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Home My WebLink About6/21/2017 - STAFF REPORTS - 4.B. 4.B. CITY COUNCIL BUDGET AND FINANCE SUBCOMMITTEE UPDATE AND CONTINUED DISCUSSION OF FISCAL YEAR 2017-18 COST SAVINGS AND POTENTIAL REVENUE SOURCES: RECOMMENDATION: Direct staff as appropriate. NO MATERIALS Item No. 4.13. Additional Revenue Options DRAFT City of Palm Springs Projected Requires Prop 218 Annual Revenue Ballot Measure? Transactional Cannabis Tax TBD Yes (tax all cannabis related transactions on products, growing, cultivation & testing to the full extent permitted by law) Sales Tax-Add-On Sales Tax Additional 112% * $6,700,000 Yes or Additional 1/4% $3,350,000 Yes Utility User Tax- Raise rate to 6% $1,500,000 Yes Documentary and Property Transfer Rax Rate- Increase total fee from $1.10/$1,000 to $2.20 /$1,000 in value $1,500,000 Yes Business License Tax (formalize by Prop 218 vote) TBD Yes Convert to sales & income basis TOT - Raise rate by 1% $2,000,000 Yes Fire District/ Paramedic charge on every parcel in PS $8,085,000 Yes ($165/parcel: 50% of$16,170,000/49,140 parcels in PS) Req 2/3rds majority Tribal Tourism /Casino Impacts Agreement to be renegotiated TBD No Recreation Fees (requires formalized fee study) Residents & children of people working in PS (nominal increases) TBD No Nonresidents --cost recovery somewhere between 50% & 100% TBD No Special Recordation Fee (on real estate documents) TBD No (Statutorily thru Assembly bill for entire County or only City) (G.C.27388) * Available capacity in-process of being verified by City's Financial Advisor and the City Attorney 0 b a1•�� c��orp,\ rnu'c�,a� Additional Revenue Options(06-21-2017) 6/21/2017; 11:18 AM Cost Centers City of Palm Springs Revenue Expense Difference Golf Courses and Driving Range $4,395,000 $5,451,000 ($1,056,000) Library- Main (1) 2,240,000 2,738,939 (498,939) Welwood Library 0 326,500 (326,500) Animal Shelter/Animal Control (2) 174,187 1,679,276 (1,505,089) Recreation Programs (Sunrise): For Kids Only (FKO) 60,000 106,623 (46,623) Tiny Tots 25,000 67,384 (42,384) Summer Camp 80,000 136,215 (56,215) Softball Field Prep 32,000 75,000 (43,000) Other Recreation Costs and Administration 38,900 969,836 (930,936) Recreation Programs (JOJ): Child Literacy Program 0 51,429 (51,429) Youth Connection 0 5,371 (5,371) Summer Camp 0 27,000 (27,000) After School Tutoring 0 21,166 (21.166) Camp 0 30,330 (30,330) All Other JOJ Costs and Programs 10,000 582,944 (572,944) Demuth 100,000 260,677 (160,677) Skate Park 0 160.000 (160,000) Swim Center 131,476 721,787 (590,311) Convention Center 2,546,338 8,312,484 (5,766,146) Tourism /Visitor Center 51,000 2,070,000 (2,019,000) Convention and Visitor Bureau (CVB) 0 540,000 (540,000) The Buzz 100,000 975,462 (875,462) Neighborhoods 0 161,612 (161,612) Economic Development 0 745,690 (745,690) iHUB & Foreign Trade Zone 0 201,500 (201,500) Downtown Restroom Program 0 49,300 (49,300) Chamber of Commerce 0 20,000 (20,000) CVEP 0 100,000 (100,000) Plaza Theater 0 26,000 (26,000) Crossing Guards 0 50,634 (50,634) Railroad