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°`'FO"` CITY COUNCIL STAFF REPORT
DATE: APRIL 16, 2014 NEW BUSINESS
SUBJECT: TRANSMITTAL OF THE FISCAL YEAR 2014-15 BUDGET FOR
GENERAL FUND AND GOLF FUND AND CONTINUED DISCUSSION
OF A MULTI-YEAR STRATEGIC ACTION PLAN FOR CITY CAPITAL
IMPROVEMENTS AND QUALITY OF LIFE ENHANCEMENTS RELATED
TO MEASURE J FUNDING
FROM: David H. Ready, City Manager
BY: Finance Department
SUMMARY
The purpose of this item is to transmit components of the preliminary 2014-15 Budget
for the General Fund and Golf Fund to the City Council for initial review and direction.
Additionally, the City Council will continue discussion of a multi-year strategic action
plan for Measure J capital improvements and quality of life enhancements. No formal
action is required on the budget at this meeting.
RECOMMENDATION:
Direct staff as appropriate.
STAFF ANALYSIS:
City staff is presenting the preliminary fiscal year 2014-15 General Fund and Golf
Course Fund Budgets for initial consideration. Other City Funds will be provided at the
next meeting. Also, budget discussions will be agendized for the meetings of May 7"'
and May 2151. Prior to its adoption, a Budget Public Hearing, as required by the City
Charter, will be scheduled for the June 4, 2014, City Council Meeting.
General Fund Budget Highlights
Overall we are presenting a balanced preliminary General Fund budget — with an
anticipated $50,000 surplus.
ITEM NO.
City Council Staff Report
April 16, 2014-- Page 2
Fiscal Year 2014-15 Budget
However, on April 7, 2014, staff received notice from the State Department of Finance
which indicated the former Redevelopment Development Agency (RDA) would no
longer allow a $1.6 million "enforceable obligation" Convention Center bond payment.
Per State regulations that govern the RDA termination process, this particular bond
payment will not be allowed going forward because it is an obligation of the General
Fund. Since 2007, the former RDA regulations allowed for the payment. This change in
state law now requires the City's General Fund to pay these debt obligations. Hence,
the expected budget surplus will now become a $1.5 million deficit.
Addressing this deficit can be achieved in two ways. First, there are sufficient General
Fund reserves which can be appropriated to offset this added expense. Second, as we
move through the fiscal year, our goal should be to focus on specific areas of increased
savings and revenues. For example, in the current fiscal year, we anticipate salary
savings from temporarily vacant positions. Moreover, Department Heads will be
instructed to recommend expense reductions in various budget line items — as
practicable.
On the revenue side, currently staff is working with Capital Accounting Partners on a
comprehensive fee study, which should be complete by July. As the City has not raised
fees in any appreciable manner since the beginnings of the economic recession in
2008, staff will be making a series of fee recommendations over the next few months.
Specifically, areas where services are heavily subsidized (e.g. Parks and Recreation —
"day care" programs; Planning services, etc.) are being considered for fee
modifications, or program realignments to further reduce costs.
With regard to current budget revenues, the presented budget includes a series of
revenues that staff believes will grow in the next fiscal year. Those revenue increases
include:
Transient Occupancy Tax $2,570,000
Sales Tax (not including Measure J) $ 500,000
Property Taxes $1,020,000
Measure B Taxes $ 900,000
Vacation Rental Permit Fees $ 228,000
Documentary Transfer Taxes $ 380,000
Business License Taxes $ 100,000
Building Permit Fees $ 200,000
Development Service Fees $ 340,000
Other Revenue Increases $ 185,000
Conversely, included in the preliminary budget is an estimated increase of
approximately $2 million for employee related costs, such as PIERS state retirement
system increases, pay range step increases (first 5 years of City service), and other
projected increases in employee benefit costs.
02
City Council Staff Report
April 16, 2014 -- Page 3
Fiscal Year 2014-15 Budget
Also, the following staffing changes and expenses are included in the preliminary
General Fund Budget:
• Add a Development Services Coordinator position, with an estimated cost
(including benefits) of $88,000 which will serve the Planning, Building and Public
Works Departments. This position greets customers into the Development
Services area and provides guidance and assistance on the City's development
processes. Anticipated increased development transactions and the related fees
should offset the cost of this position, and provide greater customer service.
• Add a Permit Center Technician position, with an estimated cost (including
benefits) of $84,000 in the Building Department. This position will interface with
customers at the Building counter, issue permits, and provide guidance.
