HomeMy WebLinkAboutLAFCO: SOI Bermuda Dunes File 2cm
CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
STAFF REPORT
TO: Honorable Mayor and City Council
FROM: Philip Drell, Director of Community Development
DATE: August 23, 2001
SUBJECT: Review of Bermuda Dunes Fiscal Impact Study
BACKGROUND:
In a letter to the Mayor, Ernie Dunlevie requested a reexamination of the fiscal impact
of a Bermuda Dunes Annexation based on recent roadwork and commercial
development.
II. DISCUSSION:
Our 1996 study indicated an annual shortfall of $977,050 in the year 1998-99 based
on total expenditures of $1,865,656 of which $1,271,1 14 was for police and fire
services. Street maintenance was only $212,180.
In 1999 La Quinta did a study which indicated a $523,563 shortfall increasing to
$2,961,496 at build out. Their initial smaller shortfall was due to La Quinta's lack
of a special fire services contract which would cost Palm Desert an additional
$384,418 for the annexed area. 1999 revenues were shown to be $160,000/year
more than was projected in 1996. The La Quinta report assumed build out of all
commercial property and still projected a rising overall shortfall.
III. RECOMMENDATION:
Although we can do an updated study, it still appears likely that there will be a
shortfall between $800,000 and $1,000,000.
�a
PHILIP DRELL
DIRECTOR OF COMMUNITY DEVELOPMENT
Am
I
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346—o6i I
FAX: 760 340-0574
info@palm-desert.org
February 8, 2000
Mr. Wayne S. Guralnick
Guralnick & Gilliland
Attorneys at Law
74-399 Highway 111, Suite M
Palm Desert, California 92260
Dear Mr. Guralnick:
Subject: Consideration of Adding Bermuda Dunes to Palm Desert's Sphere of Influence
At its regular meeting of January 27, 2000, the Palm Desert City Council considered the subject matter and took
the following action:
By Minute Motion, approved the addition of Bermuda Dunes to Palm Desert's Sphere of
Influence conditioned upon Bermuda Dunes being the initiator of the application process through
the Local Agency Formation Commission (LAFCo), with Palm Desert providing its full
cooperation in that process, and that the potential annexation was proven to be an action that
would have a financially neutral effect on Palm Desert.
As promised, enclosed is a copy of the March 1996 Bermuda Dunes Annexation Fiscal Feasibility Report,
accepted at the March 28, 1996, Regular Palm Desert City Council Meeting. For your reference, I have also
included a copy of the Minutes from that meeting. Minutes of the January 27, 2000, meeting will be available
once they are approved at the Council's meeting of February 10.
If you have any questions or need for further assistance from our office, please do not hesitate to contact me.
Sincerely,
RACHELLE D. KLASSEN
ACTING CITY CLERK
rdk
Enclosures (as noted) .
cc: Ramon A. Diaz, City Manager
Philip Drell, Director of Community Development
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1VIINUTES ®..r
kEGULAR PALM DESERT CITY COUNCIL MEETING
* * * * * * * * * * * * * * * * * * * * * *
X. OLD BUSINESS
EM
MARCH 28, 1996
* * * * * * * * * * * * * * * *
A. REQUEST FOR CONSIDERATION OF BERMUDA DUNES ANNEXATION FISCAL
FEASIBILITY REPORT.
Mr. Drell noted the report in the packets indicating a relatively low level of revenue that
would be generated compared to the cost of services which would result in a $1 million
annual deficit.
MR. FRANK GOODMAN addressed Council and stated that while he did not wish to dispute
the report itself, there were several things he did not feel were totally addressed in the report.
He said there were several streets within Bermuda Dunes Country Club that were taken care
of by those residents. In addition, the area had a security patrol which would cut down on
the need for Sheriff Department coverage. He noted the report did not include the Bermuda
Dunes Airport which generated funds from sales tax and gasoline tax. He stated that there
was a tremendous amount of property along Washington Street which was zoned residential
and which he felt should be rezoned commercial. This would then bring in revenue when
developed. He said he felt if the City of Palm Desert took in Bermuda Dunes, it would add
prestige to the City.
Councilmember Benson moved to, by Minute Motion, direct staff to inform the Bermuda Dunes
Community Council and LAFCO of the conclusion that the City not encourage or support annexation of
Bermuda Dunes at this time based on the significant service cost/revenue shortfall revealed by the report.
Councilman Spiegel seconded the motion and stated that he and Councilman Kelly were the two
Councilmembers involved in this process and that he felt Bermuda Dunes was a lovely city which would
be nice to have in Palm Desert but only if it was financial feasible.
Councilman Crites stated that while there may be land along Washington that might be zoned
commercial, Palm Desert traditionally takes in land as it currently is. He said he was not one
to go in and change residential to commercial.
Councilman Kelly stated that the Council's responsibility is to look to the welfare of the
existing citizens. He added that he felt badly that this did not work out.
Mayor Snyder called for the vote. The motion carried by unanimous vote.
Mr. Goodman asked what steps should be taken for Bermuda Dunes to be included in the
City of Palm Desert's sphere of influence. Mr. Drell responded that there was an
application, and the City would have to consent to that. Upon question by Councilman
Spiegel as to whether or not there was a time frame for the sphere of influence, Mr. Drell
stated that the Local Agency Formation Commission regulations indicated that the City would
still control the timing and could forestall any annexations until they make sense.
7
BERMU DA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
March, 1996
Prepared for:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
(619) 340-5776
Prepared by:
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, California 92705
(714) 541-4585
on
COM
BERMUDA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
1. BACKGROUND
The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a
fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to
meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if
and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to
determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the
Bermuda Dunes community. This Report will focus on what City services will be provided within
the Bermuda Dunes area, the forecasted cost of those services, and what revenues could
reasonably be expected to be available to fund those services. This Report will focus on a
compilation of the forecasted revenges and expendituresothould be the
sannexation
understoodprojected
the�eiwill
year 1998-99 using a range of potential fiscal imp
usually be differences between the forecasts and actual results because events and circumstances
frequently do not occur as expected, and those differences may be material.
The Bermuda Dunes area 1995 population is estimated at 5,362. The subject area is comprised of
approximately 3.2 square miles of territory. The estimated popul
elatins based
including ac9tua01
census information and enhanced by various trends and modeling
g techq es
population growth in the surrounding communities. A population estimate of 6,000 was shown in
a past application as submitted by a Bermuda Dunes community organization to the Local Agency
Formation Commission. A national research bureau has estimated the 1995 population of
Bermuda Dunes at 6,266. This population projection was derived using generalized assumptions
based upon age specific fertility rates, life expectancy, and net immigration. However, we believe,
based on actual population growth in the area, the population estimates are too high. Even if these
higher population figures were used, the forecasted expenditures would still far exceed forecasted
revenues. The higher population figure would lower the fiscal deficits by approximately $75,000 or
8%.
At the present time, the number of structures or dwelling units in the proposed annexation area
include approximately 700 apartments, 1,200 single family residential units, 300 condominiums,
200,000 square feet of commercial space, an airport, a 27-hole golf course and clubhouse, and a
41-unit hotel. Bermuda Dunes is located in the central region of Riverside County. The boundaries
of the Bermuda Dunes community is generally the area along the Interstate 10 Freeway to the
north, excluding the Indio city limits, the east boundary Indio city limits, Fred Waring Drive and the
La Quints city limits to the south, and along Washington Street up to the Interstate 10 Freeway to
the west. Most of the area is still of a rural nature and similar to areas of the Coachella Valley.
Bermuda Dunes is predominantly residential and rugged terrain (refer to Exhibit 4).
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. 1 Fiscal Feasibility Report
Marcb, 1996
'*4"01 *001,
The major public agencies currently providing services in the Bermuda Dunes community are the
County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District.
The County of Riverside is currently responsible for policymaking and administration, .law
enforcement, animal control, planning and land use regulation, building inspection, flood control,
and the maintenance and improvement of roads. Street lighting services within the Bermuda
Dunes area are currently provided through County Service Area No. 121. The landscaped median
located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by
Riverside County through a special assessment district formed pursuant to the 1972 Lighting and
Landscape Act. Upon annexation, the City would administer the special district as the taxes would
be transferred to the City and detached from the County.
Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and
the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and
Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the
services is currently in place. Sewer service is currently, and will continue to be, provided by Septic
Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive,
Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection
services to the Bermuda Dunes community.and Currently,
service � aefire threesm le nradius.Riverside he County Fire
of
Station No. 31, is located at 42nd Avenue
Riverside is currently responsible for providing police services within the Bermuda Dunes area. The
law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio
substations. Upon annexation, no change in fire or police protection services are anticipated
because police and fire protection services are provided by the same Riverside County
organization. The roads within the Bermuda Dunes area are currently maintained by the County of
Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing
roads.
Many of the General Fund and Road Fund revenues and expenditures were either calculated on a
per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a
case study methodology.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
March, 1996 2
En
11. REVENUES
A. GENERAL FUND
The primary sources of General Fund revenues are noted below and shown on Exhibit 1:
1. Taxes:
a. Property and Parcel Taxes:
The City's property tax revenue is based on the historical property tax ratio of
250/o/75% between the City and the County respectively as set forth in Resolution
No. 81-133 adopted September 24, 1981. Upon annexation, the City would
receive approximately 25% of the total General Fund property tax revenue and
the County would retain the remaining 75% of General Fund property tax
revenue. In addition, the City would also assume service responsibilities of
County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the
community of Bermuda Dunes and provides funding for street lighting. Upon
annexation, CSA No. 121 would be dissolved. One hundred percent (100%) of
this special district's levies would be transferred to the City (refer to Exhibit 2).
b. Property Transfer Taxes:
The amount of Property Transfer Tax received will depend upon the level of resale
activity within Bermuda Dunes. These revenues have been estimated using an
average of previous three (3) year property transfer activity within Bermuda Dunes
at the rate of .55¢ per $1,000 of assessed values.
C. Homeowners Property Tax Relief:
Revenue estimates generated from the Homeowner's Property Tax Relief were not
specifically projected because this analysis bases the Property Tax Apportionment
on assessed valuation gross of the Homeowners Exemption. Therefore, revenue
from the Homeowner's Property Tax Relief is included in the Property Tax
Apportionment.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. 3 Fiscal Feasibility Report
March, 1996
Nowo Nwo#
d. Sales Taxes:
Upon annexation, the City will be eligible to receive a percentage of the sales tax
charged on qualifying retail sales from businesses within Bermuda Dunes. The
State Board of Equalization estimated that the commercial areas within Bermuda
Dunes are generating approximately $114,500 in sales tax revenues annually.
RSG has assumed a modest 3% increase on these sales tax revenues for Bermuda
Dunes (refer to Exhibit 3).
e. Transient Occupancy Taxes:
Upon annexation, the City will receive the Transient Occupancy Tax. The City's
Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging
establishment, the New Inn located within the Bermuda Dunes Country Club,
which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax
based on an occupancy factor and average room rate.
2. State Subventions (Motor Vehicle Fees):
Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These
taxes are collected by the State's Department of Motor Vehicles and allocated to cities
on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a
per capita basis. Both subventions are based on 5,362 which is the estimated
population for Bermuda Dunes.
The per capita figures used in the revenue summary have been provided by the State
Controller's office for the 1995-96 fiscal year.
3. Franchise Fees:
Upon annexation, the City will receive the franchise fees currently paid to the County
by Continental Cable Television, the Southern California Gas Company, Waste
Management, and Western Waste. These fees have been estimated on a per capita
basis using budget figures from the City of Palm Desert.
Bermuda Dunes Annexation
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4 Fiscal Feasibility Report
March, 1996
on
on
4. Development Related Fees:
5.
The fees described below are not included in Exhibit 1 because these fees specially
offset costs of development related services, only the "net" cost of these services are
indicated under "Expenditures".
a. Land Use Planning and Regulation Fees:
The City is authorized to charge fees for all land use planning and regulation
services. The City would utilize the City's existing fee schedule. These fees should
off -set most of the City's cost in providing these services.
b. Building Inspection and Permit Fees:
The fees collected for these building and permit inspection services should, in
most cases, totally offset the cost of these services.
C. Engineering Fees:
The City is also authorized to charge fees for plan checking, public works
inspection, permit issuance and review and other engineering services. The fees
collected for these services should, in most cases, offset the cost of these services.
d. Development Fees:
Under the provisions of State law, the City may collect development fees for the
purpose of construction or improving capital facilities. Fees received must be
segregated from the General Fund in order to avoid commingling. Certain fees
must be spent or committed within five years from the time they are collected.
Other Revenues:
a. Fines and Forfeitures:
This represents both Motor Vehicle Code fines, Municipal Code fines, and other
miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from
Bermuda Dunes were estimated on a per capita basis using current budget data
from the City of Palm Desert.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
March, 1996 5
b. Business License Tax:
Upon annexation, the City will be eligible to impose the City's current Business
License Tax. The Business License fee for the City of Palm Desert is calculated
based upon gross sales. Based on discussions with City staff, RSG has estimated
the amount of Business License Tax using an average Business License fee for the
local sales tax generators identified within the Bermuda Dunes annexation area
(refer to Exhibit 3).
C. Proposition A Fire Tax:
The Proposition A Fire Tax is calculated using a per parcel cost. This figure is
estimated using an estimated 700 apartments and 300 condominiums at a per
parcel cost of $36 per unit, and an estimated 1,200 single family residential units
at $48.per unit.
d. County RDA:
Currently there exists along Washington Street and 42nd Avenue a County
redevelopment project area. A small portion of the County Redevelopment
Project Area is located within the City of Palm Desert, and the remaining portion
exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This
County Redevelopment Project Area consists of commercial and multifamily
residential use and is located along Washington Street between Mountain View to
the south and just north of 42nd Avenue. In this analysis, it is assumed the City
would not take over the County Redevelopment Project Area and continued to be
maintained as a County Redevelopment Project Area. Because the County
Redevelopment Project Area would not be taken over by the City, no revenues
have been forecasted in this analysis.
e. Interest:
Because expenditures exceeded revenues resulting in no excess cash, RSG did not
include interest in this analysis.
Bermuda Dunes Annexation
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6 Fiscal Feasibility Report
March, 1996
*✓
lJ
B. ROAD FUND
All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with
the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the
cities based upon total population size. Because the annexation of Bermuda Dunes is only
adding 5,362 population to the existing 37,573 of Palm Desert, the added population will not
put the City's population above the next threshold. As such, no revenue is reflected relative
to Section 2107.5. Similar to other state subventions, road fund revenues initially would be
based at the estimated population of 5,362. Other Road Fund revenues include the voter -
approved Measure "A" sales tax distributed by the County Transportation Commission.
Revenues attributed to these gasoline taxes are restricted for use on road related maintenance
expenditures.
111. EXPENDITURES
A. GENERAL FUND EXPENDITURES
Expenditures have been categorized by departments within the City's organizational structure
and are estimated as follows:
1. General Government:
a. Administration:
The analysis assumed no new positions, equipment or major operating costs
would be incurred because of the annexation. Minimal expenditures including
legal costs, advertising, postage, and other selected services and supplies were
estimated. Costs associated with the 1997-98 election are shown. Costs were
estimated based on a case by case analysis or a per capita rate using City budget
data.
b. Insurance:
Upon annexation of Bermuda Dunes, it is probable that the cost of the City's
insurance policy will be impacted. RSG has estimated these costs based on
existing infrastructure and other public facilities within Bermuda Dunes in
relationship to the City's budgeted expenditure forecasts.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
March, 1996 7 Fiscal Feasibility Report
*ftwl s.✓
C. Animal Control:
Upon annexation of Bermuda Dunes, the current City animal control contractor,
California Animal Care, will assume animal control services for this area. Costs
were estimated assuming additional personnel and equipment as required by
California Animal Care. These costs are net of any animal license fee revenues.
d. County Property Tax Collection Charges:
Beginning in 1992-93, the County Auditor -Controller's Office charged cities and
local districts receiving property tax revenue for incidental administrative costs.
These charges are estimated at 2% of all property tax revenues.
2. Public Safety:
a. Sheriffs Contract:
The Riverside County Sheriff's Department estimates service costs on a per capita
basis. The City has indicated a desire to maintain a patrol beat to population ratio
of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG
believes this estimated service level appears excessive in this particular community
due to the existing calls for service and the open space character of Bermuda
Dunes. Thus, RSG has assumed based on discussions with City and County staff
that only 5 beats will be needed to provide sufficient police services to the
merchants and residents of Bermuda Dunes.
b. Jail Booking Fee:
Riverside County collects from its Cities a flat fee for jail bookings. Currently, the
present jail booking fee is approximately $110. Bermuda Dunes jail booking fees
were estimated based on jail bookings for the County incorporated areas in this
area and for the City of Palm Desert.
C. Fire Protection:
The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a
joint Powers Agreement forming the Cove Communities Public Safety Commission
in order to provide fire and paramedic services. These costs are net of the
property tax levy of the County Fire District. Fire Protection expenditures were
estimated using Riverside County Fire budget costs. This expenditure reflects a
percentage of the assessed valuation based upon the 1995-96 total cost. The
estimated budget figure includes fire services staff costs, a one-time $110,000 for
new equipment and $12,000 for training and other maintenance services. This
Rosenou Spevacek Group, Inc. Bermuda Dunes Annexation
March, 1996 8 Fiscal Feasibility Report
®*,, *41W
estimated budget figure does not include optional paramedic services, which
would be an additional $330,486. This total was reduced to reflect the net cost of
services (less the 1 % of the total assessed valuation of the Bermuda Dunes area
multiplied by the Structural Fire Tax rate of .06025). Currently one (1) fire station,
Riverside County Fire Station No. 31, is located at 42nd Avenue and services a
3-mile radius.
3. Community Development:
Upon the annexation of Bermuda Dunes, the Community Development Department
will assume the processing of all land use related services. These services will, in most
cases, be offset by fees. However, the City will be responsible for the preparation of a
Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps,
and other miscellaneous costs associated with the in-house preparation of the Specific
Plan.
a. Code Compliance Officer:
Upon annexation, it is anticipated that an additional Code Compliance Officer will
be required to provide code enforcement services within the area of Bermuda
Dunes. This expenditure is calculated using the first step in the City's payroll
salary range for Code Compliance Officer at $2,604 per month. RSG has included
an additional 35% of the annual salary to reflect benefits and an additional 10%
for supplies, minor equipment, and other overhead costs.
4. Public Works:
For purposes of this Report, it is assumed that the current level of service of
maintenance programs is sufficient to the community's needs. Upon annexation, CSA
No. 121 and other County responsibilities will be assumed by the City. The Public
Works cost estimates also include an allowance for contract services to administer these
programs.
a. Administration:
A minimal administrative cost impact based on a per capita factor using City
budget data is reflected. This cost represents supplies, meeting and travel costs,
equipment, and other services.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
March, 1996 9 Fiscal Feasibility Report
b. Street Sweeping:
Upon annexation of the Bermuda Dunes area, the City will provide street
sweeping services to this area. This expenditure was based on discussion with City
staff using a curb mile estimate cost based on City budget data. Street sweeping
services are performed bi-weekly by the City of Palm Desert.
C. Street Lighting:
Street lighting services within the Bermuda Dunes area are currently provided
through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds
will be transferred to the City. The forecasted expenditure is based on current
CSA No. 121 budget data (refer to Exhibit 2).
5. Parks and Recreation:
There is no anticipated financial impact relative to existing landscape maintenance
services. The landscaped median located along 42nd Street between Limb Hall and
Glass Drive is currently being maintained by Riverside County through a special
assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the
annexation of Bermuda Dunes, the City would administer the special district as the
taxes would be transferred to the City and detached from the County. Thus, the
median would continue to be maintained by the assessment district. Currently the
Bermuda Dunes area has no public park or open space areas. Additional costs
associated with the City's exiting recreation program is not anticipated.
6. Contingency:
A 10% contingency factor has been added to the General Fund expenditure estimate to
meet unforeseen programs or emergency needs.
7. Roads:
a. Capital Improvements:
Upon annexation, the City of Palm Desert will be required to pay for the 25%
local share for the proposed improvements at the interchange of Washington
Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the
1997-98 fiscal year, is the City's share of the estimated construction cost plus a
10% contingency. No outside revenue source has been identified to fund this
capital improvement expenditure.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
March, 1996 10 Fiscal Feasibility Report
14W "*W0'
Upon annexation, it is the City's policy to upgrade existing infrastructure systems
within the annexation area to meet or exceed current City standards. The funding
sources for capital improvements within the Bermuda Dunes annexation area
were not identified because a capital improvement program (CIP) was not
developed nor required as part of this analysis. Therefore, in order to prepare a
CIP plan for the Bermuda Dunes annexation area, it would require the
preparation of an extensive and detailed infrastructure assessment analysis.
8. Road Maintenance:
a. Street Maintenance:
The street maintenance expenditure was estimated based upon estimated curb
miles and area size using budget data from the City of Palm Desert. This cost
reflects a 3% increase which includes general street maintenance; City-wide street
slurry sealing, overlaying and resurfacing, new and replaced curbs and gutters,
centerline striping, and safety and sign painting.
b. Traffic Signal Maintenance:
Upon annexation, the City of Palm Desert will be required to maintain additional
traffic signals. The City of Palm Desert currently maintains 50% of the traffic
signals located along Washington Street at 42nd Street, Country Club Drive, and
Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will
be required to maintain 100% of these three (3) traffic signals and 25% of the
traffic signal located at Fred Waring Drive and Jefferson Street.
IV. SUMMARY OF FINDINGS
Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted
expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and
road funds exceed the estimated total revenues. Forecasted expenditures and revenues have
been calculated using conservative methodologies and modest escalation factors.
The forecasted expenditures exceed the estimated revenues for fiscal year 1996-97 by
$982,549, $1,400,980 for fiscal year 1997-98, and $977,050 for fiscal year 1998-99.
Because of the residential character and rural nature of Bermuda Dunes, the estimated
amount of local sales tax generated annually was minimal. For Bermuda Dunes area, there
were only 22 retail establishments identified with taxable sales amounts as provided by the
State Board of Equalization (refer to Exhibit 3). The Bermuda Dunes community has very little
commercial activity with only one lodging establishment. Therefore, the City's forecasted
business license tax and transient occupancy tax amounts are significantly low.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
March, 1996 11 Fiscal Feasibility Report
14W "Wow
Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes
area with only a population of 5,362 will receive minimal motor vehicle and off -highway fees.
Based upon discussions with the City and County staff, RSG has assumed that only five patrol
units would be required to provide sufficient police services to the Bermuda Dunes area. The
forecasted expenditure was calculated based upon per capita costs utilizing the existing
supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated
expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is
nearly 96% of the total general fund revenue estimate.
The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers
Agreement in order to provide fire and paramedic services. The expenditures reflected in this
analysis are commensurate with the City's desire to maintain a high level of service in terms of
structural fire protection and suppression. The forecasted expenditure for structural fire
protection services in fiscal year 1996-97 is approximately 60% of the grand total general fund
revenue estimate. Thus, the expenditures for public safety services alone exceed the general
fund available by 88%.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
12 Fiscal Feasibility Report
March, 1996
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EXHIBIT 3
LIST OF LOCAL SALES TAX GENERATORS
WITHIN THE BERMUDA DUNES ANNEXATION AREA
Subway
Lizett's Hair Design
Ernst & Ernst Foods
So Much More Wallpaper
Carmen's Mexican Food
Clam's Up
Wonder Cuts
Armond's Wholesale Merchandise
Teddy's Donuts 2
Lilli's Chinese Cuisine
Circle K Food Stores
Carl's Jr.
Unocal 76-Chemic Inc.
Goodyear Jack Sauter
Murph's Gaslight/Murphy's
Original Pan Fried Chicken
Bermuda Dunes Country Club
Darby West Care
Larry Shaw Wholesale Plants
California Desert Nursery
Vintage Nursery, Inc.
Cameron Nursery and Turf
Products
Desert Cities Nurseries
Source: State Board of Equalization
4100 Washington Avenue #101
4100 Washington Avenue #103
4100 Washington Avenue
4100 Washington Avenue #119
4100 Washington Avenue #123
4100 Washington Avenue #125
4100 Washington Avenue #129
4100 Washington Street #133
4100 Washington Avenue #139
4100 Washington Avenue #141
4100 Washington Avenue #142
4050 Washington Avenue
4010 Washington Avenue
78105 Country Club Drive
79860 42nd Avenue
42360 Adams Street
78260 Darby Road
78400 Darby Road
78600 Darby Road
78755 Darby Road
78850 Darby Road
41555 Yucca Lane
fir„ a:0en3
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--- Sun City
_ry C'/ub
Palm Desert — __. _ _ e
— -- 42ND Avenue rate I
0 -_- --
— --- -- —------� — Bumuda� Ar
-`� Bermuda Dunes !
Indio
= i h -
La Quinta Fred Waring Drive
Indian -Wells
Source: Urban Decision Systems Inc.
North
Exhibit 4
Bermuda Dunes Annexation Area
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City of Palm Desert
Avenue of the States
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Project Area Boundary
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Multi -Family Residential
(8-18 OU/AC)
Exhibit 5
County Redevelopment Project Area
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CITY OF LA QUINTA
BERMUDA DUNES AREA
PRELIMINARY ANNEXATION ANALYSIS
December 15, 1999
PREPARED BY:
ROSENOW SPEVACEK GROUP, INC.
540 NORTH GOLDEN CIRCLE, SUITE 305
SANTA ANA, CALIFORNIA 92705
On
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PRELIMINARY ANNEXATION ANALYSIS
BERMUDA DUNES AREA
TABLE OF CONTENTS
Introduction......................................................................................................................................1
Executive Summary and Recommendations...................................................................................1
OperatirtgFiscal r................................................................................................................1
Capital bnprvu3noa Fiscal bnpacrs................................................................................................ 2
ExistingSetting.................................................................................................................................3
Pre -Annexation Services....................................................................................................................4
GeneralServices...........................................................................................................................4
Cavityof Rhin-ide General Fund ................................................................................................... 4
OtherService Providers................................................................................................................4
Cavity Rsakdopnmt Agency - Desert C.awnu z6n Rakdjmmt Prp*........................................ 4
Landscape and LigbtingAssessrraaztDistrut No. 89-1-CffMdidatsj................................................... 4
CavityServal? Arnas 121 and 152................................................................................................. 4
AnticipatedPost -Annexation Services and Impacts on City...............................................................6
GeneralFund............................................................................................................................... 6
Reraures...................................................................................................................................... 6
Expendittm................................................................................................................................ 7
GasTax Fund.............................................................................................................................. 7
CapitalImprovements.................................................................................................................. 7
NextSteps and Annexation Process..................................................................................................9
F:\RSG\LAQUINTA\ANNEXATION\REPORT3.DOC
PRELIMINARY ANNEXATION ANALYSIS
BERMUDA DUNES AREA
INTRODUCTION
The City of La Quinta ("City") is contemplating annexation of the Bermuda Dunes vicinity ("Study
Area"). The Study Area is located within unincorporated Riverside County ("County"), as depicted on
Exhibit 1. If an annexation effort is pursued, the City must submit an application to the Riverside County
Local Agency Formation Commission ("LAFCO"), which would include an analysis of the annexation
proposal's fiscal impacts.
This report presents a preliminary analysis of the fiscal impacts of annexation. Rosenow Spevacek
Group, Inc. ("RSG") has developed this report to assist the City in assessing the effects of annexation and to
outline a course of action to pursue the effort.
The Study Area is bound by the City of Palm Desert city limits along Washington Street to the west,
Interstate 10 to the north, the City of Indio city limits near Jefferson Street to the east, and the City of La
Quinta city limits along Fred Waring Drive to the south. RSG estimates that the total size of the Study Area
is approximately 2,020 acres.
EXECUTIVE SUMMARY AND RECOMMENDATIONS
RSG's analysis concludes that, because of the City's significantly higher levels of municipal services,
annexation of the Study Area would provide widespread service enhancements to Study Area residents and
businesses. Areas of acute service enhancements include police, code enforcement, and public works
maintenance. However, funding the City's higher service levels would necessitate development of
substantially more revenue -generating resort, hospitality, commercial, and industrial uses than has been
historically proposed for the Study Area.
The fiscal impacts of annexation of the Study Area are summarized below:
OPERATING FISCAL IMPACTS
ISSUE: Both today and at buildout, the Study Area is, and will be, primarily a residential
community. Because residential uses generally do not generate General Fund revenues,
annexation of the Study Area is anticipated to have a detrimental impact on the City's
General Fund. Consequently, the City would be required to: (1) absorb these impacts, (2)
pursue voter approval for a tax increase to offset revenue shortfalls, or (3) modify the land
use plan to permit development of more revenue -generating uses.
FISCAL IMPACT: RSG projects a first year General Fund shortfall of $523,563, increasing to
$2,961,496 upon buildout.
■ POTENTIAL SOLUTIONS:
The City could absorb the revenue shortfall with existing surplus General Fund
revenues. While this may be a simple short-term alternative, long-term absorption of
these costs may not be feasible as other City service costs increase.
ROSENOW SPEVACEK GROUP, INC. 1 PRELIMINARY ANNEXATION ANALYSIS
DECEMBER 15, 1999 CITY OF LA QUINTA
,W N4wr
Encourage development of additional revenue generating uses, such as resort,
commercial uses along the Interstate 10 Corridor.
With an apparent trend towards locating regional retailers along the Interstate 10
Corridor, the City could alter the land use plan for the Study Area and designate more
property for retail commercial use. Under the County General Plan, only 11 of the
2,020 acres in the Study Area are currently planned for retail commercial use. RSG
estimates another 61 acres of retail commercial uses would be needed to generate
enough sales tax revenue to offset the $2,961,496 General Fund shortfall projected at
buildout. Some of the manufacturing use properties along Country Club Drive could be
rezoned to commercial uses. Further investigation of the viability of retail versus
manufacturing uses would be needed. The City could also consider rezoning vacant,
residentially designated property to commercial. This would have a dual benefit:
increase sales taxes and reduce service costs by lowering the number of dwellings and
households in the Study Area.
