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HomeMy WebLinkAboutBUDGET FISCAL YEAR 2025-2026F I N A N C I A LPLAN City of Palm Desert F I S C A L Y E A R2025 - 2 0 2 6 CITY OF PALM DESERT, CALIFORNIA OPERATING BUDGET Fiscal Year 2025-26 City Council Jan Harnik, Mayor Evan Trubee, Mayor ProTem Gina Nestande, Councilmember Karina Quintanilla, Councilmember Joe Pradetto, Councilmember City Manager Chris Escobedo This Financial Plan includes the Palm Desert Housing Authority’s Operational Budget PALM DESERT CITY COUNCIL DISTRICTS District 1 C ouncil M em ber Karina Quintanilla C urrent Ter m: Dece m ber 202 8 District 2* Mayor Pro Tem Evan Trubee C urrent Ter m: Decem ber 2026 District 2* Mayor Jan Harnik C urrent Ter m: Decem ber 2026 District 2 C ouncil Mem ber Joe Pradetto C urrent Ter m: Decem ber 2028 *In early 2024, the City Council adopted a new map to transition from two districts to five single- member districts. This transition will occur over the next two election cycles. In the November 2024 election, representatives were elected to serve Districts 1, 2, and 3. The transition will be completed with November 2026 election, when representatives will be elected to serve Districts 4 and 5. Until the transition is complete, Mayor Jan Harnik and Mayor Pro Tem Evan Trubee, elected under the prior two-district system, continue to serve the rema inder of their terms. District 3 C ouncil M em ber Gina Nestande Current Term: December 2028 i ii City Council Residents City Manager Executive Assistant Records Coordinator Senior Admin Assistant Assistant City Clerk City Clerk Senior Deputy Clerk (3) Receptionist Director of Human Resources Human Resources Analyst I/II (2) HR Specialist Director of Economic Development Visitor Services Specialist Community Relations Supervisor Management Aide I/II Admin Assistant I/II Deputy Director of Economic Development Communications and Marketing Coordinator Visitor Services Assistant (2) Assistant City Manager Management Analyst I/II Mangement Aide I/II Accounting Supervisor Director of Finance Deputy Director of Finance Deputy Director of Finance Finance Supervisor Senior Management Analyst (2) Senior Biz Systems Enterprise Information Systems Manager Senior GIS Admin Senior Information Systems Admin Management Analyst I/II (2) Accountant (3) Senior Management Analyst Housing Manager Public Affairs Manager Senior Admin Assistant (2) Admin Assistant I/II Special Programs Management Analyst I/II (2) Management Analyst I/II (Art) Management Analyst I/II (Environmental) Special Events Coordinator City Attorney Cyber Security Officer Biz Systems Enterprise Payroll Coordinator Accounting Technician I/II (2) Management Aide I/II CITY OF PALM DESERT ORGANIZATION CHART iii City Council Residents Director of Public Works Deputy Director of Public Works Director of Development Services Deputy Director of Development Services Office Assistant II Management Aide I/II Executive Assistant Code Compliance Officer I/II (6) Senior Permit Tech Principal Planner Chief Building Official Code Compliance & Support Services Supervisor Senior Building Inspector Administrative Assistant I/IIBuilding Inspector II (3) Administrative Assistant I/II Senior Planner Associate Planner I/II (2) Assistant Planner Planning Tech Project Manager Business Operations Manager Senior Project Manager Senior Managment Analyst Senior Admin Assistant (2) Senior Traffic Signal Specialist Traffic Signal Tech I/II (3) Public Works Superintendent Community Services Manager Maintenance Worker I/II/III (12) Admin Assistant I/II Streets Maintenance Supervisor Senior Maintenance Worker Management Analyst I/II Landscape Inspector I/II (3) Public Works Superintendent Facilities Specialist Managment Analyst I/II (2) Project Manager Senior Facilities Specialist Management Analyst I/II Permit Tech I/II (3) Assistant City Manager Director of Library Services Assistant Director of Library Services Library Manager (2) Library Assistant (11) Librarian I/II (4) *Fire*Police Director of Capital Projects PW Inspector I/ II (2) Capital Projects Manager Senior PW Inspector Senior Project Manager (2) Project Manager (2) Assistant Building Official City Manager * Contracted with the County of Riverside Homeless and Support Services Manager Office Assistant I/II GIS Analyst Dev. Services Coordinator Managment Analyst I/II Associate Engineer CITY OF PALM DESERT ORGANIZATION CHART iv PRESENTED TO City of Palm Desert California For the Fiscal Year Beginning July 01, 2024 Executive Director GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award v California Society of Municipal  Finance Officers  Certificate of Award Operating Budget Excellence Award Fiscal Year 2024-2025 Presented to the City of Palm Desert For meeting the criteria established to achieve a CSMFO Award in Budgeting. February 7, 2025 Ernie Reyna James Russell-Field, Chair 2024 CSMFO President Recognition Committee Dedicated to Excellence in Municipal Financial Reporting vi THIS PAGE INTENTIONALLY LEFT BLANK vii TABLE OF CONTENTS READER’S GUIDE TO BUDGET This document is organized by sections in a manner that is consistent with the information readers may seek. The information includes a message from the City Manager with a summary of the overall budget and more specifically a summary of general fund, information about Palm Desert, detailed departmental budgets, special revenue funds, special assessment funds, debt service funds, the City’s five-year Capital Improvement Program (CIP), operational budgets for the Palm Desert Housing Authority, staff allocations/salaries, and finally an informational section that includes historical information about revenues and expenditures. This information is organized into the following sections: SECTION 1: CITY OVERVIEW 1 City Manager’s Transmittal Letter ............................................................................................... 2 About Palm Desert ................................................................................................................... 15 Palm Desert Demographics ...................................................................................................... 16 Nearby City Comparisons ........................................................................................................ 17 SECTION 2: BUDGET SUMMARIES 19 (Provides an overview of the City’s revenues and expenses) The Budget Process and Preparation Calendar ...................................................................... 20 Accounting System and Budgetary Control .............................................................................. 21 Citywide Fund Balances ........................................................................................................... 23 Citywide Budgeted Revenues and Expenditures by Category .................................................. 25 Fund Department Matrix ........................................................................................................... 34 GANN Appropriations Limit Calculation .................................................................................... 35 SECTION 3: GENERAL FUND OPERATING BUDGET 37 (Detailed information on budgets by fund and category) General Fund Revenue Summary ............................................................................................ 38 Estimated Revenues ................................................................................................................ 41 General Fund Expenditure Summary by Department ............................................................... 42 General Fund Financial Forecast ............................................................................................. 43 City Manager’s Office ............................................................................................................... 46 City Council (1104110) ............................................................................................................. 49 City Clerk (1104111) ................................................................................................................ 53 City Manager (1104130) ........................................................................................................... 57 Human Resources (1104154) ................................................................................................. 61 Legislative Advocacy (1104112) ............................................................................................... 65 Elections (1104114) ................................................................................................................. 67 Legal (1104120-4121) .............................................................................................................. 69 Police Services (1104210) ....................................................................................................... 71 Community Safety (1104211) ................................................................................................... 74 Animal Regulation (1104230) ................................................................................................... 77 Finance ................................................................................................................................... 79 Finance (1104150) .................................................................................................................. 82 Information Technology (1104190) .......................................................................................... 86 Audit (1104151) ...................................................................................................................... 90 General Services (1104159) .................................................................................................... 92 viii TABLE OF CONTENTS Insurance (1104191-4192) ...................................................................................................... 95 Interfund Transfers (1104199) ................................................................................................ 97 Contributions (1104800) ......................................................................................................... 99 Public Works ........................................................................................................................ 102 Public Works Admin (1104300) ............................................................................................. 105 Traffic (1104310) .................................................................................................................. 109 Streets (1104250) ................................................................................................................. 113 Building Maint. (1104340) ..................................................................................................... 117 Landscape Services (1104614) ............................................................................................ 121 Street Repair & Maint. (1104311-4315) ................................................................................ 125 Corp Yard (1104330) ............................................................................................................ 127 Fleet (1104331) .................................................................................................................... 129 Portola Community Ctr (1104344)......................................................................................... 131 NPDES (1104396) ................................................................................................................ 133 Parks and Recreation (1104610) .......................................................................................... 135 Park Maintenance (1104611) ................................................................................................ 138 Development Services .......................................................................................................... 140 Community Development (1104470) ..................................................................................... 143 Building and Safety (1104420) .............................................................................................. 147 Permit Center (1104421) ...................................................................................................... 151 Code Enforcement (1104422) ............................................................................................... 155 Engineering & Land Develop. (1104423) .............................................................................. 159 Homelessness Service (1104212) ........................................................................................ 163 Economic Development ........................................................................................................ 165 Economic Development (1104430) ....................................................................................... 168 Marketing (1104417) ............................................................................................................. 172 Community Promotions (1104416)........................................................................................ 176 Visitor Services (1104419) .................................................................................................... 178 Capital Projects..................................................................................................................... 180 Capital Projects (1104134) ................................................................................................... 183 SECTION 4: SPECIAL REVENUE, CAPITAL, ENTERPRISE, AND INTERNAL FUNDS 187 (Includes transportation funds, development impact fee funds, infrastructure funds, internal service funds and capital improvement funds) Special Revenue, Capital, Enterprise, and Internal Service Funds Overview ........................ 188 Special Revenue, Capital, Enterprise, and Internal Service Funds Budgets .......................... 196 SECTION 5: SPECIAL ASSESSMENT FUNDS 223 (Assessment districts including landscape & lighting districts) Special Assessment Fund Overview ..................................................................................... 224 Special Assessment Fund Budgets ...................................................................................... 226 SECTION 6: DEBT SERVICE ASSESSMENT DISTRICT FUNDS 245 (Assessment district debt funds) Debt Service Assessment District Fund Overview ................................................................. 246 Debt Service Assessment Districts Fund Budgets ................................................................. 248 Debt Services Schedules ...................................................................................................... 257 ix TABLE OF CONTENTS SECTION 7: CAPITAL IMPROVEMENT PROGRAM 265 (Includes proposed and current projects on five-year plan) Proposed Capital Improvement Programs and Existing Programs Overview ......................... 266 Five-Year Schedule ............................................................................................................... 267 SECTION 8: PALM DESERT HOUSING AUTHORITY 271 (Includes administration and operating budgets for Housing Authority-owned affordable rental units) Housing Authority ................................................................................................................... 272 Housing Authority Overview ................................................................................................... 274 Housing Authority Administration (Fund 870) ......................................................................... 275 Housing Authority Administration (Fund 871) ......................................................................... 276 Housing Authority – Laguna Palms (8718610) ....................................................................... 277 Housing Authority – Catalina Gardens (8718620) .................................................................. 278 Housing Authority – Desert Pointe (8718630) ........................................................................ 279 Housing Authority – Las Serenas (8718640) .......................................................................... 280 Housing Authority – Neighbors Garden (8718650) ................................................................. 281 Housing Authority – One Quail Place (8718660) .................................................................... 282 Housing Authority – Pueblos (8718670) ................................................................................. 283 Housing Authority – California Villas (8718680) ...................................................................... 284 Housing Authority – Taos Palms (8718690) ........................................................................... 285 Housing Authority – Carlos Ortega Villas (8718691) .............................................................. 286 Housing Authority – Palm Village (8718692) .......................................................................... 287 Housing Authority – Candlewood (8718693) .......................................................................... 288 Housing Authority – La Rocca Villas (8718694) ...................................................................... 289 Housing Authority – Sagecrest (8718695) .............................................................................. 290 Housing Authority – Santa Rosa (8718696) ........................................................................... 291 Housing Authority Housing Asset Fund Administration (Fund 873) ......................................... 292 SECTION 9: CLASSIFICATIONS AND SALARY SCHEDULE 293 (Resolution authorizing staff positions and salaries) Resolution 2024-047 Authorized Classifications, Allocated Positions, and Salary Schedule ........ 294 Personnel Summary..................................................................................................................... 306 SECTION 10: STATISTICS 311 (Various statistics and demographics relative to Palm Desert) Fund Balances of Governmental Funds ................................................................................. 