Station 16,000 90,788 (74,788) Homeless (3) 0 1,175,675 (1,175,675) PSCTV/ Public Information 0 407,326 (407,326) Sponsorship/ Events/ Contributions 0 767,500 (767,500) Police 0 25,734,798 (25,734,798) Fire 372,000 15,329,520 (14,957,520) Cost of paramedic upgrade from firefighter included in Fire 1,340,000 (1,340,000) (1) The property taxes that the City receives for operating our own library is approximately $2,200,000 for 2017-2018. (2) The Friends of the Animal Shelter received$174,159 in adoption, clinic and other fees in 2016. The City of Indio has a contract with the County for Animal Control services at an annual cost of$925,000 to provide licensing, adoption,vaccination, sheltering,and spay and neutering services. They no longer have an animal shelter in Indio and direct their residents to the County's facility in Thousand Palms--which is not a no-kill shelter. (3) Homeless budget: General Fund portion =$1,048,038; CDBG 17-18 request=$127,675. 0 Cost Centers(05-09-2017) 5/9/2017;3:45 PM General Fund Proposed Budget Summary 2016-2017 and 2017-2018 Fiscal Years City of Palm Springs Projected Adopted 2016-2017 2017-2018 Revenues $107,700,617 $110,618,335 Expenditures (106,532,694) (110,130,162) Surplus / (Deficit) $1,167,923 $488,173 16-17 Unrestricted Beginning Balance $18,545,978 Projected Unrestricted Ending Balance $19,7130901 $20,202,074 Reserve as a % 21.17% 20.88% Note: Hotel Incentive payments were made in contra revenue account 001-31403 thru FY 2015-2016 and was moved to expense account 001-1400-42357 in FY 2016-2017. O 6/13/2017 Budget Checkbook for 2017-2018 Budget(Adopted)(06-13-2017);16-17 and 17-18 11:45 AM General Fund Reserve History City of Palm Springs Fiscal Year Cash Reserve Reserve % FY 17-18 $20,202,074 20.88% FY 16-17 $1 %713,901 21 .17% ** FY 15-16 $18,545,978 20.01 % FY 14-15 $14,9859652 18.08% FY 13-14 $13,19%370 16.31% FY 12-13 $12,8031298 18.19% FY 11-12 $13,041 ,689 19.11% FY 10-11 $117779,373 18.87% FY 09-10 $7,417,274 10.04% FY 08-09 $77217,966 9.11% FY 07-08 $11 ,4999714 15.66% FY 06-07 $11 ,1219250 15.87% * FY 17-18 reflects Preliminary Budget ** FY 16-17 based upon current projections 6/20/2017 Reserves as a Percent of Budget (6-20-2017) 4:04 PM PERS and OPEB Expenditure History and Projection All Funds City of Palm Springs Total CaIPERS Retiree Combined Increase Pension Health CaIPERS & to be Costs Insurance Costs OPEB Costs Funded 2010-2011 Actuals $9,216,037 $1,677,973 $10,894,010 2011-2012Actuals $11,155,157 $1,807,225 $12,962,382 2012-2013Actuals $11,034,396 $1,976,604 $13,011.000 2013-2014 Actuals $12,163,807 $2,051,471 $14,215,278 2014-2015Actuals $11,141,443 $2,301,963 $13,443,406 2015-2016Actuals $11,975,712 $2,466,677 $14,442,389 2016-2017 Projection $13,187,066 $2,563,118 $15,750,184 2017-2018 Projection $14,375,266 $2,761,227 $17,136,493 $0 2018-2019 Projection $16,706,148 $2,967,328 $19,673,476 $2,536.983 2019-2020 Projection $19,231,659 $3,172,870 $22,404,529 $5,268,036 2020-2021 Projection $21,937,338 $3,381,180 $25,318,518 $8,182,025 2021-2022 Projection $24,101,915 $3,549,960 $27,651,875 $10,515,382 2022-2023 Projection $26,038,915 $3,743,221 $29,782,136 $12,645,643 Cumulative Increase to Fund = $39,148,069 Average Additional $ per Year = $6,524,678 6/21/2017 PERS and OPEB Expenditure History and Projection (06-21-2017); PERS+OPEB Summary 12:13 PM PERS and OPEB Expenditure History and Projection Airport Fund City of Palm Springs Total CaIPERS Retiree Combined Increase Pension Health CaIPERS & to be Costs Insurance Costs OPEB Costs Funded 2010-2011 Actuals $1,311,705 $186,084 $1,497,789 2011-2012Actuals $1,617,010 $263,340 $1,880,350 2012-2013Actuals $1,605,578 $325,443 $1,931,021 2013-2014Actuals $1,800,732 $348,785 $2,149,517 2014-2015Actuals $1,616,991 $388,964 $2,005,955 2015-2016Actuals $1,782,296 $422,486 $2,204,782 2016-2017 Projection $2,073,016 $423,209 $2,496,225 2017-2018 Projection $2,337,531 $442,335 $2,779,866 $0 2018-2019 Projection $2,636,056 $474,772 $3,110,829 $330,963 2019-2020 Projection $3,036,251 $507,659 $3,543,911 $764,045 2020-2021 Projection $3,465,471 $540,989 $4,006,459 $1,226,593 2021-2022 Projection $3,807,675 $567,994 $4,375,669 $1,595,803 2022-2023 Projection $4,115,938 $598,915 $4,714,853 $1,934,987 Cumulative Increase to Fund = $5,852,391 Average Additional $ per Year= $975,398 6/21/2017 PERS and OPEB Expenditure History and Projection for Airport(06-21-2017); PERS+OPEB Summary 12:12 PM Golf Fund Summary History City of Palm Springs FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Actuals Actuals Actuals Projected Budget Revenue $4,541,707 $4,860,782 $4,258,421 $4,266,848 $4,395,000 Operations Expenses $5,072,083 $4,935,996 $4,458,506 $4,464,582 $4,563,485 Debt Service * $938,076 $941,394 $939,748 $937,266 $840,771 General Fund Subsidy $2,838,258 $699,770 $1,097,530 $1,135,000 $1,013,101 Remaining debt on the bonds which were refinanced in June 2017 is$8,387,857 and will be paid off in May, 2027 0 6/21/2017 Golf Comparison Updated_6-21-17; Rev+ Debt+Subsidy 12:33 PM Ot !A LM J,r, Department of Human Resources Coachella Valley FTE Survey - June 2017 °'�ctFoa;`r Agency Population Total FTE Fire(Sworn) Fire(Non-swom) Police (Sworn) Police(Nomawom) PALM SPRINGS 45402 461 63 5 100 45 CATHEDRAL CITY 54261* 178.7* 35* 3* 50* 30.2* COACHELLA 45407* 68* 11 Contracted* 1 Contracted* 33 Contracted* 0 Contracted* DESERT HOT SPRINGS 28164 66 Contracted Contracted 27 8 INDIAN WELLS 5165 28 Contracted Contracted 8 Contracted 5 Contracted INDIO 89000 219 Contracted Contracted 64 36 LA QUINTA 39977* 78* 26 Contracted* 1 Contracted* 57 Contracted* 6 Contracted* PALM DESERT 51053** 115** 45 Contracted** 5 Contracted** 81 Contracted** 19 Contracted** RANCHO MIRAGE 18070* 77* 22 Contracted* 0 Contracted* 22 Contracted" 1 Contracted" Notes: Data collected from corresponding Cities HR Departments and Websites Palm Springs data effective June 18, 2017 All other cities effective May 2017 except as noted 2016 Data 2015 Data 0 PRIVILEGED AND CONFIDENTIAL COMMUNICATIONS NOT PUBLIC RECORDS—May 2017 These documents are exempt from public disclosure pursuant to Government Code Sections 54957.6 and 6254