CAPITAL IMPROVEMENT FISCAL IMPACTS
■ ISSUE: The Study Area requires substantial capital improvements to elevate roadways to the
City's higher standards, as well as additional improvements to meet ultimate (buildout)
demands.
■ FISCAL IMPACT: Based on projections from the City Public Works Department, interim
improvements to the City's standards could entail an $8 million expenditure. Ultimate
improvement costs could reach nearly $11 million, for a total capital improvement need of
$19 million.
■ POTENTIAL SOLUTIONS:
Adjust City's Development Impact Fee program to fund $19 million of ultimate
improvements caused by future development.
■ Consider levying special assessments to meet capital improvement needs in developed
areas, where Development Impact Fees cannot be exacted.
ROSENOW SPEVACER GROUP, INC. 2 PRELIMINARY ANNEXATION ANALYSIS
DECEMBER 15, 1999 CITY OF LA QUINTA
*4100� *moor
EXISTING SETTING
The Study Area is approximately 2,020 acres in size, and contains an estimated 6,433 residents according
to a December 1999 study by National Decision Systems. Major land uses in the Study Area are residential,
resort, industrial, commercial vacant, and aviation uses. Approximately one half of the Study Area (1,175
acres) is developed; the remaining 845 acres of undeveloped land includes 780 acres of future residential uses,
54 acres of future industrial uses, and 11 acres of future commercial uses.
Breakdown of Existing Land Uses
® Developed ■ Undeveloped - Future Res. ❑ Undeveloped - Future Ind/Comm
As the Study Area builds out under the County General Plan, the number of residential units will increase
from the 3,446 existing today, to 6,726 permitted. As a result, the Study Area's population will increase by
96%, to 12,600. The County General Plan does not envision the same level of development for commercial
and industrial uses; RSG's research indicates that only another 65 acres of commercial and industrial uses are
proposed for the Study Area, representing an increase of less than 19% over the 356 acres of existing
commercial and industrial uses today.
The imbalance of future residential and nonresidential uses planned for the Study Area impairs the ability
of the area to independently generate sufficient tax revenues to support service costs, because residential uses
typically generate most of the municipal expenditures, while commercial and industrial use typically generate
the majority of tax revenues.
ROSENOW SPEVACEK GROUP, INC. 3 PRELIMINARY ANNEXATION ANALYSIS
DECEMBER 15, 1999 CITY OF LA QUINTA
*40r 1.r
PRE -ANNEXATION SERVICES
Several agencies provide the municipal services to the Study Area, as described below:
GENERAL SERVICES
COUNTY OF RIVERSIDE GENERAL FUND
The County's General Fund provides most essential operational services in the Study Area. These
services include basic law enforcement, planning/building, public works, and general government. There are
no park or recreational facilities currently in the Study Area.
Upon annexation, the City would be responsible for all municipal services provided by the County
General Fund. Revenues would be shifted to the City pursuant to the Master Property Tax Agreement (City
Council Resolution 83-28). The Master Property Tax Agreement provides that 25% of the County's property
tax levy (outside the Redevelopment Project Area boundaries) is to be shifted to the City of La Quinta, all
other tax revenues (sales, property transfer, etc.) are transferred to the City in their entirety.
OTHER SERVICE PROVIDERS
COUNTY REDEVELOPMENT AGENCY - DESERT COMMUNITIES REDEVELOPMENT PROJECT
On December 22, 1986, the County Board of Supervisors adopted the Redevelopment Plan for Desert
Communities Redevelopment Project, thereby entitling the County's Redevelopment Agency to collect all
future property tax revenue growth in the Project Area. The Project Area, which includes the merged
Redevelopment Project Area No. 4 and the Airports-1998 Project Area, is comprised of numerous
noncontiguous areas located throughout the County, totaling 26,809 acres. Less than 1.5% of the Study Area
lies within the Project Area, including commercial properties along Washington Street, immediately north and
south of 42-d Avenue. The County's Redevelopment Agency retains all property tax revenues in excess of
amounts received in 1986-87.
Upon annexation, tax increment revenue from any new development, increases in property values, or
property sales within the Project Area would not be paid to the City.
LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT NO. 89-1-CONSOLIDATED
The County currently operates a Landscaping and Lighting Assessment District (89-1-Consolidated) that
maintains the median on 42nd Avenue between Lima Hall Road and Glass Drive. Median maintenance is
funded by property owner assessments that are currently $178.58 per acre per year. A total of 113 property
owners are assessed. Upon annexation, RSG has assumed that the City and County would jointly administer
this Landscaping and Lighting Assessment District to continue maintenance of this median in the Study Area.
COUNTY SERVICE AREAS 121 AND 152
There are two County services areas (CSA) that provide municipal services to the Study Area. CSA 121
provides street lighting to portions of the Study Area, as well as other unincorporated areas north of
Interstate 10. The County currently collects approximately $20,000 in property taxes each year to fund street
lighting operation costs. Upon annexation, the City may detach the Bermuda Dunes portion of CSA 121 and
collect these property taxes directly through the City's general property tax levy. A second County service
ROSENOW SPEVACEK GROUP, INC. 4 PRELIMINARY ANNEXATION ANALYSIS
DECEMBER 15, 1999 CITY OF LA QUINTA
M
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area in the Study Area is CSA 152 that funds street sweeping costs throughout the County and in the Study
Area. Upon annexation, the City would receive this property tax revenue that would offset approximately
25% of the street sweeping costs in the Study Area.
ROSENOW SPEVACEK GROUP, INC.
DECEMBER 15, 1999
PRELIMINARY ANNEXATION ANALYSIS
CITY OF LA QUINTA
w►
05
ANTICIPATED POST -ANNEXATION SERVICES AND IMPACTS ON CITY
Upon annexation, the City of La Quinta would be responsible for providing all municipal services to the
annexed area. This report analyzes the forecasted marginal or incremental cost of City services, as well as the
revenues that could be reasonably expected to fund such services. The funds impacted by annexation include
the General Fund, Gas Tax and Capital Improvements Funds. A summary of these revenue and expenditure
impacts projected in the first, fifth, tenth and twenty-fifth (assumed buildout) years of annexation is presented
in Table 1.
GENERAL FUND
With the exception of road maintenance, most operational services would be provided through the City's
General Fund. Revenues and expenditures projected for the Study Area are enumerated below.
REVENUES
Table 2 projects impacts to General Fund revenues. The primary sources of General Fund operating
revenues would be property taxes, motor vehicle license fees and sales taxes. Other sources of General Fund
revenues include franchise taxes, document transfer taxes, AB 939 recycling fees, Proposition 172
supplemental sales taxes, fines and forfeitures, sales of publications and maps, and property transfer taxes.
Other revenues not specifically identified in Table 2 (such as fees and licenses) are offset by service costs and
excluded from this analysis.
The County currently operates a Landscaping and Lighting Assessment District (89-1-Consolidated) that
maintains the median on 42nd Avenue between Lima Hall Road and Glass Drive. Median maintenance is
funded by property owner assessments that are currently $178.58 per acre per year. A total of 113 property
owners are assessed. Upon annexation, RSG has assumed that the City and County would jointly administer
this Landscaping and Lighting Assessment District to continue maintenance of this median.
There are two County services areas (CSA) that provide municipal services to the Study Area. CSA 121
provides street lighting to portions of the Study Area, as well as other unincorporated areas north of
Interstate 10. The County currently collects approximately $20,000 in property taxes each year to fund street
lighting operation costs. Upon annexation, the City may detach the Bermuda Dunes portion of CSA 121 and
collect these property taxes directly through the City's general property tax levy. A second County service
area in Bermuda Dunes is CSA 152 that funds street sweeping costs throughout the County and in Bermuda
Dunes. Upon annexation, the City would receive this property tax revenue that would offset approximately
25% of the street sweeping costs in Bermuda Dunes.
The revenue forecast assumes some increases in revenues to account for inflationary factors over the 25-
year duration of this analysis. These assumptions are briefly summarized below:
■ 3.5% annual increase in property assessed values to account for Proposition 13 adjustments
and resales;
■ 2.5% annual increase in taxable sales and transient occupancy taxes; and
2% annual increase in franchise taxes, sales of maps and publications, fines and forfeitures,
and AB 939 recycling fees.
ROSENOW SPEVACER GROUP, INC. 6 PRELIMINARY ANNEXATION ANALYSIS
DECEMBER 15, 1999 CITY OF LA QUINTA
CM
EXPENDITURES
Estimated annual General Fund expenditures are itemized in Table 3. The largest General Fund
expenditures relate to public safety services. Public safety cost estimates were compiled by RSG, based on
discussions with the Riverside County Sheriff's Department. According to the Sheriff's Department,
annexation of the Study Area to La Quinta would result in a higher level of service than Bermuda Dunes
residents currently enjoy; this would result from an increased physical presence of patrol cars and increased
patrol resources available to meet peak levels of service.
Annexation would provide Bermuda Dunes residents with a dedicated patrol beat (5 deputies year
round), a community services officer, and an additional member of the investigation support team. Currently,
Sheriff deputies patrol areas outside Bermuda Dunes, including Sun City, and other unincorporated areas as
much as 35 miles away. Also the Sheriff does not provide a community services officer or additional
investigation support to Bermuda Dunes.
Other General Fund operating expenditures relate to City Clerk, Finance, Community Services, Building
and Safety, Community Development, and Public Works maintenance functions. RSG's assumed service
enhancements for these areas include incremental staffing and supply increases to absorb the impact of the
increased service demands from the annexed area.
The projections of City costs incorporate the following assumptions to account for cost inflation:
■ 3.5% annual increase in public safety contract costs, with some economies of scale benefits
realized as the area builds out;
2.5% annual increase in City Clerk supply costs, fiscal personnel costs, code compliance
costs, animal control program expenditures, planning personnel costs, and street
maintenance costs; and
A contingency factor equal to 10% of the total annual expenditures.
GAS TAX FUND
Upon annexation, the City's Gas Tax Fund would be entitled to State subventions pursuant to Sections
2105, 2106, 2107, and 2017.5 of the Streets and Highways Code. These revenues are apportioned to the City
by the state on a per capita basis, except for Section 2107.5 subventions, which are determined by population
thresholds. These funds could be employed by the City to underwrite road maintenance projects either in the
annexed area, or elsewhere in the City.
Table 4 summarizes annual Gas Tax Fund revenues.
CAPITAL IMPROVEMENTS
The City Public Works department conducted an analysis of Study Area roadway needs in September
1999. This analysis characterized public street improvement needs into two categories. The first is referred
to as the "Interim Condition" which would result in improvements that elevate the condition of existing
traffic lanes to the City's higher standards. Interim Condition improvements do not involve increasing of
roadway capacity. The second category is the "Ultimate Condition" which involves improvements to increase
capacity to accommodate future buildout. Together, the Interim Condition and Ultimate Condition
improvements result in the total cost of roadway improvements in the Study Area.
Currently, the City does not have a funding mechanism to construct these improvements. In general,
RSG understands that the City may fund some of these costs through development exactions pursuant to the
ROSENOW SPEVACEK GROUP, INC. 7 PRELIMINARY ANNEXATION ANALYSIS
DECEMBER 15, 1999 CITY OF LA QUINTA
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City's Development Fee Program. The extent that the Development Fee can accommodate these costs is not
known at this time. Any shortfalls in Development Fees would either need to be deferred, or made up by the
City, through other resources (such as state and federal grants and road fund revenues) used to fund capital
improvements throughout the City. Indeed, the Study Area does not generate surplus operating revenues
that can be pledged to meet infrastructure program needs in the Study Area.
ROSENOW SPEVACER GROUP, INC.
DECEMBER 15, 1999
PRELIMINARY ANNEXATION ANALYSIS
CITY OF LA QUINTA
on
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NEXT STEPS AND ANNEXATION PROCESS
If the City desires to pursue annexation of the Study Area, RSG recommends that the City first consider
the market viability of revenue generating uses in the Study Area, such as hotels, regional -serving retail space,
wholesalers, and industrial space. These uses will be necessary to ensure that the City's General Fund collects
sufficient revenues to offset service costs. Otherwise, development of service -demanding residential uses will
significantly curtail the ability of the City to meet service needs, and the City could be forced to consider a
reduction in services in the Study Area.
If the City desires to proceed with an annexation application, the City would need to do the following:
1) Amend the City's Sphere of Influence to include the proposed annexed area.
2) Enter into a pre -annexation agreement with the County of Riverside to provide the City the
ability to review future development proposals, and facilitate future annexations of the Study
Area as the area builds out.
3) Prepare a plan for services that assesses current service providers, current City service levels,
and the City services to be extended.
4) Prepare and submit a fiscal impact analysis that assesses the annexation's effects on both the
City and the County.
5) Conduct at least one public workshop to discuss the annexation proposal with affected
residents.
ROSENOW SPEVACEK GROUP, INC. 9 PRELIMINARY ANNEXATION ANALYSIS
DECEMBER 15, 1999 CITY OF LA QUINTA
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EXHIBIT 1
STUDY AREA MAP
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BERMUDA DUNES ANNEXATION AREA
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TABLE 1 - FUND SUMMARY
Year 1.
Year 5
Year 10
Buildout
KEY ASSUMPTIONS
Residential Units
3,446
4,102
4,758
6,726
Residential Population (Permanent
6,433
7,700
8,900
12,600
New Retail Development (sq ft)
-
-
-
105,902
New Industrial Development (sq ft)
-
-
100,000
1,058,312
GENERALFUND
Revenues
$ 992,961
$
1,290,405
$
1,540,145
$ 2,950,988
Expenditures
1,516,524
1,889,352
2,475,207
5,912,484
Revenues Less Expenditures
$ (523,563)
$
(598,947)
$
(935,062)
$ (2,961,496)
GAS TAX FUND
Revenues
$ 115,022
$
137,676
$
159,132
$ 226,288
Expenditures
n/a
n/a
n/a
n/a
Revenues Less Expenditures
n/a
n/a
n/a
n/a
CAPITAL IMPROVEMENT FUND (Cumulative
Costs)
Interim Improvement Cost
$ -
$
8,341,344
$
8,341,344
$ 8,341,344
Ultimate Improvement Cost
-
-
11,055,161
11,055,161
Total Cost
$
$
8,341,344
$19,396,505
$19,396,505
Irk
TABLE 2 - GENERAL FUND REVENUES
Year 1
Year 5
Year 10
Buildout
Taxes
Property Tax
General Fund
$
302,946
$
424,555
$
594,473
$
1,708,027
CSA 121 (street lighting)
20,000
20,000
20,000
20,000
CSA 152 (street sweeping)
4,500
4,500
4,500
4,500
Assessment 89-1 -C
14,700
14,700
14,700
14,700
Document Transfer Tax
29,393
41,168
41,168
57,477
Sales Tax
126,387
201,597
201,597
228,088
Proposition 172 Sales Tax
3,160
5,040
5,040
5,702
Transient Occupancy Tax
53,136
58,652
58,652
66,360
Franchise Tax
103,965
122,001
141,015
199,639
Subtotal
$
658,186
$
892,213
$
1,081,144
$
2,304,492
Licenses and Fees
Business License Fees
$
8,000
$
8,000
$
8,000
$
8,000
Other Licenses & Fees
Cost Offset
Cost Offset
Cost Offset
Cost
Offset
Sale of Maps and Publications
1,385
1,625
1,878
2,659
Subtotal
$
9,385
$
9,625
$
9,878
$
10,659
Intergovernmental
Motor Vehicle License
$
286,654
$
343,112
$
396,584
$
561,456
Fines & Forfeitures
12,178
14,290
16,517
23,384
AB 939 (Recycling Fees)
26,558
31,165
36,022
50,997
Subtotal
$
325,390
$
388,567
$
449,123
$
635,837
Total $ 992,961 $ 1,290,405 $ 1,540,145 $ 2,950,988
TABLE 3 • GENERAL FUND EXPENDITURES
Year 1
Year 5
Year 10
Buildout
Public Safety
Sheriffs Contract
$
895,292
$
1,248,806
$
1,703,481
$
4,670,855
General Government
Legislative
$
_
$
-
$
_
$
_
City Manager
Econ. Dev. Contract Services
Econ. Dev. All Other
Subtotal
$
_
$
_
$
_
$
_
City Clerk
Services and Supplies
$
17,830
$
20,924
$
24,185
$
34,239
All Other
Subtotal
$
17,830
$
20,924
$
24,185
$
34,239
Finance
Fiscal Personnel
$
39,658
$
43,775
$
54,669
$
71,730
Fiscal Services and Supplies
5,000
5,000
5,000
5,000
Fiscal Capital Equipment
-
_
_
_
Central Services -Svc & Sppls
50,000
50,000
50,000
50,000
Central Services -All Other
-
_
-
_
Subtotal
$
94,658
$
98,775
$
109,669
$
126,730
Community Services
Administration
$
$
_
$
$
_
Recreation
10,000
10,000
10,000
10,000
Senior Center
33,627
33,627
33,627
33,627
Subtotal
$
43,627
$
43,627
$
43,627
$
43,627
Building & Safety
Administration
$
-
$
$
_
$
_
Code Compliance
58,211
64,254
80,245
105,288
Animal Control
15,934
18,698
21,612
30,597
Building & Safety -All Other
-
_
_
_
Subtotal
$
74,145
$
82,952
$
101,856
$
135,884
Community Development
Admin.-Contract Services
-
_
_
_
Admin.-All Other
_
_
_
_
Planning
136,906
151,119
188,726
247,625
SCAQMD
_
_
_
_
General Plan Amendment
50,000
-
.
Subtotal
$
186,906
$
151,119
$
188,726
$
247,625
Public Works
Administration
$
1,500
$
1,500
$
1,500
$
1,500
Development & Traffic
-
-
_
_
Street Maintenance
50,000
55,191
62,443
99,825
Landscape & Lighting Maintenance
14,700
14,700
14,700
14,700
Subtotal
$
66,200
$
71,391
$
78,643
$
116,025
Subtotal
1,378,658
1,717,593
2,250,188
5,374,986
Contingency (10%)
137,866
171,759
225,019
537,499
Total
$
1,516,524
$
1,889,352
$
2,475,207
$
5,912,484
ON
TABLE 4 • GAS TAX FUND REVENUES
Year 1
Year 5
Year 10
Buildout
Gas Tax Subventions
Section 2105
$ 38,791
$ 46,431 $
53,667
$ 75,978
Section 2106
21,937
26,257
30,349
42,966
Section 2107
54,295
64,988
75,116
106,344
Section 2107.5
-
-
-
1,000
Total
$ 115,022
$ 137,676 $
159,132
$ 226,288
Im
on
TABLE 5 - CAPITAL IMPROVEMENT FUND PROJECT COSTS (Cumulative Costs)
Year 1
Year 5
Year 10
Buildout
Interim Condition 1/
Local Street
$
- $ 2,553,351
$ 2,553,351
$ 2,553,351
Secondary Arterial
- 930,513
930,513
930,513
Primary Arterial
- 3,893,018
3,893,018
3,893,018
Major Arterail
- 964,462
964,462
964,462
Subtotal
$
- $ 8,341,344
$ 8,341,344
$ 8,341,344
Ultimate Condition 2/
Local Street
$
- $ -
$ 2,492,588
$ 2,492,588
Secondary Arterial
- -
1,305,016
1,305,016
Primary Arterial
- -
6,049,097
6,049,097
Major Arterail
- -
1,208,460
1,208,460
Subtotal
$
- $ -
$ 11,055,161
$11,055,161
Total
$ -
$ 8,341,344
$19,396,505
$19,396,505
1 / Assumes buildout to City's higher
improvement standards. Assumed to be constructed by the fifth
year of annexation
2/ Assumes buildout to ultimate improvement standards. Assumed to
be constructed
by the tenth ye
ofannexation
RSG, INC ID:714-836-1748 OCT 07'98 15:11 No.022 P.05
EXHIBIT 2
v
DEL W BB'S SUN CITY & JACK IVEY RANCH ANNEXATION FEASIBILITY STUDY(Assumes 250,000 sq. ft. camm.)
1996-99 2000-91 1-0-64 100445 2005-06 .07
(Full Year WWI Year) (Full Year) (Full Year) (Full Year) (Full Ycar) (Full Year) (Dull Year) (Bulldout)
r]?NI:
AI: (iUVERNMENT
Ad
inislration
2.467
11.718
3,509
15,703
4,669
19,976
5,953
24.485
7,350
in
rancc
21,nnn
22,050
23,153
2.4,310
25,526'',
26.802
28,142
29,549
31.027
An
al C:nntrul
10,762
12,596
14,430
16,264
18.097
19,931
21,752
23,532
25,312
C411
my TAX Collection Charge
6.984
8,478
10,036
11,673
13.344
15,0AS
16.877
18,716
21,121
Sut
oral
41,213
34,843
51,129
(i7,95d
61,636
91,794
72.724
96,282....-
-84,810
PUBLI
SAFETY
Sho
riffComract
733,924
770,515
809,041
849,49.1
891,969
9.16,566
983.394
1,032,564
1,084,192
Jail
Hooking Feei,
4,400
4,532
4,668
4.809
4,952
5.101
5.254
5,411
3,574
Fin
Prokwtion
769.677
511.961
$56.723
904,314
913,274
1,005,839
1,060,723
1,119,441
1,195.283
Sill
Joel
1,507.90)
1,567.008
1,670,432
1,758,615
1,950,194
1,947,506
2,049,372
2,156,416
2,2RS,049
COM
NITY UEVTI.AI�MI;NT
Nc
uslr
5,000
51150
5,305
5,464
5,628
5.796
5.970
6,149
6.334
C4►
Compliance Oil i
---
_t. 52.703
54.28.4
5.5,912
57,590
59,317
61.097
62,930
64.818
66,762
Su
lid
57.703
59.434
61,217
63,053
64,)45
66.893
68,900
70,967------73,096
PUBM
WORKS
Ad
inivtralion
7,626
9,104
10.637
12,229
13,98o
15,592
17,337
19.153
21,914
St
I.ighlin;
8.281
R,530
8,786
9,049
91321
9.600
9,888
10.185
10,490
Su
oral
15,907
17,633
19,423
21,278
23.261
25,192
27,241
29,338
31,504
PARK
&RI:C:RrA'f'IUN
No
caping/Median b
fain
enep
• • Assumcd to he Paid by Mnstcr Homeowners-' ANsocialion •
su
total
- _
0
0
0
0
..0....
0
0
0
0
C:ONTI
4GENCY
162,272
171,892
180.220
191,090
199.998
212,139
221,924
2-15.300
247,446
TOTAI-G -,NERAI.IIfEND
1,784.995
1,490.810
1;)82,420
2.101.986
2,199,973
2,333.524
2.440,064
2,589,304
2.721'►05
ROADS
Ca
ta11111pruvcmcnla
0
0
0
0
0
0
0
0
p
Str
K Maintenance
14,772
77.015
79,325
81,701
94.156
86,681
89,251
91,960
94,719
st
Sweeping
6,142
6,327
6,516
6,712
6.913
7,121
7,334
7.554
7,781
Tra
is signal Operalk
/Maintenam,
1 14.832
15,277
15,735
16,207
16,694
17,194
17,710
18.241
18.784
Ca
iI pwy
9,575
9.862
10.158
10,462
10,776
11.100
11,433-
11,776
12.129
'1'(►'1'Al, R
AD FUND
105.321
109,490
111,735
115.087
118,539
122.0%
125.758
129,531
133.417
TOTAL
I.EXPEND1T1J
ES i1,990,316
1,999,290
2,094,134
2,217,073
2,3111,513
12,455,620
2.565.823
2,717,835
2,8SS,322
kl,'V.FN1l1k
8URPLI18/(81fn
TFALL) I(197,931)
4,990
174,595
399,952
596,488
779.714
985.145
1,425.367
1,950,533
Cl_1MULA
VIi.91JRP1,IJ.C/(r
'F1C'1'I') (197,931)
(192,941)
(18,345) "'-
381,606---978,094
1,757.828
2,742,0-1
4,168,110
G,1I8,8T3
Genera i
Fund Surplps/($
ortfall) (352,566)
(197.562)
(77,732)
95,911
238.710
366.10-4
513,825
R95,204
i,359,186
Comula
ivc Goncral Fund
(352.566)
(SSO,IZB)
(627,860
531,949
( )
(293,239)
72,964
586,689
1,481,893
2,R41,079
Road F
and 8urplur/(Sho
all)
154,634
202,553
7.52,327
304,040
357.778
413.631
471,320
530,163
591,347
Colnulm
ivoRundhund
154,634
357.187
609,514
913,555
1.271.333
1.684.964
2,156,2114
2,686.447
3,277,794
m
MG. lNc, rm wftw.M% auapa-um aomm
' • 1%w owe
BERMUDA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
March, 1996
Prepared for:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
(619) 340-5776
Prepared by:
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, California 92705
(714) 541-4585
BERMUDA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
1. BACKGROUND
The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a
fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to
meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if
and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to
determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the
Bermuda Dunes community. This Report will focus on what City services will be provided within
the Bermuda Dunes area, the forecasted cost of those services, and what revenues could
reasonably be expected to be available to fund those services. This Report will focus on a
compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal
year 1998-99 using a range of potential fiscal impacts. It should be understood that there will
usually be differences between the forecasts and actual results because events and circumstances
frequently do not occur as expected, and those differences may be material.
The Bermuda Dunes area 1995 population is estimated at 5,362. The subject area is comprised of
approximately 3.2 square miles of territory. The estimated population figure is based on 1990
census information and enhanced by various trends and modeling techniques, including actual
population growth in the surrounding communities. A population estimate of 6,000 was shown in
a past application as submitted by a Bermuda Dunes community organization to the Local Agency
Formation Commission. A national research bureau has estimated the 1995 population of
Bermuda Dunes at 6,266. This population projection was derived using generalized assumptions
based upon age specific fertility rates, life expectancy, and net immigration. However, we believe,
based on actual population growth in the area, the population estimates are too high. Even if these
higher population figures were used, the forecasted expenditures would still far exceed forecasted
revenues. The higher population figure would lower the fiscal deficits by approximately $75,000 or
8%.
At the present time, the number of structures or dwelling units in the proposed annexation area
include approximately 700 apartments, 1,200 single family residential units, 300 condominiums,
200,000 square feet of commercial space, an airport, a 27-hole golf course and clubhouse, and a
41-unit hotel. Bermuda Dunes is located in the central region of Riverside County. The boundaries
of the Bermuda Dunes community is generally the area along the Interstate 10 Freeway to the
north, excluding the Indio city limits, the east boundary Indio city limits, Fred Waring Drive and the
La Quints city limits to the south, and along Washington Street up to the Interstate 10 Freeway to
the west. Most of the area is still of a rural nature and similar to areas of the Coachella Valley.
Bermuda Dunes is predominantly residential and rugged terrain (refer to Exhibit 4).
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
March,1996 1
The major public agencies currently providing services in the Bermuda Dunes community are the
County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District.
The County of Riverside is currently responsible for policymaking and administration, .law
enforcement, animal control, planning and land use regulation, building inspection, flood control,
and the maintenance and improvement of roads. Street lighting services within the Bermuda
Dunes area are currently provided through County Service Area No. 121. The landscaped median
located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by
Riverside County through a special assessment district formed pursuant to the 1972 Lighting and
Landscape Act. Upon annexation, the City would administer the special district as the taxes would
be transferred to the City and detached from the County.
Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and
the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and
Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the
services is currently in place. Sewer service is currently, and will continue to be, provided by Septic
Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive,
Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection
services to the Bermuda Dunes community. Currently, one fire station, Riverside County Fire
Station No. 31, is located at 42nd Avenue and services a three-mile radius. The County of
Riverside is currently responsible for providing police services within the Bermuda Dunes area. The
law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio
substations. Upon annexation, no change in fire or police protection services are anticipated
because police and fire protection services are provided by the same Riverside County
organization. The roads within the Bermuda Dunes area are currently maintained by the County of
Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing
roads.
Many of the General Fund and Road Fund revenues and expenditures were either calculated on a
per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a
case study methodology.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
March. 1996 2
cm
CM
/_�
REVENUES
GENERAL FUND
The primary sources of General Fund revenues are noted below and shown on Exhibit 1:
1. Taxes:
a. Property and Parcel Taxes:
The City's property tax revenue is based on the historical property tax ratio of
25%/75% between the City and the County respectively as set forth in Resolution
No. 81-133 adopted September 24, 1981. Upon annexation, the City would
receive approximately 25% of the total General Fund property tax revenue and
the County would retain the remaining 75% of General Fund property tax
revenue. In addition, the City would also assume service responsibilities of
County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the
community of Bermuda Dunes and provides funding for street lighting. Upon
annexation, CSA No. 121 would be dissolved. One hundred percent (100%) of
this special district's levies would be transferred to the City (refer to Exhibit 2).
b. Property Transfer Taxes:
The amount of Property Transfer Tax received will depend upon the level of resale
activity within Bermuda Dunes. These revenues have been estimated using an
average of previous three (3) year property transfer activity within Bermuda Dunes
at the rate of .55C per $1,000 of assessed values.
C. Homeowners Property Tax Relief.
Revenue estimates generated from the Homeowner's Property Tax Relief were not
specifically projected because this analysis bases the Property Tax Apportionment
on assessed valuation gross of the Homeowners Exemption. Therefore, revenue
from the Homeowner's Property Tax Relief is included in the Property Tax
Apportionment.
Rosenow Spevacek Group, Inc.