Importantly, the addition of this position will allow more time for Building
Inspectors to remain in the field and making timely inspections, particularly as
building activity has significantly increased over the past two years.
• Add a .5 FTE Lifeguard at the Palm Springs Aquatics Center, with an estimated
cost (including benefits) of $30,000. This new position will ensure pool safety
with regular staff rather than utilizing temporary staff. Also, the cost of this
position will be partially offset by a decrease of $20,000 in temporary employees
at the Aquatics Center.
• Add three (3) Community Service Officers (CSO's) at the Palm Springs Police
Department, with an estimated cost (including benefits) of $266,455. Currently,
these positions are funded with salary savings from Police "over hire" positions.
By funding these CSO positions, the vacant Police "over hire" positions will be
available for immediate hiring of new Officers.
• Increase Custody Officer funding for the Palm Springs Police Department by
$75,000 for a total amount of $125,000. This will allow for additional Custody
Officers, on a part-time or contractual basis to transport detainees to the County
Jail facilities, hence, Police Officers can remain in service in the City.
Measure J Multi-Year Strategic Planning
At the February 19, 2014, City Council meeting, the City Council discussed some
preliminary concepts with regard to developing a multi-year strategic plan for capital
projects and quality of life issues funded by Measure J. The City Council Measure J
Sub-Committee (Hutcheson/Lewin), working with staff and the Measure J Commission
Sub-Committee has had several meetings to discuss how such a long range plan might
unfold.
03
City Council Staff Report
April 16, 2014-- Page 4
Fiscal Year 2014-15 Budget
There are several areas of focus for Council to consider with a multi-year program. For
example, combining Measure J funds and Measure A street funds could allow for
approximately $12 million for street resurfacing over the next three years. Other larger
projects include a comprehensive bike lane program for City streets (Non-Motorized
Transportation Plan), the Library renovation, a new Soccer Park, a new Fire Station,
Convention Center improvements, increased parking locations, trolley program, and
other park improvements.
As part of the ongoing budget discussions over the next two months, these projects will
be included as agenda items for consideration and direction to staff.
GEOFFIRE S. KIEHL AMES THOMPSON
Director of Finance/City Treasurer Chief of Staff/City clerk
DAVID H. READY
City Manager
Attachments:
General Fund Budget
Golf Fund Budget
04
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Riscal Year 2014-2015
e. Preliminary Budget
OPERATING FUND OVERVIEW
D '"rtment of Finance and Treasury
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April 16, 2014
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City of Palm Springs
Table of Cori tints
Operating Funds
Revenue...................................................................... page 1
Expenditures................................................................ page 2
Expenditure Detail................................................... page 3
Summary of Operations..................................................page 4
Cash Balances.......................................................... page 5
BUDGET CALENDAR
April 16, 2014 General Fund - Preliminary Budget
May 7, 2014 All Other Funds - Budget Discussion
May 21, 2014 Continued Budget Discussion
June 6, 2014 Public Hearing
4/14/2014 7:00 PM