312 Historical General Fund Revenues ......................................................................................... 315 Historical General Fund Expenditures .................................................................................... 317 Historical General Fund Revenue and Expenditures Per Capita............................................. 319 Assessed Value and Estimated Actual Value of Taxable Property ......................................... 320 Historical Net Assessed Taxable Values Citywide – Graph .................................................... 321 Principal Property Taxpayers ................................................................................................. 324 Top 25 Sales Tax Generators ................................................................................................ 326 x TABLE OF CONTENTS SECTION 11: ADOPTED FINANCIAL PLAN 330 (Includes actions by the City Council and its related entities for adoption of the Financial Plan) Financial Plan as Adopted on June 26, 2025 ......................................................................... 331 SECTION 12: APPENDIX 376 Glossary ................................................................................................................................ 377 Acronyms .............................................................................................................................. 384 Financial Polices ................................................................................................................... 386 xi SECTION 1: CITY OVERVIEW 1 CITY MANAGER’S TRANSMITTAL LETTER Chris Escobedo City Manager Honorable Mayor, City Council members, and residents of Palm Desert, In accordance with the City’s ordinance, it is my pleasure to present the Fiscal Year 2025-26 Operating Budget for the City of Palm Desert. This balanced budget represents the City’s annual Financial Plan and five-year Capital Improvement Program (CIP) for delivering programs, projects, and services in a fiscally responsible manner, consistent with the priorities, goals, and objectives adopted by the City Council. This budget has been prepared following the community’s approval of the much needed one- cent sales tax, Measure G, to augment operational needs that had recently relied on reserves due to increased public safety costs and deferred maintenance on City-owned facilities during lean years. The approval of Measure G provides a resource that ensures the well- being and safety of residents, visitors, and businesses will remain the highest priority. On November 5, 2024, Palm Desert residents approved Measure G with 65% voter support. The City Council approved a five-year spending plan for Measure G funds, prioritizing public safety, storm-related infrastructure, park and library development, and staffing to support the growth in North Palm Desert. All Measure G revenues anticipated in FY 2025-26 have been allocated pursuant to the five-year spending plan. The costs associated with the new library have been accelerated into FY 2025-26 to meet the City Council’s request to expedite the move to the Civic Center Campus. 24,000,000 FY 2025-26 Measure G Allocation 7,750,000 2,400,000 2,732,200 270,318 1,000,000 3,847,482 6,000,000 - Balance Available 2 CITY MANAGER’S TRANSMITTAL LETTER The City has established strong reserves over many years to ensure the delivery of services during emergencies. If reserves are used, they are to be replenished pursuant to the reserve policy. As of the close of FY 2023-24, the City had a little over $120 million in the General Fund balance, $80 million of which has been assigned or committed to the City’s identified needs, such as emergencies, operating cash, fund stability, capital improvements, facility maintenance, and other prioritized reserves pursuant to the established policy. Much of the balance of the unassigned reserve (approximately $40 million) may be used to sustain General Fund operations and service delivery throughout the budget year during seasonal peaks and valleys. Overall City Budget Summary (Budget-in-Brief) The General Fund is the City’s primary fund for operations. Staff projects total revenues of $109,743,818 and estimated expenditures of $109,424,003, resulting in an estimated surplus of $319,813 in FY 2025-26. 3 CITY MANAGER’S TRANSMITTAL LETTER In terms of General Fund revenues, the growth experienced in recent years has normalized compared to the increases seen immediately following the pandemic. FY 2024-25 revenue will more than likely match the prior year. Increased interest earnings provided a buffer to offset some areas of declining growth. The City’s expenditures are projected to continue increasing at a slightly faster rate than revenue growth in the coming years. The rising cost of services related to minimum wage increases, inflation, and, most recently, tariffs continue to impact general buying power. Projections show the separation between revenue and expenditure growth continuing to increase as new projects come online adding new operational costs, need for additional facility reserves, and long-term capital improvement costs. Staff continues to find ways to save, identify new revenue sources, and create economies of scale by bundling wherever possible. The City’s overall budget includes the General Fund as well as many other funds. Most of these funds are restricted for specific purposes. For example, monies collected and placed in the Fire Fund must be used for fire protection services, facilities, or equipment. Special Assessment Funds depend on monies collected from property owners within a specified area to maintain that area and must be used for that purpose. Detailed budgets for these funds are included in the corresponding sections of this budget. The expenditure budget for all funds for FY 2025-26 is $225,988,793 not including transfers between funds. This amount represents an increase of 6% from the FY 2024-25 all-funds budget. The increase is due primarily to the construction of the new North Palm Desert Fire Station and other planned capital projects. General Fund – Revenues The General Fund’s estimated revenues of $109,743,818 represent an increase of approximately $26.5 million (31.9%) over the current fiscal year’s original revenue estimate of $83,222,877. The increase is based on current-year projections reflecting higher sales tax revenue related to the Measure G one-cent tax, a slight increase in property tax, and anticipated permits and fees. Elevated interest earnings continue to offset modest declines in tax revenues. FY 2025-26 is expected to remain the same, but staff will be monitoring economic changes and return to the City Council if rate adjustments have a major impact on anticipated earnings. 4 CITY MANAGER’S TRANSMITTAL LETTER Revenue Type FY 2024-25 FY 2024-25 FY 2024-25 FY 2025-26 Original Budget Adj Budget Projected Proposed Sales Tax 25,000,000 23,000,000 24,916,701 24,916,701 Measure G 1% Sales Tax - 4,000,000 4,000,000 24,300,000 Transient Occupancy Tax & Short-Term Rentals 22,905,000 22,798,500 22,774,332 22,755,000 Property Tax Secured and Unsecured** 12,624,088 12,623,089 12,558,552 12,809,723 Franchises (Cable/Gas/Electric/Waste) 3,400,000 3,400,000 3,400,000 3,731,710 Timeshare Mitigation Fee* 1,754,107 3,465,702 3,465,702 1,903,014 Business License Tax 1,100,000 1,163,000 1,122,955 1,160,000 Transfers-In (Traffic Safety, Parkview, Housing, Cannabis, 1,167,700 2,680,140 2,680,140 1,902,700 Permits/Fees State Payments (VLF, Parking Bail, MV lieu) 5,593,780 5,739,780 6,091,261 5,891,000 Interest and Rents 4,862,329 5,362,329 5,149,193 5,256,000 Reimbursements and Other Revenue 1,592,275 1,968,682 1,318,655 1,421,531 TOTAL GENERAL FUND $ 83,222,879 $ 89,194,220 $ 90,610,504 $ 109,743,818 5 CITY MANAGER’S TRANSMITTAL LETTER The revenue stabilization is strongly tied to recovery indices and year-over-year comparisons to pre-pandemic sales. Sales tax recovery has slowed following a rapid increase post- pandemic, and forecasts remain rather conservative, taking inflation, recession risks, and historical trends into consideration. 6 CITY MANAGER’S TRANSMITTAL LETTER General Fund - Expenditures As shown in the next graph, the proposed General Fund operating expenditure budget of $109,424,005 represents an approximate increase of $26.3 million (31.8%) compared to the current fiscal year’s approved Original Budget of $83,063,012. The projected expenditures include increases in the cost of operations related to public safety, including higher police service contract costs, the addition of six new police officers, and three new Public Works staff members. They also include transfers out for Fire Services and improvements, new library construction, infrastructure costs, facility maintenance, and the renovation or reconstruction of Fire Stations 33 and 71. 7 CITY MANAGER’S TRANSMITTAL LETTER FY 2025-26 estimated expenditures related to salaries increased by 7%, and benefits increased by 8% compared to FY 2024-25. These changes reflect our ongoing commitment to meeting community needs and ensuring efficient service delivery. Departmental and division staffing may be adjusted annually to meet those needs. Growth in salary costs this year includes the addition of five total Full-Time Equivalent employees (FTE’s), three of which are related to the five-year spending plan for Measure G to support growth in North Palm Desert, and an increase of $0.5 million in the annual payment due to CalPERS for FY 2025-26. Additionally, Palm Desert employees are eligible for a 3% cost-of-living adjustment (COLA) as we enter Year 3 of a three-year MOU with the employees’ organization. That COLA impacts the other benefits tied to salary costs, such as retirement payments to PERS. Finally, healthcare costs increased by 13% over FY 2024-25. 8 CITY MANAGER’S TRANSMITTAL LETTER Strategic City Goals The City’s inaugural Annual Report was published in January 2022, documenting each department’s top accomplishments and improvements made to serve the community better in the 2021 calendar year. The report also included department initiatives that they would be working on in the upcoming year. A copy of the report can be found at the City’s website: https://www.palmdesert.gov/our- city/departments/city-goals. On Thursday, February 13, 2025, the Palm Desert City Council approved the City's goals for the 2025 calendar year. The adoption of these goals followed months of discussions among City staff and Council members about ways to enhance the services provided to Palm Desert residents, businesses, and visitors, as well as steps to advance the 20-year vision for the City outlined in the Envision Palm Desert Strategic Plan. Below are the adopted City Council Priorities and Goals for 2025: Cal State University Palm Desert Campus •Description: Continue advocacy and strategic planning for a Cal State University Palm Desert Campus, fostering opportunities in AI, business innovation, and entrepreneurship to drive workforce development and regional growth. •Lead Teams: Economic Development •Subcommittee Involved: Economic Development Subcommittee •Action Plan/Next Steps: Continue partnerships with CSUSB-PDC and the Entrepreneur Resource Center to develop educational programs, training, and investment opportunities to grow new AI-based businesses. North Sphere Development, Infrastructure Planning, and Electrification •Description: Ensure the North Sphere has the infrastructure needed to support its growth, including essential services, public amenities, and enhanced public spaces. Address energy transmission challenges to remove barriers to development and support long-term housing and economic expansion. •Lead Teams: Economic Development and City Manager’s Office •Subcommittee Involved: Economic Development Subcommittee 9 CITY MANAGER’S TRANSMITTAL LETTER •Action Plan/Next Steps: Continue to work with existing utility agencies serving North Palm Desert to secure updates on available infrastructure to support future commercial and residential developments. Investigate opportunities to form Community Facilities Districts to advance utility infrastructure required for future growth. Westfield Mall Redevelopment (Experience-Based and Family-Focused Activities) •Description: Support the redevelopment of the mall properties into a vibrant destination that enhances economic vitality and community engagement. Encourage a mix of experience-driven and family-friendly uses. •Lead Teams: Economic Development and City Manager’s Office •Action Plan/Next Steps: Continue to work with mall ownership to develop a comprehensive specific plan for the mall site. Partner with the mall owners to entitle and design a new specific plan, including the former Sears site owned by the City. Update to the Development Code/Fire Prevention by Design •Description: Ensure a comprehensive update of the Development Code that enhances clarity, efficiency, and flexibility for residents and businesses. Modernize regulations to support economic growth, streamline permitting, and improve public safety, while integrating best practices in fire prevention by design. •Lead Team: Development Services •Subcommittee Involved: Unified Development Code Subcommittee •Action Plan/Next Steps: Continue to work with consultant and stakeholders on development of Unified Development Code (UDC) beginning with an analysis of procedures and drafts of updated code. For fire prevention, City will adopt updated California Building Code to include best practices in fire prevention and integrate the Riverside County Fire Department into the City's Development Services Department for in-house Fire Marshal services. Crime Prevention Technology •Description: Expand the use of technology-driven public safety solutions to enhance crime prevention and law enforcement effectiveness. Implement tools such as real- time data analysis, automated license plate recognition, and security cameras. •Lead Team: City Manager’s Office •Subcommittee Involved: Public Safety Committee •Action Plan/Next Steps: The City is enhancing its current Automated License Plate Recognition (ALPR) system by upgrading to advanced cameras, adding additional units, and optimizing placement. In addition, staff is exploring the use of Safety Stick technology as part of the City’s Very Important Pedestrian (VIP) safety campaign to improve visibility and safety at key crosswalks. 10 CITY MANAGER’S TRANSMITTAL LETTER Assessment of City Medians and Rights-of-Way •Description: Conduct a comprehensive review of City medians and rights-of-way to improve maintenance efficiency, aesthetics, and functionality. Focus on enhancing landscaping, addressing aging infrastructure, and ensuring cost-effective, long-term upkeep. •Lead Team: Public Works •Subcommittee Involved: N/A •Action Plan/Next Steps: A Median Master Plan will be presented at a City Council meeting for review and input during a study session, followed by a formal plan for adoption at a City Council meeting in Q2 of the FY2025-26fiscal year. Economic Development This year, the Invest Palm Desert campaign will continue to offer a variety of programs designed to attract new high-wage businesses and retain existing Palm Desert businesses. The Invest Palm Desert program is intended to assist local businesses with capital expansion needs, as well as provide a competitive edge for Palm Desert by offering incentives to businesses considering relocation in the Coachella Valley. Special focus of the funding will be on key geographic regions, including El Paseo, San Pablo, and the University District. Public Safety and Emergency Services As depicted in the next table, the City’s public safety budget is approximately $64.16 million. The portion charged to the General Fund represents about 36% of overall General Fund expenditures. This reflects an increase of 30% over the FY 2024-25 public safety budget of $46.91 million. Public Safety Total Request General Fund Special Funds Police Service 28,713,628 28,373,878 339,750 Community Safety and County EMS 220,084 220,084 - Homelessness Services* 445,000 445,000 Fire Services** 34,783,794 10,425,000 24,358,794 $64,162,506 $39,018,962 $25,143,544 * Paid by PLHA grant and opioid settlement funds **Paid by Fire and General Fund (includes Capital Costs) Police Services – The City contracts for police services with Riverside County and operates with a total of 95 sworn law enforcement staff and non-sworn Community Service Officers. The proposed budget for Police Services is approximately $28.7 million, which includes a $6 million increase over the FY 2024-25 budget of $22.3 million. The increase is due to changes to rates negotiated between the Riverside County Sheriff’s office and its various represented bargaining units. Additionally, the budget incorporates six new dedicated police officers. 11 CITY MANAGER’S TRANSMITTAL LETTER Fire Services – The City’s contract for fire protection and emergency medical services (EMS) includes the operation of three fire stations with 74 paid professional firefighters upon completion of Fire Station 102. The FY 2025-26 budget for fire protection services and EMS is approximately $34.7 million, a 42% increase over the FY 2024-25 budget of $24 million, with the General Fund covering just under one-third of the total costs. The increase is attributable to capital improvement costs at three stations and to changes in rates and benefits agreed to by Cal Fire and its bargaining units. Additionally, the budget anticipates operations for Station 102 to begin in May 2026. Annual operational costs for Station 102 are projected to start at about $6.5 million, including operating costs for Truck 102. The increased costs are expected to continue to require support from the General Fund to offset any shortfall from the Fire Fund revenues. The portion of fire services paid from the Fire Fund is derived from structural fire tax credits from the County, fire taxes assessed by the City, reimbursements from other Cove Community cities for the City’s ladder truck, and emergency medical services cost recovery fees. The General Fund is expected to cover $10.4 million for fire services in FY 2025-26. Transfers from the General Fund to support public safety are projected to grow significantly and are estimated as follows: Est. Fire Ops Budget 2025-26* 2026-27 2027-28 2028-29 2029-30 Fire Fund Revenues Fire Fund Expenditures Necessary transfer from GF (13,864,866) (12,329,505) (13,595,380) (15,169,850) (16,367,529) *2025-26 anticipates a balance carryover from 2024-25 – only $10.4M will be needed from GF Current Economic Climate Palm Desert, like any other local government, must consider a variety of factors related to the local, state, and national economy when budgeting. These considerations are essential for making informed decisions that promote economic growth, fiscal stability, and the overall well-being of the community. National Economy: National monetary policy continues to play a significant role in shaping local government finances. Changes in interest rates directly impact borrowing costs, affecting the ability of many cities to fund capital projects and manage debt service. Likewise, the overall health of the national economy influences consumer behavior, business activity, and, ultimately, local sales tax and other revenue streams. 