HomeMy WebLinkAbout2024-05-28 FC Regular Meeting Agenda Packet
FINANCE COMMITTEE
CITY OF PALM DESERT
MEETING AGENDA
Tuesday, May 28, 2024
10:00 a.m.
Administrative Conference Room, City Hall
73-510 Fred Waring Drive
Palm Desert, CA 92260
Pursuant to Assembly Bill 2449, this meeting will be conducted as a hybrid meeting and there will be
in-person access to this location.
To participate via Zoom, use the following link: https://palmdesert.zoom.us/j/86292070396 or
call (213) 338-8477, Zoom Meeting ID: 862 9207 0396
•
Written public comment may also be submitted to cityclerk@palmdesert.gov. E-mails
received by 4:00 p.m. the day prior to the meeting will be distributed to the Committee. Any
correspondence received during or after the meeting will be distributed to the Committee as
soon as practicable and retained for the official record. Emails will not be read aloud except
as an ADA accommodation.
•
Pages
1.CALL TO ORDER
2.ROLL CALL
3.NONAGENDA PUBLIC COMMENTS
This time has been set aside for the public to address the Finance Committee
on issues that are not on the agenda for up to three minutes. Speakers may
utilize one of the three options listed on the first page of the agenda. Because
the Brown Act does not allow the Finance Committee to act on items not listed
on the agenda, members may briefly respond or refer the matter to staff for a
report and recommendation at a future meeting.
4.CONSENT CALENDAR
All matters listed on the Consent Calendar are considered routine and may be
approved by one motion. The public may comment on any items on the Consent
Agenda within the three-minute time limit. Individual items may be removed by
the Finance Committee for a separate discussion.
RECOMMENDATION:
To approve the consent calendar as presented.
4.a APPROVAL OF MINUTES 5
RECOMMENDATION:
Approve the Minutes of March 26, 2024.
5.CONSENT ITEMS HELD OVER
6.ACTION CALENDAR
The public may comment on individual Action Items within the three-minute time
limit. Speakers may utilize one of the three options listed on the first page of the
agenda.
6.a FINANCE DIRECTOR'S REPORT FOR GENERAL FUND FINANCIAL
REPORTS
9
RECOMMENDATION:
Receive and file the General Fund Financial Reports for the months ending
March 31, 2024, and April 30, 2024.
6.b PARKVIEW OFFICE COMPLEX FINANCIAL AND VACANCY REPORTS 15
RECOMMENDATION:
Receive and file the Parkview Office Complex Financials for months ending
March 31, 2024 and April 30, 2024 and the Vacancy Report for month
ending April 30, 2024.
6.c DESERT WILLOW GOLF RESORT FINANCIAL REPORTS 27
RECOMMENDATION:
Receive and file the Desert Willow Golf Resort Financial Reports for the
months ending March 31, 2024, and April 30, 2024.
6.d CITY TREASURER'S INVESTMENT REPORTS 53
RECOMMENDATION:
Receive and file the City Treasurer’s Investment Reports for the months
ending March 31, 2024, and April 30, 2024.
7.INFORMATIONAL REPORTS & COMMENTS
7.a FINANCE COMMITTEE MEMBERS
7.b CITY STAFF
7.b.1 City Budget Update 141
7.b.2 Summer Recess
7.c ATTENDANCE REPORT 181
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8.ADJOURNMENT
The next Regular Meeting will be held on September 24, 2024, at 10 a.m.
9.PUBLIC NOTICES
Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the
designated office for inspection of records in connection with this meeting is the
Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive,
Palm Desert. Staff reports for all agenda items considered in open session, and
documents provided to a majority of the legislative bodies are available for
public inspection at City Hall and on the City’s website at www.palmdesert.gov.
Americans with Disabilities Act: It is the intention of the City of Palm Desert to
comply with the Americans with Disabilities Act (ADA) in all respects. If, as an
attendee or a participant at this meeting, or in meetings on a regular basis, you
will need special assistance beyond what is normally provided, the City will
attempt to accommodate you in every reasonable manner. Please contact the
Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to
inform us of your needs and to determine if accommodation is feasible.
AFFIDAVIT OF POSTING
I hereby certify under penalty of perjury under the laws of the State of California
that the foregoing agenda for the Finance Committee was posted on the City
Hall bulletin board and City website not less than 72 hours prior to the meeting.
/S/ Michelle Nance
Deputy Clerk I
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FINANCE COMMITTEE
CITY OF PALM DESERT
REGULAR MEETING MINUTES
March 26, 2024, 10:00 a.m.
Present: Committee Member Carlos Garcia, Committee Member Jan
Harnik, Committee Member Gretchen Heuring, Committee
Member Faith Messenger, Committee Member Karina Quintanilla,
Committee Member Jake Wuest, Chair Robert Leo
Staff Present: Finance Director Veronica Chavez, Deputy Director of Finance
Liberty Urban, Deputy Director of Finance John Ramont, Finance
Supervisor James Bounds, Recording Secretary Michelle Nance
Click HERE to access the meeting audio.
Click HERE to access the meeting agenda packet.
1. CALL TO ORDER
A Regular Meeting of the Finance Committee was called to order by Chair Leo on
Tuesday, March 26, 2024 at 10:00 a.m. in the Administrative Conference Room, City Hall,
located at 73-510 Fred Waring Drive, Palm Desert, California.
2. ROLL CALL
3. NON-AGENDA PUBLIC COMMENTS
4. CONSENT CALENDAR
Motion by: Committee Member Harnik
Seconded by: Committee Member Wuest
To approve the consent calendar as presented.
Motion Carried (6 to 0)
4.a APPROVAL OF MINUTES
Approve the Minutes of January 22, 2024.
5. CONSENT ITEMS HELD OVER
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6. ACTION CALENDAR
6.a FINANCE DIRECTOR'S REPORT FOR GENERAL FUND FINANCIAL
REPORTS
Director of Finance Chavez presented reports and answered member inquiries.
Motion by: Committee Member Harnik
Seconded by: Committee Member Garcia
Receive and file the General Fund Financial Reports for the months ending
January 31, 2024 and February 29, 2024.
Motion Carried (6 to 0)
6.b PARKVIEW OFFICE COMPLEX FINANCIAL AND VACANCY REPORTS
Deputy Director of Finance Urban presented reports and answered member
inquiries.
Motion by: Committee Member Wuest
Seconded by: Committee Member Garcia
1. Receive and file the Parkview Office Complex Financial Reports for the
months ending January 31, 2024, and February 29, 2024.