March, 1996
N
A xcition
Bermuda Dunes nne
Fiscal Feasibility Report
vilow ;,0,
d. Sales Taxes:
Upon annexation, the City will be eligible to receive a percentage of the sales tax
charged on qualifying retail sales from businesses within Bermuda Dunes. The
State Board of Equalization estimated that the commercial areas within Bermuda
Dunes are generating approximately $114,500 in sales tax revenues annually.
RSG has assumed a modest 3% increase on these sales tax revenues for Bermuda
Dunes (refer to Exhibit 3).
e. Transient Occupancy Taxes:
Upon annexation, the City will receive the Transient Occupancy Tax. The City's
Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging
establishment, the New Inn located within the Bermuda Dunes Country Club,
which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax
based on an occupancy factor and average room rate.
2. State Subventions (Motor Vehicle Fees):
Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These
taxes are collected by the State's Department of Motor Vehicles and allocated to cities
on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a
per capita basis. Both subventions are based on 5,362 which is the estimated
population for Bermuda Dunes.
The per capita figures used in the revenue summary have been provided by the State
Controller's office for the 1995-96 fiscal year.
3. Franchise Fees:
Upon annexation, the City will receive the franchise fees currently paid to the County
by Continental Cable Television, the Southern California Gas Company, Waste
Management, and Western Waste. These fees have been estimated on a per capita
basis using budget figures from the City of Palm Desert.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
4 Fiscal Feasibility Report
March, 1996
vw
4. Development Related Fees:
The fees described below are not included in Exhibit 1 because these fees specially
offset costs of development related services, only the "net" cost of these services are
indicated under "Expenditures".
a. Land Use Planning and Regulation Fees:
The City is authorized to charge fees for all land use planning and regulation
services. The City would utilize the City's existing fee schedule. These fees should
off -set most of the City's cost in providing these services.
b. Building Inspection and Permit Fees:
The fees collected for these building and permit inspection services should, in
most cases, totally offset the cost of these services.
C. Engineering Fees:
The City is also authorized to charge fees for plan checking, public works
inspection, permit issuance and review and other engineering services. The fees
collected for these services should, in most cases, offset the cost of these services.
d. Development Fees:
Under the provisions of State law, the City may collect development fees for the
purpose of construction or improving capital facilities. Fees received must be
segregated from the General Fund in order to avoid commingling. Certain fees
must be spent or committed within five years from the time they are collected.
5. Other Revenues:
a. Fines and Forfeitures:
This represents both Motor Vehicle Code fines, Municipal Code fines, and other
miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from
Bermuda Dunes were estimated on a per capita basis using current budget data
from the City of Palm Desert.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
March, 1996 5 Fiscal Feasibility Report
b. Business License Tax:
Upon annexation, the City will be eligible to impose the City's current Business
License Tax. The Business License fee for the City of Palm Desert is calculated
based upon gross sales. Based on discussions with City staff, RSG has estimated
the amount of Business License Tax using an average Business License fee for the
local sales tax generators identified within the Bermuda Dunes annexation area
(refer to Exhibit 3).
c. Proposition A Fire Tax:
The Proposition A Fire Tax is calculated using a per parcel cost. This figure is
estimated using an estimated 700 apartments and 300 condominiums at a per
parcel cost of $36 per unit, and an estimated 1,200 single family residential units
at $48 per unit.
d. County RDA:
Currently there exists along Washington Street and 42nd Avenue a County
redevelopment project area. A small portion of the County Redevelopment
Project Area is located within the City of Palm Desert, and the remaining portion
exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This
County Redevelopment Project Area consists of commercial and multifamily
residential use and is located along Washington Street between Mountain View to
the south and just north of 42nd Avenue. In this analysis, it is assumed the City
would not take over the County Redevelopment Project Area and continued to be
maintained as a County Redevelopment Project Area. Because the County
Redevelopment Project Area would not be taken over by the City, no revenues
have been forecasted in this analysis.
e. Interest:
Because expenditures exceeded revenues resulting in no excess cash, RSG did not
include interest in this analysis.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
6 Fiscal Feasibility Report
March, 1996
cm
En
B. ROAD FUND
All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with
the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the
cities based upon total population size. Because the annexation of Bermuda Dunes is only
adding 5,362 population to the existing 37,573 of Palm Desert, the added population will not
put the City's population above the next threshold. As such, no revenue is reflected relative
to Section 2107.5. Similar to other state subventions, road fund revenues initially would be
based at the estimated population of 5,362. Other Road Fund revenues include the voter -
approved Measure A sales tax distributed by the County Transportation Commission.
Revenues attributed to these gasoline taxes are restricted for use on road related maintenance
expenditures.
lll. EXPENDITURES
A. GENERAL FUND EXPENDITURES
Expenditures have been categorized by departments within the City's organizational structure
and are estimated as follows:
1. General Government:
a. Administration:
The analysis assumed no new positions, equipment or major operating costs
would be incurred because of the annexation. Minimal expenditures including
legal costs, advertising, postage, and other selected services and supplies were
estimated. Costs associated with the 1997-98 election are shown. Costs were
estimated based on a case by case analysis or a per capita rate using City budget
data.
b. Insurance:
Upon annexation of Bermuda Dunes, it is probable that the cost of the City's
insurance policy will be impacted. RSG has estimated these costs based on
existing infrastructure and other public facilities within Bermuda Dunes in
relationship to the City's budgeted expenditure forecasts.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
March, 1996 7
*4w 840W
C. Animal Control:
Upon annexation of Bermuda Dunes, the current City animal control contractor,
California Animal Care, will assume animal control services for this area. Costs
were estimated assuming additional personnel and equipment as required by
California Animal Care. These costs are net of any animal license fee revenues.
d. County Property Tax Collection Charges:
Beginning in 1992-93, the County Auditor -Controller's Office charged cities and
local districts receiving property tax revenue for incidental administrative costs.
These charges are estimated at 2% of all property tax revenues.
2. Public Safety:
a. Sheriffs Contract:
The Riverside County Sheriff's Department estimates service costs on a per capita
basis. The City has indicated a desire to maintain a patrol beat to population ratio
of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG
believes this estimated service level appears excessive in this particular community
due to the existing calls for service and the open space character of Bermuda
Dunes. Thus, RSG has assumed based on discussions with City and County staff
that only 5 beats will be needed to provide sufficient police services to the
merchants and residents of Bermuda Dunes.
b. Jail Booking Fee:
Riverside County collects from its Cities a flat fee for jail bookings. Currently, the
present jail booking fee is approximately $110. Bermuda Dunes jail booking fees
were estimated based on jail bookings for the County incorporated areas in this
area and for the City of Palm Desert.
C. Fire Protection:
The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a
joint Powers Agreement forming the Cove Communities Public Safety Commission
in order to provide fire and paramedic services. These costs are net of the
property tax levy of the County Fire District. Fire Protection expenditures were
estimated using Riverside County Fire budget costs. This expenditure reflects a
percentage of the assessed valuation based upon the 1995-96 total cost. The
estimated budget figure includes fire services staff costs, a one-time $110,000 for
new equipment and $12,000 for training and other maintenance services. This
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
8 Fiscal Feasibility Report
March, 1996
*"W
estimated budget figure does not include optional paramedic services, which
would be an additional $330,486. This total was reduced to reflect the net cost of
services (less the 1 % of the total assessed valuation of the Bermuda Dunes area
multiplied by the Structural Fire Tax rate of .06025). Currently one (1) fire station,
Riverside County Fire Station No. 31, is located at 42nd Avenue and services a
3-mile radius.
3. Community Development:
Upon the annexation of Bermuda Dunes, the Community Development Department
will assume the processing of all land use related services. These services will, in most
cases, be off -set by fees. However, the City will be responsible for the preparation of a
Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps,
and other miscellaneous costs associated with the in-house preparation of the Specific
Plan.
a. Code Compliance Officer:
Upon annexation, it is anticipated that an additional Code Compliance Officer will
be required to provide code enforcement services within the area of Bermuda
Dunes. This expenditure is calculated using the first step in the City's payroll
salary range for Code Compliance Officer at $2,604 per month. RSG has included
an additional 35% of the annual salary to reflect benefits and an additional 10%
for supplies, minor equipment, and other overhead costs.
4. Public Works:
For purposes of this Report, it is assumed that the current level of service of
maintenance programs is sufficient to the community's needs. Upon annexation, CSA
No. 121 and other County responsibilities will be assumed by the City. The Public
Works cost estimates also include an allowance for contract services to administer these
programs.
a. Administration:
A minimal administrative cost impact based on a per capita factor using City
budget data is reflected. This cost represents supplies, meeting and travel costs,
equipment, and other services.
Bermuda Dunes Annexation
Rosenozv Spevacek Group, Inc. Fiscal Feasibility Report
March, 1996 9
`%W `*400
b. Street Sweeping:
Upon annexation of the Bermuda Dunes area, the City will provide street
sweeping services to this area. This expenditure was based on discussion with City
staff using a curb mile estimate cost based on City budget data. Street sweeping
services are performed bi-weekly by the City of Palm Desert.
c. Street Lighting:
Street lighting services within the Bermuda Dunes area are currently provided
through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds
will be transferred to the City. The forecasted expenditure is based on current
CSA No. 121 budget data (refer to Exhibit 2).
5. Parks and Recreation:
There is no anticipated financial impact relative to existing landscape maintenance
services. The landscaped median located along 42nd Street between Limb Hall and
Glass Drive is currently being maintained by Riverside County through a special
assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the
annexation of Bermuda Dunes, the City would administer the special district as the
taxes would be transferred to the City and detached from the County. Thus, the
median would continue to be maintained by the assessment district. Currently the
Bermuda Dunes area has no public park or open space areas. Additional costs
associated with the City's exiting recreation program is not anticipated.
6. Contingency:
A 10% contingency factor has been added to the General Fund expenditure estimate to
meet unforeseen programs or emergency needs.
7. Roads:
a. Capital Improvements:
Upon annexation, the City of Palm Desert will be required to pay for the 25%
local share for the proposed improvements at the interchange of Washington
Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the
1997-98 fiscal year, is the City's share of the estimated construction cost plus a
10% contingency. No outside revenue source has been identified to fund this
capital improvement expenditure.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
10 Fiscal Feasibility Report
March, 1996
err+
Upon annexation, it is the City's policy to upgrade existing infrastructure systems
within the annexation area to meet or exceed current City standards. The funding
sources for capital improvements .within the Bermuda Dunes annexation area
were not identified because a capital improvement program (CIP) was not
developed nor required as part of this analysis. Therefore, in order to prepare a
CIP plan for the Bermuda Dunes annexation area, it would require the
preparation of an extensive and detailed infrastructure assessment analysis.
8. Road Maintenance:
a. Street Maintenance:
The street maintenance expenditure was estimated based upon estimated curb
miles and area size using budget data from the City of Palm Desert. This cost
reflects a 3% increase which includes general street maintenance; City-wide street
slurry sealing, overlaying and resurfacing, new and replaced curbs and gutters,
centerline striping, and safety and sign painting.
b. Traffic Signal Maintenance:
Upon annexation, the City of Palm Desert will be required to maintain additional
traffic signals. The City of Palm Desert currently maintains 50% of the traffic
signals located along Washington Street at 42nd Street, Country Club Drive, and
Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will
be required to maintain 100% of these three (3) traffic signals and 25% of the
traffic signal located at Fred Waring Drive and Jefferson Street.
IV. SUMMARY OF FINDINGS
Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted
expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and
road funds exceed the estimated total revenues. Forecasted expenditures and revenues have
been calculated using conservative methodologies and modest escalation factors.
The forecasted expenditures exceed the estimated revenues for fiscal year 1996-97 by
$982,549, $1,400,980 for fiscal year 1997-98, and $977,050 for fiscal year 1998-99.
Because of the residential character and rural nature of Bermuda Dunes, the estimated
amount of local sales tax generated annually was minimal. For Bermuda Dunes area, there
were only 22 retail establishments identified with taxable sales amounts as provided by the
State Board of Equalization (refer to Exhibit 3). The Bermuda Dunes community has very little
commercial activity with only one lodging establishment. Therefore, the City's forecasted
business license tax and transient occupancy tax amounts are significantly low.
B
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
11 Fiscal Feasibility Report
March, 1996
401
Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes
area with only a population of 5,362 will receive minimal motor vehicle and off -highway fees.
Based upon discussions with the City and County staff, RSG has assumed that only five patrol
units would be required to provide sufficient police services to the Bermuda Dunes area. The
forecasted expenditure was calculated based upon per capita costs utilizing the existing
supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated
expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is
nearly 96% of the total general fund revenue estimate.
The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers
Agreement in order to provide fire and paramedic services. The expenditures reflected in this
analysis are commensurate with the City's desire to maintain a high level of service in terms of
structural fire protection and suppression. The forecasted expenditure for structural fire
protection services in fiscal year 1996-97 is approximately 60% of the grand total general fund
revenue estimate. Thus, the expenditures for public safety services alone exceed the general
fund available by 88%.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
12 Fiscal Feasibility Report
March, 1996
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EXHIBIT 3
LIST OF LOCAL SALES TAX GENERATORS
WITHIN THE BERMUDA DUNES ANNEXATION AREA
Subway
Lizett's Hair Design
Ernst & Ernst Foods
So Much More Wallpaper
Carmen's Mexican Food
Clam's Up
Wonder Cuts
Armond's Wholesale Merchandise
Teddy's Donuts 2
Lilli's Chinese Cuisine
Circle K Food Stores
Carl's Jr.
Unocal 76-Chemic Inc.
Goodyear Jack Sauter
Murph's Gaslight/Murphy's
Original Pan Fried Chicken
Bermuda Dunes Country Club
Darby West Care
Larry Shaw Wholesale Plants
California Desert Nursery
Vintage Nursery, Inc.
Cameron Nursery and Turf
Products
Desert Cities Nurseries
Source: State Board of Equalization
4100 Washington Avenue #101
4100 Washington Avenue #103
4100 Washington Avenue
4100 Washington Avenue #119
4100 Washington Avenue #123
4100 Washington Avenue #125
4100 Washington Avenue #129
4100 Washington Street #133
4100 Washington Avenue #139
4100 Washington Avenue #141
4100 Washington Avenue #142
4050 Washington Avenue
4010 Washington Avenue
78105 Country Club Drive
79860 42nd Avenue
42360 Adams Street
78260 Darby Road
78400 Darby Road
78600 Darby Road
78755 Darby Road
78850 Darby Road
41555 Yucca Lane
pwms,g3
L"n
�� t---- Sun City - - —
L -;
Palm Desert
�..
r,-� III—te�sta�
y---- 42ND Avenue e f
Pee
Bermuda Dunes
Indio
y
La Quinta Fred Waring Drive
IndiwWells
North
Source: Urban Decision Systems Inc.
Exhibit 4
Bermuda Dunes Annexation Area
R l) S 1=. N l) U' P 1 V A C li K l P I N l
41 **awl *"W
City of Palm Desert
If 111111111111III 111111111HE 9.1%
Avenue of the States
Mountain View
_ � CIZ �1
ap—J I
II
42ND Avenue
Darby Road
Project Area Boundary
Commercial
Multi -Family Residential
(8-18 DU/AC)
Exhibit 5
County Redevelopment Project Area
law
R. F N V P 1: N' A C F K G R () V P I N C.
RosENOW SPEVAC'EK GROUP INC.
March 7, 1996
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
FEBRUARY INVOICE
Dear Mr. Drell:
REC:E1VE[D
MAR 11 1996
CWMUNI YDE DpMENTDEpgRTMENT
PAW DESERT
Pursuant to our agreement for professionservices, the following rendered during the month resents the hours
and expenses accrued by RSG for services
Feasibility Study $ 481.25
AMOUNT DUE $ 481.25
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
a
Felise Acosta
Principal
V,
Fk ab
Enclosures
5 -
7n
-2
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
" ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
CITY OF PALM DESERT
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
INVOICE NO.: 0004260-IN
DATE: 02/29/96
CLIENT CODE: PD
PAGE NO.: 1
------------------------------------------------------------------------
RATE
AMOUNT
-----------------
STAFF
HOURS
FOR PROFESSIONAL SERVICES RENDERED:
--------------------------------------
BERMUDA DUNES
Contract # C10310
DTM
1.00
i00.000
100.00
02/12/96 COORDINATION
DTM
.50
100.000
50.00
02/13/96 COORDINATION
DTM
.50
100.000
50.00
02/15/96 COORDINATION
DTM
1.00
100.000
100.00
02/28/96 FINALIZE DOCUMENTS
MP
1.25
65.000
81.25
02/28/96 REVISE REVENUE/EXPENDITURE FORECAST
DTM
1.00
100.000
100.00
02/29/96 FINALIZE DOCUMENTS
CURRENT
2139.50
TOTAL FEES: 481.25
------------
TOTAL AMOUNT: 481.25
PAYMENT DUE UPON RECEIPT
----------------
---- OVER 90 OVER 120 BALANLC
OVER 30 OVER 60
2139.50
DATE:
TO:
FROM:
SUBJECT:
RoSENOW SPEVACEK GROUP INC.
February 13, 1996
Phil Drell
City of Palm Desert
Daniel T. Miller, RSG 10
BERMUDA DUNES ANNEXATION AREA
Population Estimate
RECEIVED
F E B 14 1996
COMMUNITY DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
The estimated population figure of 6,266 for the annexation area of Bermuda Dunes was
obtained from a national research bureau (Urban Decision Systems, Inc.). The population
projection for Bermuda Dunes was derived utilizing 1990 census information, which makes
general assumptions based upon age specific fertility rates, life expectancy, and net immigration.
The population estimate for the annexation area of Bermuda Dunes is based on Census Bureau
information and enhanced by various trend and modeling techniques. Attached is the source data
we used in our projections.
A population estimate of 6,000 for the Bermuda Dunes annexation area is shown in the
application submitted to the Riverside County Local Agency Formation Commission
("LAFCO"). This population estimate was obtained using the Myoma Water Company records.
Total Area
The correct figure should be 3.2 square miles, which reflects the total area shown in legal
description in the LAFCO application, excluding City of La Quinta property located at the
northwest corner of Fred Waring Drive and Washington Street.
Please let me know how you want to proceed with the population estimate. Any changes to this
estimate will impact the revenue/expenditure forecast.
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
palmdst\2-12memo
Urban Decision System::, Inc.
Database Methodalogy
Tabie 1: Estimates and Projections Variables
Variable
Elements, Description
po ulatio I
Total no uladon in ico=1phc luiit
Population by Household
population in family househclds, non -Family households, and group quarters population
ra
1ouseholds
Tora1 member of households in eexnza lt,c unit
Households by Family
Family and non-f mil; h useholds
Type
Population by Age and
Population, males oleol fc-rules, for Oc%.n age whorls. (;enerally those ssre fire yew coho•.t,,,.
So)(
with additional detail is tl:i; :,xnaue vaars. The u 'r 11Tr+:t ", S]* ezr8.
Population by Race and
Fivc race :;ate;ories: u-�ute, Black, American, indiarAskimo/Aleut, AsianiTacific Island_s and
Hispanic Ore in
Other Race. His anicjNur.-1 Lis anic PoPuladou. .�
Households by Size of
N+anbrr of?iouseholds with 1, 2, 3, 4, 5, and G+ pea5ans in the hotiszhold
Household
Households by Age of
N,2rrftx..'r of hoWell fld, v,?th: 32Q of hcn1 <d3, 25-34,1-5--W, 45-; i, 55-64, 6 '4, and 75T
Head or h'cusehcld
'57'1ir'gs
Eirrpicym9nt
EstLmatc5 croµ rc1, re:lte-i, and vacanc d%Neiiutes
Est:rnates of the tu;n, a`'= > >+, ernploycd, twrrnployed, in the armed fore:es, and. not in
Status
pcpul
he labor (c)rcc --
�mplcymant try' lncfustry
Fstiniates of the cmplo_•Ll lx)l.-il3tien b} industry. seventeen inda� itr. cite -cries,
corre>: xme:iii^_ to the i 95U CQ�:i.LS Cate ones have b,= estirnxed.
by
Esd=tcs of the e,nrlo�cd population by occupation. fhirtcen -x
vwv v••�+• • corre.. ndina to tl+c C en.,ui G3teaQrics have bee., eStimatc:d.
Population by Mantai Estimates cf the popu'atioa ago i ST, never married, ma-ticd, uidov4ad, divorc�l, arid
Status 4cpUrited
population by Educational Estimates of the hi;h?st ierel or.Kiucational 3ttainmcni, poptdatioa 25 1 s tltart fade 9,
Attainment -t)nje high school, high ichtx31 diploma, some coil e. associate d,ogrne, bachelors do , astd
Total Vehicies Avallaal
vehicies Avaidcls per
Ncuseheld
Ali ntate of the cy-rent =..urttvr of
An estimate of the
of households with
catcgan-,
1. and 2+ vehicles availubt-!.
a gregate Income Total Income wi*h 't ;e rsa hic unit, in Curren: dollans
Aggregate income by :otxl income, disag3cgatcct b4' household npc: fami1% household, non-nonhousthotl, and
Household group cuartcrs•
income Dist.7butions Prepared for Family hou_+eholds, Von -Family Households, and total Households. includes
fift= :cp=ata income classy~, with the highest ran,:e $150,000+.
A. Population
The estimates of ail of the variables are based fundamentally on the current and projected population of
each geographic unit. The current popuiation of the United States is obtained from the monthly P-25
e and Current estimate of the population and serves as
series population estimate. This is a very accurst
the basis for projection and estimation at lower levels of geographic detail. The five and ten year
projections have been derived from the middle -series projections of the census Bureau, which makes
the following general assumptions:
age -specific fertility rates will remain at 1990 levels for all but the Hispanic origin population and the American IndianiEskirnarAleut population, which are butyl projected
to decline by 15% over the period 1995-2050
Life expectancy is projected to ;ncrease by 6.7 years between 1993 and 2050.
Net immigration is projected tc remain at the 1993 level of 8go,000 per year.
Urban Decision Systems, Inc.14675 Adrturatty Way Suite 6241 Mama del Rey, CA 90292 / TOO) 633-9568
Urban Decision Systems, Inc.13075 Fair Wdge ortve ZSuite 200M 1 Fartax, VA 22o9311800) 3s4••4ti37
Page
e a�
Urban Decision Syste
Database Methodoioc
inc.
iM
State level estimates are based on a combination of the extension of past trends in population and
current estimates by Federal and State authorities. An initial set of State level estimates were derived by
using the latest Census Bureau estimates by state (publication P25-1106). The resulting estimates are
teen ratio -adjusted so that the sum of the State estimates is equal to the national total. For the five- and
ten-year projections, a similar method is employed. However, rather than using simple straight-line
techniques, Ucs uses straight-line methods only for growing areas. For declining areas, a log -normal
extrap-ilation is used. This has the effect of siowing decline over time, which is characteristic of long
term population decline at the state Level.
At the county level of geographic detail, similar trend and balancing methods are employed. Where the
county projections of population were available from state and local authortties and were deemed
-eliable, these external estimates were used as the initial estimate before balancing the sum of the
cc,inty populations to the state level estimates and projections. County level projections from most
:fates, inciuding all of the larger states, were utilized in the projections.
At tr,e block group level of detail, the population model consists of a non -linear trend model which
estimates populations given historical patterns, then balances the sum of the block group populations to
the parent county level of geography. As a final checJ-. on population, block group population estimates
were aggregated to troth the ZIP and County scales and thoroughly compared with estimates from
external sources.
T;ie result is a comprehensive set of population estimates and projections which includes the knowledge
of State and County agencies about their detailed areas but also ensures that the total population is
consistent with the Census Bureau estimates, which have proved extremely reliable overtime.
B, Population by Household Status
The group quarters population, that is population which is not in households (such as persons in
insulations, military barracks, nursing homes, college dormitories, and homeless persons), is expected to
increase slightly during the decade, but remain relatively constant as a percentage of the total
Population. Although UUS expects the population in nursing homes to increase with the aging of the
population, this will be offset to a large degree with expected decreases in armed forces personnel.
The Share of persons living in non -family households is expected to writinue to increase, as it has during
the p:4st two decades.
C. Households
Total households were modeled by projecting trends in the population per household over time at the
national level to provide a control total. An implicit assumption made by UDS is that the declines in
average household size over the past few decades will slow considerably over the coming decade -
indeed the rate of decline in average household size during the 1980's was much lower than it was durtng
the 1970's. The resulting population per household trends for the current and projected years reflect this
trend.
Households are normally div'ded into family and non -family households. During tare past few decades,
the share of households which are composed of related family members has been increasing, and will
likely =ntinue to increase during this decade. The estimates and projections of households by type were
initially derived separately via trend analyses of the average household size for family and non -family
I respectively, then combined and balanced to the total household count.
Average household size has generally declined during the past few decades, both as a result of non-
tamily household formation (which tend to be smaller units) and as a result of the fact that many families
are having fewer children. The growth of one and twc-person household units continues and is likely to
Urban 066S 0e Systems, hoc- t 467s Admiralty way Sure 624 i 4iar ina del Rey. CA 902921(800) 633-M68
Urban Decismn System hm 13975 Fair Ridge Drive suite 200N t Fain" VA 2MS1 t ilt00l 364-411137
Papa 3
W'
Urban Decision Syster-, Inc.
Database Methodology—
continue dunng the Coming decade. UDS estimates the number of households by the number of persons
in the households by using a set of complex procedures which relate existing counts by type of
household to current and projected household counts.
D. Population By Age, sex, and Race
National level Census bureau projections of age by six and raceihlispanic origin were used as overall
controls to ensure consistency with the Census projections. Detailed forecasts by age, sex, and race, as
well as Hispanic origin, were obtained from the Census Bureau publication P25-1104, Current Population
i acts, Pcpulation Projections of the United Stares. By Age, Sex, Pace, and Hispanic Origin, 1993-
2050, in all cases, the `middle series projections were used.
A`- the state level, the projections of individual state agencies were combined with the results of a cohort
survival approach to obtain reliable state estimates by age and sex. The block group estimates were
compiled using cohort survival methods, then balanced to both the estimated block group population
tctais and to the state level control totals. Trends in the racial distribution and Hisoanic populations were
used to derive a preli'ninary estimate at the block group level, which were then adjusted to balance with
appropriate rc,-troi totals. This method allowed UcS to utilize the historical changes in race and
Hispanic origin ci5tributions and project those changed into the future while maintaining �nsis'�ency with
national level Pojections.
E. Income
ucS estimates aggregate income, aggregate income by race and Hispanic origin, and aggregate income
by household type (family household, non -family iousehold, group quarters). All income estimates
produced by UDS are in current, rather than constant, dollars. In other words, a projection of income for
the year 2005 Includes both an inflationary component and a 'real' component, the latter being the
difference between the charge in income and the change in inflation during the period. The `real'
component is normally attributed to productivity gains in the economy and to differences in the
competitiveness of the economy relative to other natcns.
Aggregate income estimates for 1995 are based on an analysis of changes in per capita income between
the 1990 Census and 1994, as reported in the Census publication PM184, Money income of
Households, Families, and Persons in the United States: 1994, It should be noted that the 199C Census
income statistics are from the STF-3 and have therefore been balanced to the STF-1 full population
counts in order to avoid reporting problems.
The projections of aggregate income are based on a review of Bureau of Economic Analysis (SEA)
projections. which assume an effective increase o` 3.0% per annum in per capita incomes during the
next ten years. These inflators were then applied to the 1992 estimates provided by the Census Bureau
a:,c multiplied by the 1995 estimated and 2000/2005 projected national populations in order to arrive at
the national aggregate income projection for each year.
The methods applied to aggregate incomes were also appiied to incomes by household type (family
nouseholdlnon family household/group quarters), race, and Hispanic origin to produce national level
estimates and projections for these detail categories-
State level est rr.ates and projections were derived by utilizing a set of projections produced by the
Sureaa of Economic Analysis (BE,A) which provided initial estimates of changes in per capita income by
o the
state. These estimates were then applied to the projected population by state shused at the en cotanty
already derived population estimates and projections. The same methodology wa
level agar') using the SEA projections as a general guide.
Urban ow-ission Systems. tnc / "76 AdnvraltY Way Suite 6241 Marina del Rey, CA 9C292 J (800)633�668
Urban Decision Systems, lnc. r 3975 Fair Ridge Drive 5ude 20ON ! Fairta& v.A 22033 1 (600) 364-48 7
?age 4
TOTAL P.04
EXECUTIVE SUMMARY
Bermuda Dunes Area *■r
Urban Decision Systems. Inc.
1*40* 09118i 1995
Polygon
POPULATION " population growth will be very high during the 1990's
* this area grew very rapidly between 1980 and 1990
* population density is low
* the median age is very near the national average
* an above average percentage of the adult population have college degrees
HOUSEHOLDS ' household size is smaller than the national average
INCOME * average income is well above the national average
• a high share of households earn over $50,000 per year
• a significant share of households are very wealthy
EMPLOYMENT " unemployment rates are low
* female labor force participation rates are high
* large construction industry employment
* substantial employment in entertainment and recreation
" white collar occupations dominate
HOUSING " a majority of housing units are renter occupied
* moderate percentage of condominiums
* high residential turnover
* a majority of the housing was built after 1985
NOTE: This report is intended as a brief snapshot of the selected area. Only those key characteristics which
are considerably different from national average values are reported. There may be other unique features of this
area that are not reported. Use this report only in conjunction with a thorough review of the actual report figures.