12 CITY MANAGER’S TRANSMITTAL LETTER The U.S. economy experienced a slowdown in 2024, with real GDP growth decelerating to 1.4 percent (annualized) in Q1 2024, down from 3.4 percent in Q4 2023. Modest growth continued through the remainder of 2024, as high prices and elevated interest rates dampened domestic demand. While the economy avoided a formal recession, consumer spending cooled, and economic growth remained sluggish through the end of the year. Looking ahead, the economic outlook for 2025 includes cautious optimism. Inflation has gradually subsided toward the Federal Reserve’s 2 percent target, creating conditions for potential interest rate cuts. These anticipated adjustments in monetary policy are expected to support a modest rebound in economic activity. Forecasts for 2025 suggest real GDP growth may return to around two percent—closer to its long-run potential. However, uncertainty remains. The exact timing and magnitude of rate cuts are still unclear, and interest rates may ultimately stabilize at levels higher than those seen before the pandemic. Cities must remain vigilant in monitoring economic trends and maintain flexibility in fiscal planning and capital investment strategies in response to evolving national conditions. Local Economy Local Government depends heavily on tax revenue to fund public services. Economic downturns can lead to reduced tax collections, impacting the ability to maintain infrastructure, provide services, and invest in community development. Palm Desert’s top two revenue sources are sales tax and transient occupancy tax (TOT), both of which are highly dependent on local tourism. Fluctuations in tourism due to factors like travel trends, weather, and events can impact local businesses and tax revenue. Nearly 70% of Palm Desert’s sales tax is provided by consumers living outside of the city. Post-pandemic, both revenue sources grew at a dramatic pace as businesses reopened, and people grew tired of staying home. Both revenue streams have since returned to more historical patterns. Staff continues to monitor and analyze the data closely as conditions evolve. Conversely, small businesses are the backbone of the community. Local government policies that support small businesses, such as streamlined permitting processes and economic development support, can foster entrepreneurship and economic growth. The City continues to invest in its local businesses through various programs and projects with this in mind. The approval of Measure G provides a much-needed resource to alleviate some of the anticipated expenditures related to public safety, community services in our growing community, and the essential mission to preserve financial stability. It allows us to deliberately manage priorities and remain flexible during uncertain times, all while safeguarding the expected quality of life for our residents and visitors alike. To ensure that funds are directed toward the priorities identified through community outreach, the five-year spending plan will continue to serve as a framework for future budget requests. 13 CITY MANAGER’S TRANSMITTAL LETTER Conclusion In closing this budget message, I would like to express my appreciation to the City Council for providing positive leadership and direction on behalf of the community. The City’s commissions and committees have also provided invaluable assistance in developing the City’s priorities that led to the proposed budget. I also want to thank City staff for their dedication and effort in providing excellent services to the community and for their commitment to accomplishing the goals set out in the budget. I would like to thank the Finance Department for their work on developing the budget. They have assembled an award-worthy budget document that is comprehensive, accurate, and easy to read. Finally, I thank the Executive Team for their thoughtful contributions to the budget and for their consistent hard work and commitment to the City and the community. I want to confirm my commitment to continue carrying on the great work of the Palm Desert City Council with City staff, to embark on this opportunity hand in hand with the community, and to maintain the high standards and fiscally pragmatic decisions of past and present City officials. Respectfully, Chris Escobedo Chris Escobedo City Manager 14 ABOUT PALM DESERT The City of Palm Desert is the geographic center of the Coachella Valley, a fast-growing region of Southern California that is comprised of nine cities. Palm Desert prides itself on being a community supported city that serves as the educational, retail, and cultural hub of the Coachella Valley. Palm Desert was incorporated on November 26, 1973 as a General Law City. In 1997, the voters approved changing Palm Desert's designation to a Charter City in order to preserve the historic principles of self-governance and derive the resulting social, economic, and fiscal benefits from local control. 15 PALM DESERT DEMOGRAPHICS Palm Desert employs the Council-Manager form of government. The City Council consists of five citizens elected to serve for staggered four-year terms. The Mayor serves a one-year term, appointed from within the City Council on a rotation basis. In addition, the Palm Desert City Council serves as each the Board of the Successor Agency to the Palm Desert Redevelopment Agency, the Financing Authority, and the Housing Authority. Citizen- commissions and committees also support the City Council by providing input on many community affairs including public safety, planning, parks and recreation, art in public places, housing, and finance. The City Manager appoints staff and supervises the daily administration of municipal affairs. Palm Desert contracts out many of its services such as police and fire services, recreational services, animal control services, trash collection, street sweeping, etc. The goal of contracting out services is to minimize costs as much as possible to the extent possible by using other governmental agencies or districts that already provide these services to other cities and counties. For real-time information about Palm Desert including news and upcoming events please check our website frequently: https://www.palmdesert.gov/ 16 Comparision Charts 17 Comparision Charts 18 SECTION 2: BUDGET SUMMARIES 19 THE BUDGET PROCESS BUDGET PREPARATION CALENDAR February 2, 2025 Issue Budget Priorities, Detail Budget Instructions and Forms to Departments STRATEGIZE Study Session with City Council to develop goals and direction for the upcoming year. PREPARE Budgets are submitted to Finance through our OpenGov system. Finance compiles request and submits to City Manager for review. DEVELOP ENGAGE Public Study Sessions are held with City Council. Community engagement is encouraged through EngagePD & Brightside Newsletter. Staff provides details to support final proposals. ADOPT, IMPLEMENT, AMEND & EVALUATE City Council adopts final budget New budget year begins, and monitoring is ongoing. Amendments approved by City Council throughout FY, midyear, or year end. & February 27, 2025 Council Priorities and Goals Setting Workshop February 11, 2025 CIP Worksheet shared for updating February 13, 2025 FY 2024-25 Mid-Year Review and Adoption February 11 to March 11, 2025 Budgets are entered for submission to Finance through OpenGov March 17 to April 17, 2025 Begin Compilation of FY 2025-26 Budget and CIP April 17, 2024 Budget Meetings with City Manager and Departments April 24, 2025 Final Budget Presentation Updated and Staff Report updated and delivered to Clerk for posting May 8 & May 22, 2025 City Council Study Sessions Held for Public Input June 26, 2025 Public Hearing - City Council and Housing Authority Board Adopt FY 2025-26 Budget July 1, 2025 to June 30, 2026 Budget Implementation and Monitoring 20 ACCOUNTING SYSTEM AND BUDGETARY CONTROL FUND ACCOUNTING The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds utilized by the City are grouped into generic fund types and broad fund categories: Governmental Funds General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources that are legally restricted to expenditures for specified purposes. The landscaping and lighting funds are adopted by the City Council by resolution as a consolidated district budget. However, the City reflects the individual zones in separate departments and funds. This allows the residents of the zones to see the exact detail of their district’s improvements and maintenance. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for and the payment of general long-term debt principal, interest, and related costs other than capitalized leases and compensated absences that are paid from other governmental funds. The City currently has nine assessment districts (94-2 Sunterrace; 94-3 Merano; 01-1 Silver Spur; 98-1 Bighorn; 05-1 University Park; 04-2 Section 29; 91-1 Indian Ridge; EIP; and Highlands Undergrounding). Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed through proprietary funds). Capital Project Funds for the City include Art in Public Places, Capital Project Reserve fund, Streets fund, Ordinance 416, Drainage Facilities, Park and Recreation Facilities, Signalization, Buildings, Museum, Library, Corporation Yard, YMCA Building Fund, Interstate 10, Sports Complex Fund, and various assessment district funds. Proprietary Funds Enterprise Funds - Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the City Council is for costs of these funds (including depreciation, if applicable) to be recovered primarily through user charges. Palm Desert’s Enterprise Funds include the Parkview Office Complex and the Desert Willow Golf Course. Internal Service Funds - Internal Service Funds(ISF) account for financial transactions related to internal operations including replacement of City-owned vehicles and equipment as well as to fund compensated absences. Currently, there are no cost allocations of internal service funds to any other department or divisions. ISF’s are funded with transfers directly from the General Fund. Fiduciary Funds Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individual’s private organizations, and other governments. Since activities recorded within these funds are outside the control of the City Council, these funds are not included within this budget document. BASIS OF ACCOUNTING The Basis of Accounting refers to the point at which revenues and expenditures are recognized in the accounts and reported in the financial statements. All governmental funds, agency funds, and expendable trust funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. All proprietary funds and nonexpendable trust funds are accounted for using the accrual basis of 21 ACCOUNTING SYSTEM AND BUDGETARY CONTROL accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. BUDGETARY BASIS OF ACCOUNTING Budgets for the governmental fund types are adopted on a basis consistent with generally accepted accounting principles, utilizing the modified accrual basis of accounting. The proprietary funds are budgeted as is accepted for the type of operation: The Golf Course Fund is budgeted utilizing available cash balance (cash basis). As a result, this fund does not maintain a depreciation reserve fund, and no depreciation expenses (non-cash entry) are budgeted. The other proprietary fund is the Office Complex which is budgeted on an accrual basis of accounting and maintains a depreciation reserve. Budgeted amounts are as originally adopted and as further amended by City Council action. BUDGETARY CONTROL Budgetary controls are maintained to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the governmental and proprietary funds are included in the annual appropriated budget. The budgetary level of control, the level at which expenditures cannot legally exceed the appropriated amount, is exercised at the fund level. APPROPRIATIONS LIMIT Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was adopted by California voters in 1980 and placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and appropriate (authorize to spend) each year. The limit is different for each agency and the limit changes each year. Each year’s limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation, population and voter approved modifications in each subsequent year. Proposition 111 was passed by the State’s voters in June 1990. This legislation made changes to the method by which the Appropriations Limit is calculated: The annual adjustment factors for inflation and population have been changed. Instead of using the lesser of California per capita income, or U.S. CPI, each city may choose either the growth in the California per capita income, or the growth in non-residential assessed valuation due to new construction within the City. For population, instead of using only the population growth of a city, each city may choose to use the population growth within its county. These are both annual elections. The revised annual adjustment factors will be applied to the 1986-87 limit for most cities and each year in between in order to calculate the 1990-91 limit. The actual limits for the intervening years, however, are not affected. Expenditures for “qualified capital outlay”, which are fixed assets with a value of more than $100,000 and an expected life of 10 years or more, will be excluded from the limit. A city which exceeds the limit in any one year may choose to not give a tax refund if they fall below the limit in the next fiscal year. They then have two more years to refund any remaining excess or to obtain a successful override vote. In certain situations, proceeds of taxes may be spent on emergencies without having to reduce the limit in future years. Each city must now conduct a review of its Appropriations Limit during its annual financial audit. The law now requires a governing body to annually adopt, by resolution, an appropriations limit for the following year, along with a recorded vote regarding which of the annual adjustment factors have been selected. The City’s budget appropriations limit and annual adjustment factors are adopted annually by Resolution by the City Council. 22 City of Palm Desert Citywide Fund Balances FY 2025-26 Fund #Fund Name 110 General Fund 99,435,127 107,841,118 1,902,700 27,704,573 81,719,432 99,754,940 Total General Fund 99,435,127 107,841,118 1,902,700 27,704,573 81,719,432 99,754,940 Special Revenue Funds 210 Traffic Safety 5,278 2,018 - 2,700 - 4,596 211 Gas Tax 5,439,800 2,960,640 - - 2,745,164 5,655,276 213 Measure A 12,893,060 4,068,512 - - 8,964,825 7,996,747 214 Housing Mitigation Fee 2,868,207 126,909 - - 959,135 2,035,981 220 CDBG Block Grant 138,600 1,265,808 - - 592,041 812,367 225 Permanent Local Housing Alloc.123,999 112,562 - - 170,000 66,561 226 Opioid Settlement Funds 160,415 148,168 - - 275,000 33,583 228 Child Care Program 1,003,201 34,006 - - - 1,037,207 229 Public Safety 170,309 199,548 - - 339,750 30,107 230 Prop A. Fire Tax 5,824,039 20,643,929 10,150,000 - 34,233,794 2,384,174 231 New Construction Tax 1,653,131 349,875 - - 1,000,000 1,003,006 232 Drainage Facility 978,289 106,895 - - 675,000 410,184 233 Park and Recreation 1,470,770 194,388 - - 1,650,000 15,158 234 Signalization 185,442 30,472 - - 50,000 165,914 235 Fire Facility Fund 250,188 156,039 - - - 406,227 236 Waste Recyling Fees 3,449,230 588,576 - - 741,500 3,296,306 237 Energy Independence 310,570 182,795 - - 177,900 315,465 238 Air Quality Management 8,082 66,555 - - 74,500 137 242 Aquatic Center 1,144,083 1,030,457 2,152,543 - 3,483,000 844,083 243 Cannabis Compliance 1,886,418 821,784 - 1,500,000 - 1,208,202 252 Library Operations 196,793 13,195 2,468,469 - 2,468,469 209,988 271 El Paseo Assessment District 77,644 279,383 - - 276,500 80,526 276 LLD Zone #2 3,589 30,887 141,000 - 175,000 476 278 LLD Zone #3 35,702 11,718 - - 11,900 35,520 272 LLD Zone #4 767 5,985 - - 6,050 702 273 LLD Zone #5 53,284 23,574 - - 35,790 41,068 275 LLD Zone #6 158,442 100,131 - - 153,515 105,058 279 LLD Zone #7 35,285 5,942 - - 7,350 33,877 280 LLD Zone #8 51,710 10,848 - - 7,600 54,958 281 LLD Zone #9 64,892 22,252 - - 30,875 56,269 283 LLD Zone #11 26,413 4,448 - - 6,800 24,061 285 LLD Zone #14 90,845 16,601 - - 25,300 82,146 286 LLD Zone #15 43,938 8,202 - - 11,870 40,270 287 LLD Zone #16 53,559 36,853 - - 88,100 2,312 299 LLD Zone #13 152,155 73,618 - - 92,600 133,173 277 President's Plaza I 419,152 448,481 - - 389,200 478,433 282 President's Plaza III 53,443 53,067 - - 106,510 (0) 289 BAD No. 1 848,785 387,374 - - 118,599 1,117,560 870 Housing Set-Aside 1,465,119 - 406,774 - 406,774 1,465,119 871 Housing Authority 10,365,310 11,356,926 - 406,774 9,362,425 11,953,037 873 Housing Asset Fund 38,654,156 1,952,000 - - 787,900 39,818,256 Total Special Revenue Funds 92,814,094 47,931,421 15,318,786 1,909,474 70,700,736 83,454,090 Expenditures Fund Balance Fund Balance Revenues Transfers In Transfers Out 23 City of Palm Desert Citywide Fund Balances FY 2025-26 Fund #Fund Name Capital Project Funds 400 Capital Project Reserve Fund 4,094,692 555,958 5,397,482 - 9,536,126 512,006 420 Capital Project Drainage Facilities 1,102,183 70,860 - - 200,000 973,043 425 Economic Development Capital Projects 397,272 118,714 325,000 - 638,581 202,405 430 Parks & Recreation Facilities Capital Projects 11,004 427 - - - 11,431 436 Art in Public Places 1,201,319 318,811 - - 639,120 881,010 440 Signalization Capital Projects 121,878 4,738 - - - 126,616 441 Golf Course Capital Projects 3,785,003 3,019,516 - - 1,360,000 5,444,519 450 Building Maintenance Reserve 1,742,348 42,673 - - 1,700,000 85,021 451 Capital