2. Receive and file the Parkview Office Complex Vacancy Report for the
month ending February 29, 2024.
Motion Carried (6 to 0)
6.c DESERT WILLOW GOLF RESORT FINANCIAL REPORTS
General Manager White presented reports and answered member inquiries.
Motion by: Committee Member Messenger
Seconded by: Committee Member Garcia
Receive and file the Desert Willow Golf Resort Financial Reports for the months
ending January 31, 2024, and February 29, 2024.
Motion Carried (6 to 0)
6.d CITY TREASURER'S INVESTMENT REPORTS
Finance Supervisor Bounds presented reports and answered member inquiries.
Motion by: Committee Member Garcia
Seconded by: Committee Member Harnik
Receive and file the City Treasurer’s Investment Reports for the months ending
January 31, 2024, and February 29, 2024.
Motion Carried (6 to 0)
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7. INFORMATIONAL REPORTS & COMMENTS
7.a FINANCE COMMITTEE MEMBERS
Vice Chair Garcia commented on the current Business License program.
In response to inquiry, Director of Finance Chavez provided of status of budget
for Fiscal Year 2024-2025.
7.b CITY STAFF
None.
7.c ATTENDANCE REPORT
Report provided; no action taken on this item.
8. ADJOURNMENT
The Finance Committee adjourned at 10:41 a.m.
9. PUBLIC NOTICES
_________________________
Michelle Nance, Deputy Clerk I
Recording Secretary
_________________________
Veronica Chavez, Finance Director
Secretary
_________________________
DATE APPROVED BY FINANCE COMMITTEE
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Page 1 of 1
FINANCE COMMITTEE
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: May 21, 2024
PREPARED BY: Veronica Chavez, Director of Finance
REQUEST: FINANCE DIRECTOR'S REPORT FOR GENERAL FUND FINANCIAL
REPORTS
RECOMMENDATION:
Receive and file the General Fund Financial Reports for the months ending March 31, 2024, and
April 30, 2024.
BACKGROUND/ANALYSIS:
City staff will provide an update on the General Fund Financial Reports for the months ending
March 31, 2024 and April 30, 2024.
ATTACHMENTS:
1. General Fund Financial Reports for the months ending March 31, 2024 and April 30, 2024.
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Monthly Financial Report
March 2024
CITY OF PALM DESERT
OVERVIEW
This report summarizes the City’s
financial performance for the
month ending March 31, 2024.
Financial analysis for this report is
provided for the General Fund
REVENUES TO DATE
EXPLAINED
The first half of every fiscal year presents a
negative cash flow picture as our primary
revenue sources ramp up for the year for the
following reasons:
Property Tax is received in January/June.
Sales Tax is generally highest in Q4 and Q1.
Transient Occupancy Tax is also at its peak
in Q4 and Q1, as those times are considered
“season” for the desert. CY YTD Actual
reflects a slight decrease compared to PY
Actual and CY Budget. This is on trend with
current economic forecasts.
Budgets are approved as an annual total, so
for the purpose of this report YTD Budget is
calculated by percentage of PY YTD Actual.
General Govt costs include costs associated
with disaster/emergency expenditures
related to Tropical Storm Hillary.
Expenditure variances may result from
timing differences in billing.
GENERAL FUND SUMMARY
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Monthly Financial Report
March 2024
CITY OF PALM DESERT
Page 2
Timing of expenditures vary
throughout the fiscal year.
General Government costs
include insurance, internal
departments costs,
homelessness services, audit
and contributions.
EXPENDITURES TO DATE
GENERAL FUND EXPENDITURES
This summary report is
derived from detailed
financial information
generated by the City’s
Finance Department. If
you have questions or
would like additional
information on this report,
please contact the
Finance Department via
email at
vchavez@palmdesert.gov
ADMIN /GENERAL SERVICE
*Administrative and General Services Breakouts provided at the request of Finance Committee Member Garcia
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Monthly Financial Report
April 2024
CITY OF PALM DESERT
OVERVIEW
This report summarizes the City’s
financial performance for the
month ending April 30, 2024.
Financial analysis for this report is
provided for the General Fund
REVENUES TO DATE
EXPLAINED
The first half of every fiscal year presents a
negative cash flow picture as our primary
revenue sources ramp up for the year for the
following reasons:
Property Tax is received in January/June.
Sales Tax is generally highest in Q4 and Q1.
Transient Occupancy Tax is also at its peak
in Q4 and Q1, as those times are considered
“season” for the desert. CY YTD Actual
reflects a slight decrease compared to PY
Actual and CY Budget. This is on trend with
current economic forecasts.
Budgets are approved as an annual total, so
for the purpose of this report YTD Budget is
calculated by percentage of PY YTD Actual.
General Govt costs include costs associated
with disaster/emergency expenditures
related to Tropical Storm Hillary.
Expenditure variances may result from
timing differences in billing.
GENERAL FUND SUMMARY
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Monthly Financial Report
April 2024
CITY OF PALM DESERT
Page 2
*Administrative and General Services Breakouts provided at the request of Finance Committee Member Garcia
Timing of expenditures vary
throughout the fiscal year.
General Government costs
include insurance, internal
departments costs,
homelessness services, audit
and contributions.
EXPENDITURES TO DATE
GENERAL FUND EXPENDITURES
This summary report is
derived from detailed
financial information
generated by the City’s
Finance Department. If
you have questions or
would like additional
information on this report,
please contact the
Finance Department via
email at
vchavez@palmdesert.gov
ADMIN/GENERAL SERVICES
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Page 1 of 1
FINANCE COMMITTEE
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: May 28, 2024
PREPARED BY: Arlene Arellano, Accountant
REQUEST: PARKVIEW OFFICE COMPLEX FINANCIALS AND VACANCY REPORT
RECOMMENDATION:
Receive and file the Parkview Office Complex Financials for months ending March 31, 2024 and
April 30, 2024 and the Vacancy Report for month ending April 30, 2024.
BACKGROUND/ANALYSIS:
City staff will provide an update on the Parkview Office Complex Financials for months ending
March 31, 2024 and April 30, 2024 and the Vacancy Report for month ending April 30, 2024. In
prior years, financials for Parkview Office Complex were comprehensi ve reflecting both
buildings. Monthly financials are now presented for each building to reflect their true
accounting/tenancy.
ATTACHMENTS:
1. Parkview Office Complex Financials for months ending March 31, 2024 and April 30, 2024 and
the Vacancy Report for month ending April 30, 2024.