Source: 1990 Census of Population, 1995 LIDS Estimates (EXS)
Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9568 476784
Population+Graphics (National B 1 Urban Decision Systems Inc
Bermuda Dunes Area 09r18r95
Polygon
Population Households Families Median Age
Polygon 6,266 2,663 1,695 33.9
United States 262,775,323 97,427,417 67,963,378 34.0
85+
80-84
75-79
70-74
65-89
60-84
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15�19
iau
S9
0-4
20
Population by Age and Sex (1995)
15 10 5
Male (%)
Race/Hispanic Origin, 1995 (%)
100 -- - - --- -- --- --- -- ---
90 - ---------.. .-- ---- ---- -- ---
80 +------------------- ---- - -- ---
70 -i ---- -- ------------------- -----------------
60 11i, - -------------- ---- ------------ --------
50 -------------------------------- - -- ------
40 -:I.,'
20 t
10 li
----- --- -- -----
m Y v it
L lU0 C � L C
m m t_v a
0 5 10 15 20
Female (%)
Educational Attainment, 1995 (%)
35 -- ---- ------
30
25
20
15
10
5
0
r 0
v OI
v � C)
Occupation, 1995 (%
cti Eo 0c o 0
L fn
S m C9
25----------------------
—--
---------
--------
---------
---------
--------
---------
--- - - - - --
--- ----
- -- - -- - --
- — ---
-
1s
10
---------------------------
-
s-
--,. : ---
o
C
f7
y
C
:2
O
N
N
LA2
E
L
m Z
tL
m
°a
N
U
O
L
U
Q
>
a
N
>=
i.i
C
L
w
o
a`
a
ti
O
F-
Source: March 15, 1995 UDS Estimates (CPNX)
Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9668 476784
BENCHMARK; POPULATION PROF
Urban Decision Systems.. Inc
Bermuda Dunes Area
\r
1*40Y 9/18/95
Page 1 of 5
Polygon
POPULATION
2000 Projection
8,012
1995 Estimate
6,266 .
1990 Census
4,519�"
1980 Census
986
% Change, 1990-1995
38.7%
% Change, 1980-1990
358.3%
In group quarters, 1995
0.1 %
HOUSEHOLDS
2000 Projection
3,420
1995 Estimate
21663
1990 Census
1,904
1980 Census
392
% Change, 1990-1995
39.8%
% Change, 1980-1990
385.4%
FAMILIES
1995 Estimate
1,695
RACE 1995
White
91.8%
Black
0.8%
American Indian
0.6%
Asian or Pacific Islander
2.9%
Other
4.0%
HISPANIC ORIGIN 1995
11.9%
AGE 1995
0-5
8.8%
6-13
12.0%
14-17
4.2%
18-20
3.0%
21-24
5.5%
25-34
18.8%
35-44
17.2%
45-54
10.7%
55-64
8.3%
65-74
7.9%
75-84
3.2%
85+
0.4%
Median Age
33.9
Male
34.0
Female
33.9
HOUSEHOLD
1 Person
26.9%
SIZE 1995
2 Persons
39.7%
3-4 Persons
27.1 %
5+ Persons
6.3%
TENURE 1995
Owner -Occupied Households
57.1 %
Renter -Occupied Households
42.9%
Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5)
Urban Decision Systems Inc. 14676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9568 476784
BENCHMARK: POPULATION PROF
Bermuda Dunes Area
Urban Decision Systems, Inc.
'"111111111V 9/18/95
Page 2 of 5
Polygon
AGGREGATE
Total ($ Millions)
$177
INCOME 1995
Per Capita
$28,291
HOUSEHOLDS
Total
2,663
1995
Average Household Size
2.35
HOUSEHOLD
Under $5,000
2.4%
INCOME
$5,000-$9,999
5.3%
1995
$10,000-$14,999
5.3%
$15,000-$19,999
3.6%
$20,000-$24,999
5.3%
$25,000-$29,999
6.1 %
$30,000-$34,999
6.3%
$35,000-$39,999
4.3%
$40,000-$49,999
10.1 %
$50,000-$74,999
24.0%
$75,000-$99,999
10.4%
$100,000-$124,999
6.9%
$125,000-$149,999
4.2%
Over $150,000
5.9%
Median Household Income
$51,481
Average Household Income
$66,567
FAMILIES
Total
1,695
1995
Average Family Size
2.90
FAMILY
Under $5,000
1.7%
INCOME 1995
$5,000-$9,999
1.9%
$10,000-$14,999
2.6%
$15,000-$19,999
2.2%
$20,000-$24,999
2.9%
$25,000-$29,999
5.8%
$30,000-$34,999
4.8%
$35,000-$39,999
2.9%
$40,000-$49,999
7.0%
$50,000-$74,999
29.0%
$75,000-$99,999
15.2%
$100,000-$124,999
10.0%
$125,000-$149,999
6.1 %
Over $150,000
7.9%
Median Family Income
$66,319
Average Family Income
$80,970
Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5)
Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 1 Marina del Rey, CA 90292 / (800) 633-9568 476784
BENCHMARK: POPULATION PROF -
Urban Decision Systems, Inc
Bermuda Dunes Area
1111111111W
" 9/18/95
Page 3 of 5
Polygon
HOUSING UNITS
Total Units
2,P30
1990
Owner Occupied
43.
Renter Occupied
31.8%
Vacant Year -Round
13.9%
Vacant Seasonally
10.8%
Condominiums
6.1 %
Mobile Homes
0.1 %
Stability (5 Year)
23.0%
Turnover (1 Year)
32.2%
Median Dwelling Value (1990)
$199,204
Median Rent (1990)
$612
UNITS PER
1 Unit, Detached
50.1%
STRUCTURE
1 Unit, Attached
8.4%
1990
2 Units
2.8%
3-4 Units
7.2%
5-19 Units
17.3%
20-49 Units
3.9%
50+ Units
9.7%
Mobile Home/Trailer
0.1 %
UNITS BY
1989-March 1990
6.3%
YEAR BUILT
1985-1988
45.4%
1990
1980-1984
25.8%
1970-1979
14.1 %
1960-1969
4.9%
1950-1959
2.3%
Before 1950
1.1 %
SEX &
Males
2,212
MARITAL
Single (Age 16+)
22.9%
STATUS 1990
Females
2,307
Single (Age 16+)
19.0%
EDUCATION
Population Age 25+
3,095
1990
No High School Diploma
10.2%
High School Only
19.1 %
College 1-3 Years
39.3%
College 4+ Years
31.4%
FAMILIES
Total
1,236
1990
With Children
47.2%
Married Couples
87.0%
Married With Children
38.4%
Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5)
Urban Decision Systems Inc. 14676 Admiralty Way Ste 624 / Marina del Rey, CA 90292 / (800) 633-9568 476784
BENCHMARK: POPULATION PRO
Permuda Dunes Area 111*00
Urban Decision Systems, Inc
`v" # 9/18/95
Page 4 of 5
Polygon
LABOR FORCE
Males 16+ Years
1,708
1990
In Labor Force
80.9%
Females 16+ Years
1,840
In Labor Force
60.6%
Unemployed
2.0%
INDUSTRY
Agriculture/Forestry/Fishing
3.5%
1990
Mining
0.0%
Construction
12.6%
Manufacturing: Non -Durable Goods
1.8%
Manufacturing: Durable Goods
2.0%
Transportation
0.8%
Communciations / Public Utilities
3.2%
Wholesale Trade
2.9%
Retail Trade
18.8%
Finance, Insurance, and Real Estate
14.1%
Business/Repair Services
5.4%
Personal Services
7.0%
Entertainment and Recreation
3.6%
Professional and Related Services
19.9%
Public Administration
4.4%
OCCUPATION
Mangerial/Executive
22.6%
1990
Professional
15.3%
Technical
4.2%
Clerical
12.2%
Sales
17.3%
Total: White Collar
71.7%
Craftsmen
7 2%
Operatives
5.1 %
Services
11.6%
Laborers
2.8%
Farming/Forestry/Fishing
1.5%
Total: Blue Collar
28.3%
WORKERS
0
9.8%
PER FAMILY
1
31.8%
1990
2
48.4%
3+
10.0%
CLASS OF Private For Profit
71.3%
WORKER Private Not For Profit
5.1 %
1990 Local Government
10.8%
State Government
2.9%
Federal Government
0.8%
Self -Employed
10.7%
Unpaid Family Workers
0.0%
Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5)
Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 1 Marina del Rey, CA 90292 / (800) 633-9568 476784
BENCHMARK: POPULATION PROF - Urban Decision Systems. Inc
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Page 5 of 5
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WORKERS
Total, 16+ Years
2,407
1990
TRANSPORT
Car, Truck, or Van
94.0%
TO WORK
Drove Alone
79.1 %
1990
Carpooled
14.9%
Public Transit
0.2%
Bus or Trolley Bus
0.2%
Streetcar/Trolley
0.0%
Subway/Elevated
0.0%
Railroad
0.0%
Ferryboat
0.0%
Taxicab
0.0%
Motorcycle
0.7%
Bicycle
0.0%
Walked
1.3%
Other Means
0.0%
Worked At Home
3.7%
TRAVEL TIME
< 5 Minutes
3.4%
TO WORK
5-9 Minutes
6.6%
1990
10-19 Minutes
46.8%
20-29 Minutes
23.7%
30-59 Minutes
10.8%
60-89 Minutes
3.9%
90+ Minutes
1.1 %
Work At Home
3.7%
Average Travel Time (Minutes) 18.2
VEHICLES None 1.7%
AVAILABLE 1 30.9%
1990 2 49.0%
3-4 16.5%
5+ 1.9%
Total Vehicles 3,667
Average Vehicles Per Household 1.9
Source: 1980, 1990 Census, March 15, 1995 UDS Estimates (XP5)
Urban Decision Systems Inc. / 4676 Admiralty Way Ste 624 I Marina del Rey, CA 90292 / (800) 633-95" 476784
I
c�
RIVERSIDE COUNTY
J, 1 tCOUNTY
�� FIRE DEPARTMENT
or
' RIVERSIDE 9A/' 9.Itl93
J. M. HARRIS 210 WEST SAN JACINTO AVENUE • PERRIS, CALIFORNIA 92570 • (909) 940-6900
FIRE CHIEF January 16, 1996
RECEIVED
To: Paul Gibson, Finance Director JAN 18 1996
City of Palm Desert'
COMMIMlITY DEVELOPMENT DEPARTMENT !—a F
CITY OF PALM DESERT
From: John McLaughlin, Division Chief
Riverside County Fire Department ='
Sub: Bermuda Dunes Annexation o
Paramedic Response Study
Attached are response times for medic units from Stations 55 (Eldorado and Hwy 111) and Station 71
(Portola and Country Club) to various locations in Bermuda Dunes. They indicate a medic unit can get to
any location in Bermuda Dunes with a five to ten minute response, which is our current standard. These
times were based on the medic unit being in quarters at the time of the call. Of course the Engine
Company would arrive sooner to provide BLS care.
Also, the following is a breakdown of response activity for Bermuda Dunes during 1995.
Medical Aids 721
Fires 263
Public Service Requests 94
Miscellaneous 580 (false alarms, covers, assists)
Total 1658
Let me know if you need further information.
dpa
Attachment
C nAIt n L -7 �'t8
ohn McLa ghlin
printed on recycled paper W
on
0
Riverside County Fire Department
C O U N T Y F I R E
M E M O R A N D U M
Jan 9, 1996
TO: Chief Gouette
FROM: Capt Ken Hamilton
RE: RESPONSE TIMES
THE FOLLOWING ARE THE RESPONSE TIMES YOU REQUESTED.
FROM
STA.
55
TO
FRED WARING
AND JEFFERSON
5:33
FROM
STA.
55
TO
AVE 42 AND
WASHINGTON
4:36
FROM
STA.
55
TO
WASHINGTON
AND COUNTRY CLUB
5:54
FROM
STA.
55
TO
AVE 42 AND
ADAMS
6:24
FROM
STA.
55
TO
AVE 42 AND
COUNTRY CLUB
8:11
Ken Hamilton
Fire Captian
TO: CHIEF GOUETTE
FROM: JOHN PERRAULT
REGAPDING: RESPONSE TIMEG.
AC
PER
OUR CONVER3ATION
ON 1/4/96 YOU AS}(7D US rOR TIME.
AND MILAGE
TO FIVE
DIFFERENT
LOCATIONC,
PREASSIGNED BY YOU.
WE
DID
THIS AT 1654
HOURS. WITH
MODERATE TO HEAVY
TRAF7IC.
1.
FROM
STATION 71
TO WASHINGTON
CROSS OF COUNTrY CLUK.
3.57 MINS.
3.? MILE',':,
7.
FROM
STATION 71
TO 42nd CROSS
OF WA3UINETON,,
5.24 MI%J,
A^? MILV:,
3,
FROM
STATION 71
TO 42nd CROSS
OF ADAMS.
7.07 MINE.
5.G MILES
4.
FROM
STATION 71
TD 47nd CROSS
Or COUNTRY CLUB.
8.42 MINE.
7.1 MILES
5.
FROM
STATION 71
TO rREDWARING
CROSS OF JEFrmSCm"
10"52 MINE.
O.2 MILES
1
= CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
MEMORANDUM
TO: City Manager and All Department Heads
FROM: Phil Drell, Acting Director
DATE: January 5, 1996
SUBJECT: Bermuda Dunes Annexation Fiscal Feasibility Report
Attached is the Draft Bermuda Dunes Annexation Fiscal Feasibility
Report prepared by Rosenow Spevacek Group, Inc. Please review the
report for discussion at the Tuesday, January 16 Executive Management
meeting. Please submit written comments to me as soon as possible.
PHILIP DRELL, ACTING DIRECTOR
COMMUNITY DEVELOPMENT AND PLANNING
/tm
cc: Carlos Ortega
Paul Shillcock
BERMUDA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
]anuary 5, 1996
Prepared for:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
(619) 340-5776
Prepared by:
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, California 92705
(714) 541-4585
V9
En
BERMUDA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
1. BACKGROUND
The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a
fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to
meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if
and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to
determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the
Bermuda Dunes community. This Report will focus on what City services will be provided within
the Bermuda Dunes area, the forecasted cost of those services, and what revenues could
reasonably be expected to be available to fund those services. This Report will focus on a
compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal
year 1998-99 using a range of potential fiscal impacts. It should be understood that there will
usually be differences between the forecasts and actual results because events and circumstances
frequently do not occur as expected, and those differences may be material.
Bermuda Du es area 1995 population is estimated a 6,266) The subject area is comprised of
The Berm
approximately I& square miles of territory. At the present time, the number of structures or
dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single
family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a
27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Dunes is located in the central
region of Riverside County. The boundaries of the Bermuda Dunes community is generally the
area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the south andndary
along
Indio city limits, Fred Waring Drive and the La Q city
limits to theWashington Street up to the Interstate 10 Freeway to the west. Most of the area is still of a rural
nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential
and rugged terrain (refer to Exhibit 4).
The major public agencies currently providing services in the Bermuda Dunes community are the
County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District.
The County of Riverside is currently responsible for policymaking and administration, law
enforcement, animal control, planning and land use regulation, building inspection, flood control,
and the maintenance and improvement of roads. Street lighting services within the Bermuda
Dunes area are currently provided through County Service Area No. 121. The landscaped median
located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by
Riverside County through a special assessment district formed pursuant to the 1972 Lighting and
Landscape Act. Upon annexation, the City would administer the special district as the taxes would
be transferred to the City and detached from the County.
Bermuda Dunes Annexation
Rosenozv Spevacek Group, Inc. 1 Fiscal Feasibility Report
January S, 1996
Water dcurrently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and
the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and
Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the
services is currently in place. Sewer service is currently, and will continue to be, provided by Septic
Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive,
Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection
services to the Bermuda Dunes community. Currently, one fire station, Riverside County Fire
Station No. 31, is located at 42nd Avenue and services a three-mile radius. The County of
Riverside is currently responsible for providing police services within the Bermuda Dunes area. The
law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio
substations. Upon annexation, no change in fire or police protection services are anticipated
because police and fire protection services are provided by the same Riverside County
organization. The roads within the Bermuda Dunes area are currently maintained by the County of
Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing
roads.
Many of the General Fund and Road Fund revenues and expenditures were either calculated on a
per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a
case study methodology.
11. REVENUES
A. GENERAL FUND
The primary sources of General Fund revenues are noted below and shown on Exhibit 1:
1. Taxes:
a. Property and Parcel Taxes:
The City's property tax revenue is based on the historical property tax ratio of
250/o/75% between the City and the County respectively as set forth in Resolution
No. 81-133 adopted September 24, 1981. Upon annexation, the City would
receive approximately 25% of the total General Fund property tax revenue and
the County would retain the remaining 75% of General Fund property tax
revenue. In addition, the City would also assume service responsibilities of
County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the
community of Bermuda Dunes and provides funding for street lighting. Upon
annexation, CSA No. 121 would be dissolved. One hundred percent (100%) of
this special district's levies would be transferred to the City (refer to Exhibit 2).
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
2 Fiscal Feasibility Report
January 5, 1996
b. Property Transfer Taxes:
The amount of Property Transfer Tax received will depend upon the level of resale
activity within Bermuda Dunes. These revenues have been estimated using an
average of previous three (3) year property transfer activity within Bermuda Dunes
at the rate of .55c per $1,000 of assessed values.
C. Homeowners Property Tax Relief:
Revenue estimates generated from the Homeowner's Property Tax Relief were not
specifically projected because this analysis bases the Property Tax Apportionment
on assessed valuation gross of the Homeowners Exemption. Therefore, revenue
from the Homeowner's Property Tax Relief is included in the Property Tax
Apportionment.
d. Sales Taxes:
Upon annexation, the City will be eligible to receive a percentage of the sales tax
charged on qualifying retail sales from businesses within Bermuda Dunes. The
State Board of Equalization estimated that the commercial areas within Bermuda
Dunes are generating approximately $114,500 in sales tax revenues annually.
RSG has assumed a modest 3% increase on these sales tax revenues for Bermuda
Dunes (refer to Exhibit 3).
e. Transient Occupancy Taxes:
Upon annexation, the City will receive the Transient Occupancy Tax. The City's
Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging
establishment, the New Inn located within the Bermuda Dunes Country Club,
which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax
based on an occupancy factor and average room rate.
1 •1 0.1 • ITRrarml
Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These
taxes are collected by the State's Department of Motor Vehicles and allocated to cities
on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a
per capita basis. Both subventions are based on ±6,26t, which is the estimated
population for Bermuda Dunes.
The per capita figures used in the revenue summary have been provided by the State
Controller's office for the 1995-96 fiscal year.
Bermuda Dunes Annexation
*osenow Spevacek Group, Inc. Fiscal Feasibility Report
January S, 1996 3.
I
M
3 . Franchise Fees
Upon annexation, the City will receive the franchise fees currently paid to the County
by Continental Cable Television, the Southern California Gas Company, Waste
Management, and Western Waste. These fees have been estimated on a per capita
basis using budget figures from the City of Palm Desert.
FT-R- oITZI : n F 7-�
The fees described 'below are not included in Exhibit 1 because these fees specially
offset costs of development related services, only the "net" cost of these services are
indicated under "Expenditures".
a. Land Use Planning and Regulation Fees:
The City is authorized to charge fees for all land use planning and regulation
services. The City would utilize the City's existing fee schedule. These fees should
off -set most of the City's cost in providing these services.
b. Building Inspection and Permit Fees:
The fees collected for these building and permit inspection services should, in
most cases, totally offset the cost of these services.
c. Engineering Fees:
The City is also authorized to charge fees for plan checking, public works
inspection, permit issuance and review and other engineering services. The fees
collected for these services should, in most cases, offset the cost of these services.
d. Development Fees:
Under the provisions of State law, the City may collect development fees for the
purpose of construction or improving capital facilities. Fees received must be
segregated from the General Fund in order to avoid commingling. Certain fees
must be spent or committed within five years from the time they are collected.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
January S, 1996 4
54, Other Revenues
a. Fines and Forfeitures:
This represents both Motor Vehicle Code fines, Municipal Code fines, and other
miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from
Bermuda Dunes were estimated on a per capita basis using current budget data
from the City of Palm Desert.
b. Business License Tax:
Upon annexation, the City will be eligible to impose the City's current Business
License Tax. The Business License fee for the City of Palm Desert is calculated
based upon gross sales. Based on discussions with City staff, RSG has estimated
the amount of Business License Tax using an average Business License fee for the
local sales tax generators identified within the Bermuda Dunes annexation area
(refer to Exhibit 3).
C. Proposition A Fire Tax:
The Proposition A Fire Tax is calculated using a per parcel cost. This figure is
estimated using an estimated 700 apartments and 300 condominiums at a per
parcel cost of $36 per unit, and an estimated 1,200 single family residential units
at $48 per unit.
d. County RDA. -
Currently there exists along Washington Street and 42nd Avenue a County
redevelopment project area. A small portion of the County Redevelopment
Project Area is located within the City of Palm Desert, and the remaining portion
exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This
County Redevelopment Project Area consists of commercial and multifamily
residential use and is located along Washington Street between Mountain View to
the south and just north of 42nd Avenue. aft, .it"is,.-murned4w City
vowid nab ice ow the County RedeyeIopmgMPrQjeaArea and continued to be t
s tamed as a County Redevelopment Project Area.' Because the County
Redevelopment Project Area would not be taken over by the City, no revenues
have been forecasted in this analysis.
e. Interest:
Because expenditures exceeded revenues resulting in no excess cash, RSG did not
include interest in this analysis.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
January 5, 1996 5
M
LWA
B. RbAD FUND
All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with
the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the
cities based upon total population size. Because the annexation of Bermuda Dunes is only
adding 6,266 population to the existing 37,573 of Palm Desert, the added population will not
put the City's population above the next threshold. As such, no revenue is reflected relative
to Section 2107.5. Similar to other state subventions, road fund revenues initially would be
based at the estimated population of 6,266. Other Road Fund revenues include the voter -
approved Measure "A" sales tax distributed by the County Transportation Commission.
Revenues attributed to these gasoline taxes are restricted for use on road related maintenance
expenditures.
III. EXPENDITURES
A. GENERAL FUND EXPENDITURES
Expenditures have been categorized by departments within the City's organizational structure
and are estimated as follows:
a. Administration:
The analysis assumed no new positions, equipment or major operating costs
would be incurred because of the annexation. Minimal expenditures including
legal costs, advertising, postage, and other selected services and supplies were
estimated. Costs associated with the 1997-98 election are shown. Costs were
estimated based on a case by case analysis or a per capita rate using City budget
data.
b. Insurance:
Upon annexation of Bermuda Dunes, it is probable that the cost of the City's
insurance policy will be impacted. RSG has estimated these costs based on a per
capita figure using City budget data.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 6 Fiscal Feasibility Report
err►' `400,
f' c. Animal Control:
Upon annexation of Bermuda Dunes, the current City animal control contractor,
California Animal Care, will assume animal control services for this area. Costs
were estimated assuming additional personnel and equipment as required by
California Animal Care. These costs are net of any animal license fee revenues.
d. County Property Tax Collection Charges:
Beginning in 1992-93, the County Auditor -Controller's Office charged cities and
local districts receiving property tax revenue for incidental administrative costs.
These charges are estimated at 0.2% of all property tax revenues.
2. Public Safety.
a. Sheriff's Contract:
The Riverside County Sheriff's Department estimates service costs on a per capita
basis. The City has indicated a desire to maintain a patrol beat to population ratio
of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG
believes this estimated service level appears excessive in this particular community
due to the existing calls for service and the open space character of Bermuda
Dunes. Thus, RSG has assumed based on discussions with City and County staff
that only 5 beats will be needed to provide sufficient police services to the
merchants and residents of Bermuda Dunes.
b. Jail Booking Fee:
Riverside County collects from its Cities a flat fee for jail bookings. Currently, the
present jail booking fee is approximately $110. Bermuda Dunes jail booking fees
were estimated using a per capita rate based on jail bookings for the City of Palm
Desert.
C. Fire Protection:
The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a
joint Powers Agreement forming the Cove Communities Public Safety Commission
in order to provide fire and paramedic services. These costs are net of the
property tax levy of the County Fire District. Fire Protection expenditures were
estimated using Riverside County Fire budget costs. This expenditure reflects a
percentage of the assessed valuation based upon the 1995-96 total cost. The
estimated budget figure includes $603,833 which provides for fire services staff
costs, a one-time $110,000 for new equipment and $12,000 for training and
other maintenance services. This estimated budget figure also includes optional
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
7 Fiscal Feasibility Report
January S, 1996
j� paramedic services, which would be an additional 330,486. his total, which
amounts to $1,056,319, was reduced to reflect the net cost o services (less the 1 %
of the total assessed valuation of the Bermuda Dunes area multiplied by the
Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County
Fire Station No. 31, is located at 42nd Avenue and services a 3-mile radius.
Upon the annexation of Bermuda Dunes, the Community Development Department
will assume the processing of all land use related services. These services will, in most
cases, be off -set by fees. However, the City will be responsible for the preparation of a
Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps,
and other miscellaneous costs associated with the in-house preparation of the Specific
Plan.
a. Code Compliance Officer:
Upon annexation, it is anticipated that an additional Code Compliance Officer will
be required to provide code enforcement services within the area of Bermuda
Dunes. This expenditure is calculated using the first step in the City's payroll
salary range for Code Compliance Officer at $2,604 per month. RSG has included
an additional 35% of the annual salary to reflect benefits and an additional 10%
for supplies, minor equipment, and other overhead costs.
For purposes of this Report, it is assumed that the current level of service of
maintenance programs is sufficient to the community's needs. Upon annexation, CSA
No. 121 and other County responsibilities will be assumed by the City. The Public
Works cost estimates also include an allowance for contract services to administer these
programs.
a. Administration:
A minimal administrative cost impact based on a per capita factor using City
budget data is reflected. This cost represents supplies, meeting and travel costs,
equipment, and other services.
b. Street Sweeping:
Upon annexation of the Bermuda Dunes area, the City will provide street
sweeping services to this area. This expenditure was estimated based on
discussion with City staff using a per capita cost based on City budget data. Street
sweeping services are performed bi-weekly by the City of Palm Desert.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 8 Fiscal Feasibility Report
fir+' 1*400
t�
c. Street Lighting. -
Street lighting services within the Bermuda Dunes area are currently provided
through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds
will be transferred to the City. The forecasted expenditure is based on current
CSA No. 121 budget data (refer to Exhibit 2).
There is no anticipated financial impact relative to existing landscape maintenance
services. The landscaped median located along 42nd Street between Limb Hall and
Glass Drive is currently being maintained by Riverside County through a special
assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the
annexation of Bermuda Dunes, the City would administer the special district as the
taxes would be transferred to the City and detached from the County. Thus, the
median would continue to be maintained by the assessment district. Currently the
Bermuda Dunes area has no public park or open space areas. Additional costs
associated with the City's exiting recreation program is not anticipated.
A 10% contingency factor has been added to the General Fund expenditure estimate to
meet unforeseen programs or emergency needs.
7. Roads:
a. Capital Improvements:
Upon annexation, the City of Palm Desert will be required to pay for the 25%
local share for the proposed improvements at the interchange of Washington
Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the
1997-98 fiscal year, is the City's share of the estimated construction cost plus a
10% contingency. No outside revenue source has been identified to fund this
capital improvement expenditure.
Upon annexation, it is the City's policy to upgrade existing infrastructure systems
within the annexation area to meet or exceed current City standards.
ing
e fer c; improvements within the. Bermuda Dunes annexation area
were not iOppOW
because a capital improvement program (CIP) was not
developed nor reiqu�ired as part of this analysis. Therefore, in order to prepare a
CIP plan for the Bermuda Dunes annexation area, it would require the
preparation of an extensive and detailed infrastructure assessment analysis.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January 5, 1996 9 Fiscal Feasibility Report
a. Street Maintenance:
The street maintenance expenditure was estimated based upon a per capita cost
using City budget data for the City of Palm Desert. This cost reflects a 3% increase
which includes general street maintenance; City-wide street slurry sealing,
overlaying and resurfacing, new and replaced curbs and gutters, centerline
striping, and safety and sign painting.
b. Traffic Signal Maintenance:
Upon annexation, the City of Palm Desert will be required to maintain additional
traffic signals. The City of Palm Desert currently maintains 50% of the traffic
signals located along Washington Street at 42nd Street, Country Club Drive, and
Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will
be required to maintain 100% of these three (3) traffic signals and 25% of the
traffic signal located at Fred Waring Drive and Jefferson Street.
IV. SUMMARY OF FINDINGS
Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted
expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and
road funds exceed the estimated total revenues. Forecasted expenditures and revenues have
been calculated using conservative methodologies and modest escalation factors.
The forecasted general fund expenditures exceed the estimated revenues for fiscal year
1996-97 by $1,125,944, $1,082,063 for fiscal year 1997-98, and $1,129,179 for fiscal year
1998-99. The three fiscal year revenue and expenditure forecast concerning the road fund
also reflects expenditure totals exceeding estimated revenues. In fiscal year 1996-97, the
forecasted expenditures exceeded revenues by $114,511, $595,009 in fiscal year 1997-98,
and $121,485 in fiscal year 1998-99. Because of the residential character and rural nature of
Bermuda Dunes, the estimated amount of local sales tax generated annually was minimal.
For Bermuda Dunes area, there were only 22 retail establishments identified with taxable
sales amounts as provided by the State Board of Equalization (refer to Exhibit 3). The
Bermuda Dunes community has very little commercial activity with only one lodging
establishment. Therefore, the City's forecasted business license tax and transient occupancy
tax amounts are significantly low.
Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes
area with only approximately a population of 6,300 will receive minimal motor vehicle and
off -highway fees.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
January 5, 1996 10
BAed upon discussions with the City and County staff, RSG has assumed that only five patrol
units would be required to provide sufficient police services to the Bermuda Dunes area. The
forecasted expenditure was calculated based upon per capita costs utilizing the existing
supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated
expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is
nearly 90% of the total general fund revenue estimate.