Bond Projects 55,111,840 2,550,000 - - 24,300,000 33,361,840 452 Library Capital Projects 132,065 77,788 6,000,000 - 6,000,000 209,853 464 AD94-3 Merano 197,523 - - - - 197,523 466 Silver Spur Ranch 618 - - - - 618 467 Highlands Assessment District 21 - - - - 21 468 University Park CFD (0) - - - - (0) 469 Section 29 Assessment 2004-2 670 - - - - 670 Total Capital Project Funds 67,898,435 6,759,485 11,722,482 - 44,373,827 42,006,575 Debt Service Funds 314 AD Highlands 144,756 124,324 - - 119,346 149,734 Total Debt Service Funds 144,756 124,324 - - 119,346 149,734 Total Governmental Funds 260,292,412 162,656,348 28,943,968 29,614,047 196,913,341 225,365,339 Proprietary Funds Internal Service Funds 530 Equipment Replacement Fund 2,445,880 267,503 - - 2,167,787 545,596 577 Compensation Benefits Fund 208,083 98,611 - - 250,000 56,694 Total Internal Service Funds 2,653,963 366,114 - - 2,417,787 602,290 Enterprise Funds - 510 Parkview Office Complex 6,113,885 1,548,612 - 400,000 1,142,500 6,119,997 520 Desert Willow Golf Course 67,267,855 13,063,192 - - 13,436,316 66,894,731 521 Palm Desert Recreational Facilities (PDRFC)(1,402,986) 4,878,909 - - 5,089,025 (1,613,102) Total Enterprise Funds 71,978,755 19,490,713 400,000 19,667,841 71,401,627 Total Proprietary Funds 74,632,718 19,856,827 - 400,000 22,085,628 72,003,917 Total Citywide 334,925,129 182,513,175 28,943,968 30,014,047 218,998,969 297,369,256 Fiduciary Funds Custodial Funds 303 AD 84-1 - - - - - - 304 AD 87-1 188,669 - - - - 188,669 306 AD 92-1 121,231 - - - - 121,231 307 AD 91-4 Bighorn 324,833 - - - - 324,833 308 AD 94-2 Sunterrace/Varner 109,535 - - - - 109,535 309 AD 94-3 Merano 62,082 2,409 - - - 64,491 311 AD 98-1 Canyons of Bighorn 93,035 3,616 - - - 96,651 312 AD 01-1 Silver Spur 314,757 177,076 - 150,656 15,000 326,177 315 AD Section 29 2,469,293 1,499,643 - - 1,307,000 2,661,936 351 AD 91-1 Indian Ridge 1,282,520 50,795 - - - 1,333,315 353 AD CFD University Park 78,368 510,380 - - 508,800 79,948 354 AD CFD University Park 2021 847,500 927,474 - - 918,675 856,299 355 AD CFD University Park 2024 735,465 611,552 - - 610,825 736,192 391 Palm Desert Finance Authority 3,035 - 150,656 - 150,666 3,025 576 Retiree Health Benefits 2,699,103 106,601 1,080,000 - 1,092,200 2,793,504 Total Custodial Funds 9,329,424 3,889,546 1,230,656 150,656 4,603,166 9,695,804 Total Fiduciary Funds 9,329,424 3,889,546 1,230,656 150,656 4,603,166 9,695,804 Total All Funds 344,254,554 186,402,721 30,174,624 30,164,703 223,602,135 307,065,060 Note: Changes in fund balance exceeding 10% are primarily due to the implementation of a Capital Projects department, which has been tasked with an aggressive capital projects plan to catch up on deferred projects over the next several years. Accumulated funds are being spent down as part of this effort. Fund Balance Revenues Transfers In Transfers Out Expenditures Balance 24 City of Palm Desert Citywide Budgeted Revenues by Category FY 2025-26 Fund #Taxes Permits & Fees Transfers In Other Revenues Governmental Funds General Fund 91,466,648 3,604,439 5,891,000 - 5,256,000 1,902,700 1,623,031 109,743,818 Special Revenue Funds 24,359,415 3,839,188 1,893,370 299,473 15,551,288 15,318,786 1,988,687 63,250,207 Capital Project Funds - - - - 6,500,485 11,722,482 259,000 18,481,967 Debt Service Funds 120,391 - - - 3,933 - - 124,324 Total Governmental Funds 115,946,454 7,443,627 7,784,370 299,473 27,311,706 28,943,968 3,870,718 191,600,316 Proprietary Funds Internal Service Funds - - - - 366,114 - - 366,114 Enterprise Funds - - - 12,213,139 1,879,895 - 5,397,679 19,490,713 Total Proprietary Funds - - - 12,213,139 2,246,009 - 5,397,679 19,856,827 Total Citywide Revenues 115,946,454 7,443,627 7,784,370 12,512,612 29,557,715 28,943,968 9,268,397 211,457,143 Fiduciary Funds Custodial Funds 3,634,813 - - - 254,733 1,230,656 - 5,120,202 Total Fiduciary Funds 3,634,813 - - - 254,733 1,230,656 - 5,120,202 Total All Funds 119,581,267 7,443,627 7,784,370 12,512,612 29,812,448 30,174,624 9,268,397 216,577,345 City of Palm Desert Citywide Budgeted Expenditures by Category FY 2025-26 Fund #Personnel Operating Capital Transfers Out Total Governmental Funds General Fund 27,113,251 53,112,681 1,493,500 27,704,573 109,424,005 Special Revenue Funds 2,267,610 47,203,355 21,434,325 1,909,474 72,814,764 Capital Project Funds - 3,655,374 40,718,453 - 44,373,827 Debt Service Funds - 119,346 - - 119,346 Proprietary Funds Internal Service Funds - 1,210,000 1,207,787 - 2,417,787 Enterprise Funds - 17,550,496 2,117,345 400,000 20,067,841 Total Citywide Appropriations 29,380,861 122,851,252 66,971,410 30,014,047 249,217,570 Fiduciary Funds Custodial Funds - 4,603,166 - 150,656 4,753,822 Total All Funds 29,380,861 127,454,418 66,971,410 30,164,703 253,971,392 25 City of Palm Desert Citywide Revenues by Fund and Category FY 2025-26 Fund #Description 110 General Fund 91,466,648 3,604,439 5,891,000 - 5,256,000 1,902,700 1,623,031 109,743,818 210 Traffic Safety - - - - 218 - 1,800 2,018 211 Gas Tax 2,778,663 - - - 181,977 - - 2,960,640 213 Measure A 3,129,000 - - - 939,512 - - 4,068,512 214 Housing Mitigation Fee - - - - 126,909 - - 126,909 220 CDBG Block Grant - - 1,265,808 - - - - 1,265,808 225 Permanent Local Housing Alloc.- - 112,562 - - - - 112,562 226 Opioid Settlement Funds - - - - 4,648 - 143,520 148,168 228 Child Care Program - - - - 34,006 - - 34,006 229 Public Safety - - - - 5,548 - 194,000 199,548 230 Prop. A Fire Tax 15,593,929 3,300,000 - - 250,000 10,150,000 1,500,000 30,793,929 231 New Construction Tax 276,000 - - - 73,875 - - 349,875 232 Drainage Facility 70,000 - - - 36,895 - - 106,895 233 Park and Recreation 125,000 - - - 69,388 - - 194,388 234 Signalization 7,000 - - - 23,472 - - 30,472 235 Fire Facility Fund 89,000 - - - 67,039 - - 156,039 236 Waste Recyling Fees - - 450,000 - 138,576 - - 588,576 237 Energy Independence 115,000 - - - 67,795 - - 182,795 238 Air Quality Management - - 65,000 - 1,555 - - 66,555 242 Aquatic Center - 539,188 - 299,473 42,429 2,152,543 149,367 3,183,000 243 Cannabis Compliance 787,000 - - - 34,784 - - 821,784 252 Library Operations - - - - 13,195 2,468,469 - 2,481,664 271 El Paseo Assessment District 275,000 - - - 4,383 - - 279,383 276 LLD Zone #2 30,887 - - - - 141,000 - 171,887 278 LLD Zone #3 11,718 - - - - - - 11,718 272 LLD Zone #4 5,985 - - - - - - 5,985 273 LLD Zone #5 23,574 - - - - - - 23,574 275 LLD Zone #6 100,131 - - - - - - 100,131 279 LLD Zone #7 5,942 - - - - - - 5,942 280 LLD Zone #8 10,848 - - - - - - 10,848 281 LLD Zone #9 22,252 - - - - - - 22,252 283 LLD Zone #11 4,448 - - - - - - 4,448 285 LLD Zone #14 16,601 - - - - - - 16,601 286 LLD Zone #15 8,202 - - - - - - 8,202 287 LLD Zone #16 36,853 - - - - - - 36,853 299 LLD Zone #13 66,925 - - - 6,693 - - 73,618 277 President's Plaza I 448,481 - - - - - - 448,481 282 President's Plaza III 53,067 - - - - - - 53,067 289 BAD No. 1 267,909 - - - 119,465 - - 387,374 870 Housing Set-Aside - - - - - 406,774 - 406,774 871 Housing Authority - - - - 11,356,926 - - 11,356,926 873 Housing Asset Fund - - - - 1,952,000 - - 1,952,000 Other Revenues Total Revenues Taxes Permits & Fees Intergovernmental for & Property Transfers In 26 City of Palm Desert Citywide Revenues by Fund and Category FY 2025-26 Fund #Description 400 Capital Project Reserve Fund - - - - 555,958 5,397,482 - 5,953,440 420 Capital Proj. Drainage Facilities - - - - 70,860 - - 70,860 425 Economic Development CP - - - - 118,714 325,000 - 443,714 430 Parks & Rec Facilities CP - - - - 427 - - 427 436 Art in Public Places - - - - 59,811 - 259,000 318,811 440 Signalization Capital Projects - - - - 4,738 - - 4,738 441 Golf Course Capital Projects - - - - 3,019,516 - - 3,019,516 450 Building Maintenance Reserve - - - - 42,673 - - 42,673 451 Capital Bond Projects - - - - 2,550,000 - - 2,550,000 452 Library Capital Projects - - - - 77,788 6,000,000 - 6,077,788 461 UP Capital Projects 2021-1 - - - - - - - - 464 AD94-3 Merano - - - - - - - 466 Silver Spur Ranch - - - - - - - - 467 Highlands Assessment District - - - - - - - - 468 University Park CFD - - - - - - - - 469 Section 29 Assessment 2004-2 - - - - - - - - 314 AD Highlands 120,391 - - - 3,933 - - 124,324 530 Equipment Replacement Fund - - - - 267,503 - - 267,503 577 Compensation Benefits Fund - - - - 98,611 - - 98,611 510 Parkview Office Complex - - - - 1,548,612 - - 1,548,612 520 Desert Willow Golf Course - - - 12,213,139 331,283 - 518,770 13,063,192 521 Palm Desert Recreational Facilities (- - - - - - 4,878,909 4,878,909 303 AD 84-1 - - - - - - - - 304 AD 87-1 - - - - - - - - 306 AD 92-1 - - - - - - - - 307 AD 91-4 Bighorn - - - - - - - - 308 AD 94-2 Sunterrace/Varner - - - - - - - - 309 AD 94-3 Merano - - - - 2,409 - - 2,409 311 AD 98-1 Canyons of Bighorn - - - - 3,616 - - 3,616 312 AD 01-1 Silver Spur 167,563 - - - 9,513 - - 177,076 315 AD Section 29 1,447,900 - - - 51,743 - - 1,499,643 351 AD 91-1 Indian Ridge - - - - 50,795 - - 50,795 353 AD CFD University Park 494,850 - - - 15,530 - - 510,380 354 AD CFD University Park 2021 913,675 - - - 13,799 - - 927,474 355 AD CFD University Park 2024 610,825 - - - 727 - - 611,552 391 Palm Desert Finance Authority - - - - - 150,656 - 150,656 576 Retiree Health Benefits - - - - 106,601 1,080,000 - 1,186,601 Transfers In Other Revenues Total Revenues Taxes Permits & Fees Intergovernmental Charges for Services & Property 27 City of Palm Desert Citywide Budgeted Expenditures by Fund and Category FY 2025-26 Fund #Fund Name 110 General Fund 27,113,251 53,112,681 1,493,500 27,704,573 109,424,005 210 Traffic Safety - - - 2,700 2,700 211 Gas Tax - 1,335,164 1,410,000 - 2,745,164 213 Measure A - 1,000,000 7,964,825 - 8,964,825 214 Housing Mitigation Fee - 959,135 - - 959,135 220 CDBG Block Grant - 592,041 - - 592,041 225 Permanent Local Housing Alloc.- 170,000 - - 170,000 226 Opioid Settlement Funds - 275,000 - - 275,000 228 Child Care Program - - - - - 229 Public Safety - 339,750 - - 339,750 230 Prop A. Fire Tax - 26,508,794 7,725,000 - 34,233,794 231 New Construction Tax - - 1,000,000 - 1,000,000 232 Drainage Facility - - 675,000 - 675,000 233 Park and Recreation - - 1,650,000 - 1,650,000 234 Signalization - - 50,000 - 50,000 235 Fire Facility Fund - - - - - 236 Waste Recyling Fees - 741,500 - - 741,500 237 Energy Independence - 177,900 - - 177,900 238 Air Quality Management - 74,500 - - 74,500 242 Aquatic Center - 3,183,000 300,000 - 3,483,000 243 Cannabis Compliance - - - 1,500,000 1,500,000 252 Library Operations 1,708,367 751,102 9,000 - 2,468,469 271 El Paseo Assessment District - 276,500 - - 276,500 276 LLD Zone #2 - 175,000 - - 175,000 278 LLD Zone #3 - 11,900 - - 11,900 272 LLD Zone #4 - 6,050 - - 6,050 273 LLD Zone #5 - 35,790 - - 35,790 275 LLD Zone #6 - 153,515 - - 153,515 279 LLD Zone #7 - 7,350 - - 7,350 280 LLD Zone #8 - 7,600 - - 7,600 281 LLD Zone #9 - 30,875 - - 30,875 283 LLD Zone #11 - 6,800 - - 6,800 285 LLD Zone #14 - 25,300 - - 25,300 286 LLD Zone #15 - 11,870 - - 11,870 287 LLD Zone #16 - 88,100 - - 88,100 299 LLD Zone #13 - 92,600 - - 92,600 277 President's Plaza I - 389,200 - - 389,200 282 President's Plaza III - 106,510 - - 106,510 289 BAD No. 1 - 118,599 - - 118,599 870 Housing Set-Aside 402,474 3,800 500 - 406,774 871 Housing Authority 156,769 9,205,656 - 406,774 9,769,199 873 Housing Asset Fund - 137,900 650,000 - 787,900 Personnel Operating Capital Transfers Out Total 28 City of Palm Desert Citywide Budgeted Expenditures by Fund and Category FY 2025-26 Fund #Fund Name 400 Capital Project Reserve Fund - 2,407,673 7,128,453 - 9,536,126 420 Capital Project Drainage Facilities - - 200,000 - 200,000 425 Economic Development Capital Projects - 638,581 - - 638,581 430 Parks & Recreation Facilities Capital Projects - - - - - 436 Art in Public Places - 274,120 365,000 - 639,120 440 Signalization Capital Projects - - - - - 441 Golf Course Capital Projects - 260,000 1,100,000 - 1,360,000 450 Building Maintenance Reserve - 75,000 1,625,000 - 1,700,000 451 Capital Bond Projects - - 24,300,000 - 24,300,000 452 Library Capital Projects - - 6,000,000 - 6,000,000 461 UP Capital Projects 2021-1 - - - - - 464 AD94-3 Merano - - - - - 466 Silver Spur Ranch - - - - - 467 Highlands Assessment District - - - - - 468 University Park CFD - - - - - 469 Section 29 Assessment 2004-2 - - - - - 314 AD Highlands - 119,346 - - 119,346 530 Equipment Replacement Fund - 960,000 1,207,787 - 2,167,787 577 Compensation Benefits Fund - 250,000 - - 250,000 510 Parkview Office Complex - 1,142,500 - 400,000 1,542,500 520 Desert Willow Golf Course - 11,318,971 2,117,345 - 13,436,316 521 Palm Desert Recreational Facilities (PDRFC)- 5,089,025 - - 5,089,025 Fund #Fund Name 303 AD 84-1 - - - - - 304 AD 87-1 - - - - - 306 AD 92-1 - - - - - 307 AD 91-4 Bighorn - - - - - 308 AD 94-2 Sunterrace/Varner - - - - - 309 AD 94-3 Merano - - - - - 311 AD 98-1 Canyons of Bighorn - - - - - 312 AD 01-1 Silver Spur - 15,000 - 150,656 165,656 315 AD Section 29 - 1,307,000 - - 1,307,000 351 AD 91-1 Indian Ridge - - - - - 353 AD CFD University Park - 508,800 - - 508,800 354 AD CFD University Park 2024 - 918,675 - - 918,675 355 AD CFD University Park 2022 - 610,825 - - 610,825 391 Palm Desert Finance Authority - 150,666 - - 150,666 576 Retiree Health Benefits - 1,092,200 - - 1,092,200 Personnel Operating Capital Transfers Out Total Personnel Operating Capital Transfers Out Total Total All Funds 29,380,861 127,249,864 66,971,410 30,164,703 253,766,838 Total All Funds 29,380,861 127,249,864 66,971,410 30,164,703 253,766,838 29 City of Palm Desert Historical Citywide Revenues FY 2025-26 Fund #Fund Name 110 General Fund 85,400,986 84,187,579 83,222,879 109,743,818 Total General Fund 85,400,986 84,187,579 83,222,879 109,743,818 Special Revenue Funds 210 Traffic Safety 7,472 1,968 3,000 2,018 211 Gas Tax 2,507,737 2,917,694 2,894,234 2,960,640 213 Measure A 4,398,556 4,816,963 4,203,600 4,068,512 214 Housing Mitigation Fee 211,597 231,771 181,418 126,909 220 CDBG Block Grant 352,646 737,446 1,351,359 1,265,808 225 Permanent Local Housing Alloc.271,398 2,715 439,883 112,562 226 Opioid Settlement Funds 2,488 83,834 403,826 148,168 228 Child Care Program 95,204 97,854 136,279 34,006 229 Public Safety 387,337 95,174 177,000 199,548 230 Prop A. Fire Tax 20,687,723 24,621,340 23,726,540 30,793,929 231 New Construction Tax 570,927 360,694 214,002 349,875 232 Drainage Facility 159,211 102,442 253,500 106,895 233 Park and Recreation 130,392 519,594 320,908 194,388 234 Signalization 86,785 80,682 39,300 30,472 235 Fire Facility Fund 346,837 253,785 175,800 156,039 236 Waste Recyling Fees 516,037 791,089 811,900 588,576 237 Energy Independence 100,263 24,530 176,500 182,795 238 Air Quality Management 86,204 53,022 66,180 66,555 242 Aquatic Center 2,632,570 3,993,480 3,891,367 3,183,000 243 Cannabis Compliance 2,017,146 1,043,249 889,000 821,784 252 Library Operations - 1,335,885 2,185,290 2,468,469 271 El Paseo Assessment District 272,891 302,571 300,000 279,383 Landscape & Lighting Districts: 276 LLD Zone #2 141,185 117,712 202,142 171,887 278 LLD Zone #3 11,444 11,377 10,988 11,718 272 LLD Zone #4 5,794 5,927 5,491 5,985 273 LLD Zone #5 25,864 24,781 22,197 23,574 275 LLD Zone #6 102,721 101,878 91,653 100,131 279 LLD Zone #7 6,285 5,683 5,776 5,942 280 LLD Zone #8 12,129 10,699 11,655 10,848 281 LLD Zone #9 22,228 21,104 21,000 22,252 283 LLD Zone #11 4,752 4,228 4,324 4,448 285 LLD Zone #14 23,301 21,436 16,137 16,601 286 LLD Zone #15 8,726 7,683 7,973 8,202 287 LLD Zone #16 51,364 38,454 35,923 36,853 299 LLD Zone #13 63,100 74,194 72,325 73,618 Business Improvement Districts: 277 President's Plaza I 459,679 428,982 398,935 448,481 282 President's Plaza III 49,471 46,711 218,448 53,067 Business Assessment Districts: 289 BAD No. 1 316,070 417,421 315,910 387,374 Housing: 870 Housing Set-Aside 415,990 498,836 497,102 406,774 871 Housing Authority 9,422,891 10,161,512 9,733,631 11,356,926 873 Housing Asset Fund 1,887,546 1,948,914 1,987,328 1,952,000 Total Special Revenue Funds 48,871,961 56,415,315 56,499,824 63,237,012 Governmental Funds FY 2022-23 Actuals FY 2023-24 Actuals FY 2024-25 Adopted FY 2025-26 Adopted 30 City of Palm Desert Historical Citywide Revenues FY 2025-26 Fund #Fund Name 400 Capital Project Reserve Fund 14,540,891 2,995,003 10,782,674 5,953,440 420 Capital Project Drainage Facilities 66,253 3,294,298 73,700 70,860 425 Economic Development Capital Projects 171,621 187,490 141,243 443,714 430 Parks & Recreation Facilities Capital Projects 351 557 400 427 436 Art in Public Places 785,175 480,894 546,065 318,811 440 Signalization Capital Projects 3,721 6,173 4,300 4,738 441 Golf Course Capital Projects 3,004,838 4,270,599 3,009,265 3,019,516 450 Building Maintenance Reserve 1,257,377 70,345 5,755,790 42,673 451 Capital Bond Projects 4,003,739 3,456,401 250,000 2,550,000 452 Library Capital Projects 22,964 4,090,927 180,000 6,077,788 461 Univ. Park Capital Projects 2021-1 - - - - 464 AD94-3 Merano - 8,729 - - 466 Silver Spur Ranch - (0) - - 467 Highlands Assessment District - (0) - - 469 Section 29 Assessment 2004-2 - (0) - - 470 University Park 2024 - - 10,000,000 - Total Capital Project Funds 23,856,930 18,861,414 30,743,437 18,481,967 Debt Service Funds 314 AD Highlands 131,485 136,321 122,991 124,324 Total Debt Service Funds 131,485 136,321 122,991 124,324 Total Governmental Funds 158,261,362 159,600,629 170,589,131 191,587,121 Proprietary FundsInternal Service Funds 530 Equipment Replacement Fund 1,155,472 467,274 242,000 267,503 577 Compensation Benefits Fund 178,024 400,282 613,300 98,611 Total Internal Service Funds 1,333,496 867,556 855,300 366,114 Enterprise Funds 510 Parkview Office Complex 1,804,824 1,814,174 1,298,000 1,548,612 520 Desert Willow Golf Course 12,635,153 12,560,072 12,595,470 13,063,192 521 Palm Desert Recreational Facilities (PDRFC)4,875,792 4,570,976 4,780,039 4,878,909 Total Enterprise Funds 19,315,769 18,945,222 18,673,509 19,490,713 Total Proprietary Funds 20,649,265 19,812,778 19,528,809 19,856,827 Total Citywide 178,910,627 179,413,407 190,117,940 211,443,948 Fiduciary FundsCustodial Funds 303 AD 84-1 8,698 - - - 304 AD 87-1 3,086 - - - 306 AD 92-1 1,983 - - - 307 AD 91-4 Bighorn 5,313 - - - 308 AD 94-2 Sunterrace/Varner 3,467 5,750 - - 309 AD 94-3 Merano 2,705 3,132 2,200 2,409 311 AD 98-1 Canyons of Bighorn 2,840 4,711 3,300 3,616 312 AD 01-1 Silver Spur 184,161 187,295 176,263 177,076 315 AD Section 29 1,473,779 2,679,362 1,464,700 1,499,643 351 AD 91-1 Indian Ridge 39,889 66,168 22,100 50,795 353 AD CFD University Park 