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Parkview Office Complex
Statement of Activities
Month Ended April 30,2024
April-24 April-24 $% %YTD YTD $% %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget
73-710 Fred Waring Dr. - Two (2) Story Building (10,713)$ 9,519$ 20,232$ -188.85%-88.85%(107,132)$ 4,185$ 111,317$ -104%-4%
73-720 Fred Waring Dr. - One (1) Story Building 16,422$ 28,742$ 12,320$ 75.02%175.02%164,215$ 237,377$ 73,162$ 45%145%
Combined Summary of Net Income 5,708$ 38,260$ 32,552$ 570.25%670.25%57,083$ 241,562$ 184,479$ 323.17%423.17%
Summary of Net Income
$(20,000)
$(10,000)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
Budget Actual
April Net Income
73-720 Fred Waring Dr. - One (1)
Story Building
73-710 Fred Waring Dr. - Two (2)
Story Building
$(150,000)
$(100,000)
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Budget Actual
YTD Net Income
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Parkview Office Complex
Statement of Activities
Month Ended April 30,2024
April-24 April-24 $% %YTD YTD $% %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget
Revenues*
Rental 25,516$ 26,320$ 804$ 3%103%255,160$ 212,165$ (42,995)$ -17%83%
Total Revenues 25,516$ 26,320$ 804$ 3%103%255,160$ 212,165$ (42,995)$ -17%83%
Expenses**
Tenant Improvements [1]6,717$ -$ (6,717)$ -100%0%67,167$ -$ (67,167)$ -100%0%
Repairs & Maintenance- Building [4]1,550$ 3,087$ 1,537$ 99%199%15,500$ 28,178$ 12,678$ 82%182%
Repairs & Maintenance- Streets [5]1,033$ 376$ (657)$ -64%36%10,333$ 1,692$ (8,641)$ -84%16%
Repairs & Maintenance- Other Equip [5]1,033$ -$ (1,033)$ -100%0%10,333$ 30$ (10,303)$ -100%0%
Utilities-Gas/Electric [2][3]7,059$ (3,409)$ (10,468)$ -148%-48%70,587$ 51,176$ (19,411)$ -27%73%
444 CAM Janitorial Services 13,740$ 13,008$ (732)$ -5%95%137,400$ 95,205$ (42,195)$ -31%69%
444 CAM Landscaping Services 2,642$ 2,000$ (642)$ -24%76%26,417$ 18,000$ (8,417)$ -32%68%
444 CAM Alarm 315$ 432$ 117$ 37%137%3,150$ 1,728$ (1,422)$ -45%55%
444CAM Pest Control [3]171$ -$ (171)$ -100%0%1,705$ 660$ (1,045)$ -61%39%
444 CAM Utilities-Waste Disposal 820$ 483$ (337)$ -41%59%8,200$ 4,828$ (3,373)$ -41%59%
444 CAM Utilities-Water 400$ 201$ (199)$ -50%50%4,000$ 1,698$ (2,302)$ -58%42%
444 CAM Utilities-Telephone 750$ 624$ (126)$ -17%83%7,500$ 4,785$ (2,715)$ -36%64%
Total Expenses 36,229$ 16,801$ (19,428)$ -54%46%362,292$ 207,980$ (154,312)$ -43%57%
Operating Income (10,713)$ 9,519$ 20,232$ -189%-89%(107,132)$ 4,185$ 111,317$ -104%-4%
Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0%
Net Income (10,713)$ 9,519$ 20,232$ -189%-89%(107,132)$ 4,185$ 111,317$ -103.91%2659.79%
[1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date.
[2] Tenant Reimbursed 70% of Edison bills for two suites from Sept 2023- Jan2024.
[3] Timing Variance - utility bills paid as received by Public Works
[4] Overage is offset by budget savings in R&M Streets and Other Equip
[5] R&M work is performed on an as-needed basis
*Revenues do not include interest income, which is allocated at fiscal year-end.
**CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings
in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building.
73-710 Fred Waring Drive- Two (2) Story Building
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Parkview Office Complex
Statement of Activities
Month Ended April 30,2024
April-24 April-24 $% %YTD YTD $% %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget
Revenues*
Rental 36,984$ 36,984$ (0)$ 0%100%369,840$ 332,517$ (37,323)$ -10%90%
Total Revenues 36,984$ 36,984$ (0)$ 0%100%369,840$ 332,517$ (37,323)$ -10%90%
Expenses**
Tenant Improvements [1]4,117$ -$ (4,117)$ -100%0%41,167$ -$ (41,167)$ -100%0%
Repairs & Maintenance- Building 950$ 1,334$ 384$ 40%140%9,500$ 8,622$ (878)$ -9%91%
Repairs & Maintenance- Streets [2]633$ -$ (633)$ -100%0%6,333$ -$ (6,333)$ -100%0%
Repairs & Maintenance- Other Equip [2]633$ -$ (633)$ -100%0%6,333$ -$ (6,333)$ -100%0%
Utilities-Gas/Electric [3]5,894$ -$ (5,894)$ -100%0%58,937$ 21,563$ (37,374)$ -63%37%
555 CAM Janitorial Services 6,000$ 5,985$ (15)$ 0%100%60,000$ 54,089$ (5,911)$ -10%90%
555 CAM Landscaping Services 300$ 300$ -$ 0%100%3,000$ 2,700$ (300)$ -10%90%
555 CAM Alarm 315$ 144$ (171)$ -54%46%3,150$ 2,773$ (377)$ -12%88%
555 CAM Pest Control [3]171$ -$ (171)$ -100%0%1,705$ 792$ (913)$ -54%46%
555 CAM Utilities-Waste Disposal 400$ 351$ (49)$ -12%88%4,000$ 3,509$ (491)$ -12%88%
555 CAM Utilities-Water 400$ 73$ (327)$ -82%18%4,000$ 644$ (3,356)$ -84%16%
555 CAM Utilities-Telephone 750$ 56$ (694)$ -93%7%7,500$ 448$ (7,052)$ -94%6%
Total Expenses 20,563$ 8,242$ (12,320)$ -60%40%205,625$ 95,140$ (110,485)$ -54%46%
Operating Income 16,422$ 28,742$ 12,320$ 75%175%164,215$ 237,377$ 73,162$ 45%145%
Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0%
Net Income 16,422$ 28,742$ 12,320$ 75%233%164,215$ 237,377$ 73,162$ 45%145%
[1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date.