06
MAJOR REVENUE FUNDS
FY 13-14 FY 13-14 FY 14-15 % CHANGE
CATEGORY APPROVED PROJECTED PROPOSED FY 14-15
Property Taxes 16,186,508 17,030,761 17,206,703 6.30%
Transient Occupancy 18,600,000 21,000,000 21,250,000 14.25%
Sales and Use Taxes 10,999,353 11,013,210 11,513,210 4.67%
Utility Users Tax 7,000,000 7,000,000 7,000,000 0.00%
Franchise Fees 3,000,000 3,000,000 3,000,000 0.00%
Vehicle In-Lieu Fees 3,481,240 3,481,240 3,481,240 0.00%
Prop B 0 450,000 900,000 N/A
Administrative Charges 1,639,079 1,639,079 1,823,933 11.28%
Business Licenses 875,000 975,000 975,000 11.43%
Building Permits 900,000 1,100,000 1,100,000 22.22%
All Other Sources 6.158.449 6,279,663 7,041,947 14.35%
Subtotal 68.839,629 72,968,953 75,292,033 9.37%
Transfers In 887,500 887,500 887,500 0.00%
Measure J Transfers In 9,300,000 11,000,000 11,000,000 18.28%
TOTAL $79,027,129 $84,856,453 $87,179,533 10.32%
Where the Money Comes From
1% ■Property Taxes
2% 9%
■Transient Occupancy
1% 3%
•Sales and Use Taxes
5%
IS Utility User Tax
4%
■Franchise Fees
In Vehicle In-Lieu Fees
■Prop B
■Administrative Charges
■Business Licenses
■Building Permits
■All Other Sources
City of Palm Springs FY 2014-2015 Preliminary Budget Page 1
1� 7
EXPENDITURES
FY 13-14 FY 14-15 % CHANGE
CATEGORY APPROVED PROPOSED FY14-15
General Government 9,421.245 9,895,778 5.04%
Community Econ Dev 1,300,160 1,158,829 -10.87%
Planning Services 1,203,933 1,413,841 17.44%
Building & Code Enforcement 2,131,731 2,358,432 10.63%
Recreation 3,421,537 3,582,544 4.71%
Library 2,427,335 2,487,981 2.50%
Public Safety 33,920,892 35,611,879 4.99%
Public Works/Streets 4,338,512 4.555,931 5.01%
Maintenance/ Facilities 4,571,380 4,662,301 N/A
Tourism/Convention Center 9,143,990 10,766,201 17.74%
Special Events &Contributions 669,684 694,684 3.73%
Subtotal 72,550,399 77,188,401 6.39%
Transfers Out 2,020,668 2,488,876 23.17%
Measure J Transfers Out 9,300,000 11,000,000 NIA
TOTAL $83,871,067 $90,677,277 8.12%
WHERE THE MONEY GOES
■General Government ■Community Econ Dev
■Planning Services ■Building&Safety
■Parks Maint/Recreation ■Library
■Public Safety ■Uptown Downtown Maintenance
■Public Works ■Tourism/Conv.Center
■Special Events&Contributions
14% 1% 13%
1% 2% 3%
6% 6%
5%
3%
City of Palm Springs FY 2014-2015 Preliminary Budget Page 2 0 8
EXPENDITURE DETAIL
(By Department)
rD PROPOSED %CHANGE
t3tOD{JRT BUDGET 15 PROPO$ED
=344 FY 14-15 14 ADOPTED
General Government
City Council 627,539 650,205 3.61%
City Manager/Admin 653,315 686,016 5.01%
Neighborhood Involvement 175,644 182,873 4.12%
Information Technology 1,159,826 1,234,380 6.43%
City Clerk/Chief of Staff 953,634 996,657 4.51%
Human Resources 423,417 444,483 4.98%
City Attorney 706,351 706,087 -0.04%
Leave Liability Reduction 1,060,000 1.060.000 0.00%
Public Affairs/PSCTV 284,328 346,301 21.80%
Document Management 166,962 267,896 60.45%
Finance 2,595,372 2,689,147 3.61%
Procurement 511,957 528,733 3.28%
Homeless/Roy's Resource Center 103,000 103,000 N/A
General Government Total 9,421,345 9,895,778 5.04%
Community Eco Dev 1,300,160 1,158,829 -10.87%
Planning Services 1,203,933 1,413,841 17.44%
Building and Code Enforcement 2,131,731 2,358,432 10.63%
Recreation 3,421,537 3,582,544 4.71%
Library 2,427,335 2,487.981 2.50%
Public Safety
Police 22,361,987 23,516,348 5.16%
Fire/Paramedic 11,558,905 12,095,531 4.64%
Public Safety Total 33,920,892 35,611,879 4.99%
Public Works
Engineering/Street/Maintenance 4,338,512 4,555,931 5.01%
Maintenance&Facilities
Parks/Facilities/Downtown/Uptown 4,571,380 4,662,301 N/A
TourhmVConventlon Center
Tourism/Visitors Info Center 1,955,000 1,955,000 0.00%