The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers
Agreement in order to provide fire and paramedic services. The expenditures reflected in this
analysis are commensurate with the City's desire to maintain a high level of service in terms of
structural fire protection, suppression, and paramedic services. The forecasted expenditure
for structural fire protection services in fiscal year 1996-97 is approximately 96% of the grand
total general fund revenue estimate. Thus, the expenditures for public safety services alone
exceed the general fund available by 88%.
Rosenow Spevacek Group, Inc.
Bermuda Dunes Annexation
January S, 1996 11 Fiscal Feasibility Report
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EXHIBIT 3
LIST OF LOCAL SALES TAX GENERATORS
WITHIN THE BERMUDA DUNES ANNEXATION AREA
Subway
Lizett's Hair Design
Ernst & Ernst Foods
So Much More Wallpaper
Carmen's Mexican Food
Clam's Up
Wonder Cuts
Armond's Wholesale Merchandise
Teddy's Donuts 2
Lilli's Chinese Cuisine
Circle K Food Stores
Carl's Jr.
Unocal 76-Chemic Inc.
Goodyear lack Sauter
Murph's Gaslight/Murphy's
Original Pan Fried Chicken
Bermuda Dunes Country Club
Darby West Care
Larry Shaw Wholesale Plants
California Desert Nursery
Vintage Nursery, Inc.
Cameron Nursery and Turf
Products
Desert Cities Nurseries
Source: State Board of Equalization
4100 Washington Avenue #101
4100 Washington Avenue #103
4100 Washington Avenue
4100 Washington Avenue #119
4100 Washington Avenue #123
4100 Washington Avenue #125
4100 Washington Avenue #129
4100 Washington Street #133
4100 Washington Avenue #139
4100 Washington Avenue #141
4100 Washington Avenue #142
4050 Washington Avenue
4010 Washington Avenue
78105 Country Club Drive
79860 42nd Avenue
42360 Adams Street
78260 Darby Road
78400 Darby Road
78600 Darby Road
78755 Darby Road
78850 Darby Road
41555 Yucca Lane
pa1mdst\exh3
Now
Palm Desert
A
North
Swm: Urban Decision Systems Inc.
Exhibit 4
Bermuda Dunes Annexation Area
RO-SENOW S PEVACEK GROUP INC.
City of Palm Desert
9 s
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42ND Avenue
Project Area Boundary
® Commercial
Multi -Family Residential
(8-18 MAC)
Exhibit 5
County Redevelopment Project Area
"A®
ROSE\OW S PE VAC E K GROUP INC.
.7 f
CITY OF PALM DESERT ��—
DEPARTMENT OF COMMUNITY DEVELOPMENT —
A N MEMORANDUM
Pusuc'i a Eli F ECF,,IVE
f,IT� r
TO: City Manager and All Department Heads rU�n&s"995
FROM: Phil Drell, Acting Director PUBLIC WORKS DEPARI'!1"i\i+
CITY OF PALM DESETJ
DATE: January 5, 1996
SUBJECT: Bermuda Dunes Annexation Fiscal Feasibility Report
Attached is the Draft Bermuda Dunes Annexation Fiscal Feasibil4l,
Report prepared by Rosenow Spevacek Group, Inc. Please review 0"4
report for discussion at the Tuesday, January 16 Executive Manageme'll
meeting. Please submit written comments to me as soon as possible-
PHILIP DRELL, ACTING DIRECTOR
COMMUNITY DEVELOPMENT AND PLANNING
/tm
cc: Carlos Ortega
Paul Shillcock
RECEIVED
JAN p 8'996
PUBUCVVOAKBDEPARTMENT
CRY OF PALM
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C'TY OF PALM DESERT
FISCAL IMPACT REPORT
PROPOSED ANNEXATION
PALM DESERT COUNTRY CLUB AREA
PREPARED BY
JONATHAN & ASSOCIATES, INC.
CERTIFIED PUBLIC ACCOUNTANTS
SEPTEMBER 10, 1992
Aftr 14we
t
TABLE OF CONTENTS
INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . 1
DESCRIPTION OF PROPOSED ANNEXATION . . . . . . . . . . . . . 2
MAP OF ANNEXATION AREA . . . . . . . . . . . . . . . . . . . 5
IMPACT ON CITY OF PALM DESERT
Impact on City of Palm Desert . . . . . . . . . . . . . 6
Summary of Revenue to City of Palm Desert . . . . . . . 10
Summary of Expenditures by City of Palm Desert . . . . 16
IMPACT ON COUNTY OF RIVERSIDE
Impact on County of Riverside . . . . . . . . . . . . . 20
Revenue to County of Riverside . . . . . . . . . . . . 23
Expenditures by County of Riverside . . . . . . . . 24
IMPACT ON OTHER AGENCIES
Impact on Other Agencies . . . . . . . . . . . . . . . 25
Structural Fire Protection . . . . . . . . . . . . . . 28
County Free Library . . . . . . . . . . . . . . . . . . 28
BASEDATA . . . . . . . . . . . . . . . . . . . . . . . . . 29
ASSUMPTIONS. . . . . . . . . . . . . . . . . . . . . . . . 34
M
I
INTRODUCTION
This Fiscal Impact Report analyzes the financial effect on the City of Palm Desert, the
County of Riverside, and other affected agencies which would result from the proposed
annexation. A hybrid approach is utilized, combining the Per Capita Multiplier Method
and the Case Study Method.
A five year time frame has been presented, beginning with fiscal year 1993/1994.
Column headings of 1993 indicate the fiscal year which begins July 1, 1993 and ends
June 30, 1994, headings of 1994 indicate fiscal year 1994/1995, and so on.
The following chart summarizes the net annual fiscal impact, the cumulative impact for
the five year period presented, and the annual impact thereafter, for each of the
affected entities.
YEAR
CITY
COUNTY
FIRE
LIBRARY
1993
224,463
216,938
159,791
81,809
1994
558,857
263,621
173,625
88,445
1995
636,840
286,734
181,006
92,085
1996
719,819
309,289
188,210
95,640
1997
809,164
331,915
195,458
99,218
CUMUL
2,949,143
1,408,498
898,089
457,197
ANNUAL
809,164
331,915
195,458
99,218
-Page 1 -
DESCRIPTION OF PROPOSED ANNEXATION AREA
The proposed annexation area encompasses approximately 1,604 acres adjacent to
the northeast boundary of the City of Palm Desert. The area is bounded by Country
Club Drive to the north, Washington Street to the east, Fred Waring Drive to the south,
and the existing city limit to the west, as indicated on the map which follows. The
parcel numbers correspond to those indicated on the map.
PARCEL 1
This parcel is zoned PR-4 (planned residential, 4 units to the acre), and contains Palm
Desert Resort - a country club with 930 residential units, an 18 hole golf -course, a club
house, and typical amenities (i.e. swimming pools, tennis courts, etc.).
PARCEL 2
This parcel is zoned R-1 8000 (one residence per lot, minimum lot size of 8,OOO.square
feet), and contains Whitehawk - a private gated community of 432 homes, of which 288
are complete at this point. The remaining 144 homes are assumed to be built out
ratably over the five year period presented.
PARCEL 3
This parcel is zoned R-3 (multi -family, 1 unit per 2,500 square feet), and contains Sun
Dunes Apartments - 24 units, and Desert Oasis Apartments - 320 units.
PARCEL 4
This parcel is zoned PC-2 (neighborhood commercial), and contains typical uses under
this zoning, i.e. gas station, convenience mart, video store, etc.
PARCEL 5
This parcel is zoned R1 M (single family mobile homes, 5,000 square foot lots), and
contains Golden Sun Estates - a mobile home park with 200 units.
- Page 2-
Own
on
PARCEL 6
This parcel is zoned R-3, and contains Royal Palm Apartments -100 units.
PARCEL 7
This parcel is zoned PR-4, and contains Woodhaven Country Club -504 units fully built
out, 18 hole golf -course, clubhouse, and typical amenities.
PARCEL 8
This parcel is zoned R-3 2000 (multi -family residential, 1 unit per 2,000 square feet), and
contains Palm Desert Apartments -386 units.
PARCEL 9
This parcel is zoned PC-2, and contains the typical uses under this zoning, including a
gas station, restaurants, bar, bank, offices, etc.
PARCEL 10
This parcel is zoned R-3 2000, and contains Palm Desert Villas, an apartment complex.
PARCEL 11
This parcel is zoned R-3 4000 (multi -family residential, 1 unit to 4,000 square feet), and
contains Palm Desert Palms - a 40 unit apartment complex, Golden Oaks/Royal Oaks -
a 104 unit apartment complex, a church, a private school, a child care facility, and a
single residence.
PARCEL 12
This parcel is a vacant lot of approximately 4.5 acres, zoned R-3 2000.
PARCEL 13
This parcel is approximately 1.61 acres, zoned R-3 4000. It contains office buildings,
and is only partially built out at this point.
PARCEL 14
- Page 3 -
ItiM w **So
This parcel is zoned PR-4, and contains Desert Breezes - a walled and gated
community of 76 units.
PARCEL 15
This parcel contains Palm Desert Country Club, and is zoned variously as R-1 9000
(single residence with 9,000 square foot minimum lot size), R-2 4000 (multi -family with 2
units to 4,000 square feet), and O.S.(open space). The development contains 954
homes along an 18 hole golf course.
PARCEL 16
This parcel is zoned PR-4, and contains Oasis Country Club - a typical golf -course
development with 1049 units, 18 hole golf -course, club house, and the usual amenities.
The development currently has 682 units completed, with the remaining development
projected to occur ratably over the five year period presented.
PARCEL 17
This parcel is zoned PC-2 and contains the typical uses under this zoning, i.e. gasoline
station, convenience mart, shops, offices, etc.
- Page 4 -
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- Page 5 -
M
En
IMPACT ON CITY OF PALM DESERT
The financial effect on the City of Palm Desert which would result from the proposed
annexation has been analyzed and is presented in the schedules which follow. The
schedule titled Summary of Impact on City of Palm Desert shows revenue, cost, and
net annual impact to the City for fiscal years 1993 through 1997, as well as cumulative
impact for the five year period.
Revenue is summarized in Schedule 1 and detailed in Schedules 1 A through 1 D. Cost
is summarized in Schedule 2 and detailed in Schedules 2A and 2B. Significant
assumptions are presented in the schedules titled Base Data, and in the Assumptions
section of this report.
As shown in the schedules, the net annual impact to the City of Palm Desert is:
1993
$224,463
1994
$558,857
1995
$636,840
1996
$719, 819
1997
$809,164
Cumulative impact for the five year build -out period is projected to be a positive impact
of $2,949,143. It is calculated that the net annual impact to the City of Palm Desert after
the build -out stage will be a positive impact of $809,164 per year.
PUBLIC REVENUE
The revenue which would flow to the City of Palm Desert as a result of this annexation
is summarized in Schedule 1, and detailed in Schedules 1 A through 1 D. Only those
revenues expected to be generated from the area proposed for annexation are
included.
Property tax revenue, detailed in Schedule 1A, is based on cumulative assessed value.
An annual increase in valuation of 2.00% is included pursuant to the reassessment
provisions of Proposition 13. In the interest of conservatism, any reassessments which
may occur from subsequent sales of property are not included.
The calculations of revenue factors utilize the City of Palm Desert Financial Plan for the
Fiscal Year 1992/ 1993.
- Page 6 -
M
PUBLIC COST
The costs to the City of Palm Desert which would result from the proposed annexation
are summarized in Schedule 2, and detailed in Schedules 2A and 2B. Only those costs
directly attributable to the annexed area are included.
The calculations of cost factors utilize the City of Palm Desert Financial Plan for the
Fiscal Year 1992/1993.
The cost of public improvements which were identified in the Feasibility Study for
Project Area 4 (prepared July 1991) are not included in this analysis. It is expected that
these improvements, totalling $32,509,038, will eventually be required in order to bring
the annexed area up to City standards. Alternative funding mechanisms are being
considered, although none have been implemented as of the date of this report.
- Page 7 -
- Page 8-
*4400, *Aso,
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SUMMARY OF IMPACT ON CITY OF PALM DESERT
REVENUE - SCHEDULE 1 I 1,917,994 1 2,237,361 1 2,317,317 1 2,395,222 1 2,476,539 1 11,344,432 1
COST - SCHEDULE 2 I 1,693,531 1 1,678,504 1 1,680,476 1 1,675,403 1 1,667,375 1 8,395,289 1
NETANNUALIMPACT
224463
558,857
636,840
719,819
809,164
2,949143,
CUMULATIVE IMPACT.
224,463
783,320
1,420,160
2.139,979
2,949,143
- Page 9-
m
E5
CITY OF PALM DESERT
ANNEXATION -PALM DESERT C.C. AREA
SPECIAL FUND REVENUES - (30.21
GENERAL FUND RL.�
REVENUE - (19.9%)
TAX REVENUE - (12.0%)
SUMMARY OF REVENUE TO CITY OF PALM DESERT
- Page 10 -
Nomool **me
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 1 - SUMMARY OF REVENUE TO CITY OF PALM DESERT
PROPERTY TAX REVENUE -
SCHEDULE 1A
415,823
438,814
453,948
468,817
483,789
2,261,191
SALES TAX REVENUE -
SCHEDULE 1B
209,620
240,792
271,964
303,136
334,308
1,359,820
GENERAL FUND REVENUES -
SCHEDULE 1C
741,978
862,282
880,639
898,181
917,208
4,300.288
SPECIAL FUND REVENUES -
SCHEDULE iD
550,572
695,473
710,766
725,088
741,234
3,423,132
TOTAL REVENUE TO
CITY OF PALM DESERT
1,917,994
2,237,361
2,317,317
2,395,222
2,476,539
11,344,432i
-Page 11 -
m
cm
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 1 A - PROPERTY TAX REVENUE
ASSESSED VALUE -
RESIDENTIAL PROPERTY
546,950,400
565,587,200
584,224,000
602,715,200
621,352,000
ASSESSED VALUE -
COMMERCIAL PROPERTY
16,495,833
17,742,706
18,989,578
20,236,450
21,483,323
TOTAL ASSESSED VALUE
563,446,233
583,329,906
603,213,578
622,951,650
642,835,323
REASSESSMENT
11,268,925
11,891,977
12,302,111
12,705,075
TOTAL CUMULATIVE ASSESSED VALUE
563,446,233
594,598,830
615,105,555
635,253,761
655,540,398
PORTION ALLOCATED TO
CITY OF PALM DESERT
0.0738%
0.0738%
0.0738%
0.0738%
0.0738%
NET PROPERTY TAX REVENUE
TO CITY OF PALM DESERT
415,823
438,814
453,948
468,817
483,789
- Page 12 -
Now *VAP*
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 1 B - SALES TAX REVENUE
COMMERCIAL SQUARE FOOTAGE
194,618
225,789
256,961
288,133
319,305
PORTION PROJECTED AS RETAIL USE
75.00%
75.00%
75.00%
75.00%
75.00%
CUMULATIVE SQUARE FOOTAGE
OF RETAIL USE
194,618
225,790
256,962
288,134
319,306
AVERAGE ANNUAL TAXABLE SALES
PER SQUARE FOOT
$100.00
$100.00
$100.00
$100.00
$100.00
TAXABLE SALES
19,461,833
22,579,014
25,696,195
28,813,376
31,930,557
TAXABLE SALES -COUNTRY CLUBS
1,500,210
1,500,210
1,500,210
1,500,210
1,500,210
TOTAL TAXABLE SALES
20,962,043
24,079,224
27,196,405
30,313,586
33,430,767
SALES TAX RATE ALLOCATED
TO CITY OF PALM DESERT
1.00%
1.00%
1.00%
1.00`Y
1.00%
SALES TAX REVENUE
TO CITY OF PALM DESERT
209,620
240,792
271,964
303,136
334,308
- Page 13 -
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 1 C - GENERAL FUND REVENUES
GENERAL FUND REVENUES
TO CITY OF PALM DESERT I:
1993
i 994
1995
1996
1997>
BUSINESS LICENSE TAX
9,000
9,000
9,000
9,000
9,000
FRANCHISES
215,845
221,841
227,836
233,785
239,781
OTHER TAXES
74,870
76,950
79,030
81,093
83,173
STATE SUBVENTIONS
267,821
275,260
282,700
290,081
297,521
OTHER REVENUES
102,302
105,144
107,985
110,805
113,647
TRANSIENT OCCUPANCY TAX
72,140
72,140
72,140
72,140
72,140
LICENSE AND PERMITS
0
55,320
55,320
54,956
55,320
FEES FOR SERVICES
0
46,627
46,627
46,320
46,627
TOTAL GENERAL FUND REVENUES
TO CITY OF PALM DESERT
741,978
862,282
880,639
898,181
917,208
- Page 14 -
m
E5
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 1 D - SPECIAL FUND REVENUES
TRAFFIC SAFETY/MEASURE A
232,139
238,587
245,036
251,434
257,882
GAS TAX
97,249
99,950
102,652
105,332
108,033
PROP A FIRE TAX
221,184
227,328
233,472
239,568
245,712
NEW CONSTRUCTION TAX
0
79,029
79,029
78,509
79,029
DRAINAGE FACILITY
0
50,578
50,578
50,246
50,578
TOTAL SPECIAL FUND REVENUES
TO CITY OF PALM DESERT
550,572
695,473
710,766
725,088
741,234,
- Page 15 -
m
m
CITY OF PALM DESERT
ANNEXATION -PALM DESERT C.C. AREA
SPEC REV FUND EXPEND (26.'
N FUND EXPEND (73.9%)
SUMMARY OF EXPENDITURES BY CITY OF PALM DESERT
- Page 16 -
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 2 - SUMMARY OF EXPENDITURES BY CITY OF PALM DESERT
GENERAL FUND EXPENDITURES -
SCHEDULE 2A 1,218,511 1,257,511 1,253,511 1,242,511 1,228,511 6,200,555
SPECIAL REV FUND EXPENDITURES -
SCHEDULE2B 475,020 420,993 426,965 432,892 438,864 2,194,734
TOTAL EXPENDITURES BY
CITY OF PALM DESERT 1,693,531 1,678,504 1,680.476 1,675,403, 1,667,375 81395,289'
- Page 17 -
Rm
En
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 2A - GENERAL FUND EXPENDITURES
GENERAL FUND EXPENDITURES
BY CITY OF: PALM DESERT »
1993
1994
1995
1996
i 997:!.
INSURANCE
110,000
110,000
120,000
120,000
120,000
LEGAULITIGATION
20,000
20,000
20,000
20,000
20,000
HAUTELINE (POSTAGE/PRINTING)
10,000
10,000
10,000
10,000
10,000
ELECTION (ELECTION YEARS ONLY)
14,000
14,000
BUILDING & SAFETY
25,000
25,000
ANIMAL CONTROL
20,000
20,000
20,000
20,000
20,000
GENERAL SERVICES - DUES
13,000
13,000
13,000
13,000
13,000
POLICE
625,511
625,511
625,511
625,511
625,511
PUBLIC WORKS
420,000
420,000
420,000
420,000
420,000
TOTAL GENERAL FUND EXPENDITURES
BY CITY OF PALM DESERT
1,218,511
1,257,511
1,253,511
1,242,511
1,228,511
- Page 18 -
I9
rm
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 213 - SPECIAL REVENUE FUND EXPENDITURES
SPECIAL REV FUND:EXPENDITURESI
BY CITY OF<PALM DESERT
1993
1994
1995
1996j.1997'
TRAFFIC SAFETY/MEASURE A
112,099
115,213
118,327
121,416
124,530
GAS TAX
102,921
105,780
108,639
111,475
114,334
PROP A FIRE TAX
260,000
200,000
200,000
200,000
200,000
TOTAL SPEC REV FUND EXPEND
BY CITY OF PALM DESERT
475,020
420,993'
426,965
432,892,
438 864
- Page 19 -
IMPACT ON COUNTY OF RIVERSIDE
The financial effect on the County of Riverside
annexation is summarized in Schedule 3, and
net annual impact is projected as follows:
1993
1994
1995
1996
1997
which would result from the proposed
detailed in Schedules 3A and 3B. The
$216,938
$263,621
$286, 734
$309,289
$331,915
The cumulative impact for the five year build -out period is calculated as a negative
impact of $1,408,498. It is projected that following the build -out stage, the net annual
impact to the County of Riverside will be a positive impact of $331,915 per year.
PUBLIC REVENUE
The revenue which would flow to the County of Riverside is presented in schedule 3A.
Only specific revenue identified as revenue generated in the proposed annexation area
is included.
Property tax revenue is based on cumulative assessed value, which includes the
annual reassessment of 2.00% allowed under Proposition 13, but does not include any
revaluations which may occur from subsequent sales.
Retail sales tax revenue is based on projected retail sales, as presented earlier in this
report in Schedule 1 B. The revenue factor of 0.25% represents the County's share of
sales tax collected.
PUBLIC COST
The public cost which the County will incur is based on the variable expenditures which
would apply to the annexation area, as adopted from the County of Riverside Final
Budget for the Fiscal Year 1991 /1992. This amount is divided by the population of
Riverside County to arrive at the per capita factor of $105.01, which is then applied to
the cumulative population projected for the proposed annexation area.
- Page 20-
w
CITY OF PALM DESERT
ANNEXATION - PALM DESERTAREA
0*1
• • • . -
ANNUAL REVENUE F/71 ANNUAL
\\\ COST
- Page 21 -
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SUMMARY OF IMPACT ON COUNTY OF RIVERSIDE
REVENUE - SCHEDULE 3A 1 1,299,875 1 1,376,640 1 1,429,835 1 1,482,236 1 1,534,943 1 7,123,529 1
PUBLIC COST- SCHEDULE 3B 1 1,082,937 1 1,113,019 1 1.143,100 1 1,172,947 1 1,203,028 1 5,715,031 1
NET ANNUAL IMPACT
216,938
263,621
286,734
309,289
331,915
1,408 498I'
CUMULATIVE IMPACT
216.938
480,559
767,294
1,076,583
1,408,498
- Page 22 -
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 3A - REVENUE TO COUNTY OF RIVERSIDE
PROPERTY TAX REVENUE
CUMULATIVE ASSESSED VALUE
PROPERTY TAX RATE
ALLOCATED TO COUNTY
TOTAL PROPERTY TAX REVENUE
TO COUNTY OF RIVERSIDE
563,446,233
594,598,830
615,105,555
635,253,761 I
655,540,398
0.2214
0.2214
0.2214%
0.2214J
0.2214%
1,247,470 1 1,316,4421 1,361,8441 1,406,452 1 1,451,366 1
SALES TAX REVENUE
RETAIL SALES IN
ANNEXED AREA
20,962,043
24,079,224
27,196,405
30,313,586
33,430,767
SALES TAX RATE
ALLOCATED TO COUNTY
0.25%
0.25
0.25%
0.25%
0.25%
TOTAL SALES TAX REVENUE
TO COUNTY OF RIVERSIDE
52,405
60,198
67,991
75,784
83,577
TOTAL REVENUE
TO COUNTY OF RIVERSIDE
1,299,875
1,376,640
1,429,835
1,482,236
1,534,943
- Page 23 -
`rl
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 36 - EXPENDITURES BY COUNTY OF RIVERSIDE
CUMULATIVE
A NEXEDAREA CATION
NI 10,3131 10,5991 10,886 I 11,170
CAPITA COST FACTOR 1 105.01 1 105.01 1 105.01 1 105.01
11,4561
105.01 1
TOTAL EXPENDITURES
BY COUNTY OF RIVERSIDE 1,082,937 1,113,019 1,143,100 1,172,947 1,203,028
- Page 24 -
S
il�yr \11i
IMPACT ON OTHER AGENCIES
The fiscal impact on other agencies which would be financially affected by the
proposed annexation has been analyzed, and is presented in Schedule 4. Other
agencies considered to be affected are the Structural Fire Protection Agency and the
County Free Library Agency.
STRUCTURAL FIRE PROTECTION AGENCY
The net annual impact on the Structural Fire Protection Agency is projected as follows:
1993
$159, 791
1994
$173, 625
1995
$181, 006
1996
$188, 210
1997
$195,458
The cumulative impact for the five year build -out period is projected to be a total
positive impact of $898,089. Thereafter, the annual impact to the Structural Fire
Protection Agency is calculated to be a net positive impact of $195,458 per year.
The revenue factor utilized is representative of the Tax Levy Factors in the annexation
area, as explained earlier in this report.
The per capita cost factor is derived from the County of Riverside Final Budget for
1991 /1992, and divided by Riverside County population.
COUNTY FREE LIBRARY AGENCY
The net annual impact on the County Free Library is projected as follows:
1993
$81,809
1994
$88,445
1995
$92,085
1996
$95,640
1997
$99, 218
The cumulative impact for the five year build -out period is projected to be a total
- Page 25 -
.\.MI
IN;ow
14 ,.
. I . mmm10
AL REVENUE ANNUAL COST
- Page 27 -
r
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
SCHEDULE 4 - IMPACT ON OTHER AGENCIES
REVENUE, BASED ON
ASSESSED VALUE FACTOR 341,501 360,382 372,811 385,023 397,318 1,857,035
COST, BASED ON
PER CAPITA FACTOR 181,710 186,757 191,805 196,813 201,860 958,945
COUNTY FREE LIBRARY
1993
1994
1995
1996
1997
TOTAL
REVENUE, BASED ON
ASSESSED VALUE FACTOR
COST, BASED ON
PER CAPITA FACTOR
158,638
76,830
167,409
78,964
173,183
81,098
178,856
83,215
184,567
85,350
862,654
405,456
NET ANNUAL IMPACT
TO COUNTY FREE LIBRARY
81,809
88,445
92,085
95,640
99,218
457,197
CUMULATIVE IMPACT
81,809
170,254
262,339
357,979
457,197
- Page 28-
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
BASE DATA
RESIDENTIAL UNITS
1993
1994
1995
1996
1997
PALM DESERT RESORT
930
930
930
930
930
WHITEHAWK
288
324
360
396
432
SUN DUNES APARTMENTS
24
24
24
24
24
DESERT OASIS APARTMENTS
320
320
320
320
320
GOLDEN SUN ESTATES
200
200
200
200
200
ROYAL PALM APARTMENTS
100
100
100
100
100
WOODHAVEN COUNTRY CLUB
504
504
504
504
504
PALM DESERT APARTMENTS
386
386
386
386
386
PALM DESERT PALMS APARTMENTS
40
40
40
40
40
GOLDEN/ROYAL OAKS APARTMENTS
104
104
104
104
104
DESERT BREEZES
76
76
76
76
76
PALM DESERT COUNTRY CLUB
954
954
954
954
954
OASIS COUNTRY CLUB
682
774
866
957
1,049
TOTAL RESIDENTIAL UNITS
4,608
4,736
4,864
4,991
5,119
- Page 29-
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
BASE DATA
CUMULATIVE POPULATION
1993
1094..1995
1936
1997
PALM DESERT RESORT
2,081
2,081
2,081
2,081
2,081
WHITEHAWK
645
725
806
886
967
SUN DUNES APARTMENTS
54
54
54
54
54
DESERT OASIS APARTMENTS
716
716
716
716
716
GOLDEN SUN ESTATES
448
448
448
448
448
ROYAL PALM APARTMENTS
224
224
224
224
224
WOODHAVEN COUNTRY CLUB
1,128
1,128
1,128
1,128
1,128
PALM DESERT APARTMENTS
864
864
864
864
864
PALM DESERT PALMS APARTMENTS
90
90
90
90
90
GOLDEN/ROYAL OAKS APARTMENTS
233
233
233
233
233
DESERT BREEZES
170
170
170
170
170
PALM DESERT COUNTRY CLUB
2,135
2,135
2,135
2,135
2,135
OASIS COUNTRY CLUB
1,526
1,132
1,938
2,142
2,348
TOTAL CUMULATIVE POPULATION
10,313
10,599
10,886
11,170
11,456
- Page 30 -
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
BASE DATA
PALM DESERT RESORT
WHITEHAWK
SUN DUNES APARTMENTS
DESERT OASIS APARTMENTS
GOLDEN SUN ESTATES
ROYAL PALM APARTMENTS
WOODHAVEN COUNTRY CLUB
PALM DESERT APARTMENTS
PALM DESERT PALMS APARTMENTS
GOLDEN/ROYAL OAKS APARTMENT
DESERT BREEZES
PALM DESERT COUNTRY CLUB
OASIS COUNTRY CLUB
TOTAL RESIDENTIAL
SQUARE FOOTAGE
1,209, 000
1,209, 000
1,209,000
1,209, 000
1,209, 000
374,400
421,200
468,000
514,800
561,600
24,000
24,000
24,000
24,000
24,000
320,000
320,000
320,000
320,000
320,000
200,000
200,000
200,000
200,000
200,000
100,000
100,000
100,000
100,000
100,000
655,200
655,200
655,200
655,200
655,200
386,000
386,000
386,000
386,000
386,000
40,000
40,000
40,000
40,000
40,000
104,000
104,000
104,000
104,000
104,000
98,800
98,800
98,800
98,800
98,800
1,240, 200
1,240,200
1,240,200
1,240,200
1,240,200
886,600
1,006,200
1,125, 800
1,244,100
1,363,700
5,638,200 1 5,804,600 1 5,971,000 1 6,136,100 1 6,302,500
SQUARE FOOTAGE OF
NEW CONSTRUCTION
1993
1994
1995
1996
1997
WHITEHAWK
OASIS COUNTRY CLUB
0
0
46,800
119,600
46,800
119,600
46,800
118,300
46,800
119,600
NEW RESIDENTIAL SQUARE FOOTA
0
166,400
166,400
165,100
166,400
NEW COMMERCIAL SQUARE FOOTA
0
31,172
31,172
31,172
31,172
TOTAL SQUARE FOOTAGE OF
NEW CONSTRUCTION
0
197,572
197,572
196,272
197,572
- Page 31 -
1 i1
f iu_..r4
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
BASE DATA
ASSESSED VALUE.::
RESIDENTIAL PROPERTY
1993
1994.