511,870 534,029 507,400 510,380 354 AD CFD University Park 2021 939,177 1,041,213 925,675 927,474 355 AD CFD University Park 2024 - 1,287,792 360,952 611,552 391 Palm Desert Finance Authority 144,900 166,975 143,762 150,656 576 Retiree Health Benefits 907,364 1,027,913 1,073,324 1,186,601 Total Custodial Funds 4,229,231 7,004,339 4,679,676 5,120,202 Total Fiduciary Funds 4,229,231 7,004,339 4,679,676 5,120,202 Total All Funds 183,139,858 186,417,746 194,797,616 216,564,150 Actuals FY 2023-24 Actuals FY 2024-25 Adopted FY 2025-26 AdoptedCapital Project Funds 31 City of Palm Desert Historical Citywide Expenditures FY 2025-26 Fund #Fund Name 110 General Fund 84,544,744 78,867,212 106,652,665 109,424,005 210 Traffic Safety 4,700 2,700 2,700 2,700 211 Gas Tax 2,853,402 3,638,431 1,557,199 2,745,164 213 Measure A 4,618,621 3,029,345 14,696,543 8,964,825 214 Housing Mitigation Fee 602,802 277,592 423,335 959,135 220 CDBG Block Grant 186,869 737,446 1,251,921 592,041 225 Permanent Local Housing Alloc.266,263 178,734 145,000 170,000 226 Opioid Settlement Funds - 78,734 251,000 275,000 228 Child Care Program - - - - 229 Public Safety 382,311 86,487 35,000 339,750 230 Prop A. Fire Tax 17,631,403 18,006,244 40,256,230 34,233,794 231 New Construction Tax 444,430 5,911 494,500 1,000,000 232 Drainage Facility 2,400 - 275,000 675,000 233 Park and Recreation 208,754 360,272 639,729 1,650,000 234 Signalization - - 460,075 50,000 235 Fire Facility Fund 134,222 648,181 1,111,915 - 236 Waste Recyling Fees 289,792 475,940 832,011 741,500 237 Energy Independence 166,645 88,451 192,145 177,900 238 Air Quality Management 68,751 53,581 89,830 74,500 242 Aquatic Center 2,727,888 3,070,319 4,561,621 3,483,000 243 Cannabis Compliance 2,136,981 - 500,000 1,500,000 252 Library Operations - 696,650 2,627,732 2,468,469 271 El Paseo Assessment District 282,161 262,143 325,000 276,500 276 LLD Zone #2 142,303 146,351 173,084 175,000 278 LLD Zone #3 10,244 7,661 13,931 11,900 272 LLD Zone #4 3,104 5,972 5,780 6,050 273 LLD Zone #5 19,894 21,334 39,900 35,790 275 LLD Zone #6 89,196 86,747 150,912 153,515 279 LLD Zone #7 4,858 4,624 7,810 7,350 280 LLD Zone #8 3,452 3,510 6,987 7,600 281 LLD Zone #9 19,845 22,073 29,846 30,875 283 LLD Zone #11 4,967 5,137 7,613 6,800 285 LLD Zone #14 31,555 21,516 28,423 25,300 286 LLD Zone #15 8,463 6,895 12,031 11,870 287 LLD Zone #16 51,036 44,809 93,365 88,100 299 LLD Zone #13 39,808 63,200 88,406 92,600 277 President's Plaza I 292,442 309,641 404,830 389,200 282 President's Plaza III 29,593 43,196 213,259 106,510 289 BAD No. 1 165,424 3,003,039 118,599 118,599 870 Housing Set-Aside 415,990 438,477 441,993 406,774 871 Housing Authority 9,290,515 12,571,338 16,215,924 9,769,199 873 Housing Asset Fund 6,505,944 262,558 3,794,080 787,900 32 City of Palm Desert Historical Citywide Expenditures FY 2025-26 Fund #Fund NameCapital Project Funds400Capital Project Reserve Fund 11,043,518 6,118,458 16,387,880 9,536,126 420 Capital Project Drainage Facilities 306,143 312,745 3,717,240 200,000 425 Economic Development Capital Projects 487,069 659,460 744,592 638,581 430 Parks & Recreation Facilities Capital Projects - - - - 436 Art in Public Places 727,477 273,284 854,995 639,120 440 Signalization Capital Projects - - - - 441 Golf Course Capital Projects 889,835 10,026,646 6,307,203 1,360,000 450 Building Maintenance Reserve 1,896,389 2,256,219 3,738,821 1,700,000 451 Capital Bond Projects 985,240 7,156,389 10,023,633 24,300,000 452 Library Capital Projects - 1,025,579 3,800,801 6,000,000 461 Univ. Park Capital Projects 2021-1 - - - - 464 AD94-3 Merano - - - - 466 Silver Spur Ranch - - - - 467 Highlands Assessment District - - - - 468 University Park CFD - - - - 469 Section 29 Assessment 2004-2 - - - - Total Capital Project Funds 16,335,672 27,828,781 45,575,165 44,373,827 Debt Service Funds 314 AD Highlands 106,124 118,958 120,665 119,346 Total Debt Service Funds 106,124 118,958 120,665 119,346 Total Governmental Funds 151,123,569 155,580,191 244,923,754 226,527,388 Proprietary FundsInternal Service Funds 530 Equipment Replacement Fund 1,153,328 1,114,552 5,068,179 2,167,787 577 Compensation Benefits Fund 425,084 283,100 250,000 250,000 Total Internal Service Funds 1,578,413 1,397,651 5,318,179 2,417,787 Enterprise Funds 510 Parkview Office Complex 1,409,322 1,656,420 8,663,447 1,542,500 520 Desert Willow Golf Course 11,073,129 11,668,303 12,678,707 13,436,316 521 Palm Desert Recreational Facilities (PDRFC)4,939,880 4,695,142 5,034,020 5,089,025 Total Enterprise Funds 17,422,331 18,019,865 26,376,174 20,067,841 Total Proprietary Funds 19,000,744 19,417,517 31,694,353 22,485,628 Total Citywide 170,124,313 174,997,708 276,618,107 249,013,016 Fiduciary FundsCustodial Funds303AD 84-1 534,000 - - - 304 AD 87-1 - - - - 306 AD 92-1 - - - - 307 AD 91-4 Bighorn - - - - 308 AD 94-2 Sunterrace/Varner - - - - 309 AD 94-3 Merano - - - - 311 AD 98-1 Canyons of Bighorn - - - - 312 AD 01-1 Silver Spur 153,904 180,366 176,359 165,656 315 AD Section 29 1,349,508 1,433,197 1,435,900 1,307,000 351 AD 91-1 Indian Ridge - - - - 353 AD CFD University Park 456,647 486,681 965,850 508,800 354 AD CFD University Park 2021 825,344 905,184 879,072 918,675 355 AD CFD University Park 2024 - 380,052 533,225 610,825 391 Palm Desert Finance Authority 154,669 158,628 162,559 150,666 576 Retiree Health Benefits 834,654 890,129 1,468,064 1,092,200 Total Custodial Funds 4,308,725 4,434,238 5,621,030 4,753,822 Total Fiduciary Funds 4,308,725 4,434,238 5,621,030 4,753,822 Total All Funds 174,433,038 179,431,945 282,239,137 253,766,838 FY 2022-23 Actuals FY 2023-24 Actuals FY 2024-25 Adopted FY 2025-26 Adopted 33 Fund Type Fund #Description City Manager Community Development Economic Development Finance/ IT/Housing PW/ Capital Projects Public Safety 110 General Fund x x x x x x Special Revenue Funds 210 Traffic Safety x 211 Gas Tax x 213 Measure A x 214 Housing Mitigation x 220 Community Development Block Grant x 225 Permanent Local Housing Allocation x 226 Opioid Settlement x 228 Child Care Mitigatoin x 229 SLESF Grant x 230 Fire Services Fund x 231 New Construction Tax x 232 Drainage Facility x 233 Park and Rec Facilities x 234 Traffic Signals x 235 Fire Facilities x 236 Recycling Fund x 237 Energy Independence Loan x 238 Air Quality Management x 242 Aquatic Facility x 243 Cannabis Compliance x x 252 Library Services x 271 El Paseo Assessment District x 272 Parkview Estates Assessment District x x x 273 Cook & Country Club Assessment District x 275 Lighting and Landscaping Districts x 276 Haystack Assessment District x 278 Vineyard Assessment District x 279 Waring Court Assessment District x 280 Palm Gate Assessment District x 281 Grove Assessment District x 283 Portola Place Assessment District x 285 K & B Assessment District x 286 Crest Assessment District x 287 Shepherd Lane Assessment District x 299 PDCC Assessment District x 277 President's Plaza I District x 282 President's Plaza III District x 289 Section 29 Benefit Assessment District x 870 Housing Administration Fund x 871 Palm Desert Housing Authority x 873 Housing Asset Fund x Capital Project Funds Debt Service Funds Enterprise Funds 510 Parkview Office Complex x x Internal Service Funds Custodial Funds 303 84-1 Debt Service x City of Palm Desert Fund- Department Matrix PR O P R I E T A R Y FU N D S GO V E R N M E N T A L F U N D S 34 GANN APPROPRIATIONS Article XIII B of the California Constitution requires adoption of an annual appropriation limit. The original base year limit was adopted in FY 1978-79 and has been adjusted annually for increase by a factor comprised of the percentage change in population combined with either the percentage change in California per capita personal income or the percentage change in local assessment roll due to the addition of local nonresidential new construction. The changes in the local assessment roll due to additional local nonresidential new construction for current and prior periods have not been available from the County Assessor's office. On November 1988, voters approved Proposition R which increased the limit to $25,000,000. It expired in November 1992. The FY 1993-94 limit was calculated with prior years re-calculated to reflect the expiration of the $25,000,000 limit. The Article XII(B) limitation is not a restricting factor for the City of Palm Desert, but will be monitored annually, and budget adjustments will be recommended if they are require in future years. APPROPRIATION LIMIT CALCULATION FY 2024-25 35 THIS PAGE INTENTIONALLY LEFT BLANK 36 SECTION 3: GENERAL FUND OPERATING BUDGET 37 GENERAL FUND REVENUE SUMMARY Revenue Assumptions for the General Fund (Fiscal Year 2025-26) The revenue assumptions used for the Fiscal Year 2025-26 budget are based on current state and local economic conditions, recovery indices and forecasts, and historical trends on the City’s revenue including Sales Tax (including the 1% district tax), Transient Occupancy Tax, and Property Taxes. Sales Tax The estimated revenue from sales tax this year is $49,216,701. Implementation of the newly approved 1% district tax (Measure G) nearly doubles prior year’s budget at $25 Million. The California Department of Tax and Fee Administration (CDTFA) distinguishes between two types of taxes that make up the total sales and use tax rate permitted in the state: the statewide sales tax and voter- approved district taxes. Sales and use tax applies to retail sales of merchandise (tangible personal property) within and sold to the state. Riverside County’s sales tax rate is 7.75%. The City receives 1% of the rate, Riverside County receives 0.75% and the State receives 6.00%. An additional 1% district tax is now applied to purchases made in Palm Desert. That revenue (estimated at $24,300,000) will go directly to the City, bringing the City’s total sales tax rate to 8.75%. District tax estimates are based on historical data. The absence of car dealerships in Palm Desert introduces potential for higher than anticipated district tax revenue from new car purchases, due to the lack of comparable local data. 13,000,000 23,000,000 33,000,000 43,000,000 53,000,000 2021-22 2022-23 2023-24 2024-25 2025-26 5 Year Sales Tax Comparison 38 GENERAL FUND REVENUE SUMMARY Transient Occupancy Tax (TOT) The estimated revenue from TOT this year is $22,755,000. TOT is charged to travelers staying in Palm Desert when they rent accommodations (a room, rooms, entire home, or other living space) in a hotel, inn, tourist home or house, motel, or other lodging for any period of less than 28 days. TOT is remitted to the city each month following the month of rental. Property Tax The estimated revenue from property tax collections this year is $12,809,723. Assessment and collections of real property taxes are administered by Riverside County. Palm Desert is a No-Low Property Tax city and receives property taxes based on an allocation from the County in 1978 and adjusted for areas annexed to the City after 1978. The fluctuation from year to year is primarily due to new construction and/or the change in property transfer taxes based on home sales within the City. Additionally, the City Council elected to take over operations of the Palm Desert Library in FY 2024- 25. As a result, the City’s share of property tax dollars that were previously shifted to the Riverside County Library for operations, are now being deposited into the General Fund and budgeted for municipal operations of the library. - 10,000,000 20,000,000 30,000,000 5 Year Transient Occupancy Tax Comparison - 5,000,000 10,000,000 15,000,000 2021-22 2022-23 2023-24 2024-25 2025-26 5 Year Property Tax Comparison 39 GENERAL FUND REVENUE SUMMARY Other Revenue The balance of the City’s overall revenue includes franchise fees estimated at $3,731,710; motor vehicle license fees estimated at $5,891,000; permits and license fees estimated at $4,856,439; interest and rents at $5,256,000, and transfers in, timeshare mitigation and reimbursements/other revenues estimated at $5,227,245. Below is a simple description of the other revenues that may or may not be familiar to the general community: A franchise fee is a payment made by an entity to a local government for the use of public rights-of- way. These rights-of-way can include underground pipes, above-ground cables, wireless antennas, and more. Franchise fees are often negotiated with the local agency and are authorized by state law. The Vehicle License Fee (VLF), also known as the Motor Vehicle In-Lieu Tax, is an annual fee paid to the California Department of Motor Vehicles (DMV) when registering a vehicle. The California Constitution requires that 25% of the proceeds from the VLF go to cities and counties and is levied for the privilege of operating a vehicle on the public highway and streets. The tax is imposed in lieu of a local personal property tax on autos. A business license tax is an annual non- regulatory licensing fee levied by cities for the privilege of conducting business within a particular jurisdiction. Business license fees are due and payable prior to commencing business within a particular city or county. Building permits are a one-time fee assessed to review building permits and ensure that a project complies with all the regulations and safety standards set by the local authority. The amount charged by the City excludes impact fees and other development costs, which typically fall under special funds. Transfers-In generally represent areas where Other Funds reimburse the General Fund for their share of costs (ie, staff time, overhead, public safety, etc). Timeshare mitigation fees are collected in accordance with Ordinance 888, and the related Development Agreement(s) for weekly facilities fees associated with the timeshare interests. 40 City of Palm Desert Estimated Revenue FY 2025-26 General Fund Revenue Source FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Sales Tax 25,391,092 23,000,000 24,916,701 24,916,701 1% District Tax - 4,000,000 4,000,000 24,300,000 Transient Occupancy Tax and Short Term Rentals 23,006,598 22,798,500 22,774,332 22,755,000 Property Tax Secured and Unsecured**9,685,707 12,623,089 12,558,552 12,809,723 Franchises (Cable/Gas/Electric/Waste)3,727,659 3,400,000 3,400,000 3,731,710 Timeshare Mitigation Fee*1,789,418 3,465,702 3,465,702 1,903,014 Business License Tax 1,272,190 1,163,000 1,122,955 1,160,000 Transfers-In (Traffic Safety, Parkview, Housing, Cannabis, AD's)737,531 2,680,140 2,680,140 1,902,700 Permits/Fees 3,045,399 2,992,998 3,133,013 3,696,439 State Payments (VLF, Parking Bail, MV lieu)5,487,064 5,739,780 6,091,261 5,891,000 Interest and Rents 6,903,203 5,362,329 5,149,193 5,256,000 Reimbursements and Other Revenue 3,141,718 1,968,682 1,318,655 1,421,531 Totals General Fund 84,187,579$ 89,194,220$ 90,610,504$ 109,743,818$ Prop. A Fire Tax FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Structural Fire Tax 11,402,490 11,402,490 13,045,657 13,045,657 Prop. A. Fire Tax (Special Assessment)2,154,150 2,474,050 2,474,050 2,523,531 6,376,239 4,350,000 5,843,101 4,500,000 Interest Income 869,368 500,000 500,000 250,000 Transfers In from General Fund 4,600,000 5,000,000 4,600,000 10,150,000 Fire Reserves - - - - Totals Fire Tax Fund 25,402,247$ 23,726,540$ 26,462,808$ 30,469,188$ Total Revenue Fire and General Fund 109,589,826$ 112,920,760$ 117,073,312$ 140,213,006$ * Includes gross TOT received from operations. TOT rebates are reported as expenditures. Eye of the Wind, by Nico Meyer 41 GENERAL FUND EXPENDITURE SUMMARY BY DEPARTMENT FY 2025-26 Proposed Budget 109,424,005 Department Grand Total 42 GENERAL FUND FINANCIAL FORECAST During the City’s Budget Study Session, the General Fund Financial Forecast is presented which projects the revenues, expenditures, and fund balance over a specified period. This helps support the long-term planning of non-recurring capital projects with the idea that goals and objectives are subject to change in the future. Projections reflect current expenditures outpacing the growth in revenue in the next five years. The impact to Fund Balance over time may be dramatic, if new revenue resources are not identified to meet the community’s growing needs. During the FY 2025-26 Budget Study Session, staff presented a Ten-Year Cash Flow scenario to City Council to provide decision points and possible options given all the intended projects and anticipated operations. $0 $50,000,000 $100,000,000 $150,000,000 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 General Fund Five Year Forecast Estimated Revenue Estimated Expenditures Est. General Fund Bal Linear (Estimated Revenue)Linear (Estimated Expenditures) FY 2025-26 TEN-YEAR FORECAST FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Estimated Revenue 85,443,818 88,007,133 90,647,347 93,366,767 96,167,770 100,976,158 106,024,966 111,326,215 116,892,525 122,737,152 Measure G 24,000,000 24,336,000 24,822,720 25,567,402 26,334,424 27,124,456 27,938,190 28,776,336 29,639,626 30,528,815 Combined GF Revenue 109,443,818 112,343,133 115,470,067 118,934,169 122,502,194 128,100,615 133,963,156 140,102,550 146,532,151 153,265,966 Estimated Expenditures 88,133,546 92,540,223 97,167,234 101,053,924 105,096,081 109,299,924 113,671,921 118,218,798 122,947,550 127,865,452 Tfer out for Measure G Projects (detailed below)13,247,482 7,302,909 4,802,832 3,130,245 106,113 808,691 1,579,555 2,423,605 2,474,673 2,474,673 Tfer out for Measure G Fire Ops 7,750,000 12,500,000 13,500,000 14,750,000 16,500,000 17,160,000 17,846,400 18,560,256 19,302,666 20,074,773 Combined GF Expenditures 109,131,028 112,343,132 115,470,066 118,934,168 121,702,194 127,268,615 133,097,876 139,202,659 144,724,889 150,414,898 Revenue over (under) expenditures 312,790 0 0 0 800,000 832,000 865,280 899,892 1,807,262 2,851,069 Est. General Fund Balance 99,435,127 99,747,917 80,050,826 52,853,658 50,378,985 48,810,425 47,976,443 47,946,605 48,795,429 50,602,691 Unfunded Requests (from Reserve)(13,247,482) (27,000,000) (32,000,000) (2,474,673) (2,474,673) (2,474,673) (2,474,673) (2,474,673) (2,474,673) (2,474,673) New Library ($30M) $20M RDA BOND PROCEEDS (6,000,000) Station 33/71 Rehab/Rebuild $23.6M RDA BONDS (2,400,000) North Sphere Community Park ($19M) (15,500,000) North Sphere Regional Park ($30M) (3,000,000) (27,000,000) North Sphere Stormwater - Channel Projects (1,000,000) (8,500,000) (5,000,000) Deferred Facility Maint (from Reserve)(3,847,482) Additional One-Time Appropriations (2,474,673) (2,474,673) (2,474,673) (2,474,673) (2,474,673) (2,474,673) (2,474,673) Est. General Fund Balance 99,747,917$ 80,050,826$ 52,853,658$ 50,378,985$ 48,810,425 47,976,443 47,946,605 48,795,429 50,602,691 53,453,760 Reserve Requirement - Per Current Policy Est. General Fund Bal 99,747,917$ 80,050,826$ 52,853,658$ 50,378,985$ 48,810,425$ 47,976,443$ 47,946,605$ 48,795,429$ 50,602,691$ 53,453,760$ Annual Percentage Funded 131%107%65%63%58%58%57%54%57%58% Non-Spendable (Leave Balances and Trust Accounts)2,888,428 2,888,428 2,888,428 2,888,428 2,888,428 2,888,428 2,888,428 2,888,428 2,888,428 2,888,428 ASSIGNED GF Operating Reserve (25% of Ops)20,477,890 21,092,227 21,724,994 22,376,743 23,048,046 23,739,487 24,451,672 25,185,222 25,940,778 26,719,002 COMMITTED GF Emergency Reserve (20% of GF Revenue)21,888,764 22,468,627 23,094,013 23,786,834 24,500,439 25,620,123 26,792,631 28,020,510 29,306,430 30,653,193 Liability Reserve ($4M)4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Emplymnt Bene Reserve (50% for PERS chg in Disc Rate)11,070,207 11,180,909 11,292,718 11,405,645 11,519,701 11,634,898 11,751,247 11,868,760 11,987,448 12,107,322 Other Fund Stability Reserve (equal to 25% T-fer Out)6,804,867 7,009,013 7,219,283 7,435,862 7,658,938 7,888,706 8,125,367 8,369,128 8,620,202 8,878,808 Facility Reserve 3,068,763 606,172 3,991,291 1,638,365 3,547,008 CIP Reserve 2,983,399 2,339,620 3,859,591 2,779,441 3,444,624 3,570,674 3,013,846 6,072,596 3,021,450 3,536,723 Equip Replacement Reserve (100% of hist cost of assets)2,967,611 3,056,639 3,148,338 3,242,789 3,340,072 3,440,274 3,543,483 3,649,787 3,759,281 3,872,059 Total Required Reserve 76,149,929 74,641,634 81,218,656 79,554,106 83,947,256 82,782,590 84,566,675 90,054,433 89,524,019 92,655,539 Est. Unassigned/Overassigned Fund Balance 23,597,988 5,409,192 (28,364,998) (29,175,121) (35,136,831) (34,806,148) (36,620,069) (41,259,004) (38,921,328) (39,201,779) *Last 7 years Ops Actual Expenditures YOY average 7% growth annually…Actual Revenues YOY average 5% growth annually **FY 2025-26 PW Deferred Maint projects included $10.135M in appropriations that are not included in the budget and will be requested throughout the FY from Fund Balance. 