Convention &Visitor Bureau 400,000 425,000 6.25%
Convention Center& Debt Service 6,788,990 8,386,201 23.53%
Tourism/Conv. Center Total 9,143,990 10,766,201 17.74%
Special Events&Contributions
PS International Film Festival 350,000 350,000 0.00%
Special Events/Contributions 319,684 344.684 7.82%
Special Events &Contrib. Total 669,684 694,684 3.73%
TOTAL 72,550,499 77,188,401 6.39%
City of Palm Springs FY 2014-2015 Preliminary Budget Page 3
09
SUMMARY OF OPERATIONS
FY y X
roppy� h.�4 FY 14-1
Revenue 83,968,953 86,292,033
Transfers In 887,500 887,500
84,856,453 87,179,533
Expenditures 72,830,399 75,588,401
Redevelopment Convention Center Bond 0 1,600,000
Transfers Out 13,020,668 13,488,876
85,851,067 90,677,277
One Time CRA Residual
From State 1,850,925 432,000
2012-14 Savings for Redevelopment Claims 165,744
Savings Carry Forward from
Prior Fiscal Year 1,350,000 1,350,000
Surplus / (Deficit) $2,206,311 ($1,550,000)
Transfers In
General Fund(001)
From: Gas Tax $600,000
From: Airport 287,500
Total Transfers In(001) $887,500
Transfers Out•`
General Fund (001)
To: Debt Service
Police Building $53,210
Chevron Energy Project 280,000
Parking Structure 439,000
Measure J Capital Projects 11,000,000
Parking Fund Operations 305,964
Emergency Response/911 ERICA System 323,606
Master Lease Fund 361,329
Public Safety CFD 297,557
Golf Course 428,210
Total Transfers Out-General Fund $13,488,876
City of Palm Springs FY 2014-2015 Preliminary Budget Page 4
10
CASH BALANCES
GENERAL OPERATING FUND
AVAILABLE CASH BALANCE, 7/01/13 $12,803,297
FISCAL YEAR 2013-2014 Projections
Revenue & Transfers-In 84,856,453
One-Time CRA Residual 1,850,925
Carryforward From 2012-2013 1,350,000
Expenditures & Transfers-Out (85,851,067)
Projected 2013-2014 Surplus/(Deficit) 2,206,311
Additional Mid-Year City Council Approved (3,000,000)
Projected Available Cash Balance, 6/30/2014 $12,009,608
FISCAL YEAR 2014-2015 Projections
Revenue & Transfers-In 87,179,533
One-time CRA Residual from State 432,000
Carryforward From 2013-2014 1,350,000
2012-14 Savings for Redevel. Claims 165,744
Expenditures & Transfers-Out (89,077,277)
Preliminary 2014-2015 Surplus/(Deficit) 50,000
Redevelopment/ Conv Ctr Bond (1,600,000)
Projected 2014-2015 Surplus/(Deficit) (1,550,000)
Projected Available Cash Balance, 6/30/2015 $10,459,608
General Fund Reserve Equivalency 13%
City of Palm Springs FY 2014-2015 Preliminary Budget Page 5
11
Fiscal Year 2014-15
Proposed Budget
Golf
VZAVY� nAri
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City of Palm Springs
Table of Contents
ab e
Golf Courses page 1
13
Golf Course - Fund 430
FY 2013-14 FY 2013-14 FY 2014-15 Bud - Prelim
Cateqory Bud et Projected Preliminary % Change
Golf Courses Operations - Managed by Century Golf
Revenue
Golf Revenues $5,096,315 $4,998,419 $5,096,315 0.00%
Proposed Fee Adjustments " 0 0 TBD
Total Revenue $5,096,315 $4,998,419 $5,096,315 0,00%
Expenditures
Materials, Supplies & Srvs 4,285,641 4,138,734 4,256,105 -0.69%
Management Fee 225,000 225,000 225,000 0.00%
Special Charges &Auditing 17,767 17,767 14,976 -15.71%
Overseed Equipment Lease 82,049 82,049 82,049 0.00%
Capital Improvements 0 0 0 N/A
Total Expenditures $4,610,457 $4,463,550 $4,578,130 -0.70%
Operations Surplus/(Deficit) $485,858 $534,869 $518,185
Golf Courses Non-Operating
Bond Debt Service Expenses (943,076) (943,076) (946,395)
Sub-total ($457,218) ($408,207) ($428,210)
Interfund Transfer In - General Fund $388,665 $408,207 $428,210
Net Surplus/(Deficit) ($68,553) $0 $0
Note: Proposed Fee increases to be considered by Council at a future meeting.