:1995J.1996
1997
PALM DESERT RESORT
135,408,000
135,408,000
135,408,000
135,408,000
135,408,000
WHITEHAWK
41,932,800
47,174,400
52,416,000
57,657,600
62,899,200
SUN DUNES APARTMENTS
960,000
960,000
960,000
960,000
960,000
DESERT OASIS APARTMENTS
12,800,000
12,800,000
12,800,000
12,800,000
12,800,000
GOLDEN SUN ESTATES
8,000,000
8,000,000
8,000,000
8,000,000
8,000,000
ROYAL PALM APARTMENTS
4,000,000
4,000,000
4,000,000
4,000,000
4,000,000
WOODHAVEN COUNTRY CLUB
73,382,400
73,382,400
73,382,400
73,382,400
73,382,400
PALM DESERT APARTMENTS
15,440,000
15,440,000
15,440,000
15,440,000
15,440,000
PALM DESERT PALMS APARTMENTS
1,600,000
1,600,000
1,600,000
1,600,000
1,600,000
GOLDEN/ROYAL OAKS APARTMENTS
4,160,000
4,160,000
4,160,000
4,160,000
4,160,000
DESERT BREEZES
11,065,600
11,065,600
11,065,600
11,065,600
11,065,600
PALM DESERT COUNTRY CLUB
138,902,400
138,902,400
138,902,400
138,902,400
138,902,400
OASIS COUNTRY CLUB
99,299,200
112,694,400
126,089,600
139,339,200
152,734,400
TOTAL ASSESSED VALUE -
RESIDENTIAL PROPERTY
546,950,400
565,587,200
584,224,000
602,715,200
621,352,000
- Page 32 -
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
BASE DATA
ASSESSED VALUE -
COMMERCIAI PROPERTY
1993'
1994''
t995
I i996
:I 1997'
LAND
PARCELS 4 AND 17
420,354
420,354
420,354
420,354
420,354
PARCEL 9
765,349
765,349
765,349
765,349
765,349
PARCEL 12
196,020
196,020
196,020
196,020
196,020
PARCEL 13
70,132
70,132
70,132
70,132
70,132
TOTAL LAND (IN SQUARE FEET)
1,451,855
1,451,855
1,451,855
1,451,855
1,451,855
AVERAGE VALUATION RATE
$6.00
$6.00
$6.00
$6.00
$6.00
TOTAL LAND VALUE
8,711,130
8,711,130
8,711,130
8,711,130
8,711,130
STRUCTURES
PARCELS 4 AND 17
13,000
33,824
54,648
75,471
96,295
PARCEL 9
168,377
168,377
168,377
168,377
168,377
PARCEL 12
7,841
15,682
23,522
31,363
39,204
PARCEL 13
5,400
7,907
10,415
12,922
15,429
TOTAL STRUC (IN SQUARE FEET)
194,618
225,789
256,961
288,133
319,305
AVERAGE VALUATION RATE
$40.00
$40.00
$40.00
$40.00
$40.00
TOTALSTRUCTUREVALUE
7,784,703
9,031,576
10,278,448
11,525,320
12,772,193
TOTAL ASSESSED VALUE -
COMMERCIAL PROPERTY
16,495,833
17,742,706
18,989,578
20,236,450
21,483,323
COST OF NEW CONSTRUCTION
1993
1994
1995
1996
1997
COMMERCIAL PROPERTY
RESIDENTIAL PROPERTY
0
0
1,246,872
6,656,000
1,246,872
6,656,000
1,246,872
6,604,000
1,246,872
6,656,000
TOTAL COST OF NEW CONSTRUCTIO
0
7,902,872
7,902,872
7,850,872
7,902,872
- Page 33 -
CITY OF PALM DESERT
PROPOSED ANNEXATION - PALM DESERT COUNTRY CLUB AREA
ASSUMPTIONS
GENERAL ASSUMPTIONS
POPULATION PER HOUSEHOLD. Average population per household of 2.238 is
utilized, per the California Department of Finance estimate as of January 1, 1992; report
printed April 29, 1992.
POPULATION FOR CITY OF PALM DESERT. Palm Desert population of 24,817 is
estimated by the California Department of Finance as of January 1, 1992. Population of
3,466 is added for area north of Country Club annexed to the City after January 1,
1992, for total population of 28,283. This amount is adjusted for a seasonal influx of
17,000 for an average of six months per year, resulting in a seasonally adjusted
population of 36,783.
SIZE OF DWELLING UNITS. Average sizes of dwelling units is assumed as follows:
Apartments 1,000 square feet
All others 1,300 square feet
SCHEDULE 1A - PROPERTY TAX REVENUE
ASSESSED VALUE - RESIDENTIAL PROPERTY. Average assessed values assumed
for residential properties are as follow:
Apartments $40.00 per square foot
All others $112.00 per square foot
ASSESSED VALUE - COMMERCIAL PROPERTY. Average assessed value of $40.00
per square foot is utilized for commercial property.
COVERAGE. Coverage of 22.00% is utilized for commercially zoned properties, and
20.00% for properties zoned residential.
REASSESSMENT. Reassessments are calculated as 2.00% of cumulative assessed
value in the prior year.
TAX LEVY FACTOR. The average tax levy factor calculated in the Feasibility Study for
Project Area 4 dated July, 1991 is utilized in this report. The Feasibility Study computed
a weighted average of 37 Tax Rate Areas contained in the annexed area.
- Page 34 -
PROPERTY TAX REVENUE -SHARING. By agreement between the County of Riverside
and the City of Palm Desert, the City is expected to receive 25.00% of the County's
property tax revenue generated in the annexed area. Using the Tax Levy Factor
explained above, this computes to be a factor of 0.0738% for the City of Palm Desert.
SCHEDULE 1 B - SALES TAX REVENUE
RETAIL USE. It is projected that retail use accounts for 75.00% of commercial
developments in the annexed area.
TAXABLE SALES. Annual taxable sales per square foot were calculated by using
historical data, as well as assumptions regarding projected users of future
developments in the annexed area.
TAXABLE SALES - COUNTRY CLUBS. Taxable sales for the country clubs in the
annexed area were provided by some clubs, and extrapolated for others.
SCHEDULE 1C - GENERAL FUND REVENUES
BUSINESS LICENSE TAX. The annexed area contains approximately 100 businesses,
which incur an annual business license tax of $90.00 each.
REVENUE FACTORS. The following factors were applied to cumulative population in
order to calculate the projected revenues:
Franchises
$20.93
Other Taxes
$7.26
State Subventions
$25.97
Other Revenues
$9.92
The per capita factors were calculated by dividing the projected revenues, per the City
of Palm Desert 1992/1993 Financial Plan, by the seasonally adjusted population of the
City of Palm Desert.
TRANSIENT OCCUPANCY TAX. Rents subject to the Transient Occupancy Tax is
provided by some owners and extrapolated for others. A rate of 9.00% is applied to
taxable rents.
LICENSE & PERMITS. License and Permit revenue of $7.00 per $1,000 of new
construction is applied to projected construction in the annexed area.
FEES FOR SERVICES. Fees for Services revenue of $5.90 per $1,000 of new
construction is applied to projected construction in the annexed area.
- Page 35 -
,Or
SCHEDULE 1 D - SPECIAL FUND REVENUES
TRAFFIC SAFETY/MEASURE A. Revenue projected by the City in its 1992/1993
budget is divided by seasonally adjusted population to arrive at a revenue factor of
$22.51 per capita, which is then applied to cumulative population for the annexed area.
GAS TAX. Revenue projected by the City in its 1992/1993 budget is divided by
seasonally adjusted population to arrive at a revenue factor of $9.43 per capita, which
is then applied to cumulative population for the annexed area.
PROP A FIRE TAX. The revenue factor of $48.00 per dwelling is applied to cumulative
dwelling units in the annexed area.
NEW CONSTRUCTION TAX. The revenue factor of $0.40 per square foot was applied
to new construction only.
DRAINAGE FACILITY FEE. The revenue factor of $6.40 per $1,000 of new construction
was applied to new construction only.
SCHEDULE 2A - GENERAL FUND EXPENDITURES
EXPENDITURES. Only those incremental costs specifically identified as resulting in the
proposed annexation area have been included. All relevant department heads were
interviewed, and have provided their estimates of identifiable costs which would be
incurred for the proposed annexation area in the event of annexation.
PUBLIC IMPROVEMENTS. No public improvements have been included in this
analysis. It is anticipated that other funding mechanisms will be utilized to bear the cost
of such improvements.
SCHEDULE 2B - SPECIAL REVENUE FUND EXPENDITURES
EXPENDITURES. Traffic Safety/Measure A and Gas Tax expenditures were adopted
from the City's 1992/1993 budget, converted to a per capita factor, and applied to the
cumulative population in the annexed area. Prop A Fire Tax expenditures were
estimated by appropriate department heads as those specific incremental costs which
would be incurred for the annexation area in the event of annexation.
FACTORS. Per capita factors were calculated by dividing projected expenditures by
- Page 36 -
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ROS FN OW PE,%'ACE K GROUP INC.
March 7, 1996
Mr. Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
FEBRUARY INVOICE
Dear Mr. Drell:
RECEIvro
MAR 11 1996
CNRUNmDEMa'MENT
OAYOFPAW DES E�KPAft
Pursuant to our agreement for professional services, the following represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study $ 481.25
AMOUNT DUE $ 481.25
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
Felise Acosta
Principal
Fkab
Enclosures
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
I
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.: 0004260-IN
DATE: 02/29/96
CITY OF PALM DESERT CLIENT CODE: PD
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WARING DRIVE PAGE NO.: 1
PALM DESERT, CA 92260
---•-------
STAFF
HOURS
RATE
AMOUNT
FOR PROFESSIONAL SERVICES RENDERED:
--------------------------------------------------------
______•___________
______________
----•-----
BERMUDA DUNES
Contract # C10310
DTM
1.00
100.000
100.00
02/12/96 COORDINATION
OTM
.50
100.000
50.00
02/13/96 COORDINATION
DTM
.50
100.000
50.00
02/15/96 COORDINATION
DTM
1.00
100.000
100.00
02/28/96 FINALIZE DOCUMENTS
MP
1.25
65.000
81.25
02/28/96 REVISE REVENUE/EXPENDITURE FORECAST
DTM
1.00
100.000
100.00
02/29/96 FINALIZE DOCUMENTS
TOTAL FEES: 481.25
TOTAL AMOUNT: 481.25
PAYMENT DUE UPON RECEIPT
_ ---- -------------------------
------ -----
------------------- OVER 60
=s---s-----------------------------
------------ OVER 90 OVER 120 BALANCE
CURRENT OVER 30
2139.50
2139.50
It
CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
MEMORANDUM
TO: File
DATE: March 22, 1996
SUBJECT: Bermuda Dunes Annexation Feasibility Study
Contract amount not to exceed $15,000.
Schedule of Payments:
11/14/95
$ 5,303.75
2,281.25
12/11/95
3,055.00
1/02/96
2,236.25
1/18/96
1,658.25
2/20/96
3/22/96 $481.25 - $15.75 =
465.50
$15,000.00
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RoSENOW SPEVACEK GROUP INC. RECEIVED
F E B 16 1996
COMMUNITY DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
February 12, 1996
Mr. Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
JANUARY INVOICE
Dear Mr. Drell:
Pursuant to our agreement for professional services, the following represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study $ 1,658.25
AMOUNT DUE $ 1,658.25
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
J��-
Felise Acosta
Principal
FA:ab
Enclosures
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
wtir ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.:
0004182-IN
DATE:
01/31/96
CITY OF PALM DESERT
CLIENT CODE:
PD
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WARING DRIVE
1
PALM DESERT, CA 92260
PAGE NO.:
-------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
RATE
AMOUNT
-----------------------------------------------------------------------------
BERMUDA DUNES
Contract # C10310
01/02/96 DRAFT FEASIBILITY REPORT
BR
2.00
35.000
70.00
DTM
.50
125.000
62.50
01/02/96 COORDINATION
01/03/96 DRAFT FEASIBILITY REPORT
BR
1.00
35.000
35.00
01/03/96 DRAFT DOCUMENTS
DTM
2.00
125.000
250.00
01/03/96 DRAFT REVISIONS TO STUDY
MP
6.00
65.000
390.00
01/04/96 FINALIZE DOCUMENTS
DTM
3.00
125.000
375.00
MP
1.50
65.000
97.50
01/04/96 DRAFT STUDY
MP
2.00
65.000
130.00
01/04/96 GRAPHICS - EXHIBITS
01/05/96 FINALIZE DOCUMENTS
DTM
.50
125.000
62.50
MP
1.75
65.000
113.75
01/05/96 DRAFT DOCUMENTS
DTM
.50
125.000
62.50
01/16/96 COORDINATION
------------
TOTAL FEES: 1648.75
9.50
01/04/96 MAILING SERVICES - UPS 08414149089
TOTAL EXPENSES: 9.50
------------
TOTAL AMOUNT: 1658.25
PAYMENT DUE UPON RECEIPT
---------------- -----------------
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
1658.25
2236.25 2281.25 3055.00 23.25 9254.00
41
Rost:NOW SPEVACEK GROUP INC.RECEIVED
FE B 16 1996
COMMUNITY DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
February 12, 1996
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
JANUARY INVOICE
Dear Mr. Drell:
Pursuant to our agreement for professional services, the following represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study $ 1,658.25
AMOUNT DUE $ 1,658.25
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
Felise Acosta
Principal
Fk ab
Enclosures
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
ROSENOY SPEVACEK GROUP INC.
` 540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.: 0004182-IN
CITY OF PALM DESERT DATE: 01/31/96
MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD
73510 FRED PARING DRIVE
PALM DESERT, CA 92260 PAGE NO.: 1
---------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
RATE
AMOUNT
-------------------------------------------------------------------------------------------------------------------
BERMUDA DUNES
Contract #
C10310
01/02/96
DRAFT FEASIBILITY REPORT
BR
2.00
35.000
70.00
01/02/96
COORDINATION
DTM
.50
125.000
62.50
01/03/96
DRAFT FEASIBILITY REPORT
BR
1.00
35.000
35.00
01/03/96
DRAFT DOCUMENTS
DTM
2.00
125.000
250.00
01/03/96
DRAFT REVISIONS TO STUDY
MP
6.00
65.000
390.00
01/04/96
FINALIZE DOCUMENTS
DTM
3.00
125.000
375.00
01/04/96
DRAFT STUDY
MP
1.50
65.000
97.50
01/04/96
GRAPHICS - EXHIBITS
MP
2.00
65.000
130.00
01/05/96
FINALIZE DOCUMENTS
DTM
.50
125.000
62.50
01/05/96
DRAFT DOCUMENTS
MP
1.75
65.000
113.75
01/16/96
COORDINATION
DTM
.50
125.000
62.50
TOTAL FEES:
------------
1648.75
01/04/96
MAILING SERVICES - UPS 08414149089
9.50
------------
TOTAL
EXPENSES:
9.50
------------
TOTAL AMOUNT: 1658.25
PAYMENT DUE UPON RECEIPT
----------------------------------------------------------------------------------
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
1658.25 2236.25 2281.25 3055.00 23.25 9254.00
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ROSENOW 'S PEVACEK GROUP INC.
JAN 17 1996
COMMINIM DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
January 9, 1996
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
DECEMBER INVOICE
Dear Mr. Drell:
Pursuant to our agreement for professional services, the following represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study
AMOUNT DUE
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
Felise Acosta
Principal
FA:ab
Enclosures
$ 29236.25
$ 2,236.25
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
`.+ ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
CITY OF PALM DESERT
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WRING DRIVE
PALM DESERT, CA 92260
cm
INVOICE NO.: OD04078-IN
DATE: 12/31/95
CLIENT CODE: PD
PAGE NO.: 1
----------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
RATE
AMOUNT
------------------------------------------------------------------------
BERMUDA DUNES
Contract * C10310
MP
2.00
65.000
130.00
12/01/95 RESEARCH
DTM
2.00
125.000
250.00
12/05/95 TEAM COORDINATION
MP
1.50
65.000
97.50
12/05/95 RESEARCH
MP
2.00
65.000
130.00
12/07/95 RESEARCH FEES
12/11/95 RESEARCH/INFORMATION REQUEST
MP
2.00
65.000
130.00
MP
2.00
65.000
130.00
12/12/95 RESEARCH
12/12/95 PHONE CALLS WITH P. GIBSON,K.WELLER, S.B.E.-MARK
MP
2.00
65.000
130.00
MINOR
12/13/95 RESEARCH - TRANSFER DATES
12/14/95 PHONE CALLS WITH THEOBALD,FIRE CHIEF,POICE
CAPTAIN
12/15/95 DATA ANALYSIS
12/15/95 RESEARCH
12/18/95 RESEARCH
12/19/95 TEAM COORDINATION
12/19/95 DRAFT DOCUMENTS
12/21/95 RESEARCH
MP
2.00
65.000
130.00
11P
1.00
65.000
65.00
DTM
1.00
125.000
125.00
MP
1.00
65.000
65.00
MP
2.50
65.000
162.50
DTM
1.50
125.000
187.50
MP
.25
65.000
16.25
MP
4.00
65.000
260.00
ROSENOY SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305 ,
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.:
0004078-IN
DATE:
12/31/95
CITY OF PALM DESERT
MR. CARLOS ORTEGA, EXEC. DIR.
CLIENT CODE:
PD
73510 FRED WRING DRIVE
PALM DESERT, CA 92260
PAGE NO.:
2
-------- -----------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF NOURS RATE
AMOUNT
-------- -----------------------------------------------------------------------------------------------------------------------
12/22/95 DRAFT DOCUMENTS
HP 3.50 65.000
227.50
------------
TOTAL FEES:
2236.25
------------
TOTAL AMOUNT: 2236.25
PAYMENT DUE UPON RECEIPT
------- ------
sssxxssaxxsxssxsxsxxsxxxxxsxxsxxsxxs_-x�xxxxsxxsxx�
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
2236.25 2281.25 3055.00 23.25 7595.75
RECEIVED
ROSENOW PEVACEK GROUP INC.
JAN 17 1996
COMMINITY7D VELOPMENT DEPARTI�NT
January 9, 1996
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERAVIUDA DUNES ANNEXATION
DECEMBER INVOICE
Dear Mr. Drell:
Pursuant to our agreement for professional services, the following represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study
AMOUNT DUE
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
Felise Acosta
Principal
FA:ab
Enclosures
$ 2,236.25
$ 2,236.25
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
,*Moe ROSENOW SPEVACEK GROUP INC. -Iw
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.: 0004078-IN
CITY OF PALM DESERT DATE: 12/31/95
MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD
73510 FRED WARING DRIVE
PALM DESERT, CA 92260 PAGE NO.: 1
--------------------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
RATE
AMOUNT
--------------------------------------------------------------------------------------------------------------------------------
BERMUDA DUNES
Contract #
C10310
12/01/95
RESEARCH
MP
2.00
65.000
130.00
12/05/95
TEAM COORDINATION
DTM
2.00
125.000
250.00
12/05/95
RESEARCH
MP
1.50
65.000
97.50
12/07/95
RESEARCH FEES
MP
2.00
65.000
130.00
12/11/95
RESEARCH/INFORMATION REQUEST
MP
2.00
65.000
130.00
12/12/95
RESEARCH
MP
2.00
65.000
130.00
12/12/95
PHONE CALLS WITH P. GIBSON,K.WELLER, S.B.E.-MARK
MP
2.00
65.000
130.00
MINOR
12/13/95
RESEARCH - TRANSFER DATES
MP
2.00
65.000
130.00
12/14/95
PHONE CALLS WITH THEOBALD,FIRE CHIEF,POICE
MP
1.00
65.000
65.00
CAPTAIN
12/15/95
DATA ANALYSIS
DTM
1.00
125.000
125.00
12/15/95
RESEARCH
MP
1.00
65.000
65.00
12/18/95
RESEARCH
MP
2.50
65.000
162.50
12/19/95
TEAM COORDINATION
DTM
1.50
125.000
187.50
12/19/95
DRAFT DOCUMENTS
MP
.25
65.000
16.25
12/21/95
RESEARCH
MP
4.00
65.000
260.00
ROSENOY SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
*law SANTA ANA, CA 92705
(714) 541-4585
CITY OF PALM DESERT
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WRING DRIVE
PALM DESERT, CA 92260
INVOICE NO.: 0004078-IN
DATE: 12/31/95
CLIENT CODE: PD
PAGE NO.: 2
--------------------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT
--------------------------------------------------------------------------------------------------------------------------------
12/22/95 DRAFT DOCUMENTS MP 3.50 65.000 227.50
------------
TOTAL FEES: 2236.25
------------
TOTAL AMOUNT: 2236.25
PAYMENT DUE UPON RECEIPT
-------- ---------------------- -------------
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
2236.25 2281.25 3055.00 23.25 7595.75
Rosenow Spevacek Group, Inc.
540 Forth Golden Circle, Suite 305
Santa. Aria, California 92705
._l A N - 5 199E
Fax Cover Sheet COMMUdlICI DEVELOPMENT DE DEPARTMENT
CITY OF PALM DESERT
CON,ffDEVM rNN0"CE
The information contained in this besialk mCAWC is priWesed and ronfldenNal informadon lnten"
only for the use of the indirldual or entity named below. If the resider of this me&We is not the intended
rr cipkat, you = hemo notified that my dissemination, distribution or cofy*W of this Conlnlulti Mod is
strictly arohlbited. If You have ime wd this cominssid4otion in etxar, phase b=Cdlrtely rrotlty us by
DATE: January 5,1998
TO: Phil Drell
City of Palm Desert
FROM: Melecio Picazo
RSG
TIME: 4:62 PM
PHONE: 819134E-0611
FAX 618i841-7098
PHONE: 7141541-4585
FAX: 7141836.1748
RE: REVISIONS TO REVENUEIEXPENDITURE FORECAST EXHIBIT 1
ANNEXATION OF BERMUDA DUNES
Number of pages including cover shoot: 2
Message
For your review, here is the revised draft to Page 1 of 2 concerning the revenue/expenditure forecast
exhibit I regarding the Bermuda Dunes Fiscal Feasibility Report. General administrative expenditures under
the Cenerai Fund eommetieing with Fiscal Year 1990-97 were incorrectly shown -
Should you have any questions or require further information, please give me a call.
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CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
MEMORANDUM
TO: City Manager and All Department Heads
FROM: Phil Drell, Acting Director
DATE: January 5, 1996
SUBJECT: Bermuda Dunes Annexation Fiscal Feasibility Report
Attached is the Draft Bermuda Dunes Annexation Fiscal Feasibility
Report prepared by Rosenow Spevacek Group, Inc. Please review the
report for discussion at the Tuesday, January 16 Executive Management
meeting. Please submit written comments to me as soon as possible.
PHILIP DRELL, ACTING DIRECTOR
COMMUNITY DEVELOPMENT AND PLANNING
/tm
cc: Carlos Ortega
Paul Shillcock
�j
J i u i
• � i � � Z%� Ae1 .� � ' I
BERMUDA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
January 5, 1996
Prepared for:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
(619) 340-5776
Prepared by:
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, California 92705
(714) 541-4585
i
cm
1. BACKGROUND
BERMUDA DUNES ANNEXATION
FISCAL FEASIBILITY REPORT
The City of Palm Desert ("City") engaged the Rosenow Spevacek Group, Inc. ("RSG") to prepare a
fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to
meet certain applicable requirements of the Cortese-f nox Local the BermudaGovernment Dunes commuReorganization
Priortif
to
and when the City desires to pursue annexation o
determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the
Bermuda Dunes community. This Report will focus of thoseservices, City andwhat could
services
will be provided
the Bermuda Dunes area, the forecasted co
reasonably be expected to be available to fund those services. This Report will focus on a
compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal
year 1998-99 using a range of potential fiscal impacts. It should be understood that there will
usually be differences between the forecasts and actual results because events and circumstances
frequently do not occur as expected, and those differences may be material.
The Bermuda Dunes area 1995 population is estimated at 6,266. The subject area is comprised of
approximately 10.7 square miles of territory. At the present time, the number of structures or
dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single
family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a
27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Dunes is located in the central
region of Riverside County. The boundaries of the Bermuda Dunes community is generally the
area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the east boundary
Indio city limits, Fred Waring Drive and the La Quinta t Mos'tsto of thearea hins still of ath, anarural
ng
Washington Street up to the Interstate 10 Freeway to he wes
t.nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential
and rugged terrain (refer to Exhibit 4).
The major public agencies currently providing services in the Bermuda Dunes community are the
County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District.
The County of Riverside is currently responsible for policymaking and administration, law
enforcement, animal control, planning and land use regulation, building inspection, flood control,
and the maintenance and improvement of roads. Street lighting services within the Bermuda
Dunes area are currently provided through County Service Area No. 121. The landscaped median
located along 42nd Street between Limahall Road and Glass Drive is currently being maintained by
Riverside County through a special assessment district formed pursuant to the 1972 Lighting and
Landscape Act. Upon annexation, the City would administer the special district as the taxes would
be transferred to the City and detached from the County.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. 1 Fiscal Feasibility Report
January 5, 1996
cm
E5
Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and
the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and
Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the
services is currently in place. Sewer service is currently, and will continue to be, provided by Septic
Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive,
Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection
e County
services to the Bermuda Dunes community. nd rservice � aefire station, three --mile radius. The
he County re
of
Station No. 31, is located at 42nd Avenue a
Riverside is currently responsible for providing police services within the Bermuda Dunes area. The
law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio
substations. Upon annexation, no change in fire or police protection services are anticipated
because police and fire protection services are provided by the same Riverside County
organization. The roads within the Bermuda Dunes area are currently maintained by the County of
Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing
roads.
Many of the General Fund and Road Fund revenues and expenditures were either calculated on a
per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a
case study methodology.
11. REVENUES
A. GENERAL FUND
The primary sources of General Fund revenues are noted below and shown on Exhibit 1:
1. m:
a. Property and Parcel Taxes:
The City's property tax revenue is based on the historical property tax ratio of
250/,/75% between the City and the County respectively as set forth in Resolution
No. 81-133 adopted September 24, 1981. Upon annexation, the City would
receive approximately 25% of the total General Fund property tax revenue and
the County would retain the remaining 75% of General Fund property tax
revenue. In addition, the City would also assume service responsibilities of
County Services Area ("CSA") No. 121. CSA No. 121 is wholly within the
community of Bermuda Dunes
and
be disosolved.funding
One hund ed perlighting.
100%j of
annexation, CSA No. 121 would
this special district's levies would be transferred to the City (refer to Exhibit 2).
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. 2 Fiscal Feasibility Report
January S, 1996
a b. Property Transfer Taxes:
The amount of Property Transfer Tax received will depend upon the level of resale
activity within Bermuda Dunes. These revenues have been estimated using an
average of previous three (3) year property transfer activity within Bermuda Dunes
at the rate of .55C per $1,000 of assessed values.
C. Homeowners Property Tax Relief
Revenue estimates generated from the Homeowner's Property Tax Relief were not
specifically projected because this analysis bases the Property Tax Apportionment
on assessed valuation gross of the Homeowners Exemption. Therefore, revenue
from the Homeowner's Property Tax Relief is included in the Property Tax
Apportionment.
d. Sales Taxes:
Upon annexation, the City will be eligible to receive a percentage of the sales tax
charged on qualifying retail sales from businesses within Bermuda Dunes. The
State Board of Equalization estimated that the commercial areas within Bermuda
Dunes are generating approximately $11n, hese0'n sales tax revenues annually.
sales tax revenues for Bermuda
RSG has assumed a modest 3% increase o
Dunes (refer to Exhibit 3).
e. Transient Occupancy Taxes:
Upon annexation, the City will receive the Transient Occupancy Tax. The City's
Transient Occupancy Tax rate is 9%rithBermuda
in the BerDunes
muda Dune Country Club,
establishment, the New Inn located
which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax
based on an occupancy factor and average room rate.
.� u. . 151 ra =r
Upon annexation, the City will be eligible to receive Motor Vehicle In -Lieu taxes. These
taxes are collected by the State's Department of Motor Vehicles and allocated to cities
on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a
per capita basis. Both subventions are based on 6,266 which is the estimated
population for Bermuda Dunes.
The per capita figures used in the revenue summary have been provided by the State
Controller's office for the 1995-96 fiscal year.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. 3 Fiscal Feasibility Report
January S, 1996
en
3 4 Franchise Fees
Upon annexation, the City will receive the franchise fees currently paid to the County
by Continental Cable Television, the Southern California Gas Company, Waste
Management, and Western Waste. These fees have been estimated on a per capita
basis using budget figures from the City of Palm Desert.
The fees described below are not included in Exhibit 1 because these fees specially
offset costs of development related services, only the "net" cost of these services are
indicated under "Expenditures".
a. Land Use Planning and Regulation Fees:
The City is authorized to charge fees for all land use planning and regulation
services. The City would utilize the City's existing fee schedule. These fees should
off -set most of the City's cost in providing these services.
b. Building Inspection and Permit Fees:
The fees collected for these building and permit inspection services should, in
most cases, totally offset the cost of these services.
C. Engineering Fees:
The City is also authorized to charge fees for plan checking, public works
inspection, permit issuance and review and other engineering services. The fees
collected for these services should, in most cases, offset the cost of these services.
d. Development Fees:
Under the provisions of State law, the City may collect development fees for the
purpose of construction or improving capital facilities. Fees received must be
segregated from the General Fund in order to avoid commingling. Certain fees
must be spent or committed within five years from the time they are collected.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
January 5, 1996 4
5.A, Other Revenues
a. Fines and Forfeitures:
This represents both Motor Vehicle Code fines, Municipal Code fines, and other
miscellaneous fines and forfeitures. Motor Vehicle and Municipal Code fines from
Bermuda Dunes were estimated on a per capita basis using current budget data
from the City of Palm Desert.
b. Business License Tax:
Upon annexation, the City will be eligible to impose the City's current Business
License Tax. The Business License fee for the City of Palm Desert is calculated
based upon gross sales. Based on discussions with City staff, RSG has estimated
the amount of Business License Tax using an average Business License fee for the
local sales tax generators identified within the Bermuda Dunes annexation area
(refer to Exhibit 3).