[2] R&M work is performed on an as-needed basis
[3] Timing Variance - utility bills paid as received by Public Works
*Revenues do not include interest income, which is allocated at fiscal year-end.
**CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings
in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building.
73-720 Fred Waring Drive- One (1) Story Building
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Parkview Office Complex
Statement of Activities
Month Ended March 31,2024
March-24 March-24 $% %YTD YTD $% %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget
73-710 Fred Waring Dr. - Two (2) Story Building (10,713)$ (1,852)$ 8,861$ -82.71%17.29%(96,419)$ (5,333)$ 91,085$ -94%6%
73-720 Fred Waring Dr. - One (1) Story Building 16,422$ 26,422$ 10,001$ 60.90%160.90%147,794$ 208,635$ 60,842$ 41%141%
Combined Summary of Net Income 5,708$ 24,570$ 18,862$ 330.42%430.42%51,375$ 203,302$ 151,927$ 295.72%395.72%
Summary of Net Income
$(15,000)
$(10,000)
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Budget Actual
March Net Income
73-720 Fred Waring Dr. - One (1)
Story Building
73-710 Fred Waring Dr. - Two (2)
Story Building
$(150,000)
$(100,000)
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Budget Actual
YTD Net Income
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Parkview Office Complex
Statement of Activities
Month Ended March 31,2024
March-24 March-24 $% %YTD YTD $% %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget
Revenues*
Rental 25,516$ 19,591$ (5,925)$ -23%77%229,644$ 185,845$ (43,799)$ -19%81%
Total Revenues 25,516$ 19,591$ (5,925)$ -23%77%229,644$ 185,845$ (43,799)$ -19%81%
Expenses**
Tenant Improvements [1]6,717$ -$ (6,717)$ -100%0%60,450$ -$ (60,450)$ -100%0%
Repairs & Maintenance- Building [4]1,550$ 3,244$ 1,694$ 109%209%13,950$ 25,091$ 11,141$ 80%180%
Repairs & Maintenance- Streets [3]1,033$ 188$ (845)$ -82%18%9,300$ 1,316$ (7,984)$ -86%14%
Repairs & Maintenance- Other Equip [3]1,033$ 30$ (1,003)$ -97%3%9,300$ 30$ (9,270)$ -100%0%
Utilities-Gas/Electric 7,059$ 4,527$ (2,532)$ -36%64%63,528$ 54,585$ (8,943)$ -14%86%
444 CAM Janitorial Services 13,740$ 10,476$ (3,264)$ -24%76%123,660$ 82,197$ (41,463)$ -34%66%
444 CAM Landscaping Services 2,642$ 2,000$ (642)$ -24%76%23,775$ 16,000$ (7,775)$ -33%67%
444 CAM Alarm [2]315$ -$ (315)$ -100%0%2,835$ 1,296$ (1,539)$ -54%46%
444CAM Pest Control 171$ 165$ (6)$ -3%0%1,535$ 660$ (875)$ -57%43%
444 CAM Utilities-Waste Disposal 820$ 483$ (337)$ -41%59%7,380$ 4,345$ (3,035)$ -41%59%
444 CAM Utilities-Water 400$ 187$ (213)$ -53%47%3,600$ 1,498$ (2,102)$ -58%42%
444 CAM Utilities-Telephone 750$ 143$ (607)$ -81%19%6,750$ 4,161$ (2,589)$ -38%62%
Total Expenses 36,229$ 21,443$ (14,786)$ -41%59%326,063$ 191,179$ (134,884)$ -41%59%
Operating Income (10,713)$ (1,852)$ 8,861$ -83%17%(96,419)$ (5,333)$ 91,085$ -94%6%
Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0%
Net Income (10,713)$ (1,852)$ 8,861$ -83%17%(96,419)$ (5,333)$ 91,085$ -94.47%-1707.81%
[1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date.
[2] Timing Variance - utility bills paid as received by Public Works
[3] R&M work is performed on an as-needed basis
[4] Overage is offset by budget savings in R&M Streets and Other Equip
*Revenues do not include interest income, which is allocated at fiscal year-end.
**CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings
in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building.
73-710 Fred Waring Drive- Two (2) Story Building
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Parkview Office Complex
Statement of Activities
Month Ended March 31,2024
March-24 March-24 $% %YTD YTD $% %
Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget
Revenues*
Rental 36,984$ 36,984$ (0)$ 0%100%332,856$ 295,533$ (37,323)$ -11%89%
Total Revenues 36,984$ 36,984$ (0)$ 0%100%332,856$ 295,533$ (37,323)$ -11%89%
Expenses**
Tenant Improvements [1]4,117$ -$ (4,117)$ -100%0%37,050$ -$ (37,050)$ -100%0%
Repairs & Maintenance- Building 950$ 1,719$ 769$ 81%181%8,550$ 7,289$ (1,261)$ -15%85%
Repairs & Maintenance- Streets[3]633$ -$ (633)$ -100%0%5,700$ -$ (5,700)$ -100%0%
Repairs & Maintenance- Other Equip [3]633$ -$ (633)$ -100%0%5,700$ -$ (5,700)$ -100%0%
Utilities-Gas/Electric [2]5,894$ 1,354$ (4,540)$ -77%23%53,043$ 21,563$ (31,480)$ -59%41%
555 CAM Janitorial Services 6,000$ 5,985$ (15)$ 0%100%54,000$ 48,104$ (5,896)$ -11%89%
555 CAM Landscaping Services 300$ 300$ -$ 0%100%2,700$ 2,400$ (300)$ -11%89%
555 CAM Alarm 315$ 606$ 291$ 92%192%2,835$ 2,629$ (206)$ -7%93%
555 CAM Pest Control 171$ 176$ 6$ 3%0%1,535$ 792$ (743)$ -48%52%
555 CAM Utilities-Waste Disposal 400$ 351$ (49)$ -12%88%3,600$ 3,158$ (442)$ -12%88%
555 CAM Utilities-Water 400$ 72$ (328)$ -82%18%3,600$ 571$ (3,029)$ -84%16%
555 CAM Utilities-Telephone [2]750$ -$ (750)$ -100%0%6,750$ 392$ (6,358)$ -94%6%
Total Expenses 20,563$ 10,562$ (10,001)$ -49%51%185,063$ 86,898$ (98,165)$ -53%47%
Operating Income 16,422$ 26,422$ 10,001$ 61%161%147,794$ 208,635$ 60,842$ 41%141%
Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0%
Net Income 16,422$ 26,422$ 10,001$ 61%264%147,794$ 208,635$ 60,842$ 41%141%
[1] Tenant Improvements are negotiated as part of the lease agreement - there have been no tenant improvements to date.