43 GENERAL FUND FINANCIAL FORECAST The approval of the 1% district tax by voters in November 2024 (Measure G) provides additional revenue reflected above to manage current and future anticipated costs in order maintain expected service levels and provide additional amenities desired by the community. To ensure funds are allocated to the priorities identified by the community during outreach efforts, a five-year spending plan was developed and is being used to guide budget requests for use of the funds. The spending plan is reviewed by the Finance Committee for adherence on a quarterly basis. 44 DEPARTMENT BUDGET SUMMARIES 45 CITY MANAGER’S OFFICE 46 Presented energy infrastructure options for the north sphere in partnership with Imperial Irrigation District, with the City Council directing staff to proceed with the partnership solution. Secured City Council authorization to implement Measure G’s spending priorities following its passage, which included hiring additional police officers, expanding Public Works staff, and advancing the construction of Fire Station 102. Facilitated the transition to a five-district electoral system and successfully eliminated ranked choice voting for future municipal elections. Facilitated the elections for Districts 1, 2, and 3 and the Measure G Sales Tax Initiative Launched the Employee Wellness Program with the October Walking Challenge, encouraging employees across departments to connect, establish healthy habits, and foster a fun and engaging work environment. The challenge resulted in City employees collectively walking over 15 million steps in October. Promoted 29 employees, completed 28 recruitments, and onboarded 41 new employees, including new library staff. 1. Citywide operations and implementation of City Council goals and priorities. 2. Evaluate services and projects to increase efficiency, effectiveness, and community satisfaction. 3. Continue to modernize internal systems to support service delivery 4. Continue to identify grant opportunities. 5. Records management improvement project to improve online access to City Council official records 6. Software enhancements to improve Board and Commission member and agenda management 7. Records management policy updates and citywide training on records retention and destruction 8. Assist in the implementation of a modern and efficient HRIS, increasing efficiency, integrating information, automating processes, and reducing redundant tasks Department Accomplishments Department Goals & Objectives 47 CITY MANAGER DEPARTMENT Performance Measures *Performance measures are for Divisions under the City Manager Department Performance Measures Dept Goal Division FY 2023-24 Actuals FY 2024-25 Actual FY 2025-26 Target FY 2026-27 Target 48 City Council Personnel Count - 5 Total Budget - $444,086 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Danseur, by Jean-Louis Corby 49 CITY COUNCIL DIVISION 1104110 Mayor City Councilmember City Councilmember City Councilmember Organization Chart Mayor Pro Tem Palm Desert Residents City Staff 50 CITY COUNCIL DIVISION 1104110 Narrative The City Council is the elected legislative body of the City of Palm Desert and is comprised of five members elected by-district to four-year terms with the Mayor selected from amongst the members to serve a one-year term on a rotation basis. The City Council represents the residents of Palm Desert, analyzes, and approves all laws and policies, authorizes all expenditures through the budget, and directs the administration of the City Government through the City Manager. Regular City Council meetings are typically held on the 2nd and 4th Thursday of each month. In addition, the City Council also serves as the Board of the Successor Agency to the Palm Desert Redevelopment Agency, Financing Authority, Housing Authority, and Library Board of Trustees. 51 CITY COUNCIL DIVISION 1104110 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4110 City Council 4101000 Meeting Compensation 158,043 148,293 187,803 4111500 Retirement Contribution 20,288 19,383 22,994 4111600 Medicare Contrb - Employer 2,714 2,150 2,723 4111700 Retiree Health 1,226 1,186 1,499 4112000 Ins Prem - Long Term Disab.124 733 928 4112100 Ins Prem - Health 79,910 106,267 140,436 4112200 Ins Prem - Dental/Vision 4,150 5,972 7,111 4112400 Ins Prem - Life 378 252 318 4112500 Workers' Compensation 2,109 1,415 1,774 4309000 Prof - Other 8,077 11,000 11,000 4311500 Mileage Reimbursement 3,000 4,500 4,500 4312000 Conf- Seminars - Workshops 16,620 24,500 22,000 4312500 Local Meetings 3,468 9,500 11,500 4211000 Office Supplies 1,180 1,500 1,500 4219000 Supplies - Other 951 4,500 4,500 4306000 Volntr Rec/Special Events - - 2,000 4306300 Committee/Commission - - 12,000 4362000 Subscriptions/Publication -750 750 4363000 Dues 100 1,000 1,000 4365000 Telephones 3,425 4,000 4,250 4366000 Postage & Freight 205 500 500 4388000 Cntrb - Various Agencies -2,000 2,000 4404000 Cap - Office Equipment -1,000 1,000 4110 Total 305,968 350,401 444,086 52 City Clerk Personnel Count - 8 Total Budget - $1,339,972 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Balance, By William Disbro 53 CITY CLERK DIVISION 1104111 Organization Chart City Manager Executive Assistant Director of Human Resources Records Coordinator Senior Deputy Clerk (3) Assistant City Clerk Senior Admin Assistant City Clerk Receptionist Human Resources Analyst I/II (2) HR Specialist Assistant City Manager Management Analyst I/II Management Aide I/II 54 CITY CLERK DIVISION 1104111 Narrative The City Clerk’s Office serves the public and all City departments through the administration of legislative processes, boards and commission program, election services, and records management. The City Clerk’s Office is responsible for maintaining the City’s Municipal Code, contract processing, legal noticing, administering municipal elections, and serving as the filing officer for campaign finance statements, statements of economic interest, and other Fair Political Practices Commission (FPPC) required documents. 55 CITY CLERK DIVISION 1104111 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4111 City Clerk 4100100 Salaries - Full Time 719,800 756,298 845,390 4100200 Salaries - Overtime 4,899 5,000 - 4111500 Retirement Contribution 92,915 98,327 102,976 4111600 Medicare Contrb - Employer 10,458 10,957 12,238 4111700 Retiree Health 11,341 12,129 18,009 4111800 Employer 457 Contribution 1,200 1,200 6,400 4112000 Ins Prem - Long Term Disab.2,582 3,736 4,173 4112100 Ins Prem - Health 155,676 163,437 172,488 4112200 Ins Prem - Dental/Vision 11,126 11,805 11,347 4112400 Ins Prem - Life 1,403 1,277 1,426 4112500 Workers' Compensation 7,807 7,219 7,845 4301150 Prof - Engineering Svcs - - 4300300 Prof -Temporary Part -Time - - 7,500 4300400 Prof -Temporary Full -Time 14,853 - 4309000 Prof - Other 11,866 20,000 20,000 4321000 Req Legal Advertising 36,857 50,000 50,000 4333000 R/M - Office Equipment -1,000 - 4311500 Mileage Reimbursement 1,156 1,000 500 4312000 Conf - Seminars - Workshops 14,812 12,000 8,500 4312500 Local Meetings 400 600 600 4211000 Office Supplies 2,592 4,000 4,000 4306000 Volntr Rec/Special Events -2,000 - 4306300 Committee/Commission 12,240 12,000 - 4361000 Printing/Duplicating 12,743 4,000 54,000 4362000 Subscriptions/Publication 1,234 2,000 2,000 4363000 Dues 2,215 5,800 3,500 4364000 Filing Fees -100 100 4365000 Telephones 1,400 2,980 2,980 4366000 Postage & Freight 761 4,000 4,000 4369500 Misc Expenses - - 4404000 Cap - Office Equipment 2,108 - - 4111 Total 1,134,445 1,192,865 1,339,972 56 City Manager Personnel Count - 5 Total Budget - $1,098,095 Funding Source - General Fund F Y 2 0 2 5 / 2 6 “C’ is for Cat, By Anna LaRose 57 City Manager Executive Assistant Director of Human Resources Records Coordinator Senior Deputy Clerk (3) Assistant City Clerk Senior Admin Assistant City Clerk Receptionist Human Resources Analyst I/II (2) HR Specialist Assistant City Manager Management Analyst I/II CITY MANAGER DEPARTMENT 1104130 Organization Chart * Other Division Management Aide I/II 58 CITY MANAGER DEPARTMENT 1104130 Narrative Under the direction of the City Council, the City Manager serves as the City’s chief executive officer and oversees the coordination and implementation of Council-established policies and programs, while providing information to assist the Council with its decision-making process. The City Manager is responsible for enforcing Palm Desert’s Municipal Code, advancing City Council Goals, and verifying the faithful observance of City franchises, contracts, and permits. The City Manager is also responsible for the organization of municipal offices and positions, to ensure the effective and efficient conduct of municipal business. In addition to providing leadership and direction to City departments, the City Manager oversees the preparation of Palm Desert’s annual budget, serves as the executive director of the Successor Agency to the Palm Desert Redevelopment Agency and Palm Desert Housing Authority, and responds promptly to inquiries and requests from residents and business owners. The City Manager’s Department is responsible for a variety of municipal priorities and programs including social services, emergency management, grants, and legislative affairs. 59 CITY MANAGER DEPARTMENT 1104130 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4130 City Manager 4100100 Salaries - Full Time 1,188,934 990,258 776,210 4100200 Salaries - Overtime 603 -1,000 4111500 Retirement Contribution 141,588 127,759 94,159 4111600 Medicare Contrb - Employer 17,334 14,245 11,239 4111700 Retiree Health 47,140 25,001 19,640 4111800 Employer 457 Contribution 5,150 4,800 6,000 4112000 Ins Prem - Long Term Disab.2,831 4,857 3,817 4112100 Ins Prem - Health 113,363 110,442 95,634 4112200 Ins Prem - Dental/Vision 9,915 10,440 8,397 4112400 Ins Prem - Life 1,772 1,656 1,302 4112500 Workers' Compensation 8,274 11,787 7,547 4301150 Prof - Engineering Svcs 1,000,963 700,000 - 4309000 Prof - Other 29,610 30,000 30,000 4311500 Mileage Reimbursement 137 500 500 4312000 Conf - Seminars - Workshops 10,120 18,000 18,000 4312500 Local Meetings 1,356 4,000 4,000 4312600 Local Mtg-Monthly Cm Mtg - - - 4211000 Office Supplies 246 400 400 4219100 Disaster/Emerg - - - 4363000 Dues 4,650 19,000 10,000 4365000 Telephones 3,775 3,000 4,000 4366000 Postage & Freight 61 200 200 4369500 Misc Expenses 494 700 1,050 4403000 Cap - Autos/Vehicles - - - 4404000 Cap - Office Equipment 6,752 -5,000 4130 Total 2,595,067 2,077,045 1,098,095 60 Human Resources Personnel Count - 4 Total Budget - $1,145,871 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Finder’s Keepers, By Rosalind Cook 61 HUMAN RESOURCES DIVISION 1104154 Organization Chart * Other Division City Manager Executive Assistant Director of Human Resources Records Coordinator Senior Deputy Clerk (3) Assistant City Clerk Senior Admin Assistant City Clerk Receptionist Human Resources Analyst I/II (2) HR Specialist Assistant City Manager Management Analyst I/II Management Aide I/II 62 HUMAN RESOURCES DIVISION 1104154 Narrative Human Resources Division strives to develop and implement effective human resource management strategies and programs to attract, develop, and retain employees who are empowered to deliver quality municipal services to the community. The Division serves as a strategic partner throughout all City departments to ensure they have the tools and resources necessary to successfully achieve the City’s goals and priorities through providing policy guidance and acting as an internal consultant on human resources-related issues; implementing the recruitment and development of City employees; maintaining an equitable and competitive salary and benefits structure; organizing and leading professional development opportunities; and striving to promote and maintain a positive labor relations climate between the Palm Desert Employees Organization and the City. The Human Resources Division also oversees risk management, which helps to ensure a safe working environment for all employees. 63 HUMAN RESOURCES DIVISION 1104154 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4154 Human Resources 4100100 Salaries - Full Time 451,528 495,093 535,456 4100200 Salaries - Overtime 327 1,000 1,000 4119100 Tuition Reimbursement -15,000 15,000 4111500 Retirement Contribution 59,606 64,324 65,235 4111600 Medicare Contrb - Employer 6,512 7,169 7,755 4111700 Retiree Health 9,481 10,952 11,844 4111800 Employer 457 Contribution 2,900 3,600 3,600 4112000 Ins Prem - Long Term Disab.1,578 2,445 2,644 4112100 Ins Prem - Health 95,286 102,409 111,716 4112200 Ins Prem - Dental/Vision 6,594 6,816 7,493 4112400 Ins Prem - Life 838 835 900 4112500 Workers' Compensation 5,851 4,725 5,058 4303600 Prof-Temp Help City-Wide -45,000 - 4305600 Medical Annual/New Employ 4,226 6,000 6,000 4309000 Prof - Other 50,648 112,000 118,000 4321500 Other Advertising 949 1,000 1,000 4311500 Mileage Reimbursement 470 3,500 3,500 4312000 Conf - Seminars - Workshops 1,391 6,000 6,000 4312101 City Wide Training 150,111 156,000 145,000 4312500 Local Meetings 3,206 - - 4211000 Office Supplies 807 5,000 5,000 4219000 Supplies-Other 8,446 12,300 12,300 4309501 Prof-Emp Recog Program 33,263 37,000 60,600 4362000 Subscriptions/Publication 468 500 500 4363000 Dues 5,310 7,500 8,000 4365000 Telephones 1,510 960 1,920 4366000 Postage & Freight 173 350 350 4391500 Employee Safety 3,316 10,000 10,000 4154 Total 904,796 1,117,478 1,145,871 64 Legislative Advocacy Personnel Count - 0 Total Budget - $36,000 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Desert Bloom, By Greg Reiche 65 LEGISLATIVE ADVOCACY DIVISION 1104112 Narrative The City of Palm Desert contracts with lobbyist firms for legislative advocacy efforts, including guidance and support on legislative matters, and representation before the State legislature and federal government. As a member of the League of California Cities (LOCC), the City of Palm Desert also receives state legislative and ballot measure advocacy support. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4112 Legislative Advocacy 4309000 Prof - Other 33,000 40,845 36,000 4112 Total 33,000 40,845 36,000 66 Elections F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $14,500 Funding Source - General Fund Ascension, By Brian Carlson 67 ELECTIONS DIVISION1104114 Narrative The City of Palm Desert conducts their General Municipal Election in November of even- numbered years, consolidated with the Statewide General Election held on the same date. The next election is scheduled for November 2026, to fill two seats on the City Council. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4114 Elections 4309000 Prof - Other 122,634 157,500 5,000 4321000 Req Legal Advertising 628 5,000 5,000 4312000 Conf - Seminars - Workshops - - 4,000 4312500 Local Meetings -2,000 - 4211000 Office Supplies 769 500 500 4114 Total 124,031 165,000 14,500 68 Legal F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $968,962 Funding Source - General Fund Messenger of the Puul, By Curt Mattson 69 LEGAL DIVISION 1104120-4121 Narrative The City of Palm Desert has a designated City Attorney selected from within a selected firm that represents the City in general matters of municipal law. The City Attorney is not an employee of the City and serves as legal advisor on all types of matters pertaining to the City’s business, including laws relating to the City’s operations. Many of the City Attorney’s routine duties are provided under an annual retainer. These include, attending city council and planning commission meetings, responding to staff and elected officials on general matters of the City as well as drafting basic resolutions, ordinances, and routine contracts. Other services are provided on contracted hourly rates including litigation services, employment practices and services, development agreement reviews, etc. The City also contracts with various independent law firms to provide legal services for matters where a specific area of expertise is necessary. These include litigation, employment practices and services, land development agreements, subdivision reviews, bond financing and compliance, and compliance requirements for redevelopment related wind-down. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4120-4121 Legal 4301500 Prof - Legal 746,517 639,610 936,962 4301600 Prof - Employee Law Service 32,610 31,500 32,000 4120-4121 Total 779,127 671,110 968,962 70 Police Services F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $28,373,878 Funding Source - General Fund Lily Pad, By Michael Todd 71 POLICE SERVICES DIVISION 1104210 Narrative The City of Palm Desert contracts with the Riverside County Sheriff’s Department for police services. The Palm Desert Police Department is dedicated to providing citizens, businesses, and visitors in Palm Desert with a safe and pleasant environment in which to live, work, and enjoy city amenities. The Department carries out this mission with professionalism, dependability, and integrity. The Police Department employs a pro-active approach to policing that utilizes a multitude of Community Oriented Policing approaches including an emphasis on prevention, focused enforcement efforts, technology systems serving as force multipliers and the setting of specific goals. Within its five designated “beat” areas, the Police Department’s basic patrol function is supported by a variety of special teams including the Special Enforcement Team, Business District Team, Burglary Suppression Unit, Traffic Enforcement Team, and by participation in regional task forces. 72 POLICE SERVICES DIVISION1104210 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4210 Police Services 4309203 ContSvcs Dedicated Team -8,712,473 10,999,409 4309204 ContSvcs Police OT -768,750 200,000 4309205 ContSvcs Police Prof Other -371,424 - 4309206 ContSvcs Police ALPR -335,000 291,500 4304000 Prof - Police Service Cntr 20,715,801 11,786,055 15,404,178 4304200 Police Service Contingency 68,153 140,000 - 4334000 R/M - Motor Vehicles - Fleet 42,725 77,000 32,000 4217000 Supply - Automotive - Gas 24,459 19,200 19,200 4390400 Police Reoccurring Operational 57,888 75,000 1,427,591 4210 Total 20,909,026 22,284,902 28,373,878 73 Community Safety F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $220,084 Funding Source - General Fund Reminiscing, By John Kennedy 74 COMMUNITY SAFETY DIVISION 1104211 Narrative The Community Safety budget addresses three key quality of life issues in the City. Under this budget is the Citizens on Patrol (COPS) program and funding for school crossing guards. Citizens on Patrol provide a critical service as the eyes and ears of the Palm Desert Police Department. The City also provides financial assistance to the Desert Sands Unified School District to manage a School Crossing Guard Program and ensure this essential community service continues at the City’s elementary and middle school locations, where students regularly cross the roadway. 75 COMMUNITY SAFETY DIVISION 1104211 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4211 Community Safety 4309000 Prof - Other -5,000 4,304 4309201 School Crossing Guards 69,078 60,000 80,000 4311500 Mileage Reimbursement 217 3,000 2,780 4312000 Conf - Seminars - Workshops -15,000 4,800 4312500 Local Meetings -3,000 3,000 4219000 Supplies - Other -10,000 10,000 4219100 Disaster/Emerg 1,796 -75,000 4306001 Citizens on Patrol 31,390 35,000 40,000 4363000 Dues -100 200 4211 Total 102,481 131,100 220,084 76 Animal Regulation F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $620,000 Funding Source - General Fund Recycle, By John Branstetter 77 ANIMAL REGULATION DIVISON 1104230 Narrative The City of Palm Desert contracts with the Riverside County Department of Animal Services (County) to provide animal control and shelter services for the purpose of safeguarding the health and safety of the pet population of the City. The contract with the County provides for the control of dogs, cats and other domestic animals. Services that are provided include sheltering of lost or abandoned pets at various shelters throughout the Valley, and other issues such as animal dog licensing, vicious and barking dog problems, and dogs loose in public places. Palm Desert residents with proof of residency are eligible to receive reimbursements for vaccinating, adopting, and spaying or neutering their pets. Reimbursements are available for up to four animals per household per year. Pets must be adopted from the Coachella Valley Animal Campus or any other approved nonprofit organization within the City. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4230 Animal Regulation 4309000 Prof - Other 365,846 400,000 600,000 4388400 Animal Resourse Adopt (1,758) 10,000 20,000 4230 Total 364,088 410,000 620,000 78 FINANCE 79 Department Goals & Objectives Department Accomplishments Received the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for the FY 2024-25 Annual Comprehensive Financial Report. Received the GFOA award for the 2022-23 Annual Comprehensive Financial Report (ACFR). Received the California Society of Municipal Finance Officers (CSMFO) award for the FY 2024-25 Annual Comprehensive Financial Report. Led community outreach, education efforts, and secured approval of Measure G, a one-cent sales tax initiative. Assisted partners in implementing the new Library POS system and restructuring operations at the Aquatic Facility. Initiated the transition to Workday, the City’s new Enterprise Resource Planning (ERP) system for finance and payroll management. Facilitated bond issuance for the next phase of infrastructure development at University Park. 1.Implement Enterprise Resources Planning (ERP) System. 2. Investment Policy Update for CMTA Cert. 3.KPI Development, Measurement, and continued Process Improvement. 4.Continued facilitation of training for all city staff. 5. Continued risk assessment as it pertains to purchasing and contracts. 6. Clariti Go Live in 2026 7. Business License Implementation 8. Continue to demonstrate strong integrity and stewardship of City resources. 9. Continue to assist departments with satisfactory IT requests. 80 FINANCE DEPARTMENT Performance Measures *Performance measures are for Divisions under the Finance Department Performance Measures Dept Goal Division FY 2023-24 Actuals FY 2024-25 Actual FY 2025-26 Target FY 2026-27 Target 81 Finance Personnel Count - 17 Total Budget - $2,972,640 Funding Source - General Fund F Y 2 0 2 5 / 2 6 F Y 2 0 2 5 / 2 6 Sunburst, By Donald Gialanella 82 Director of Finance Deputy Director of Finance Deputy Director of Finance Finance Supervisor Senior Biz Systems EnterpriseAccounting Supervisor Information Systems Manager Senior GIS Admin Senior Information Systems Admin Cyber Security Officer Senior Management Analyst (2) Accountant (3) Organization Chart FINANCE Housing Manager Analyst Biz Systems Enterprise Senior Admin Assistant (2) Management Analyst I/II (2) Management Aide I/II Payroll Coordinator Accounting Technician I/II (2) DEPARTMENT 1104150 83 FINANCE DEPARTMENT 1104150 Narrative The Finance Department is responsible for the financial management, purchasing, and accounting functions of the City and its related entities. This includes the budget, investments, cash management, payroll, cash receipts, accounts payable, debt management, general ledger, financial statements, and audits. The City uses the modified accrual and accrual basis for government accounting and oversees, in excess of, 50 different funds. These include the General Fund, Capital Project Funds, Special Revenue Funds (assessment districts and landscape lighting districts), Debt Service Funds, Internal Service Funds and Enterprise Funds. Finance prepares an annual operations budget, as well as a five-year capital improvement program, with the input from the City Council, City Manager and City Departments. Finance oversees the daily cash management, including managing the availability of cash to pay obligations, recording revenue, and managing short- and long- term investments. The department is also responsible for overseeing the financing for operations and/or capital projects including issuance of debt, refunding debt and the management of debt obligations. Finance processes the weekly accounts payable, bi-weekly payroll, monthly bank reconciliations and journal entries, monthly and annual financial statements and oversees the annual audit. 84 FINANCE DEPARTMENT 1104150 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4150 Finance 4100100 Salaries - Full Time 1,586,969 1,669,677 1,984,490 4100200 Salaries - Overtime 3,706 1,000 4,000 4111500 Retirement Contribution 206,399 216,829 241,299 4111600 Medicare Contrb - Employer 23,128 24,163 28,721 4111700 Retirement Contribution 32,391 35,745 42,610 4111800 Medicare Contrb - Employer 11,644 10,800 15,182 4112000 Retiree Health 5,603 8,239 9,778 4112100 Employer 457 Contribution 258,515 281,327 392,187 4112200 Ins Prem - Long Term Disab.20,993 19,280 28,149 4112400 Ins Prem - Health 3,110 2,812 3,336 4112500 Ins Prem-Dental/Vision 13,594 15,936 18,733 4300300 Ins Prem - Life -1,000 35,000 4309000 Workers' Compensation -100,400 117,000 4311500 Mileage Reimbursement 775 1,500 1,500 4312000 Conf - Seminars - Workshops 16,514 20,000 25,000 4312500 Local Meetings 3,139 2,500 2,000 4211000 Office Supplies 2,209 2,750 2,750 4361000 Printing/Duplicating 6,681 7,500 7,500 4362000 Subscriptions/Publication 1,368 1,300 1,000 4363000 Dues 4,081 6,850 6,500 4365000 Telephones 2,949 3,480 2,905 4366000 Postage & Freight 2,332 2,200 2,000 4404000 Cap - Office Equipment -1,000 1,000 4150 Total 2,206,101 2,436,288 2,972,640 85 Information Technology Personnel Count - 7 Total Budget - $3,928,968 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Urban Tree, By Carlos Basanta 86 Director of Finance Deputy Director of Finance Deputy Director of Finance Finance Supervisor Senior Biz Systems Enterprise Accounting Supervisor Information Systems Manager Senior GIS Admin Senior Information Systems Admin Cyber Security Officer Senior Management Analyst I/II (2) Management Analyst I/II (2) Accountant (3) Organization Chart INFORMATION TECHNOLOGY DIVISION 1104190 * Other Division Biz Systems Enterprise Senior Admin Assistant (2) Payroll Coordinator Accounting Tehnician I/II (2)Management Aide I/II 87 INFORMATION TECHNOLOGY DIVISION 1104190 Narrative The Information Technology (IT) Division is committed to ensuring that IT investments and strategic business technologies deliver the highest possible value to the City of Palm Desert and its constituents. The Division seeks to accomplish this goal by delivering reliable, secure, and transformative technology services. In an ever-changing world of technological advancements, the IT Division is committed to utilizing opportunities to improve services to citizens and employees and providing innovative and cost-effective services. With a focus on increased transparency, eliminating redundancies, and increasing efficiency, the IT Master Plan includes the following key components: •Improvement of online public engagement and communication; •Enhanced constituent services support; •Modernization of information technology infrastructure; •Disaster recovery and business continuity; •Long-range technology planning, including equipment replacement; •Support for numerous critical applications such as permitting & licensing, public safety, and city budgeting; •Evaluation and implementation of key programs that best suit the needs of the city and its constituents. 88 INFORMATION TECHNOLOGY DIVISION 1104190 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4190 Information Technology 4100100 Salaries - Full Time 738,577 888,183 930,123 4100200 Salaries - Overtime 14,235 10,000 - 4111500 Retirement Contribution 94,122 115,543 112,982 4111600 Medicare Contrb - Employer 11,113 12,879 13,452 4111700 Retiree Health 2,206 4,638 6,381 4111800 Employer 457 Contribution 5,050 4,800 6,000 4112000 Ins Prem - Long Term Disab.2,516 4,391 4,579 4112100 Ins Prem - Health 122,690 166,070 167,716 4112200 Ins Prem - Dental/Vision 9,423 12,944 11,805 4112400 Ins Prem - Life 1,417 1,497 1,562 4112500 Workers' Compensation 4,846 8,477 8,785 4309000 Prof - Other 139,518 173,500 212,500 4336000 R&M - Computer 24,954 40,000 40,000 4311500 Mileage Reimbursement 509 400 400 4312000 Conf - Seminars - Workshops 5,522 16,050 15,000 4211000 Office Supplies 362 1,000 1,000 4212000 Supplies-Computer 13,702 25,000 25,000 4342000 Rental - Office Equipment 63,734 69,000 72,000 4362001 Software License 1,651,359 1,693,154 1,852,183 4362000 Subscriptions/Publication 16,093 41,400 1,000 4363000 Dues 585 1,000 1,000 4365000 Telephones 86,161 158,000 150,000 4366000 Postage & Freight -500 500 4390000 Special Programs 741,320 -250,000 4363501 Lease Interest Exp 7,008 -- 4404000 Cap - Office Equipment 25,235 50,000 45,000 4190 Total 3,782,259 3,498,426 3,928,968 89 Audit F Y 2 0 2 5 / 2 6 F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $102,926 Funding Source - General Fund Timepiece, By Mitch Levin 90 AUDIT DIVISION 1104151 Narrative An annual audit is conducted by the City’s’ independent auditors on the City’s financial statements. They review the internal controls, confirm the cash and investments of the City and review the City’s Annual Comprehensive Financial Report. In addition, the auditors perform special audits on required State and Federal single audit compliance, franchise audits and any other audit as directed by either City Council or staff. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4151 Audit 4302000 Prof-Accounting/Auditing 73,473 100,000 102,926 4151 Total 73,473 100,000 102,926 91 General Services F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $5,860,866 Funding Source - General Fund Untitled, By Ross Kellogg 92 GENERAL SERVICES DIVISION 1104159 Narrative The General Services budget includes citywide expenses not attributable to a specific department. These include supplies such as office supplies, copy supplies, computer supplies, letterhead, etc. Generalized services are also included such as telephone system services, copying services, banking service fees, specialized citywide audits (sales tax audits), etc. This budget includes the portion of the annual contribution for the unfunded retirement costs paid as a lump sum and not paid as a percentage of payroll. Other amounts included are participation dues in local, regional and state-wide organizations (League of California Cities, Southern California Association of Governments, Local Agency Formation Commission, Riverside County Economic Development Agency, and Coachella Valley Association of Governments, etc.). 93 GENERAL SERVICES DIVISON 1104159 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4159 General Services 4101500 Retirement Contribution 2,680,167 3,625,375 4,133,262 4111500 Retirement Contribution 77,802 - 4112500 Workers' Compensation 3,192 - - 4302200 Prof-Banking - - 83,800 4309000 Prof - Other 680,706 597,500 955,802 4309300 Prof - Other Admn Expenses 142,567 500,000 500,002 4311500 Mileage Reimbursement 832 - - 4312500 Local Meetings 450 - - 4211000 Office Supplies 10,402 12,000 6,000 4219100 Disaster/Emerg 4,443,586 -1,000 4342000 Rental-Office Equipment 6,698 10,000 8,000 4361000 Printing/Duplicating 2,062 4,000 3,000 4363000 Dues 159,173 158,000 116,000 4364800 Sb2557/County Admin Fees 34,591 60,000 43,000 4365000 Telephones 955 1,000 1,000 4404000 Cap - Office Equipment 382 50,000 10,000 4159 Total 8,243,563 5,017,875 5,860,866 94 Insurance F Y 2 0 2 5 / 2 6 F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $1,350,634 Funding Source - General Fund Giraffe, By William Allen 95 INSURANCE 1104191-4192 Narrative The City of Palm Desert pays the actual cost of unemployment to the State of California for terminated employees. Risk Management is an internal service for City Departments that protects the City's assets and ability to provide services by reducing its exposure to the financial impact of claims, lawsuits, and employee injuries. The City of Palm Desert belongs to the California Joint Powers Insurance Authority (JPIA), one of the largest municipal self-insurance pools in the State. The California JPIA works with its members to reduce the frequency and severity of claims by providing liability protection from losses and lawsuits and ongoing staff educational opportunities. Identifying and managing risk is a citywide responsibility and is one component of governance. Identifying and proactively addressing risks and opportunities for improvement, the City of Palm Desert endeavors to protect the interests of the public and create value for all stakeholders. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4191-4192 Insurance 4112600 Unemployment Insurance-State 13,253 10,000 10,000 4309000 Prof - Other -5,000 5,000 4371000 Liab & Property Damage 991,648 1,249,623 1,335,634 4191-4192 Total 1,004,901 1,264,623 1,350,634 96 Interfund Transfers F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $27,704,573 Funding Source - General Fund Palm Desert City Entry, By Michael Watling 97 INTERFUND TRANSFERS DIVISION 1104199 Narrative Included in this budget are transfers from the General Fund to other funds for both specific expenses and shortfalls in other funds. These include expenses such as reimbursement for city costs to manage a restricted fund such as landscape and lighting district administration as well as the difference between the amount collected in a special fund and services provided (e.g. fire services, aquatic center operations, etc. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4199 Interfund Transfers 4501000 Inter-Fund Transfers Out 10,372,495 11,990,324 27,704,573 4199 Total 10,372,495 11,990,324 27,704,573 98 Contributions F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $1,780,135 Funding Source - General Fund Swirly Girl (Female Superhero), By Karen Barone 99 CONTRIBUTIONS DIVISION 1104800 Narrative The contributions budget covers a few different ways the City provides support to non-profit agencies or groups that provide services to the community. Outside Agency funding provides assistance to non-profit agencies or groups that provide public benefit, public welfare or educational services, prioritizing those directly benefitting the residents of Palm Desert. Each year, the application process begins in January and is open through April. The Outside Agency Funding committee reviews all applications and makes recommendations to the City Council for funding consideration for the upcoming fiscal year. The Committee’s goal is to provide unmet needs and improved services that enhance the quality of life for Palm Desert residents. The contributions budget also covers community event sponsorships including Fashion Week and Food and Wine, 7th Regiment Marine Corp., Student Art and Essay Contest, and various others approved by the City's review committee. 