C. Proposition A Fire Tax:
The Proposition A Fire Tax is calculated using a per parcel cost. This figure is
estimated using an estimated 700 apartments and 300 condominiums at a per
parcel cost of $36 per unit, and an estimated 1,200 single family residential units
at $48 per unit.
d. County RDA. -
Currently there exists along Washington Street and 42nd Avenue a County
redevelopment project area. A small portion of the County Redevelopment
Project Area is located within the City of Palm Desert, and the remaining portion
exists in the unincorporated Bermuda Dunes territory (refer to Exhibit 5). This
County Redevelopment Project Area consists of commercial and multifamily
residential use and is located along Washington Street between Mountain View to
the south and just north of 42nd Avenue. in this analysis, it is assumed the City
would not take over the County Redevelopment Project Area and continued to be
maintained as a County Redevelopment Project Area. Because the County
Redevelopment Project Area would not be taken over by the City, no revenues
have been forecasted in this analysis.
e. Interest:
Because expenditures exceeded revenues resulting in no excess cash, RSG did not
include interest in this analysis.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
January S, 1996 5
i
B. ROAD FUND
All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with
the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the
cities based upon total population size. Because the annexation of Bermuda Dunes is only
adding 6,266 population to the existing 37,573 of Palm Desert, the added population will not
put the City's population above the next threshold. As such, no revenue is reflected relative
to Section 2107.5. Similar to other state subventions, road fund revenues initially would be
based at the estimated population of 6,266. Other Road Fund revenues include the voter -
approved Measure "A" sales tax distributed by the County Transportation Commission.
Revenues attributed to these gasoline taxes are restricted for use on road related maintenance
expenditures.
III. EXPENDITURES
A. GENERAL FUND EXPENDITURES
Expenditures have been categorized by departments within the City's organizational structure
and are estimated as follows:
a. Administration:
The analysis assumed no new positions, equipment or major operating costs
would be incurred because of the annexation. Minimal expenditures including
legal costs, advertising, postage, and other selected services and supplies were
estimated. Costs associated with the 1997-98 election are shown. Costs were
estimated based on a case by case analysis or a per capita rate using City budget
data.
b. Insurance:
Upon annexation of Bermuda Dunes, it is probable that the cost of the City's
insurance policy will be impacted. RSG has estimated these costs based on a per
capita figure using City budget data.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
6 Fiscal Feasibility Report
January 5, 1996
1.r+
A C. Animal Control:
Upon annexation of Bermuda Dunes, the current City animal control contractor,
California Animal Care, will assume animal control services for this area. Costs
were estimated assuming additional personnel and equipment as required by
California Animal Care. These costs are net of any animal license fee revenues.
d. County Property Tax Collection Charges:
Beginning in 1992-93, the County Auditor -Controller's Office charged cities and
local districts receiving property tax revenue for incidental administrative costs.
These charges are estimated at 0.2% of all property tax revenues.
2. Public Safetv:
a. Sheriff's Contract:
The Riverside County Sheriff's Department estimates service costs on a per capita
basis. The City has indicated a desire to maintain a patrol beat to population ratio
of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG
believes this estimated service level appears excessive in this particular community
due to the existing calls for service and the open space character of Bermuda
Dunes. Thus, RSG has assumed based on discussions with City and County staff
that only 5 beats will be needed to provide sufficient police services to the
merchants and residents of Bermuda Dunes.
b. Jail Booking Fee:
Riverside County collects from its Cities a flat fee for jail bookings. Currently, the
present jail booking fee is approximately $110. Bermuda Dunes jail booking fees
were estimated using a per capita rate based on jail bookings for the City of Palm
Desert.
C. Fire Protection:
The Cities of Palm Desert, Indian Wells, and Rancho Mirage have entered into a
Joint Powers Agreement forming the Cove Communities Public Safety Commission
in order to provide fire and paramedic services. These costs are net of the
property tax levy of the County Fire District. Fire Protection expenditures were
estimated using Riverside County Fire budget costs. This expenditure reflects a
percentage of the assessed valuation based upon the 1995-96 total cost. The
estimated budget figure includes $603,833 which provides for fire services staff
costs, a one-time $110,000 for new equipment and $12,000 for training and
other maintenance services. This estimated budget figure also includes optional
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
January S, 1996 7
paramedic services, which would be an additional $330,486. This total, which
amounts to $1,056,319, was reduced to reflect the net cost of services (less the 1 %
of the total assessed valuation of the Bermuda Dunes area multiplied by the
Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County
Fire Station No. 31, is located at 42nd Avenue and services a 3-mile radius.
•1111.1 �'Lei 1ll'1�
Upon the annexation of Bermuda Dunes, the Community Development Department
will assume the processing of all land use related services. These services will, in most
cases, be off -set by fees. However, the City will be responsible for the preparation of a
Specific Plan. This one-time cost in 1996-97 reflects duplicating fees, printing, maps,
and other miscellaneous costs associated with the in-house preparation of the Specific
Plan.
a. Code Compliance Officer:
Upon annexation, it is anticipated that an additional Code Compliance Officer will
be required to provide code enforcement services within the area of Bermuda
Dunes. This expenditure is calculated using the first step in the City's payroll
salary range for Code Compliance Officer at $2,604 per month. RSG has included
an additional 35% of the annual salary to reflect benefits and an additional 10%
for supplies, minor equipment, and other overhead costs.
WTIA•
For purposes of this Report, it is assumed that the current level of service of
maintenance programs is sufficient to the community's needs. Upon annexation, CSA
No. 121 and other County responsibilities will be assumed by the City. The Public
Works cost estimates also include an allowance for contract services to administer these
programs.
a. Administration:
A minimal administrative cost impact based on a per capita factor using City
budget data is reflected. This cost represents supplies, meeting and travel costs,
equipment, and other services.
b. Street Sweeping:
Upon annexation of the Bermuda Dunes area, the City will provide street
sweeping services to this area. This expenditure was estimated based on
discussion with City staff using a per capita cost based on City budget data. Street
sweeping services are performed bi-weekly by the City of Palm Desert.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc.
8 Fiscal Feasibility Report
January S, 1996
c. Street Lighting. -
Street lighting services within the Bermuda Dunes area are currently provided
through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds
will be transferred to the City. The forecasted expenditure is based on current
CSA No. 121 budget data (refer to Exhibit 2).
There is no anticipated financial impact relative to existing landscape maintenance
services. The landscaped median located along 42nd Street between Limb Hall and
Glass Drive is currently being maintained by Riverside County through a special
assessment district formed pursuant to the 1972 Lighting and Landscape Act. Upon the
annexation of Bermuda Dunes, the City would administer the special district as the
taxes would be transferred to the City and detached from the County. Thus, the
median would continue to be maintained by the assessment district. Currently the
Bermuda Dunes area has no public park or open space areas. Additional costs
associated with the City's exiting recreation program is not anticipated.
A 10% contingency factor has been added to the General Fund expenditure estimate to
meet unforeseen programs or emergency needs.
a. Capital Improvements:
Upon annexation, the City of Palm Desert will be required to pay for the 25%
local share for the proposed improvements at the interchange of Washington
Street and Interstate 10 Freeway. This forecasted expenditure, reflected in the
1997-98 fiscal year, is the City's share of the estimated construction cost plus a
10% contingency. No outside revenue source has been identified to fund this
capital improvement expenditure.
Upon annexation, it is the City's policy to upgrade existing infrastructure systems
within the annexation area to meet or exceed current City standards. The funding
sources for capital improvements within the Bermuda Dunes annexation area
were not identified because a capital improvement program (CIP) was not
developed nor required as part of this analysis. Therefore, in order to prepare a
CIP plan for the Bermuda Dunes annexation area, it would require the
preparation of an extensive and detailed infrastructure assessment analysis.
Bermuda Dunes Annexation
Rosenow Spevacek Group, Inc. Fiscal Feasibility Report
January 5, 1996 9
err *4100,
a. Street Maintenance:
The street maintenance expenditure was estimated based upon a per capita cost
using City budget data for the City of Palm Desert. This cost reflects a 3% increase
which includes general street maintenance; City-wide street slurry sealing,
overlaying and resurfacing, new and replaced curbs and gutters, centerline
striping, and safety and sign painting.
b. Traffic Signal Maintenance:
Upon annexation, the City of Palm Desert will be required to maintain additional
traffic signals. The City of Palm Desert currently maintains 50% of the traffic
signals located along Washington Street at 42nd Street, Country Club Drive, and
Avenue of the States. Upon annexation of the Bermuda Dunes area, the City will
be required to maintain 100% of these three (3) traffic signals and 25% of the
traffic signal located at Fred Waring Drive and Jefferson Street.
IV. SUMMARY OF FINDINGS
Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted
expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and
road funds exceed the estimated total revenues. Forecasted expenditures and revenues have
been calculated using conservative methodologies and modest escalation factors.
The forecasted general fund expenditures exceed the estimated revenues for fiscal year
1996-97 by $1,125,944, $1,082,063 for fiscal year 1997-98, and $1,129,179 for fiscal year
1998-99. The three fiscal year revenue and expenditure forecast concerning the road fund
also reflects expenditure totals exceeding estimated revenues. In fiscal year 1996-97, the
forecasted expenditures exceeded revenues by $114,511, $595,009 in fiscal year 1997-98,
and $121,485 in fiscal year 1998-99. Because of the residential character and rural nature of
Bermuda Dunes, the estimated amount of local sales tax generated annually was minimal.
For Bermuda Dunes area, there were only 22 retail establishments identified with taxable
sales amounts as provided by the State Board of Equalization (refer to Exhibit 3). The
Bermuda Dunes community has very little commercial activity with only one lodging
establishment. Therefore, the City's forecasted business license tax and transient occupancy
tax amounts are significantly low.
Because states subventions are allocated to cities on a per capita basis, the Bermuda Dunes
area with only approximately a population of 6,300 will receive minimal motor vehicle and
off -highway fees.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 10 Fiscal Feasibility Report
-low ftoof
Based upon discussions with the City and County staff, RSG has assumed that only five patrol
units would be required to provide sufficient police services to the Bermuda Dunes area. The
forecasted expenditure was calculated based upon per capita costs utilizing the existing
supported rate for Riverside County Sheriff and using an escalation rate of 7%. The estimated
expenditure for the Sheriff contract amount for public safety services in fiscal year 1996-97 is
nearly 90% of the total general fund revenue estimate.
The Cities of Palm Desert, Indian Wells, and Rancho Mirage are part of a joint Powers
Agreement in order to provide fire and paramedic services. The expenditures reflected in this
analysis are commensurate with the City's desire to maintain a high level of service in terms of
structural fire protection, suppression, and paramedic services. The forecasted expenditure
for structural fire protection services in fiscal year 1996-97 is approximately 96% of the grand
total general fund revenue estimate. Thus, the expenditures for public safety services alone
exceed the general fund available by 88%.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 11 Fiscal Feasibility Report
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4 EXHIBIT 3
LIST OF LOCAL SALES TAX GENERATORS
WITHIN THE BERMUDA DUNES ANNEXATION
1.
Subway
4100 Washington Aven
2.
Lizett's Hair Design
4100 Washington Aven
3.
Ernst & Ernst Foods
4100 Washington Aven
4.
So Much More Wallpaper
4100 Washington Aven
5.
Carmen's Mexican Food
4100 Washington Aven
6.
Clam's Up
4100 Washington Aven
7.
Wonder Cuts
4100 Washington Aven
8.
Armond's Wholesale Merchandise
4100 Washington Stree
9.
Teddy's Donuts 2
4100 Washington Aven
10.
Lilli's Chinese Cuisine
4100 Washington Aven
11.
Circle K Food Stores
4100 Washington Aven
12.
Carl's Jr.
4050 Washington Aven
13.
Unocal 76-Chemic Inc.
4010 Washington Aven
14.
Goodyear Jack Sauter
78105 Country Club Di
15.
Murph's Gaslight/Murphy's
Original Pan Fried Chicken
79860 42nd Avenue
16.
Bermuda Dunes Country Club
42360 Adams Street
17.
Darby West Care
78260 Darby Road
18.
Larry Shaw Wholesale Plants
78400 Darby Road
19.
California Desert Nursery
78600 Darby Road
20.
Vintage Nursery, Inc.
78755 Darby Road
21.
Cameron Nursery and Turf
Products
78850 Darby Road
22.
Desert Cities Nurseries
41555 Yucca Lane
Source: State Board of Equalization
#101
#103
e #119
e #123
e #125
e #129
#133
e #139
e #141
e #142
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4
Palm Desert
Sun City
CaIJ4try
I b te
m W
42ND Avenue
Bermuda Dunes
La Quinta Fred Waring Drive
uL.W ells
Source: Urban Decision systems Inc.
Exhibit 4
Bermuda Dunes Annexation
Inter
site I
' Op
Indio
North
ROSEN0W S P E V A C E K GROUP NC.
City of Palm Desert
cm
<:Ys�:;•
i� Avenue of the States
da Dunes
Darby Road
AProject Area Boundary
N ® Commercial
Multi -Family Residential
i8-18 DU/AQ
Exhibit 5
County Redevelopment Project rea
K.
ROSENOW S PE VACEK GROUP ZINC.
R O S E N O W S P E V A C E K G R O U P I
January 4, 1996
Mr. Phil Drell
CITY OF PALM DESERT
73 -5 10 Fred Waring Drive
Palm Desert, California 92260-2578
BERMUDA DUNES ANNEXATION FISCAL FEASIBILITY REPI
Dear Mr. Drell:
C.
RECEIVE®
JAN - 5 1996
COMMLMrTV DEVELOPMENT DEPARTMENT
CITY Of PALM DESERT
Via Overnight Mail
The Rosenow Spevacek Group, Inc. (RSG) is pleased to submit a draft of the Bermuda Dunes
Annexation Fiscal Feasibility Report. This Report will focus on what City services will be
provided within the Bermuda Dunes area, a forecasted cost of those services, and what revenues
could reasonably be expected to be available to fund those services.
Should you have any questions or require further information, please gi
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
r
� k �7/
Felise Acosta
Principal
FA:DTM:dw
Enclosure
, a l el T. Miller
Principal
me a call.
540 Nort PaI2AH ah Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 71 /836-1748, San Diego 619/967-6462
vDG3Glff4
BERMIIDA DUNES ANNEXA ION
FISCAL FEASIBILITY REPO T
January 5, 1996
Prepared for:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
(619) 340-5776
Prepared by:
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, California 92705
(714) 541-4585
%W 1401001
BERMUDA DUNES ANNEXATIO
FISCAL FEASIBILITY REPORT
1. BACKGROUND
The City of Palm Desert ("City") engaged the Rosenow Spevacek Grou , Inc. ("RSG") to prepare a
fiscal feasibility analysis of annexing the community of Bermuda Dunes. This Report can be used to
meet certain applicable requirements of the Cortese -Knox Local Government Reorganization Act if
and when the City desires to pursue annexation of the Bermuda Dunes community. Prior to
determining whether to pursue annexation, the City wants to ascertain the fiscal standing of the
Bermuda Dunes community. This Report will focus on what City services will be provided within
the Bermuda Dunes area, the forecasted cost of those services, and what revenues could
reasonably be expected to be available to fund those services. This Report will focus on a
compilation of the forecasted revenues and expenditures of the annexation area projected to fiscal
year 1998-99 using a range of potential fiscal impacts. It should be understood that there will
usually be differences between the forecasts and actual results because events and circumstances
frequently do not occur as expected, and those differences may be material.
The Bermuda Dunes area 1995 population is estimated at 6,266. Thesubject area is comprised of
approximately 10.7 square miles of territory. At the present time, tile number of structures or
dwelling units in the proposed annexation area include approximately 700 apartments, 1,200 single
family residential units, 300 condominiums, 200,000 square feet of commercial space, an airport, a
27-hole golf course and clubhouse, and a 41-unit hotel. Bermuda Du ies is located in the central
region of Riverside County. The boundaries of the Bermuda Dunes community is generally the
area along the Interstate 10 Freeway to the north, excluding the Indio city limits, the east boundary
Indio city limits, Fred Waring Drive and the La Quinta city limits to the south, and along
Washington Street up to the Interstate 10 Freeway to the west. Most of the area is still of a rural
nature and similar to areas of the Coachella Valley. Bermuda Dunes is predominantly residential
and rugged terrain (refer to Exhibit 4).
The major public agencies currently providing services in the Bermudil Dunes community are the
County of Riverside, County Service Area 121, and a Landscape and Lighting Assessment District.
The County of Riverside is currently responsible for policymaking and administration, law
enforcement, animal control, planning and land use regulation, building inspection, flood control,
and the maintenance and improvement of roads. Street lighting s rvices within the Bermuda
Dunes area are currently provided through County Service Area No. 121. The landscaped median
located along 42nd Street between Limahall Road and Glass Drive is Currently being maintained by
Riverside County through a special assessment district formed pursuant to the 1972 Lighting and
Landscape Act. Upon annexation, the City would administer the sped I district as the taxes would
be transferred to the City and detached from the County.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 1 Fiscal Feasibility Report
Water is currently supplied in the Bermuda Dunes area by the Myoma Dunes Water Company and
the Coachella Valley Water District. Upon annexation, the Myoma Dunes Water Company and
Coachella Valley Water District will continue to supply water to the Bermuda Dunes area as the
services is currently in place. Sewer service is currently, and will contin e to be, provided by Septic
Systems and Coachella Valley Water District. Sewer lines currently exist at Fred Waring Drive,
Washington Street, and 42nd Avenue. The County of Riverside currently provides fire protection
services to the Bermuda Dunes community. Currently, one fire station, Riverside County Fire
Station No. 31, is located at 42nd Avenue and services a three-mile radius. The County of
Riverside is currently responsible for providing police services within the Bermuda Dunes area. The
law enforcement facility responsible for the Bermuda Dunes area are the Palm Desert and Indio
substations. Upon annexation, no change in fire or police protection services are anticipated
because police and fire protection services are provided by the same Riverside County
organization. The roads within the Bermuda Dunes area are currently maintained by the County of
Riverside. Upon annexation, the City of Palm Desert will be required to maintain the existing
roads.
Many of the General Fund and Road Fund revenues and expenditures were either calculated on a
per capita basis, a marginal cost basis using actual budget figures from the City of Palm Desert, or a
case study methodology.
11. REVENUES
A. GENERAL FUND
The primary sources of General Fund revenues are noted below
1. Taxes:
a. Property and Parcel Taxes:
The City's property tax revenue is based on the hi
250/,/75% between the City and the County respectiv
No. 81-133 adopted September 24, 1981. Upon
receive approximately 25% of the total General Fun
the County would retain the remaining 75% of
revenue. In addition, the City would also assum
County Services Area ("CSA") No. 121. CSA Nc
community of Bermuda Dunes and provides fundir
annexation, CSA No. 121 would be dissolved. One
this special district's levies would be transferred to the
d shown on Exhibit 1:
:orical property tax ratio of
ply as set forth in Resolution
annexation, the City would
1 property tax revenue and
general Fund property tax
service responsibilities of
121 is wholly within the
g for street lighting. Upon
hundred percent (100%) of
City (refer to Exhibit 2).
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 2 Fiscal Feasibility Report
1*.✓
b. Property Transfer Taxes:
The amount of Property Transfer Tax received will dep nd upon the level of resale
activity within Bermuda Dunes. These revenues have been estimated using an
average of previous three (3) year property transfer activity within Bermuda Dunes
at the rate of .55C per $1,000 of assessed values.
C. Homeowners Property Tax Relief:
Revenue estimates generated from the Homeowner's roperty Tax Relief were not
specifically projected because this analysis bases the Property Tax Apportionment
on assessed valuation gross of the Homeowners Exemption. Therefore, revenue
from the Homeowner's Property Tax Relief is included in the Property Tax
Apportionment.
d. Sales Taxes:
Upon annexation, the City will be eligible to receive a percentage of the sales tax
charged on qualifying retail sales from businesses within Bermuda Dunes. The
State Board of Equalization estimated that the commercial areas within Bermuda
Dunes are generating approximately $114,500 in s4ales tax revenues annually.
RSG has assumed a modest 3% increase on these sal s tax revenues for Bermuda
Dunes (refer to Exhibit 3).
e. Transient Occupancy Taxes:
Upon annexation, the City will receive the Transient Occupancy Tax. The City's
Transient Occupancy Tax rate is 9%. Bermuda Dunes has one (1) lodging
establishment, the New Inn located within the Bermuda Dunes Country Club,
which has a total of 41 rooms. RSG has estimated the Transient Occupancy Tax
based on an occupancy factor and average room rate.
2. State Subventions (Motor Vehicle Fees)
Upon annexation, the City will be eligible to receive Motor ehicle In -Lieu taxes. These
taxes are collected by the State's Department of Motor Vehicles and allocated to cities
on a per capita basis. Off -road Vehicle taxes are also allocated to cities by the State on a
per capita basis. Both subventions are based on 6,266 which is the estimated
population for Bermuda Dunes.
The per capita figures used in the revenue summary have been provided by the State
Controller's office for the 1995-96 fiscal year.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 3 Fiscal Feasibility Report
gn
3. Franchise Fees
Upon annexation, the City will receive the franchise fees c rrently paid to the County
by Continental Cable Television, the Southern California Gas Company, Waste
Management, and Western Waste. These fees have been estimated on a per capita
basis using budget figures from the City of Palm Desert.
1 • - 11
The fees described below are not included in Exhibit 1 ecause these fees specially
offset costs of development related services, only the "net" cost of these services are
indicated under "Expenditures".
a. Land Use Planning and Regulation Fees:
The City is authorized to charge fees for all land use planning and regulation
services. The City would utilize the City's existing fee chedule. These fees should
off -set most of the City's cost in providing these servic s.
b. Building Inspection and Permit Fees:
The fees collected for these building and permit in pection services should, in
most cases, totally offset the cost of these services.
C. Engineering Fees:
The City is also authorized to charge fees for plan checking, public works
inspection, permit issuance and review and other engineering services. The fees
collected for these services should, in most cases, Offset the cost of these services.
d. Development Fees:
Under the provisions of State law, the City may collect development fees for the
purpose of construction or improving capital facilities. Fees received must be
segregated from the General Fund in order to avoid commingling. Certain fees
must be spent or committed within five years from the time they are collected.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 4 Fiscal Feasibility Report
en
5. Other Revenues
a. Fines and Forfeitures:
This represents both Motor Vehicle Code fines, Muni ipal Code fines, and other
miscellaneous fines and forfeitures. Motor Vehicle anc Municipal Code fines from
Bermuda Dunes were estimated on a per capita basi using current budget data
from the City of Palm Desert.
b. Business License Tax:
Upon annexation, the City will be eligible to impos(
License Tax. The Business License fee for the City
based upon gross sales. Based on discussions with
the amount of Business License Tax using an average
local sales tax generators identified within the Berm
(refer to Exhibit 3).
C. Proposition A Fire Tax:
the City's current Business
f Palm Desert is calculated
ty staff, RSG has estimated
3usiness License fee for the
da Dunes annexation area
The Proposition A Fire Tax is calculated using a per parcel cost. This figure is
estimated using an estimated 700 apartments and 300 condominiums at a per
parcel cost of $36 per unit, and an estimated 1,200 single family residential units
at $48 per unit.
d. County RDA:
Currently there exists along Washington Street ai
redevelopment project area. A small portion of
Project Area is located within the City of Palm Desei
exists in the unincorporated Bermuda Dunes territc
County Redevelopment Project Area consists of
residential use and is located along Washington StreE
the south and just north of 42nd Avenue. In this ai
would not take over the County Redevelopment Proj
maintained as a County Redevelopment Project
Redevelopment Project Area would not be taken o
have been forecasted in this analysis.
e. Interest:
142nd Avenue a County
ie County Redevelopment
and the remaining portion
i (refer to Exhibit 5). This
►mmercial and multifamily
between Mountain View to
lysis, it is assumed the City
A Area and continued to be
'ea. Because the County
!r by the City, no revenues
Because expenditures exceeded revenues resulting in no excess cash, RSG did not
include interest in this analysis.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 5 Fiscal Feasibility Report
M
M
B. ROAD FUND
All Road Fund subventions are calculated and allocated to the cities on a per capita basis, with
the exception of Section 2107.5. The State Subvention Section 2107.5 is allocated to the
cities based upon total population size. Because the annexation of Bermuda Dunes is only
adding 6,266 population to the existing 37,573 of Palm Desert, th added population will not
put the City's population above the next threshold. As such, no -evenue is reflected relative
to Section 2107.5. Similar to other state subventions, road fund revenues initially would be
based at the estimated population of 6,266. Other Road Fund -evenues include the voter -
approved Measure "A" sales tax distributed by the County Transp rtation Commission.
Revenues attributed to these gasoline taxes are restricted for use
expenditures.
111. EXPENDITURES
A. GENERAL FUND EXPENDITURES
Expenditures have been categorized by departments within the
and are estimated as follows:
1. General Government
a. Administration:
road related maintenance
s organizational structure
The analysis assumed no new positions, equipment or major operating costs
would be incurred because of the annexation. Minimal expenditures including
legal costs, advertising, postage, and other selected services and supplies were
estimated. Costs associated with the 1997-98 election are shown. Costs were
estimated based on a case by case analysis or a per apita rate using City budget
data.
b. Insurance:
Upon annexation of Bermuda Dunes, it is probabl(
insurance policy will be impacted. RSG has estimate
capita figure using City budget data.
that the cost of the City's
I these costs based on a per
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 6 Fiscal Feasibility Report
C. Animal Control:
Upon annexation of Bermuda Dunes, the current Ci animal control contractor,
California Animal Care, will assume animal control services for this area. Costs
were estimated assuming additional personnel and equipment as required by
California Animal Care. These costs are net of any animal license fee revenues.
d. County Property Tax Collection Charges:
Beginning in 1992-93, the County Auditor-Controlle 's Office charged cities and
local districts receiving property tax revenue for inc dental administrative costs.
These charges are estimated at 0.2% of all property to revenues.
2. Public Safety:
a. Sheriff's Contract:
The Riverside County Sheriff's Department estimates ervice costs on a per capita
basis. The City has indicated a desire to maintain a patrol beat to population ratio
of 1.5:1000, or approximately 9 officers for the Bermuda Dunes area. RSG
believes this estimated service level appears excessive in this particular community
due to the existing calls for service and the open space character of Bermuda
Dunes. Thus, RSG has assumed based on discussion5 with City and County staff
that only 5 beats will be needed to provide sufficient police services to the
merchants and residents of Bermuda Dunes.
b. Jail Booking Fee:
Riverside County collects from its Cities a flat fee for ail bookings. Currently, the
present jail booking fee is approximately $110. Berry uda Dunes jail booking fees
were estimated using a per capita rate based on jail ookings for the City of Palm
Desert.
C. Fire Protection:
The Cities of Palm Desert, Indian Wells, and Ranch(
Joint Powers Agreement forming the Cove Communil
in order to provide fire and paramedic services.
property tax levy of the County Fire District. Fire I
estimated using Riverside County Fire budget costs.
percentage of the assessed valuation based upon t
estimated budget figure includes $603,833 which F
costs, a one-time $110,000 for new equipment ai
other maintenance services. This estimated budget
Mirage have entered into a
es Public Safety Commission
These costs are net of the
rotection expenditures were
This expenditure reflects a
ie 1995-96 total cost. The
rovides for fire services staff
d $12,000 for training and
figure also includes optional
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 7 Fiscal Feasibility Report
lftw ti..re
paramedic services, which would be an additional $ 30,486. This total, which
amounts to $1,056,319, was reduced to reflect the net cost of services (less the 1 %
of the total assessed valuation of the Bermuda Dunes area multiplied by the
Structural Fire Tax rate of .06025). Currently one (1) fire station, Riverside County
Fire Station No. 31, is located at 42nd Avenue and ser ices a 3-mile radius.
Upon the annexation of Bermuda Dunes, the Community Development Department
will assume the processing of all land use related services. These services will, in most
cases, be off -set by fees. However, the City will be respons ble for the preparation of a
Specific Plan. This one-time cost in 1996-97 reflects dupl cating fees, printing, maps,
and other miscellaneous costs associated with the in-house preparation of the Specific
Plan.
a. Code Compliance Officer:
Upon annexation, it is anticipated that an additional C de Compliance Officer will
be required to provide code enforcement services within the area of Bermuda
Dunes. This expenditure is calculated using the first step in the City's payroll
salary range for Code Compliance Officer at $2,604 per month. RSG has included
an additional 35% of the annual salary to reflect ben fits and an additional 10%
for supplies, minor equipment, and other overhead co ts.
4. Public Works
For purposes of this Report, it is assumed that the Current level of service of
maintenance programs is sufficient to the community's needs. Upon annexation, CSA
No. 121 and other County responsibilities will be assumed by the City. The Public
Works cost estimates also include an allowance for contract services to administer these
programs.
a. Administration:
A minimal administrative cost impact based on a er capita factor using City
budget data is reflected. This cost represents supplies, meeting and travel costs,
equipment, and other services.
b. Street Sweeping:
Upon annexation of the Bermuda Dunes area, e City will provide street
sweeping services to this area. This expenditure was estimated based on
discussion with City staff using a per capita cost base on City budget data. Street
sweeping services are performed bi-weekly by the Cit i of Palm Desert.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 8 Fiscal Feasibility Report
c. Street Lighting:
Street lighting services within the Bermuda Dunes area are currently provided
through CSA No. 121. Upon annexation, CSA No. 121 will dissolve and all funds
will be transferred to the City. The forecasted expenditure is based on current
CSA No. 121 budget data (refer to Exhibit 2).