[2] Timing Variance - utility bills paid as received by Public Works.
[3] R&M work is performed on an as-needed basis.
*Revenues do not include interest income, which is allocated at fiscal year-end.
**CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings
in other CAM line items.
Note: This schedule does not include budget or rents received into this enterprise fund for the Sheriff Substation or Henderson Building.
73-720 Fred Waring Drive- One (1) Story Building
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Parkview Office Complex
Vacancy Rate Schedule by Suite
April 30,2024
Rentable Square Feet:51,464
Square Feet Occupied:34,027
% Occupied:66%
% Vacant:34%
Suite No.Tenant Square Ft.
10-101 Medium Conference Room -
10-104 Large Conference Room -
10-110 Advantec 1,250
10-113 Lift to Rise 720
10-117 Lift to Rise 1,227
10-120 State of California 1,000
10-123 Lift to Rise 758
10-126 ACT for Multiple Sclerosis 928
10-129 Congressman Ken Calvert 41st District 875
10-132 Anser Advisory 1,345
10-135 Desert Recreation District 2,560
10-138 Golden Construction 488
10-141 Small Conference Room -
10-201 State of California 890
10-212 State of California 1,117
10-220 Lift to Rise 1,240
Total Occupied Suites 14,398 sq/ft 45%
Suite No.Tenant Square Ft.
10-107 Vacant 1,750
10-205 Vacant 5,730
10-209 Vacant 3,040
10-215 Vacant 5,833
10-219 Vacant 1,084
Total Vacant Suites 17,437 sq/ft 55%
20-100 State of California 15,233
20-102 State of California 4,396
Total Occupied Suites 19,629 sq/ft 100%
Combined Vacancy Rate Summary
Occupied Suites
73-710 Fred Waring Drive- Two (2) Story Building
Occupied Suites
Vacant Suites
73-720 Fred Waring Drive- One (1) Story Building
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Page 1 of 1
FINANCE COMMITTEE
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: May 21, 2024
PREPARED BY: Anthony Hernandez, Desert Willow Controller
REQUEST: DESERT WILLOW GOLF RESORT FINANCIAL REPORTS
RECOMMENDATION:
Receive and file the Desert Willow Golf Resort Financial Reports for the months ending March
31, 2024, and April 30, 2024.
BACKGROUND/ANALYSIS:
Kemper staff will provide an update on the Desert Willow Golf Resort Financial Reports for the
months ending March 31, 2024, and April 30, 2024.
ATTACHMENTS:
1. Desert Willow Golf Resort Financial Reports for the months ending March 31, 2024, and April
30, 2024.
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Page 1 of 1
FINANCE COMMITTEE
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: May 28, 2024
PREPARED BY: James Bounds, Finance Supervisor
REQUEST: CITY TREASURER’S INVESTMENT REPORTS
RECOMMENDATION:
Receive and file the City Treasurer’s Investment Reports for the months ending March 31, 2024,
and April 30, 2024.
BACKGROUND/ANALYSIS:
City staff will provide an update on the City Treasurer’s Investment Reports for the months
ending March 31, 2024, and April 30, 2024.
ATTACHMENTS:
1. City Treasurer’s Investment Reports for the month ending March 31, 2024
2. City Treasurer’s Investment Reports for the month ending April 30, 2024
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Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
Y I E L D P E R F O R M A N C E
The City’s performance (in blue) of
5.08% is doing better than the 5-year
T-Bill benchmark (in green) which
was at 4.72%, which is raising. We
will monitor these yields with PFM.
A C T I V I T Y
Investment transactions were
executed in accordance with the
California State Government Code,
the City’s Investment Policy, and all
bond indentures.
Key Highlights:
• $2.95 million was allocated
to the CAMP project to
maintain sufficient liquidity
for anticipated May
expenditures.
O V E R V I E W
This report summarizes the City’s
investment activities and Staff analysis
for the month ending April 30, 2024.
I N V E S T M E N T S U M M A R Y
$ M illions
Be ginning Ending
Book Value Purchase s &Re de mptions &Book Value % of
Asse t Class 4/1/2024 De posits Withdrawals 4/30/2024 Portfolio
Federal Agency 18.48$ 2.91$ -$ 21.39$ 8.0%
Medium-Term Note 14.27 0.81 - 15.08 5.7%
US Treas ury 32.95 - (6.52) 26.43 9.9%
Com mercial Paper 0.66 2.95 - 3.61 1.4%
CAMP Pool 185.48 4.84 - 190.32 71.4%
LAIF Pool 0.92 0.01 - 0.93 0.3%
County Pool 2.77 - - 2.77 1.0%
Money Market Funds 10.14 6.03 (10.21) 5.97 2.2%
Inv e stments
T otal 265.68$ 17.56$ (16.73)$ 266.51$ 100%
Cus todian ^66.68 0.29 - 66.97
Trus tee ^14.24 - (7.33) 6.92
Cas h 4.48 25.39 (25.58) 4.29
Cash & Cash
w/Fiscal Age nts
T otal 85.40$ 25.68$ (32.91)$ 78.17$
T otal 351.08$ 43.24$ (49.64)$ 344.68$
^ = Restricted funds b ased upon b ond indenture term s.
4.82 4.9 4.82 5 5.1 5.08
3.843
3.929 4.012
4.122 4.232
4.272
4.31
3.84 3.91
4.26 4.21 4.72
5.58 5.55 5.54 5.5 5.48 5.44
3
3.5
4
4.5
5
5.5
6
1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr
Yield Performance -Total Portfolio In Percentages
City Yield LAIF Yield 5Y T-Bill CAMP
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Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
C U R R E N T A S S E T A L L O C A T I O N
PFM is continuing to diversify
the portfolio by investing in
additional policy approved
asset classes such as
Commercial Paper.
M A N A G E D P O R T F O L I O M A T U R I T I E S
The managed portfolio is continuing
to balance the ladder of maturities
over 0-5 years.
Federal Agency,
8.03%
Medium-Term
Note, 5.66%
US Treasury,
9.92%
Commercial
Paper, 1.35%
Local Govt,
72.80%
Money Market
Funds, 2.24%
0%25%50%75%100%
Federal Agency
Medium-Term Note
US Treasury
Commercial Paper
Local Govt
Money Market Funds
Investment Allocation Actual to Max Allocation
Max Allocation Allocation
0.00%
10.00%
20.00%
30.00%
0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y
7.47%
23.71%
10.66%
24.83%
14.06%
19.27%
Investment Maturity
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Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
M O N T H L Y M A R K E T V A L U E C H A N G E S
For the month of April, there was an overall decrease of 0.517% compared to the prior month.
