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HomeMy WebLinkAbout4/16/2014 - STAFF REPORTS 7AlMSa iy Q V N s °`'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 kti� • Riscal Year 2014-2015 e. Preliminary Budget OPERATING FUND OVERVIEW D '"rtment of Finance and Treasury r i Y I ' i T .f. ' April 16, 2014 05 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 l 03A 12 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 i r a 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 *