100 CONTRIBUTIONS DIVISION 1104800 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4800 Contributions 4322000 PSDR CVB Funding 510,150 469,000 500,000 4306201 City Sponsored Events 538,483 539,500 540,000 4388000 Cntrb - Various Agencies 60,145 162,445 169,080 4388100 Cntrb - Schools 51,739 52,555 52,555 4388500 Cntrb - Museum 39,235 40,000 40,000 4388600 Cntrb -4,020 12,500 12,500 4389100 Cntrb -Ymca/Youth 56,000 56,000 56,000 4389201 After School Program 150,000 150,000 150,000 4389300 Joslyn Senior Center 246,341 247,025 260,000 4389800 Living Desert Contribution -250,000 - 4800 Total 1,656,113 1,979,025 1,780,135 101 PUBLIC WORKS 102 1. NPDES Program Integration in Cartegraph. 2. Streamline & Standardize Processes 3. Update Ride Share/ Fleet Policy 4. Park Playground Replacement 5. Historical Society ADA Improvements 6. Purchase a Vector Truck 7. New Traffic Management System 8. Wayfinding/Monument Signage. 9. State Building Improvements Completed re-roofing projects at Desert Willow, Fire Station 67, and the State Building. completed Phase II of Traffic Signal Modifications and Upgrades to nine intersections. Completed improvements at Civic Center Dog Park. Initiated Phase III of perimeter landscape improvements at Desert Willow. Completed ADA upgrades at the State Building. Completed improvements at the Palm Desert Aquatic Center including new concrete and seat walls, starting blocks, shade structure lighting, and other upgrades. Initiated development of a five-year Landscape Master Plan Completed grand-funded upgrades to Palma Village Park. Department Accomplishments Department Goals & Objectives 103 PUBLIC WORKS DEPARTMENT Performance Measures *Performance measures are for Divisions under the Public Works Department Performance Measures Dept Goal Division FY 2023-24 Actuals FY 2024-25 Actual FY 2025-26 Target FY 2026-27 Target 104 Public Works Admin Personnel Count - 10 Total Budget - $2,060,447 Funding Source - General Fund F Y 2 0 2 5 / 2 6 F Y 2 0 2 5 / 2 6 Puffed Up Prince, By Gary Lee Price 105 Director of Public Works Deputy Director of Public Works Project Manager Business Operations Manager Senior Project Manager Senior Management Analyst Senior Facilities Specialist PUBLIC WORKS ADMIN DEPARTMENT 1104300 Organization Chart * Other Division Streets Maintenance Supervisor Senior Maintenance Worker Maintenance Worker I/II/III (12) Community Services Manager Public Works Superintendent Management Analyst I/II Landscape Inspector I/II (3) Facilities Specialist Public Works Superintendent Management Analyst I/II (2) Senior Admin Asisstant (2) Admin Assistant I/II Project Manager Traffic Signal Tech I/II (3) Senior Traffic Signal Specialist Office Assistant I/ II 106 PUBLIC WORKS ADMIN DEPARTMENT 1104300 Narrative The Public Works Department oversees the Traffic, Facilities, Streets, and Landscape Divisions. It provides the cost associated with the operation, and maintenance of the City’s streets, sidewalks, storm drains, traffic signals, buildings, parks, and landscaping. Staff also oversee Public Works administration and grants, NPDES Program, vehicle electrification, charging stations, community gardens, and asset management. 107 PUBLIC WORKS ADMIN DEPARTMENT 1104300 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4300 Public Works - Admin 4100100 Salaries - Full Time 1,220,807 1,037,569 1,259,270 4100200 Salaries - Overtime -2,500 2,500 4111500 Retirement Contribution 155,351 134,888 152,841 4111600 Medicare Contrb - Employer 18,114 15,035 18,210 4111700 Retiree Health 9,779 10,611 18,369 4111800 Employer 457 Contribution 11,950 9,600 12,000 4112000 Ins Prem - Long Term Disab.4,129 5,127 6,194 4112100 Ins Prem - Health 212,406 180,299 244,307 4112200 Ins Prem - Dental/Vision 19,200 15,202 18,610 4112400 Ins Prem - Life 2,289 1,751 2,115 4112500 Workers' Compensation 38,121 11,008 11,781 4300300 Prof - Temporary Part-Time 28,091 25,000 20,000 4301000 Prof - Architectural/Eng 33,689 175,000 - 4309000 Prof - Other 92,193 85,000 180,000 4311500 Mileage Reimbursement 1,280 2,500 2,500 4312000 Conf - Seminars - Workshops 13,777 41,000 31,000 4312500 Local Meetings 6,379 11,250 13,750 4211000 Office Supplies 3,680 7,500 7,500 4219000 Supplies - Other -2,500 5,000 4361000 Printing/Duplicating -1,000 1,000 4362000 Subscriptions/Publication 3,142 5,000 8,500 4363000 Dues 7,445 10,000 10,500 4365000 Telephones 9,154 20,000 16,000 4366000 Postage & Freight 774 1,000 1,000 4391500 Employee Safety 5,001 10,000 10,000 4404000 Cap - Office Equipment 537 7,500 7,500 4300 Total 1,897,288 1,827,840 2,060,447 108 Traffic Personnel Count - 5 Total Budget - $1,558,800 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Radiance, By Patricia Vader 109 TRAFFIC DIVISION 1104310 Organization Chart * Other Division Director of Public Works Deputy Director of Public Works Project Manager Business Operations Manager Senior Project Manager Senior Management Analyst Senior Facilities Specialist Facilities Specialist Streets Maintenance Supervisor Senior Maintenance Worker Maintenance Worker I/II/III (12) Community Services Manager Public Works Superintendent Management Analyst I/II Landscape Inspector I/II (3) Public Works Superintendent Management Analyst I/II (2) Senior Admin Asisstant (2) Admin Assistant I/II Project Manager Traffic Signal Tech I/II (3) Senior Traffic Signal Specialist Office Assistant I/ II 110 TRAFFIC DIVISION 1104250 Narrative The Street Light and Traffic Safety Division provides for the repair, maintenance, and utility cost of traffic signals and highway lighting. This Division is also responsible for the maintenance and repair of traffic signals, street signs, safety cones, barricades, and pavement markers. 111 TRAFFIC DIVISION 1104250 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4250 Traffic 4100100 Salaries - Full Time 574,787 567,710 584,660 4100200 Salaries - Overtime 11,485 9,000 15,000 4111500 Retirement Contribution 70,282 73,781 70,966 4111600 Medicare Contrb - Employer 8,704 8,222 8,478 4111700 Retiree Health 3,499 4,055 2,932 4111800 Employer 457 Contribution 4,725 3,600 6,000 4112000 Ins Prem - Long Term Disab.2,138 2,804 2,876 4112100 Ins Prem - Health 106,326 109,938 116,922 4112200 Ins Prem - Dental/Vision 9,872 10,213 10,213 4112400 Ins Prem - Life 1,044 958 981 4112500 Workers' Compensation -5,418 5,522 4309000 Prof - Other 25,000 100,000 75,000 4332500 R/M - Signals 303,763 315,000 380,000 4311500 Mileage Reimbursement -750 500 4312000 Conf - Seminars - Workshops 3,040 18,000 10,750 4219000 Supplies - Other 9,053 5,000 5,000 4351400 Utilities - Electric 232,411 230,000 250,000 4365000 Telephones 4,778 5,500 5,500 4404500 Machinery & Equipment -15,000 7,500 4250 Total 1,370,909 1,484,949 1,558,800 112 Streets Personnel Count - 16 Total Budget - $3,034,199 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Proceed with Caution, By Gary Alsum 113 STREETS DIVISION 1104250 Organization Chart * Other Funds Director of Public Works Deputy Director of Public Works Project Manager Business Operations Manager Senior Project Manager Senior Management Analyst Senior Facilities Specialist Facilities Specialist Streets Maintenance Supervisor Senior Maintenance Worker Maintenance Worker I/II/III (12) Community Services Manager Public Works Superintendent Management Analyst I/II Landscape Inspector I/II (3) Public Works Superintendent Management Analyst I/II (2) Senior Admin Asisstant (2) Admin Assistant I/II Project Manager Traffic Signal Tech I/II (3) Senior Traffic Signal Specialist Office Assistant I/ II 114 STREETS DIVISION 1104310 Narrative The Street Maintenance Division is responsible for all maintenance work along public streets including street and parking lot sweeping, pothole repairs, catch basin and drywell maintenance, concrete sidewalk and curb ramp repairs, right-of-way maintenance, parking lot maintenance, street and bike lane striping, and curb painting. This Division is also responsible for the Citywide Graffiti Removal and Sign Replacement Programs. 115 STREETS DIVISION 1104310 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4310 Streets Maintenance 4100100 Salaries - Full Time 1,090,832 1,199,194 1,429,231 4100200 Salaries - Overtime 59,690 20,000 40,000 4111500 Retirement Contribution 136,099 155,496 173,831 4111600 Medicare Contrb - Employer 16,935 17,322 20,648 4111700 Retiree Health 3,336 3,239 11,138 4111800 Employer 457 Contribution 5,100 7,200 10,800 4112000 Ins Prem - Long Term Disab.4,129 5,906 7,040 4112100 Ins Prem - Health 269,019 327,846 402,585 4112200 Ins Prem - Dental/Vision 22,580 24,061 28,588 4112400 Ins Prem - Life 2,108 2,021 2,409 4112500 Workers' Compensation 32,506 11,445 12,929 4332000 Repair & Maintenance Streets 428,974 592,500 615,000 4391502 Graffiti Program 12,968 15,000 15,000 4311500 Mileage Reimbursement 997 1,000 1,000 4312000 Conf - Seminars - Workshops 16,365 30,000 16,500 4214000 Uniforms 23,977 25,000 25,000 4218000 Small Tools/Equipment - - - 4219000 Supplies - Other 147,384 140,000 145,000 4343000 Construction Equipment 40,111 35,000 35,000 4351000 Utilities - Water 15,080 15,000 15,000 4365000 Telephones 14,094 10,500 17,500 4391001 Holiday Decorations - - - 4404500 Machinery & Equipment 4,978 5,000 10,000 4310 Total 2,347,262 2,642,730 3,034,199 116 Building Maint Personnel Count - 3 Total Budget - $1,211,773 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Extended Expanse, By Jennifer Kapnek 117 BUILDING MAINTENANCE DIVISION 1104340 Organization Chart * Other Division Director of Public Works Deputy Director of Public Works Project Manager Business Operations Manager Senior Project Manager Senior Management Analyst Senior Facilities Specialist Facilities Specialist Streets Maintenance Supervisor Senior Maintenance Worker Maintenance Worker I/II/III (12) Community Services Manager Public Works Superintendent Management Analyst I/II Landscape Inspector I/II (3) Public Works Superintendent Management Analyst I/II (2) Senior Admin Asisstant (2) Admin Assistant I/II Project Manager Traffic Signal Tech I/II (3) Senior Traffic Signal Specialist Office Assistant I/ II 118 BUILDING MAINTENANCE DIVISION 1104340 Narrative The Public Building Operation and Maintenance Division is responsible for the general operation, maintenance, and utilities for 13 City-owned buildings including City Hall, Palm Desert Historical Society Building, and the Joslyn Center. Repairs and maintenance are completed by staff or contract services. Staff under this division also maintain the iHub, Sheriff Training Center, Parkview Office Complex, Henderson Building, Artist Center, Portola Community Center, and Fire Stations. 119 BUILDING MAINTENANCE DIVISION 1104340 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4340 Building Maintenance 4100100 Salaries - Full Time 282,813 426,320 330,075 4100200 Salaries - Overtime 24,359 10,000 30,000 4111500 Retirement Contribution 30,949 55,475 39,910 4111600 Medicare Contrb - Employer 4,804 6,182 4,786 4111700 Retiree Health 820 2,413 4111800 Employer 457 Contribution 2,700 3,600 3,600 4112000 Ins Prem - Long Term Disab.979 2,108 1,617 4112100 Ins Prem - Health 62,356 83,527 67,687 4112200 Ins Prem - Dental/Vision 4,729 8,171 6,128 4112400 Ins Prem - Life 666 719 553 4112500 Workers' Compensation 3,664 3,286 4,004 4309000 Prof - Other 31,130 28,000 33,000 4331000 R/M - Buildings 177,778 262,500 255,000 4332600 Janitorial Services 104,104 115,000 125,000 4311500 Mileage Reimbursement 160 500 500 4312000 Conf - Seminars - Workshops 3,325 13,750 11,000 4213000 Supplies - Janitorial - 4219000 Supplies - Other 55,168 52,000 65,000 4351000 Utilities - Water 6,201 10,000 10,000 4351200 Utilities - Gas 2,954 2,500 3,000 4351400 Utilities - Electric 187,975 200,000 210,000 4365000 Telephones 1,392 3,500 3,500 4404000 Cap - Office Equipment 5,000 5,000 4340 Total 988,206 1,292,958 1,211,773 120 Landscape Services Personnel Count - 6 Total Budget - $3,738,052 Funding Source - General Fund F Y 2 0 2 5 / 2 6 Infinity, By Ray Katz 121 LANDSCAPE SERVICES DIVISION 1104614 Organization Chart * Other Division Director of Public Works Deputy Director of Public Works Project Manager Business Operations Manager Senior Project Manager Senior Management Analyst Senior Facilities Specialist Facilities Specialist Streets Maintenance Supervisor Senior Maintenance Worker Maintenance Worker I/II/III (12) Community Services Manager Public Works Superintendent Management Analyst I/II Landscape Inspector I/II (3) Public Works Superintendent Management Analyst I/II (2) Senior Admin Asisstant (2) Admin Assistant I/II Project Manager Traffic Signal Tech I/II (3) Senior Traffic Signal Specialist Office Assistant I/ II 122 LANDSCAPE SERVICES DIVISION 1104614 Narrative Landscape Services maintains six Landscape Maintenance Areas (LMAs) throughout the City. The LMAs include Parks, landscaped and irrigated areas, trailheads, El Paseo, street medians, Landscape and Lighting Districts, Desert Willow Golf Resort, and Community Gardens. Landscape staff play a key role with the planning of new parks, turf renovations, electrical/lighting, pump stations, the Civic Center lagoon, pest control, fence repairs, playground construction, inspections, and various equipment installations. They also are responsible for managing the City’s urban forest and providing on-going technical and horticultural support to the Palm Desert Housing Authority. Capital Improvement Projects are accomplished by staff and/or contract services. 123 LANDSCAPE SERVICES DIVISION 1104614 Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4614 Landscape Services 4100100 Salaries - Full Time 606,572 603,758 639,876 4100200 Salaries - Overtime 10,717 10,000 12,500 4111500 Retirement Contribution 73,564 78,488 78,081 4111600 Medicare Contrb - Employer 10,280 8,745 9,278 4111700 Retiree Health 5,276 6,819 10,203 4111800 Employer 457 Contribution 5,340 5,760 5,760 4112000 Ins Prem - Long Term Disab.2,294 2,982 3,164 4112100 Ins Prem - Health 116,002 128,297 141,277 4112200 Ins Prem - Dental/Vision 9,633 9,978 9,040 4112400 Ins Prem - Life 1,310 1,016 1,079 4112500 Workers' Compensation 8,629 6,051 6,044 4332501 R/M - Others 32,607 35,000 45,000 4337001 R/M - Medians 1,457,125 1,651,500 1,915,000 4392101 Entrada del Paseo 159,333 242,500 295,000 4311500 Mileage Reimbursement 17 1,000 750 4312000 Conf - Seminars - Workshops 735 30,500 22,500 4219000 Supplies - Other 3,302 14,500 13,500 4351000 Utilities - Water 168,189 210,000 215,000 4351400 Utilities - Electric 113,980 75,000 150,000 4365000 Telephones 7,431 10,000 10,000 4390500 Arbor Day 2,536 3,000 5,000 4391001 Holiday Decorations 73,000 96,400 150,000 4614 Total 2,867,872 3,231,294 3,738,052 124 Street Repair & Maint F Y 2 0 2 5 / 2 6 F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $50,000 Funding Source - General Fund Peace Memorial, By Ross Andrews and Marton Varo 125 STREET REPAIR & MAINTENANCE DIVISION 1104311- 4315 Narrative The Street Repair and Maintenance Division provides for the work required to improve street safety, condition, and appearance. Improvements consist of overlays, slurry, seal coats, annual curb and gutter repair, annual cross gutter and sidewalk repair, street paving, and traffic lane striping and markings on all public streets, including Capital Improvement Projects Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4311-4315 Street Repair & Maintenance 4332000 Repair & Maintenance Streets 37,955 250,000 50,000 4311-4315 Total 37,955 250,000 50,000 126 Corp Yard F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $265,000 Funding Source - General Fund Mother and Child Sculpture Garden, By Lisa Reinerston 127 CORP YARD DIVISION 1104330 Narrative The Corporation Yard (Corpyard) provides the cost associated with maintenance, utilities, and permits of the building. The Corpyard houses the City fleet, heavy equipment, fuel tanks, and the offices of the Street and Traffic Maintenance crews. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4330 Corp Yard 4309000 Prof - Other 10,767 12,450 16,750 4331000 R/M - Buildings 98,495 122,500 147,500 4219000 Supplies - Other 13,365 17,000 22,500 4351000 Utilities - Water 7,872 10,000 10,000 4351200 Utilities - Gas 630 1,000 1,000 4351400 Utilities - Electric 31,472 45,000 45,000 4364000 Filing Fees 8,001 6,750 7,250 4404000 Cap - Office Equipment 26,125 41,500 15,000 4330 Total 196,727 256,200 265,000 128 Fleet F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $457,500 Funding Source - General Fund Marfa, Michael Bigger 129 FLEET DIVISION 1104331 Narrative The Auto Fleet/Equipment provides the cost associated for the operation, maintenance, and replacement of the City's fleet of vehicles and heavy equipment. General services and repairs to the fleet are accomplished through contract services and services to the new fleet are covered under manufacturer's warranty. It also provides the cost for the hazardous waste disposal program and fuel usage. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4331 Fleet 4305400 Prof - Hazardous Materials 4,865 12,500 15,000 4334000 R/M-Motor Vehicles - Fleet 233,188 225,000 277,500 4217000 Supply - Automotive - Gas 152,029 150,000 157,500 4404000 Cap - Office Equipment 27,446 25,000 7,500 4331 Total 417,527 412,500 457,500 130 Portola Community Ctr F Y 2 0 2 5 / 2 6 Personnel Count - 0 Total Budget - $220,500 Funding Source - General Fund Flora, By Ray Katz 131 PORTOLA COMMUNITY CENTER DIVISION 1104344 Narrative The City’s contract partner, Desert Recreation District, oversees the daily operation of the Portola Community Center building, which is leased to various non-profit entities. Public Works staff is responsible for coordinating building maintenance, repairs, landscaping, and payment of all utility services. Overview Operating Budget Account Number Description 2023-24 Actuals 2024-25 Adopted Budget 2025-26 Adopted Budget 4344 Portola Community Center 4309000 Prof - Other 118,963 130,500 132,500 4331000 R/M - Buildings 22,655 48,500 49,000 4219000 Supplies - Other 3 2,500 1,500 4351000 Utilities - Water 5,324 7,500 6,500 4351200 Utilities - Gas 853 1,000 1,000 4351400 Utilities - Electric 19,636 27,500 27,500 4365000 Telephones 2,206 2,250 2,500 4344 Total 169,640 219,750 220,500 132