Marketing
Toursim Contractual
2.9% Obligations Adm9,5% ion
Public Works 56%
Engineering
8.2%
Growth
Mgmt
Public 7.6%
Safety Qual i ty o r
52.1% Life
14.1%
City of Palm Springs FY 2010 Proposed Budget Page 2
SUMMARY OF OPERATIONS
FY 08-09 py 08-09 FY 09- 0
ca Approved Projected Prmaposed
Revenue 75,623,895 69,992,632 66,437,710
Transfers In 600,000 4,255,000 600,000
Appropriations 67,554,078 66,921,395 58,509,629
Transfers Out 8,481,471 12,326,237 9,428,081
Net Balance $188,346 (5,000,000) ($900,000)
Transfers In
General Fund 001
From: Gas Tax 600,000
Transfers Out
General Fund (001)
TO: Debt Service
Police Building 153,271
Traffic Signal Lamps 23,835
Parking Structure 630,000
ERICA 424,320
Convention Center Expansion 2,175,000
Capital Project
General Capital Projects 0
Measure Y 0
Parking Fund Operations 200,000
Master Lease Fund 330,000
Assessment District##155 50,000
Retiree Health Insurance Fund 1,100,000
Public Safety CFD 260,000
Special Distribution Fund 1,331,655
CommunitV Promotion Fund (1121
TO: Debt Service
Convention Center 2,200,000
Golf Course Fund 550,000
Total Transfers Out Funds 001 8 112 9,428,081
City of Palm Springs FY 2010 Proposed Budget Page 3
EXPENDITURE DETAIL
(By Department)
Adopted Proposed %Change
Budget Budget 08 Adoptedi
Department FY O8/09 FY 09110 09 Pro Dosed
Administration
City Council 600,875 561,626 -6.53%
City Manager 686,823 634,592 -7.60%
Public Affairs/PSCTV 340,924 309,549 -9.20%
Administrative Services 46,277 0 -100.00%
Development Services 347,254 274,864 -20,85%
Neighborhood Involvement 161,532 149,677 -7.34%
Information Technology 1,441,005 1,436,414 -0.32%
City Clerk 735,313 736,761 020%
Human Resources 507,369 365,674 -27.93%
Rent Control 47,225 45,005 4,70%
City Attorney 904,699 854,908 -5.50%
Unallocated Appropriations 910,000 708,000 -22.20%
Salary Savings-Offsets -1,150,000 -3,731,591 224.49%
Document Management 616,675 483,425 -21,61%
Finance 2,343,362 2,164,932 -7.61%
Procurement 519,336 503,340 -3.08%
Administration Total 9,058,669 5,497,176 -39.32%
_Growth Management _.I
Co mmunity/Economic Dev 245,682 288,907 17,59%
Homeless Program 0 103,000 N/A
Planning Services 1,610,791 1,470,094 -8.73%
Building and Safety 2,758,363 2,596,984 -5,85%
Growth Management Total 4,614,836 4,458,985 -3.38%
Pa
_ Quaid of Life ___�
rks Maintenance 3,123,520 2,967,215 -5.00%
Recreation 2,491,449 2,362,788 -5.16%
Skate Park 94,722 90,389 -4.57%
James Jessie DHUC 474,644 437,470 -7.83%
Library 2,739,206 2,398,317 -12.44%
Quality of Life Total 8,923,541 8,256,179 -7.48%
The Salary Savings Offset Department represents 2% across-the-board savings amongst
departments (distributed in 09-10); nonpublic safety furloughs; possible lay-offs; and a
variety of other operational costs yet to be distributed.