Market Values March April $ Change
Federal Agency
18,212,367.34
21,092,928.65
2,880,561.31 *
Medium-Term
Note
14,237,943.07
14,883,786.90 645,843.83 *
US Treasury
33,061,197.29
26,237,073.48
(6,824,123.81) *
Commercial
Paper
658,889.17
3,614,241.19
2,955,352.02 *
Total
66,170,396.87
65,828,030.22
(342,366.65)
-
0.517%
This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of
Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six
months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank
balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits.
_______________________________________________
Veronica Chavez, Finance Director
Veronica Chavez (May 17, 2024 19:04 PDT)
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Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
May 01, 2024
LAIF Home
PMIA Average Monthly
Yields
CITY OF PALM DESERT
CITY TREASURER
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
Account Number:
April 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
4/15/2024 4/12/2024 QRD 1751968 N/A SYSTEM 9,831.27
Account Summary
Total Deposit:9,831.27 Beginning Balance:920,108.22
Total Withdrawal:0.00 Ending Balance:929,939.49
5/1/24, 12 15 PM LAIF Regular Monthly Statement
https //laifms treasurer ca gov/RegularStatement aspx 1/1128
Finance Committee Meeting
Parameters:Query: Fund Summary
County of Riverside Treasurer-Tax CollectorFund Summary Report
Bank: oneof
Account Number:
Counterparty: equalto
Run Date:01-May-2024 10:18:07 AM User:Susan
From :
To :
As at :
01-Apr-2024
30-Apr-2024
01-May-2024
Balance Calculation Based On:Value Date
Total Balance ForwardAccount NameAccount Number Total Receipts Total Payments
City Of Palm Desert052460 $2,774,885.66 $0.00 $0.00 $2,774,885.66
Grand Total:$2,775,239.10 $0.00 $0.00 $2,775,239.10
Printed on 5/1/2024 Page 1 of 1End of Report
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Palm Desert Housing Authority
Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
A C T I V I T Y
This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm
Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six
months. All balances are bank balances.
_______________________________________________
Veronica Chavez, Finance Director
O V E R V I E W
This report summarizes the Palm Desert
Housing Authority investment activities
for the month ending April 30, 2024.
I N V E S T M E N T S U M M A R Y
$ M illions
Be ginning Ending
Book Value Purchase s &Re de mptions &Book Value
Asse t Class 4/1/2024 De posits Withdrawals 4/30/2024
CAMP Pool 47.82 0.21 - 48.03
LAIF Pool 1.02 0.01 - 1.03
Inv e stme nts
T otal 48.84$ 0.22$ -$ 49.06$
Cash 1.82 0.82 (0.56) 2.08
T otal 50.66$ 1.04$ (0.56)$ 51.14$
Veronica Chavez (May 17, 2024 19:04 PDT)
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Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
May 01, 2024
LAIF Home
PMIA Average Monthly
Yields
PALM DESERT HOUSING AUTHORITY
CITY TREASURER
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
Account Number:
April 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
4/15/2024 4/12/2024 QRD 1750498 N/A SYSTEM 10,867.83
Account Summary
Total Deposit:10,867.83 Beginning Balance:1,017,134.55
Total Withdrawal:0.00 Ending Balance:1,028,002.38
5/1/24, 12 17 PM LAIF Regular Monthly Statement
https //laifms treasurer ca gov/RegularStatement aspx 1/1133
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RDA Successor Agency
Monthly Investment Summary Report
April 2024
_________________________________________________________________________________
CITY OF PALM DESERT
A C T I V I T Y
Debt service payments made.
This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of
Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's
debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances.
_______________________________________________
Veronica Chavez, Finance Director
O V E R V I E W
This report summarizes the RDA
Successor Agency investment activities
for the month ending April 30, 2024.
I N V E S T M E N T S U M M A R Y
Be ginning Ending
Book Value Purchase s &Re de mptions &Book Value
Asse t Class 4/1/2024 De posits Withdrawals 4/30/2024
CAMP Pool 6,225.42 27.77 - 6,253.19
LAIF Pool 776.95 8.30 - 785.25
County Pool 353.44 3.37 - 356.81
Inv estme nts
T otal 7,355.81$ 39.44$ -$ 7,395.25$
Trustee ^22,474,011.09 2,624,178.82 (5,236,542.53) 19,861,647.38
Cas h 5,809,574.64 - (19,389.40) 5,790,185.24
Cash & Cash
w/Fiscal Age ntys
T otal 28,283,585.73$ 2,624,178.82$ (5,255,931.93)$ 25,651,832.62$
T otal 28,290,941.54$ 2,624,218.26$ (5,255,931.93)$ 25,659,227.87$
^ = Restricted funds b ased upon b ond indenture term s.
Veronica Chavez (May 17, 2024 19:04 PDT)
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Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
May 01, 2024
LAIF Home
PMIA Average Monthly
Yields
S/A TO THE PALM DESERT REDEVELOPMENT
AGENCY
FINANCE DIRECTOR
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
Account Number:
April 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
4/15/2024 4/12/2024 QRD 1750919 N/A SYSTEM 8.30
Account Summary
Total Deposit:8.30 Beginning Balance:776.95
Total Withdrawal:0.00 Ending Balance:785.25
5/1/24, 12 17 PM LAIF Regular Monthly Statement
https //laifms treasurer ca gov/RegularStatement aspx 1/1137
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04-2024 Investment summary
Final Audit Report 2024-05-18
Created:2024-05-17
By:James Bounds (jbounds@palmdesert.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAnXSWDVEwexMtlmQa-iwP_NihvkeeqDe9
"04-2024 Investment summary" History
Document created by James Bounds (jbounds@palmdesert.gov)
2024-05-17 - 8:56:50 PM GMT
Document emailed to Veronica Chavez (vchavez@palmdesert.gov) for signature
2024-05-17 - 8:57:00 PM GMT
Email viewed by Veronica Chavez (vchavez@palmdesert.gov)
2024-05-18 - 1:55:44 AM GMT
Document e-signed by Veronica Chavez (vchavez@palmdesert.gov)
Signature Date: 2024-05-18 - 2:04:03 AM GMT - Time Source: server
Agreement completed.
2024-05-18 - 2:04:03 AM GMT
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City
Budget
Presentation
2023-24
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Overview
What are our City’s services?