FY 2014-15 Q
DRAFT -Golf Proposed Budget
2014-2015 Preliminary Budget
Special Events and Contributions
City of Palm Springs
2014.15
2012-2013 2013-14 Preliminary
TITLE Budget Budget Budget
Contributions:
Boys and Girls Clubs(City Sponsorship) $10,000 $10,000 $10,000
Well in the Desert(City Sponsorship) 0 16,000 16,000
City Events:
Black History Month (City held Event) 8,300 16,600 16,600
July 4th Celebration(City held Event) 30,000 30,000 30,000
Festival of Lights Parade (City held Event) 30,000 30,000 30,000
PSHS Homecoming Parade(City held Event) 3,000 3,000 3,000
Veteran's Day Parade(City held Event) 15,000 15,000 15,000
Mayor's Race&Wellness Festival(City held Event) 0 50,000 50,000
Event Sponsorship:
Bike Weekend(City held Event) 26,250 26,250 26,250
Modernism Week(City Sponsorship) 25,000 25,000 25,000
Opera in the Park (City held Event) 6,000 6,000 6,000
Palm Springs Pride Parade(City Sponsorship) 20,000 20,000 20,000
Tour De Palm Springs(City Sponsorship) 15,000 15.000 15,000
City's 75th Anniversary(City,Sponsorship) 30,000 0 0
Arthur Lyons Film Noir Festival(City Sponsorship) 5,000 5,000 5,000
Cinema Diverse(City Sponsorship) 5,000 5,000 51000
American Documentary Film Festival(City Sponsorship) 5,000 5,000 5,000
Run for Ike(City Sponsorship) 0 1,834 1,834
Coyote Stageworks(City Sponsorship) 0 5,000 5,000
Sub-Total 233,550 284,684 284,684
Parks&Recreation Dept.
Holiday Lights Replacement 50,000 0 0
Downtown Banner Replacement 20,000 0 0
Holiday Decor Set-up&Take-down(City Activity) 25,000 25,000 25,000
GRANDTOTAL $328,550 $309,684 $309,684
City of Palm Springs FY 2014-2015 Preliminary Budget 15
2014-2015 Preliminary Budget
Special Events and Contributions
City of Palm Springs
2014-15
2012-2013 2013-14 Preliminary
TITLE Budget Budget Budget
Other Contributions:
Senior Center Contribution(City Sponsorship) $60.000 $60,000 $60,000
City of Palm Springs FY 2014-2015 Preliminary Budget
16 .
2014-2015 Preliminary Budget
Special Events and Contributions
City of Palm Springs
2014-15
2012-2013 2013-14 Preliminary
TITLE Budget Budget Budget
Other Contributions:
International Film Festival (City Sponsorship) 350,000 350,000 350,000
Grand Total for All Contributions,
Event Sponsorships,&Other Support $738,550 $719,684 $719,684
Net Increase/(Decrease) $0
City of Palm Springs FY 2014-2015 Preliminary Budget
17
Other Contribution/Sponsorship Requests for FY 2014-15
Organization Notes,Details Amount
1. Riverside County Fair& Participating Sponsor—branding,promotional use, 10 x 10 booth,etc
National Date Festival $5,000
2. Santa Paws Raceto supportGuide Dogs of the Desert—request Citywaive fees
which Include application fee,police,streets,land use. $1,834.00
3. 4th Annual Run for Ike 5k Benefits PSPD K-9 Fund-request City waive fees which include
application fee,police,streets land use $1834 00
4. Nat'l Collegiate Tennis Classic To be held at Sunrise Country Club in Rancho Mirage;covered on TV, $6,500 to
2014/15 radio&print 875.000
S. PS Women's JAZZ Festival Request funds to increase promo/advertising $30 000-$60 000
6. Camp Ronald McDonald Requesting funds to transport 170 campers and staff to and from the Los
Angeles area to their site in the Coachella Valley for one of five summer
sessions. $6,400
7. PS Pride—2014Funding Requesting$10K increase—moving Pride Festival to downtown PS—as a
Request free event $30 000
8. Fine Arts Festival A number of sponsorship opportunities outlined in their material $4000 to$10 000
9. Welt in the Desert $2,000 per month,which will be matched by the Cabazon Band of
Mission Indians $24 000