40
City of Palm Springs FY 2010 Proposed Budget Page 4
EXPENDITURE DETAIL
(By Depart ent
Department Adopted Proposed %Chang
Budget Budget 08 Adopted
FY 08109 FY 09110 09 Proposed
Public Safety
Police 18,244,101 16,255,604 -10.90%
Jail 915,263 912,974 -0.25%
08-09 ABC Grant 0 0 0.00%
Downtown Experience 844,024 759,219 -10.05%
Animal Control 632,237 612,849 -3,07%
DUI Enforcement Grant 0 0 0.00%
Seatbelt Grant 08-09 0 0 0.00%
Dispatch Center 1,583,354 1,586,960 023%
Fire 10,629,249 9,761,740 -8.16%
SAFER Grant 420,100 447,555 6.54%
Disaster-Fire 129,150 137,982 6.84%
Public Safety Total 33,397,478 30,474,883 -8.75%
Public Works
Engineering 1,986,858 1,692,791 -14.80%
Street Maintenance 1,306,873 1,255,390 -3,94%
Downtown Experience Maint. 798,244 796,858 -0.17%
Street Cleaning 0 20,000 0.00%
Street Lighting 989,743 994,257 0.46%
Railroad Station 46,226 57,128 23,58%
Public Works Total 5,127,944 4,816,424 -6.07%
Marketing B Tourism
Visitors Info Center $2,365 5,000 -93,93%
Tourism 1,950,203 1,650,203 -15,38%
2,032,568 1,655,203 -18.57%
Special Events 6 Contributions
Int'I Film Festival 400,000 400,000 0.00%
Festival of Lights (Contractor) 40,000 25,000 -37.50%
Festival of Lights (In-kind) 40,000 40,000 0,00%
All Other 423,830 0 -100,00%
903,830 T65,000 -48.55%
Contracteia/Obligations_�,
PSDRCVA 1,185,000 750,000 -36.71%
Convention Ctr Operations 2,310,212 2,135,779 -7.55%
Contractual Obligation Total 3,495,212 2,885,779 -17.44%
TOTAL 67,554,078 58,509,629 -13.39%
City of Palm Springs FY 2010 Proposed Budget Page 5
Special Events and Contributions
O City of Palm Springs
2008-2009 2009-2010
Revised Proposed
TITLE Budget Budget
Contributions:
Ague Caliente Museum $5,000
Agua Caliente Silver Sponsorship
Date Festival 5,000
Mounted Police Contribution 9,600
Senior Center Contribution 52,880
Senior Inspiration Award 2,500
Chamber of Commerce 20,000
City Events:
Black History Parade 12,500
Community Concerts 22,000
July4th Celebration 50,000
Festival of Lights Parade (contractor) 40,000 25,000
Festival of Lights Parade (in-kind) 40,000 40,000
PSHS Homecoming Parade 4,000
Veteran's Day Parade 35,000
Event Sponsorship:
Bike Weekend 35,000
International Film Festival 400,000 400,000
Modernism Week 20,000
Nabisco Tournament 26,000
Opera in the Park 5,000
Palm Springs Pride Parade 20,000
Tour De Palm Springs 25,000
Desert Classic Concourse 10,000
Desert Aids Walk 7,500
Unallocated -All categories 26,850
Parks & Recreation Dept.
Holiday Decorations 25,000
City Event Printing 5,000
GRAND TOTAL $903,830 $465,000
City of Palm Springs FY 2010 Proposed Budget page 6
CASH BALANCES
OPERATING FUNDS
ADJUSTED CASH BALANCE, 7101108 $11,604,213
FISCAL YEAR 2008-09 Projections
Revenue &Transfers-In* 74,247,632
Expenditures & Transfers-Out ** (79,247,632)
Total Surplus or (Deficit) (5,000,000)
Projected Adjusted Cash Balance - 6/30/2009 $6,604,213
FISCAL YEAR 2009-10 Projections
Revenue & Transfers-In* 67,037,710
Appropriations &.Transfers Out (67,937,710)
•
Total Surplus or (Deficit) (900,000)
Projected Adjusted Cash Balance - 6/30/2010 $5,704,213
"Assumes Property tax revenues equal to budget
'Excludes prior year encumbrances
0 City of Palm Springs FY 2010 Proposed Budget Page 7