What infrastructure does our City maintain?
What is our City’s budget?
How is the City funded?
What are your priorities?
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What are
our City’s
services?
3143
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City Services
SantaBarbaraCA.gov
CALFIRE
Riverside County
Fire Department
4
Riverside County
Sheriff’s
Department
Parks and
Recreation
Public Works
Planning &
Building
Safety
Library
(City will be
managing
soon)
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Calls for Emergency Services
The City contracts for police services with Riverside County and operates
with a total of 80 sworn law enforcement staff and non-sworn Community
Service Officers.
The City’s contract for fire protection and emergency medical services
(EMS) with CALFIRE/Riverside County Fire Department with 61 paid
professional firefighters.
Fire Station 71 in Palm Desert, located at Country Club and Portola, was
recorded as having among the highest calls for service in Riverside County
The City has been working on the building of a new Fire Station to maintain
911 emergency medical, police and fire response services
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Calls for Emergency Services
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●83%of service calls to the City’s Fire services are for medical
emergencies.
●Palm Desert has faced increases in homelessness.
●The City has also seen an increase in property crimes including
a 30%increase in vehicle thefts, as well as other upticks in
crime.
Public Safety Service Demands
7
Maintaining 911 emergency medical, police and fire response services,
in light of growing demands, has placed increased pressure on first
responders and County services.
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What
infrastructure
does our City
maintain?
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Infrastructure
3* Fire Stations
61 Firefighters
15 Parks
2 new parks*
New Library
(City will be
managing soon)
Aquatic Center
18 Buildings and
15 affordable
housing properties
(1,114 units)
The City invests in local quality of life by maintaining streets, roads and water
infrastructure, as well as keeping public areas safe and clean and maintaining numerous
other City assets
9
173 Miles
Of Streets &
Roads
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SantaBarbaraCA.gov
Infrastructure Demands
The City of Palm Desert was incorporated 50 years ago this year and continues to
grow.
10
●A New Fire Station (Station 102) will be required to serve our growing
community and maintain emergency response times.
●Keeping streets and roads well‐maintained and public areas safe and
clean. Repairing infrastructure damaged by recent rain and
windstorms.
●Numerous assets across the City will require ADA accessibility
improvements.
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●Maintaining community parks, playgrounds, and sports fields
●Maintaining library services, the City will be taking on the operating
costs of the Palm Desert Library.
●The City is in the midst of adding as many as 7,000 new housing units,
which will bring almost 9,000 new residents in north Palm Desert over
the next 5 years.
SantaBarbaraCA.gov
Infrastructure Demands
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12
Wind and Storm Damage
Current Estimates of $5,508,000 in Clean Up Costs Alone for August 2023 Weather Events
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What is
our City’s
budget?
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SantaBarbaraCA.gov
What is our City’s Budget?
14
The City’s overall budget includes many governmental funds, including the General
Fund. Most of these funds are restricted for specific purposes.
The General Fund is the City’s primary fund for operations and has projected
revenues of $83.2 million and requested expenditures of $82.9 million.
Additionally, the proposal includes an appropriation of $16.3 million from reserves to
support estimated one-time costs.
Revenues increased by approximately $7.6 million (10%) over the prior year, but
expenses also rose by 10%, partially due to nearly $6 million in clean-up costs from
Tropical Storm Hilary, in addition to contractual increases for public safety as imposed
by the County, and other factors.154
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SantaBarbaraCA.gov
How City Revenues Are Invested
15
Overall, spending on public
safety accounts for roughly
33% of overall General
Fund expenditures and
Palm Desert is ranked as
one of the safest cities in
southern California.
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SantaBarbaraCA.gov
Reserves
16
The City Currently has
Approximately $102 Mil in
various reserve accounts.
Many of these are set by
policy, e.g. a required 25% of
the General Fund to maintain
operations, plus an additional
20% for Emergencies. Just
$17M is “Unassigned”.
Current estimates suggest City
reserves will fall significantly
in the coming years.
GF Operating
Reserve
18%
Unassigned
17%
Liability Reserve
4%
Emp Bene Reserve
10%Oth Fund Stability Reserve
3%
Facility Reserve
12%
CIP Reserve
14%
Equip Replacement
Reserve
3%
Non Spendable
3%
GF Emergency
Reserve
16%
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What has the City Done to Manage its
Budget?
The City has been able to control and reduce costs by;
●Freezing positions during lean years
●Seeking grant opportunities for capital replacement and projects
●Deferring and extending capital replacement and maintenance
●Renegotiating contracts wherever possible
●Bundling contracts for greater economies of scale
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How is
the City
funded?
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In Palm Desert, the largest sources of
revenue for the General Fund are
roughly;
●30% by Sales Tax,
●30% by Hotel (TOT) taxes
●15% by Property Tax
●25% Other Revenues
How is the City funded?
19
Sales Tax
30%
TOT
30%
Property Tax
15%
License/Perm
its
12%
Franchise
4%
All Other
9%
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SantaBabaraCA.gov
What is the City’s fiscal outlook?
While the financial outlook of the City is sound for the upcoming fiscal year,there are
several trends that could adversely impact the City’s finances in subsequent years and
will require prudent decision-making to maintain the current service levels.
●In terms of revenues,the level of revenue growth experienced in recent years is
not likely to continue,as increases were largely fueled by the one-time federal
stimulus funding and business-friendly fiscal policies during and post pandemic.
●The City’s expenditures are projected to increase at a faster rate than the revenue
growth in coming years.Projections indicate a deficit of as much as $14 million
within five years,driven in large part by rising public safety costs.
20160
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SantaBabaraCA.gov
What is the City’s fiscal outlook?
21
Projected Revenues/Expenditures
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22
Rising costs for Public Safety and Emergency Medical Response are already impacting
the City’s budget, and the City is growing in terms of both residents and the need for
services.
With the dissolution of Redevelopment Agencies in California, the City continues to
absorb substantial deferred maintenance, in addition to the operating costs of the new
Fire Station.
Reduced resources and increasing operating costs will present challenges to the City’s
ability to maintain services. To maintain the City’s long-term finances, staff has begun
developing strategies to identify on-going efficiencies, cost savings and potentially new
revenue options.