10. Opera Guild Opera in the Park—last year City gave$6,000.This year requesting an
increase to$10,000 $10 000
11. SoCaI Coyotes Youth football for disadvantaged children—donation from City to be
matched in part by other agencies and sponsors $60 000
22. Camelot Cultural Center $5000 each to Cinema Diverse,American Documentary Film,Author
Lyon's Film Noir Festival Stanley Kramer Film Festival $20 000
13 LGBTCenter Annual operations assistance $5 000
14 Shelter From the Storm Women,family,homeless shelter operations-Fundraising Gala $5 000
15 AIDS Assistance Evening under theStarsevent-fundraiser $5000
16 Desert AIDS Project Steve Chase Gala-fundraiser $5 000
17 Agua Caliente Tribe Dinner in the Canyons event—fundraiser for Cultural Museum $5 000
18 Well in the Desert Free Christmas Dinner—PS Convention Center fee waiver $3,500
19 Camelot Cultural Center Farmer's Market—waive business license fees for market/vendors $3 500
C:\Users\Dav[dR\Desktop\sponsorship�onlributlon requests.doa 18
2013 — 2014 3 ,d Quarter
Financial Review
City of Palm Springs
4H6/2014 City of Palm Springs 2013-2014 3rd Quarter 1
kNm too. 6t,
9i
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2013- 14 Revenues 9-Month Comparison
$80.0
$70.0
$60.0
$50.0 Actuals Budget
for for
$40.0 2012-13 2013-14
$30.0 57% 61 %
$20.0
$10.0 ---
$0.0
Full Year 9 Months
Does Not Include Measure J Sales Taxes
❑ 2012-2013 u 2013-2014
4/16/2014 City of Palm Springs 2013-2014 3rd Quarter 2
Major Revenues 9- Month Comparison
800% 67% 66%
70 /0 57% °
60 /o ° 57% o 0
50%
40%
30%
20%
10% ----
0%
Property TOT UUT Sales
Taxes Taxes *
* Does not include Measure J
❑ 12-13 9 Months as % of Actuals
® 13-14 9 Months as % of Budget
4/16/2014 City of Palm Springs 2013-2014 3rd Quarter 3
Hotel Tax (TOT) Chart
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Month 2009-10 2010-11 2011-12 2012-13 2013-14
July $681 ,421 $893,586 $19081 ,720 $1 ,0869702 $11140,053
August 627,625 715,061 886,420 11002,994 1 ,1075575
September 708,714 835,392 1 ,048,682 191209556 1 ,1311490
October 19084,333 1 ,074,067 1 ,392,751 11412,648 194889957
November 11151 ,258 19162,232 1 ,380,503 195%168 1 ,700,617
December 7909820 966,193 15219,334 1 ,355,982 11462,499
January 1037,727 19307,064 1 ,308,284 194539092 11818,620
February 19377,860 115749504 19865,098 1 ,841,747 25190,584
8 Months $7,559,758 $855289099 $10,1825792 $103789,889 $121040,395
March 118089229 211595720 29296,103 21905,456
April 119529692 29364,370 216389497 29698,949
May 1,268,493 11547,404 11574,293 197803521
June 7789513 1 ,062,687 191699583 19209,911
Annual $13,3671685 $15,662,280 $17,861 ,268 $19,3849726
4/16/2014 City of Palm Springs 2013-2014 3rd Quarter 4
Sales Taxes
■ Comparisons : 12- 13 4Q's 13- 14 3rd Q
Palm Springs T +4.8% T +3.5%
Coachella Valley T +5.1 % T +6.1 %
Riverside County T +10.8% T +6.4%
Inland Empire T +8.4% T +6.1 %
Southern California T +6.2% T +6.5%
State of California T +6.2% T +6.2%
$15.0
$10.0
$5.0 $9.6 $10.2 $10.9 $11 .0
$0.0
(in millions) 10-11 Act 11 -12 Act 12-13 Act 13-14 Proj
4/16/2014 City of Palm Springs 2013-2014 3rd Quarter 5
2013- 14 Expenses 9-Month Comparison
$90.0 $77.9
$80.0
$70.0 —
$60.0 Actuals Budget 49 4 $54.1-
$50.0 -- for for -
$40.0 2012-13 2013-14
$30.0 70% 70%
$20.0
$10.0
$0.0
Full Year 9 Months
F ❑ 2012-2013 ❑ 2013-2014
4/16/2014 City of Palm Springs 2013-2014 3rd Quarter 6
2013-2014 Revenues & Expenses
9-Month & Full-Year Comparisons
Total Property Sales
Revenues Revenues Taxes TOT UUT Taxes
12-13 9 Months $41 ,263,985 $95399,659 $10,7893889 $4,781 ,237 $5,926,083