Fiscal Challenges
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23
The City is considering a 1 cent sales tax increase ballot measure, to preserve funding
for services including:
•Maintaining 911 emergency medical, police/ crime prevention and fire response
services
•Keeping public areas safe and clean
•Maintaining parks and recreation programs
•Addressing homelessness
•And other services and infrastructure maintained by the General Fund
Potential Revenue Measure
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24
There is a Limit on How High
Sales Tax Can Rise: 9.25%
Key Fact
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25
Sales Tax Rates in Coachella Valley
City Sales Tax
Palm Springs 9.25%
Cathedral City 8.75%
Coachella 8.75%
Indio 8.75%
La Quinta 8.75%
Desert Hot Springs 7.75%
Indian Wells 7.75%
Palm Desert 7.75%
Rancho Mirage 7.75%165
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26
The City Retains a Fraction of
Sales Taxes Collected
Key Fact
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Sales Tax collected in Palm Desert is divided and shared by the State,
County, and City of Palm Desert.
27
Current City Sales Tax Rate: 7.75%
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A Voter Approved One-Cent Local Measure Would Bring the City to an
8.75% rate, with 100% of new funds staying local in Palm Desert.
28
Potential New City Sales Tax Rate: 8.75%
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29
70%of sales tax dollars collected in
Palm Desert come from tourists and
visitors from surrounding areas.
Key Fact
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30
•Most groceries
•Prescriptions/many medical supplies
•Utilities
**No additional taxes would be levied on these items.
Certain Items are Exempt from Sales Tax:
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31
What Would a 1 cent Increase Mean?
$100 Shoes
$1 increase
$15 Dishwasher Pods
15 cent increase
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32
A 1 cent additional tax would:
•Equal rates in neighboring and similar cities, including Cathedral
City, Coachella, La Quinta, Lake Elsinore, Temecula
•Generate an estimated $25 million annually
-100% to stay local to Palm Desert and support the General Fund
Potential Revenue Measure
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What
happens if
new
revenue is
not
secured?
33
What
happens if
new revenue
is not
secured?
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34
Capital Improvement and Facility Impacts
Building Fire Station 102 will need to be paused until
sufficient funding for on-going operations can be identified
Building the New Library will need to be paused until
sufficient funding for on-going operations can be identified
Building the North Sphere Regional Park will need to be
paused until sufficient funding for on-going operations can
be identified
Improvements to Storm Drains will need to be paused until
sufficient funding for on-going operations can be identified
All Deferred Facility Maintenance will need to be
re-prioritized based on severity of condition
All Deferred Housing Authority Property Maintenance will
need to be re-prioritized based on severity of condition
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35
Deficit Spending is Immediate based on Current Projections
STATUS QUO - ALL IN FY 2023-24** FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
Estimated Revenue 83,446,318$ 80,822,877$ 83,974,969$ 88,173,718$ 92,582,404$
Increase to Property Tax (W/D from Cty Library)-$ 2,400,000$ 2,493,600$ 2,618,280$ 2,749,194$
Estimated Expenditures 81,924,312$ 79,982,492$ 85,581,266$ 91,571,955$ 97,981,992$
Increase Tfer Out for Fire MOU (72-66-56 Hrs)-$ 400,000$ 1,234,363$ 1,320,768$ 1,413,222$
Increase to Ops Expenditures for Library 1,321,527$ 2,579,520$ 2,760,086$ 2,953,292$ 3,160,023$
Increase Tfer Out for Station 102 Staffing -$ -$ 6,637,036$ 7,101,629$ 7,598,743$
Increase to Ops Exp for Addtl Patrol/NS PW/ERP 830,000$ 1,990,200$ 2,129,514$ 2,278,580$
Revenue over (under) expenditures 200,479$ (569,135)$ (11,734,383)$ (14,285,161)$ (17,100,962)$
Est. General Fund Balance1 120,916,512$ 102,251,178$ 76,047,863$ 49,313,480$ 14,028,320$
Unfunded Requests (from Reserve)(18,865,813) (25,634,180) (15,000,000) (21,000,000) (15,000,000)
New Library ($30M)(800,000) (3,200,000) (16,000,000) (10,000,000)
North Sphere Community Park ($15M) BONDS (5,150,000) (10,000,000)
North Sphere Regional Park ($30M) (15,000,000) (15,000,000)
August 2023 Weather Event - Channel Projects (8,208,000) (5,000,000) (5,000,000)
Additional One-Time Appropriations for 2024-25*(15,484,180)
Est. General Fund Balance 102,251,178$ 76,047,863$ 49,313,480$ 14,028,320$ (18,072,642)$ 175
Finance Committee Meeting
What
are your
priorities?
36176
Finance Committee Meeting
37
Your Feedback is Important
•Potential budget cuts would have a significant impact on City
services for Palm Desert residents
•Additional locally controlled revenue would allow the City to avoid
the most significant cuts to city services
•The City wants to hear from residents about what services are most
important to them. To provide feedback through our online survey,
or to learn more visit www.engagepalmdesert.com
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Finance Committee Meeting
City Services and Infrastructure
38
●CALFIRE
Riverside
County Fire
Department
●Riverside County
Sheriff’s
Department
●Parks and
Recreation
●Public Works
●Housing
●Library*
●3 Fire Stations
61 Firefighters
●15 Parks
2 new parks*●Library (City will be
managing soon).
●Aquatic Center
●18 Buildings and
15 affordable housing
properties (1,114 units)
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Thank you!
39
Please Take Our
Survey:
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CITY OF PALM DESERT
ATTENDANCE REPORT
Advisory Body:
Prepared By:
Year 2023 2023 2023 2023 2023 2024 2024
Month Mar May Jul Sep Nov Jan Mar
Date 28-Mar 31-May N/A 26-Sep 28-Nov 22-Jan 26-Mar
Alexander, Karen P A - N/A N/A N/A N/A 1 1
Garcia, Carlos P P - P P P P 0 0
Heuring, Gretchen N/A N/A - P P P P 0 0
Leo, Robert P P - P P P P 0 0
Messenger, Faith P P - P P P P 0 0
Wuest, Jake P P - E P P P 1 0
Harnik, Jan*N/A N/A - N/A N/A P P 0 0
Kelly, Kathleen*P P - P P N/A N/A 0 0
Quintanilla, Karina*P A - P P P P 1 1
Palm Desert Municipal Code 2.34.010:
P Present
A Absent
E Excused
-No meeting
Bimonthly: Two unexcused absences from regular meetings in any twelve-month period shall constitute an
automatic resignation of members holding office on boards that meet bimonthly.
Total
Absences
Total
Unexcused
Absences
Finance Committee
Michelle Nance
* Mayor and Mayor Pro Tem rotating positions are voting members of this Committee
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