13-14 9 Months $455300,082 $10,336,421 $12,040,395 $4,643,018 $5,995,470
12-13 Actuals $71 ,765,109 $16,604,112 $19,384,726 $7,093,712 $10,902,013
13-14 Projected $73,856,453 $17,238,079 $21 ,000,000 $7,000,000 $11 ,013,210
Does not include Measure J Sales Tax
Expenses Full Year 9 Months
2012-2013 $70,386,514 $495403,205
2013-2014 $77,8511067 $54,114,549
4/16/2014 City of Palm Springs 2013-2014 3rd Quarter 7
2014 - 2015
Preliminary Budget
7
City of Palm Springs
4H6/2014 City of Palm Springs 2014-2015 Budget 7
2014-2015 Preliminary Budget
Projected Preliminary
2013-2014 2014-2015
Revenues $849856,453 $87,179,533
One-time CRA Residual Revenue from State 1 ,85%925 432,000
Carryforward from prior fiscal year 1 ,35%000 1 ,350,000
2012-14 Savings for Redevel. Claims 0 1652744
Expenditures (85,851 ,067) (89,0777277)
Preliminary Surplus / (Deficit) $2,2061311 $50,000
Redevelopment / Conv Ctr Bond 0 (19600,000)
Net Surplus / (Deficit) $2,206,311 ($19550,000)
13-14 Unrestricted Beginning Balance $12,8039297
Mid-Year Appropriations from Fund Balance:
Economic Development ($1 000 000)
Loan to CRA for Payment to State (1 ,500,000)
Golf Course Flood Clean-up (100,000)
One-time Prior-Years' Sales Tax Loss (400,000)
Projected Unrestricted Ending Balance $12,0091608 $10,4592608
Reserve as a % 13%
4/16/2014 City of Palm Springs 2014-2015 Budget 2
2014-2015 Preliminary Budget
Revenue Increases:
• TOT / Hotel Tax $2,6509000
• Sales Tax (regular, not Measure J) 5005000
• Property Taxes 1 ,020,000
• Medical Cannabis Tax 900,000
• Documentary Transfer & New Development Taxes 280,000
• Development Services Revenue (wloffsetting exp) 340,148
• Vacation Rental Permit Fees 228,000
• Building Permit Fees 200,000
• Miscellaneous Revenue Increases 1059385
• Business License 100,000
Total Revenue Increases $62323,533
4/16/2014 City of Palm Springs 2014-2015 Budget 3
2014-2015 Preliminary Budget
Employee Related Expense (Increases) and Savings:
• CalPERS Increase - Safety & Non-Safety ($842,058)
• CalPERS Reform Savings 20%589
• Bargaining Unit Contractual Increases (3152442)
• Employee Step Increases (337,846)
• Employee Health Benefits (341 ,142)
• Retiree Health Benefits (175,584)
• Workers' Comp (16%464)
• State Safety Augmentation Fund (one-time savings) 70,664
• Bargaining Unit Negotiations TBD
Total Employee Related Cost Increases ($1 ,901 ,283)
4/16/2014 City of Palm Springs 2014-2015 Budget 4
2014-2015 Preliminary Budget
Position Increases
Department Title FTE Budget
Police Community Service Officers 3.0 $267,000
Police Custody Service Officers (temp/contract) 0.0 75,000
Swim Center Lifeguard (half-time) 0.5 309000
Building Permit Center Technician 1 .0 83,000
Planning Development Services Representative 1 .0 88,000
Total General Fund Position Increases 5.5 $543,000
4/16/2014 City of Palm Springs 2014-2015 Budget 5
2014-2015 Preliminary Budget
Measure J Fund 2013-2014 2014-2015
Projected Budget
Beginning Balance $9,788,824 $11978,686
Revenue $11 ,00%000 $11 ,000,000
Bond Payments 3,2001000 312002000
Project Maint & Other Exp 388,043 400,000
Projects - Spent & Committed 15,222,095 39133,333
Unallocated Projects / Reserves 0 61245,353
Ending Balance $1 ,978,686 $0
4/16/2014 City of Palm Springs 2014-2015 Budget 6
5.C. TRANSMITTAL OF THE FISCAL YEAR 2014-15 BUDGET FOR
GENERAL FUND AND GOLF FUND AND CONTINUED DISCUSSION
OF A MULTI-YEAR STRATEGIC ACTION PLAN FOR CITY CAPITAL
IMPROVEMENTS AND QUALITY OF LIFE ENHANCEMENTS
RELATED TO MEASURE J FUNDING:
RECOMMENDATION: Direct staff as appropriate.
MATERIALS TO FOLLOW
Item No. 5 * C *