PREFOMM-741' •1
There is no anticipated financial impact relative to exist
services. The landscaped median located along 42nd Stri
Glass Drive is currently being maintained by Riverside
assessment district formed pursuant to the 1972 Lighting an
annexation of Bermuda Dunes, the City would administE
taxes would be transferred to the City and detached frc
median would continue to be maintained by the assessr
Bermuda Dunes area has no public park or open spa,
associated with the City's exiting recreation program is not a
6. Continsency:
ig landscape maintenance
et between Limb Hall and
County through a special
I Landscape Act. Upon the
the special district as the
-n the County. Thus, the
ent district. Currently the
e areas. Additional costs
iticipated.
A 10% contingency factor has been added to the General F nd expenditure estimate to
meet unforeseen programs or emergency needs.
7. Roads:
a. Capital Improvements:
Upon annexation, the City of Palm Desert will be i
local share for the proposed improvements at the
Street and Interstate 10 Freeway. This forecasted i
1997-98 fiscal year, is the City's share of the estim;
10% contingency. No outside revenue source has
capital improvement expenditure.
Upon annexation, it is the City's policy to upgrade e
within the annexation area to meet or exceed current
sources for capital improvements within the Bermi
were not identified because a capital improvem(
developed nor required as part of this analysis. The
CIP plan for the Bermuda Dunes annexation
preparation of an extensive and detailed infrastructure
!quired to pay for the 25%
interchange of Washington
rpenditure, reflected in the
:ed construction cost plus a
)een identified to fund this
cisting infrastructure systems
City standards. The funding
da Dunes annexation area
nt program (CIP) was not
efore, in order to prepare a
-ea, it would require the
assessment analysis.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 9 Fiscal Feasibility Report
y.:
8. Road Maintenance
a. Street Maintenance:
The street maintenance expenditure was estimated Is
using City budget data for the City of Palm Desert. Th
which includes general street maintenance; City -
overlaying and resurfacing, new and replaced cu
striping, and safety and sign painting.
b. Traffic Signal Maintenance:
Upon annexation, the City of Palm Desert will be re(
traffic signals. The City of Palm Desert currently r
signals located along Washington Street at 42nd Stre
Avenue of the States. Upon annexation of the Bermt
be required to maintain 100% of these three (3) tr;
traffic signal located at Fred Waring Drive and Jefferso
IV. SUMMARY OF FINDINGS
E!d upon a per capita cost
cost reflects a 3% increase
de street slurry sealing,
> and gutters, centerline
uired to maintain additional
iaintains 50% of the traffic
!t, Country Club Drive, and
da Dunes area, the City will
ffic signals and 25% of the
i Street.
Based upon this fiscal analysis of annexing the community of Bermuda Dunes, the forecasted
expenditure estimated for fiscal year 1996-97 through 1998-99 concerning the general and
road funds exceed the estimated total revenues. Forecasted expenditures and revenues have
been calculated using conservative methodologies and modest escalation factors.
The forecasted general fund expenditures exceed the estima
1996-97 by $1,125,944, $1,082,063 for fiscal year 1997-98, ar
1998-99. The three fiscal year revenue and expenditure foreci
also reflects expenditure totals exceeding estimated revenues.
forecasted expenditures exceeded revenues by $114,511, $591
and $121,485 in fiscal year 1998-99. Because of the residential
Bermuda Dunes, the estimated amount of local sales tax gene
For Bermuda Dunes area, there were only 22 retail establishr
sales amounts as provided by the State Board of Equalizatio
Bermuda Dunes community has very little commercial acti
establishment. Therefore, the City's forecasted business license
tax amounts are significantly low.
A revenues for fiscal year
d $1,129,179 for fiscal year
5t concerning the road fund
In fiscal year 1996-97, the
,009 in fiscal year 1997-98,
haracter and rural nature of
ated annually was minimal.
ents identified with taxable
i (refer to Exhibit 3). The
,ity with only one lodging
tax and transient occupancy
Because states subventions are allocated to cities on a per capi a basis, the Bermuda Dunes
area with only approximately a population of 6,300 will receive minimal motor vehicle and
off -highway fees.
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 10 Fiscal Feasibility Report
Based upon discussions with the City and County staff, RSG has
units would be required to provide sufficient police services to the
forecasted expenditure was calculated based upon per capita
supported rate for Riverside County Sheriff and using an escalatio
expenditure for the Sheriff contract amount for public safety sery
nearly 90% of the total general fund revenue estimate.
The Cities of Palm Desert, Indian Wells, and Rancho Mirage
Agreement in order to provide fire and paramedic services. The 1
analysis are commensurate with the City's desire to maintain a hil
structural fire protection, suppression, and paramedic services.
for structural fire protection services in fiscal year 1996-97 is app
total general fund revenue estimate. Thus, the expenditures for
exceed the general fund available by 88%.
sumed that only five patrol
Bermuda Dunes area. The
costs utilizing the existing
rate of 7%. The estimated
:es in fiscal year 1996-97 is
are part of a Joint Powers
xpenditures reflected in this
h level of service in terms of
The forecasted expenditure
oximately 96% of the grand
public safety services alone
Rosenow Spevacek Group, Inc. Bermuda Dunes Annexation
January S, 1996 11 Fiscal Feasibility Report
ON
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EXHIBIT 3
LIST OF LOCAL SALES TAX GENERATORS
WITHIN THE BERMUDA DUNES ANNEXATION AREA
1.
Subway
4100 Washington Avenue
#101
2.
Lizett's Hair Design
4100 Washington Avenue
#103
3.
Ernst & Ernst Foods
4100 Washington Avenue
4.
So Much More Wallpaper
4100 Washington Avenue
#119
5.
Carmen's Mexican Food
4100 Washington Avenue
#123
6.
Clam's Up
4100 Washington Avenue
#125
7.
Wonder Cuts
4100 Washington Avenue
#129
8.
Armond's Wholesale Merchandise
4100 Washington Street
#133
9.
Teddy's Donuts 2
4100 Washington Ave
lue #139
10.
Lilli's Chinese Cuisine
4100 Washington Ave
iue #141
11.
Circle K Food Stores
4100 Washington Ave
iue #142
12.
Carl's Jr.
4050 Washington Ave
iue
13.
Unocal 76-Chemic Inc.
4010 Washington Aven
ue
14.
Goodyear Jack Sauter
78105 Country Club Drive
15.
Murph's Gaslight/Murphy's
Original Pan Fried Chicken
79860 42nd Avenue
16.
Bermuda Dunes Country Club
42360 Adams Street
17.
Darby West Care
78260 Darby Road
18.
Larry Shaw Wholesale Plants
78400 Darby Road
19.
California Desert Nursery
78600 Darby Road
20.
Vintage Nursery, Inc.
78755 Darby Road
21.
Cameron Nursery and Turf
Products
78850 Darby Road
22.
Desert Cities Nurseries
41555 Yucca Lane
Source: State Board of Equalization
pa1mdst\exh3
�� � r--
Palm Desert
Sun City
Couhtry cfu
M LLl
42ND Avenue
Bermuda Dunes
I I I I 1-1-r I
La Quints Fred Waring Drive
uLWells
Source: Urban Decision Systems Inc.
Exhibit 4
Bermuda Dunes Annexation
a
j�terstat �I
e10
e F
a.Y
Indio
North
ROSENOW S P E V A C E K GROL'P ItiC.
City of Palm Desert
42ND A
w ! 1
i Avenue of the States
I�
_0
JY- L t I'
J i .l. 1! _ d'
{,.
TT I
it
Mountain View
Darby Road
Con
�i n
II N
e�
Bermuda Dunes
Project Area Boundary
Commercial
Multi-Famlly Residential
e-is ow cM
Exhibit 5
County Redevelopment Project rea
ROSFNOW SPEVACEK GROUP INC.
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a
ROSEN0W SPEVACEK GROL`P I 'C.
November 9, 1995
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
OCTOBER INVOICE
Dear Mr. Drell:
Pursuant to our agreement for professional services, the follow
and expenses accrued by RSG for services rendered during the
Feasibility Study $ 3,055.00
AMOUNT DUE $ 3,055.00
Sincerely,
ROSENOV I SPEVACEK GR UP, INC.
wvj
Daniel T. Miller
Principal
DTM:ab 7�
4tj
Enclosures \ A\V
RECEIVED
140�V 2 0 1995
COMMUNITY DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
represents the hours
ith.
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax1714/836-1748, San Diego 619/967-6462
ROSENOW SPEVACEK GROUP INC. '4010
540 N. GOLDEN CIRCLE STE. 305
} SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.:
0003947-IN
CITY OF PALM DESERT
DATE:
10/31/95
MR. CARLOS ORTEGA, EXEC. DIR.
CLIENT CODE:
PD
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
PAGE NO.:
1
-------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
------------------------------------
RATE
------------------------------------
AMOUNT
-------------------------------------------------------------------------------------------
BERMUDA DUNES
10/02/95 TEAM COORDINATION
DTM
1.50
1
5.000
187.50
10/02/95 COMPUTER REPORTS - TOP 10
MP
3.00
$5.000
195.00
10/02/95 RESEARCH FRANCHISE FEES
MP
1.25
55.000
81.25
10/02/95 PHONE CALL RE:FRANCHISES
MP
.25
55.000
16.25
10/02/95 PHONE CALLS WITH COUNTY
MP
.25
65.000
16.25
10/03/95 FIELD WORK - INFRASTRUCTURE SURVEY
MP
6.50
65.000
422.50
10/03/95 PHONE CALLS WITH COUNTY
MP
.25
65.000
16.25
10/04/95 DATA ANALYSIS
DTM
1.00
125.000
125.00
10/04/95 COMPUTER REPORTS - 1% BREAKDOWN
MP
4.00
65.000
260.00
10/04/95 RESEARCH TRA
MP
2.50
65.000
162.50
10/05/95 RESEARCH TRA,PROJECT AREA AP MAPS
MP
4.00
65.000
260.00
10/06/95 RESEARCH - 1% BREAKDOWN
MP
.50
65.000
32.50
10/11/95 TEAM COORDINATION
DTM
1.00
125.000
125.00
10/16/95 TEAM COORDINATION
DTM
1.00
125.000
125.00
10/17/95 DOCUMENT REVIEW
DTM
1.00
25.000
125.00
10/19/95 COMPUTER REPORTS - TOP 10
MP
4.75
65.000
308.75
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
m
(714) 541-4585
INVOICE NO.:
0003947-IN
CITY OF PALM DESERT
DATE:
10/31/95
MR. CARLOS ORTEGA, EXEC. DIR.
CLIENT CODE:
PD
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
PAGE NO.:
2
-------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
------------------------------------
RATE
------------------------------------
AMOUNT
-------------------------------------------------------------------------------------------
10/23/95 DRAFT DOCUMENTS
DTM
1.00
1
5.000
125.00
10/24/95 COMPUTER REPORTS - TOP 10
MP
1.50
5.000
97.50
10/30/95 COMPUTER REPORTS - TOP 10 AV/95-96 ASSESSED
VALUE MP
5.00
$5.000
325.00
BY TRA
10/30/95 PHONE CALL WITH TAX COLLECTOR
MP
.25
$5.000
16.25
10/31/95 PHONE CALL WITH COUNTY
MP
.50
5.000
32.50
TOTAL
FEES
------------
3055.00
TOTAL AMOUNT: 3055.00
PAYMENT DUE UPON RECEIPT
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
3055.00 5327.00 8382.00
9 iff- --4u-n
R O S E N O W SPEVACEKGROUP INC.
RECEIVED
November 9, 1995 fv O V 2 0. 1995
COMMIACITY DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERNIUDA DUNES ANNEXATION
OCTOBER INVOICE
Dear Mr. Drell:
Pursuant to our agreement for professional services, the followi g represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study
AMOUNT DUE
Sincerely,
ROSENOW SPEVACEK GR UP, INC.
Daniel T. Miller
Principal
DTM:ab
Enclosures
$ 3,055.00
$ 3,055.00
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fa714/836-1748, San Diego 619/967-6462
ROSENOW SPEVACEK GROUP INC. -*M✓`
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.:
0003947-IN
CITY OF PALM DESERT
DATE:
10/31/95
MR. CARLOS ORTEGA, EXEC. DIR.
CLIENT CODE:
PD
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
PAGE NO.:
1
-------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
------------------------------------
RATE
------------------------------------
AMOUNT
-------------------------------------------------------------------------------------------
BERMUDA DUNES
10/02/95 TEAM COORDINATION
DTM
1.50
1
5.000
187.50
10/02/95 COMPUTER REPORTS - TOP 10
MP
3.00
65.000
195.00
10/02/95 RESEARCH FRANCHISE FEES
MP
1.25
65.000
81.25
10/02/95 PHONE CALL RE:FRANCHISES
MP
.25
5.000
16.25
10/02/95 PHONE CALLS WITH COUNTY
MP
.25
5.000
16.25
10/03/95 FIELD WORK - INFRASTRUCTURE SURVEY
MP
6.50
5.000
422.50
10/03/95 PHONE CALLS WITH COUNTY
MP
.25
5.000
16.25
10/04/95 DATA ANALYSIS
DTM
1.00
15.000
125.00
10/04/95 COMPUTER REPORTS - 1% BREAKDOWN
MP
4.00
65.000
260.00
10/04/95 RESEARCH TRA
MP
2.50
65.000
162.50
10/05/95 RESEARCH TRA,PROJECT AREA AP MAPS
MP
4.00
65.000
260.00
10/06/95 RESEARCH - 1% BREAKDOWN
MP
.50
65.000
32.50
10/11/95 TEAM COORDINATION
DTM
1.00
125.000
125.00
10/16/95 TEAM COORDINATION
DTM
1.00
125.000
125.00
10/17/95 DOCUMENT REVIEW
DTM
1.00
25.000
125.00
10/19/95 COMPUTER REPORTS - TOP 10
MP
4.75
65.000
308.75
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
im
l
CITY OF PALM DESERT
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
(714) 541-4585
INVOICE NO.: 0003947-IN
DATE: 10/31/95
CLIENT CODE: PD
PAGE NO.: 2
-------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
----------------------
RATE
-------------------
AMOUNT
-------------------------------------------------------------------------------------------
10/23/95
DRAFT DOCUMENTS
DTM
1.00
15.000
125.00
10/24/95,
COMPUTER REPORTS - TOP 10
MP
1.50
5.000
97.50
10/30/95
COMPUTER REPORTS - TOP 10 AV/95-96 ASSESSED VALUE
MP
5.00
$5.000
325.00
BY TRA
10/30/95
PHONE CALL WITH TAX COLLECTOR
MP
.25
65.000
16.25
10/31/95
PHONE CALL WITH COUNTY
MP
.50
5.000
32.50
TOTAL FEES: 3055.00
TOTAL AMOUNT: 3055.00
PAYMENT DUE UPON RECEIPT
CURRENT OVER 30 OVER 60 OVER 90
3055.00 5327.00
OVER 120
BALANCE
8382.00
In
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R o s F\ G v: A c 6 h G R o 1, P [�ECEIVED
C.
December 6, 1995
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
NOVEMBER INVOICE
Dear Mr. Drell:
Pursuant to our agreement for professional services, the follow
and expenses accrued by RSG for services rendered during the
Feasibility Study $ 2,281.25
AMOUNT DUE $ 29281.25
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
Felise Acosta
Principal
FA:ab
Enclosures
-JEC 1 1 1995
!TY DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
represents the hours
540 :forth Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fa� 714/836-1748, San Diego 619/967-6462
llew ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
CITY OF PALM DESERT
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
m
INVOICE NO.: 0004016-IN
DATE: 11/30/95
CLIENT CODE: PD
PAGE NO.: 1
-----------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
STAFF
HOURS
RATE
AMOUNT
----------------------------------------------------------------------------------------------------------------
BERMUDA DUNES
Contract #
C10310
11/10/95
TEAM COORDINATION
DTM
1.00
125.000
125.00
11/10/95
TEAM COORDINATION
MP
.75
65.000
48.75
11/15/95
RESEARCH EXPENDITURE AND REVENUE FORECAST
MP
4.50
65.000
292.50
11/15/95
PHONE CALLS WITH COUNTY
MP
1.50
65.000
97.50
11/16/95
DATA ANALYSIS
DTM
1.00
125.000
125.00
11/16/95
RESEARCH TAXING ENTITIES,CR42 TRA REPORTS,IX
MP
5.00
65.000
325.00
BREAKDOWN
11/16/95
DRAFT DOCUMENTS/REQUEST INFO FROM COUNTY
MP
1.00
65.000
65.00
11/17/95
RESEARCH REVENUE FORECAST
MP
4.00
65.000
260.00
11/20/95
FIELD WORK - IDENTIFY RETAIL ESTABLISHMENTS/SALES
MP
6.00
65.000
390.00
TAX
11/20/95
RESEARCH PROPERTY OWNERS
MP
1.50
65.000
97.50
11/21/95
RESEARCH - SBE SALES TAX,FORECAST
MP
4.25
65.000
276.25
11/28/95
RESEARCH RETAIL ESTABLISHMENTS/SBE
MP
1.25
65.000
81.25
11/30/95
RESEARCH SSE SALES TAX VERIFICATION
MP
1.50
65.000
97.50
------------
TOTAL FEES: 2281.25
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.: 0004016-IN
CITY OF PALM DESERT DATE: 10/31/95
MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD
73510 FRED WARING DRIVE
PALM DESERT, CA 92260 PAGE NO.: 2
--------------------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT
----------------------------------------------------------------------------------------------------------------------
------------
TOTAL AMOUNT: 2281.25
PAYMENT DUE UPON RECEIPT
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
2281.25 :3055.00 5327.00 10663.25
4
ROSFN(.)V' C P F VALE K G ROi'P INC.
December 6, 1995
Mr.Phil Drell, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
EEWAUDA DUNES ANNEXATION
NOVEMBER INVOICE
Dear Mr. Drell:
j G a 1995
COMMONITV DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
Pursuant to our agreement for professional services, the following represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study $ 2,281.25
AMOUNT DUE $ 2,281.25
Sincerely, s
ROSENOW SPEVACEK GROUP, INC.-00
-'
Felise Acosta
Principal
Fk ab
Enclosures
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.: 0004016-IN
CITY OF PALM DESERT DATE: 11/30/95
MR. CARLOS ORTEGA, EXEC. DIR. CLIENT CODE: PD
73510 FRED WARING DRIVE
PALM DESERT, CA 92260 PAGE NO.: 1
--------------------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
--------------------------------------------------------------------------------------------------------------------------------
STAFF
HOURS
RATE
AMOUNT
BERMUDA DUNES
Contract #
C10310
11/10/95
TEAM COORDINATION
DTM
1.00
125.000
125.00
11/10/95
TEAM COORDINATION
MP
.75
65.000
48.75
11/15/95
RESEARCH EXPENDITURE AND REVENUE FORECAST
MP
4.50
65.000
292.50
11/15/95
PHONE CALLS WITH COUNTY
MP
1.50
65.000
97.50
11/16/95
DATA ANALYSIS
DTM
1.00
125.000
125.00
11/16/95
RESEARCH TAXING ENTITIE:S,CR42 TRA REPORTS,1%
MP
5.00
65.000
325.00
BREAKDOWN
11/16/95
DRAFT DOCUMENTS/REQUEST INFO FROM COUNTY
MP
1.00
65.000
65.00
11/17/95
RESEARCH REVENUE FORECAST
MP
4.00
65.000
260.00
11/20/95
FIELD WORK - IDENTIFY RETAIL ESTABLISHMENTS/SALES
MP
6.00
65.000
390.00
TAX
11/20/95
RESEARCH PROPERTY OWNERS
MP
1.50
65.000
97.50
11/21/95
RESEARCH - SBE SALES TAX,FORECAST
MP
4.25
65.000
276.25
11/28/95
RESEARCH RETAIL ESTABLISHMENTS/SBE
MP
1.25
65.000
81.25
11/30/95
RESEARCH SBE SALES TAX VERIFICATION
MP
1.50
65.000
97.50
TOTAL
FEES:
------------
2281.25
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
cm
(714) 541-4585
CITY OF PALM DESERT
MR. CARLOS ORTEGA, EXEC. DIR.
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
INVOICE NO.: 0004016-IN
DATE: 10/31/95
CLIENT CODE: PD
PAGE NO.: 2
--------------------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT
--------------------------------------------------------------------------------------------------------------------------------
------------
TOTAL AMOUNT: 2281.25
PAYMENT DUE UPON RECEIPT
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
2281.25 3055.00 5327.00 10663.25
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R O S F N O W S PEVACEK G ROUP INC
October 13, 1995
Mr.Da•1, Planning Director
CITY OF PALM DESERT
73510 Fred Waring Drive
Palm Desert, California 92260
BERMUDA DUNES ANNEXATION
SEPTEMBER INVOICE
Dear
010a-F 2 4 1995
COMMIINITV DEVELOPMENT DEPARTMENT
CITY OF PALM DESERT
Pursuant to our agreement for professional services, the following represents the hours
and expenses accrued by RSG for services rendered during the month.
Feasibility Study $ 5,303.75
AMOUNT DUE $ 5,303.75
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
I
Daniel T. Miller
Principal
DTM: ab
Enclosures
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
ti
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
INVOICE NO.: DD03890-IN
CITY OF PALM DESERT DATE: 09/30/95
CLIENT CODE: PD
73510 FRED WARING DRIVE
PALM DESERT, CA 92260 PAGE NO.: 1
--------------------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT
--------------------------------------------------------------------------------------------------------------------------------
BERMUDA DUNES
09/05/95
TEAM COORDINATION
DTM
1.00
125.000
125.00
09/06/95
PREPARATION & MEETINGS
DTM
2.00
125.000
250.00
09/06/95
STAFF MEETING
JS
3.50
90.000
315.00
09/11/95
PREPARATION & MEETINGS
DTM
3.00
125.000
375.00
09/12/95
DOCUMENT REVIEW
DTM
2.50
125.000
312.50
09/12/95
RESEARCH - BERMUDA DUNES ANNEX
MP
3.75
65.000
243.75
09/13/95
DOCUMENT REVIEW
JS
1.00
90.000
90.00
09/13/95
RESEARCH 94-95 A.V.
MP
7.00
65.000
455.00
09/14/95
DOCUMENT REVIEW
DTM
2.00
125.000
250.00
09/14/95
TEAM COORDINATION
JS
.50
90.000
45.00
09/14/95
COMPUTER REPORTS - A.V. TABLE BY TRA
MP
4.25
65.000
276.25
09/15/95
TEAM COORDINATION
DTM
2.00
125.000
250.00
09/15/95
RESEARCH
JS
1.00
90.000
90.00
09/15/95
FIELD WORK - 94-95 A.V. TABLE INFO
MP
3.00
65.000
195.00
09/15/95
PHONE CALLS
MP
.25
65.000
16.25
09/18/95
TEAM COORDINATION
DTM
1.00
125.000
125.00
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305 ,may
SANTA ANA, CA 92705
(714) 541-4585
CITY OF PALM DESERT
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
INVOICE NO.: 0003890-IN
DATE: 09/30/95
CLIENT CODE: PD
PAGE NO.: 2
--------------------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED:
--------------------------------------------------------------------------------------------------------------------------------
STAFF
HOURS
RATE
AMOUNT
09/18/95
PHONE CALLS
MP
.75
65.000
48.75
09/19/95
RESEARCH RE:BERMUDA DUNES ANNEX
MP
3.75
65.000
243.75
09/19/95
PHONE CALLS
MP
.75
65.000
48.75
09/19/95
PHONE CALLS
MP
.50
65.000
32.50
09/19/95
PHONE CALLS
MP
.75
65.000
48.75
09/20/95
RESEARCH
JS
2.00
90.000
180.00
09/20/95
RESEARCH
MP
2.00
65.000
130.DO
09/20/95
PHONE CALLS WITH COUNTY, S.B.E.,ASSESSORS
MP
2.00
65.000
130.00
OFFICE,PLANNING DEPT.
09/21/95
PHONE CALLS WITH COUNTY
MP
.50
65.000
32.50
09/22/95
PHONE CALLS WITH COUNTY
MP
.50
65.000
32.50
09/25/95
DOCUMENT REVIEW
JS
1.00
90.000
90.00
D9/26/95
TEAM COORDINATION
DTM
1.00
125.000
125.00
09/26/95
DOCUMENT REVIEW
JS
1.00
90.000
90.00
09/26/95
PHONE CALLS WITH COUNTY
MP
.50
65.000
32.50
09/27/95
PHONE CALLS WITH UTILITY COMPANIES
MP
.50
65.000
32.50
09/29/95
RESEARCH 1% BREAKDOWN, ZONING MAP
MP
7.50
65.000
487.50
------------
TOTAL FEES: 5198.75
ROSENOW SPEVACEK GROUP INC.
540 N. GOLDEN CIRCLE STE. 305
SANTA ANA, CA 92705
(714) 541-4585
CITY OF PALM DESERT
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
INVOICE NO.: 0003890-IN
DATE: 09/30/95
CLIENT CODE: PD
PAGE NO.: 3
------------------------------------------------------------------------------------------------------------------
FOR PROFESSIONAL SERVICES RENDERED: STAFF HOURS RATE AMOUNT
09/19/95 REPRODUCTION COSTS - BUDGET BULLETIN 12.00
09/26/95 PROFESSIONAL SERVICES PROVIDED BY U.D.S. #161146 105.00
DEMOGRAPHICS INFORMATION OF BERMUDA DUNES AREA
09/30/95 REPRODUCTION COSTS - MAP FROM COUNTY PLANNING 11.25
DEPT.
------------
TOTAL EXPENSES: 128.25
------------
TOTAL AMOUNT: 5327.00
PAYMENT DUE UPON RECEIPT
CURRENT OVER 30 OVER 60 OVER 90 OVER 120 BALANCE
5327.00 5327.00
' CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
STAFF REPORT
TO: Honorable Mayor and City Council
FROM: Philip Drell, Acting Director
DATE: November 9, 1995
SUBJECT: Bermuda Dunes Feasibility Study Appropriation
I. RECOMMENDATION:
By minute motion appropriate $15,000 from unappropriated reserves
for the Bermuda Dunes Feasibility Study, Contract No. C10310.
II. BACKGROUND:
On August 24, 1995 city council approved an agreement with Rosenow
Spevacek Group, Inc., in an amount not to exceed $15,000, to
complete a fiscal impact study for possible annexation of the
Bermuda Dunes atea into the city. Staff is now requesting that
city council appropriate the $15,000 from unappropriated reserves.
III. ATTACHMENT:
August 24, 1995 city council minutes
PHILIP DRELL, ACTING DIRECTOR
DEPARTMENT OF
a5M71���3ELI9I�IENT
DENIED
OTHER-
/tm
®r' gizzaJ. Qxa• ila pith C;it;� C1Lx'' :� Of=ioe
M
2 4 1995
C i ®f Palm Desert COMMUNITY DEVELOPMENT PALM
DEPARTMENT
f6L CITY OF PALM DFSERI
73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260-2578
TELEPHONE (619) 346-0611 FAX (619) 340-0574
October 23, 1995
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, California 92705-3914
Gentlemen:
RE: Study of the Fiscal Feasibility of Annexation of Bermuda
Dunes to the City of Palm Desert - Contract No. C10310
At its regular meeting of August 24, 1995, the Palm Desert City
Council, by minute motion, approved your proposal for the subject
feasibility study.
We are enclosing a copy of the signed agreement for your records.
If you have any questions or require additional information,
please do not hesitate to contact us.
Sincerely,
SHEILA R. GILLIGAN, CMC
DIRECTOR OF COMMUNITY AFFAIRS/CITY CLERK
SRG:wjm
Enclosure (as noted)
cc: Community Development Department
Finance Department
R O S E N O W S PEVACEK GROUP INC. F 0t)
REV
October 11, 1995
?itt- Drztk
Mr. well, Planning Director
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
-F(ti . j
Dear P-ettl:
00. 161995
OT00�M FAL* 6 SER,A1tIN��
On May 9, 1995, the Rosenow Spevacek Group, Inc. ("RSG") rendered a proposal for a study of the
fiscal feasibility of annexing the Bermuda Dunes community to the City of Palm Desert.
Subsequently, on August 24, 1995, the City Council authorized City staff to engage RSG to commence
the feasibility study.
A general outline of the servic6s RSG will provide in evaluating the fiscal feasibility of annexing the
Bermuda Dunes area is attached. The Project Manager for this engagement will be Daniel T. Miller.
Mr. Miller will be responsible for project oversight and will be assisted by James C. Simon and
Melecio Picazo.
The activities associated with the attached scope of work will be charged on a time and materials
basis for a fee not -to -exceed $15,000, inclusive of reasonable out-of-pocket expenses. The fee includes
the preparation of all required documents, attendance at two (2) specified public meetings, and up to
fifteen (15) copies of the report and support documents.
The fee will be invoiced on a monthly basis, in accordance with the following hourly rate schedule:
Project Manager
$125
Associate
$ 90
Analyst
$65
Word Processing
$35
Should you have any questions regarding this fee proposal and scope of work, please don't hesitate to
contact me at your convenience.
Sincerely,
ROSENOW SPEVACEK GROUP, INC.
Daniel T. Miller
Principal ff
ACCEPTED AND APPROVED:
BY --:A �-
DATE: - ,2_ 3 _S• J
DTM:br
540 North Golden Circle, Suite 305, Santa Ana, CA 92705-3914, Telephone 714/541-4585, Fax 714/836-1748, San Diego 619/967-6462
M
cm
FEASIBILITY STUDY INTO THE PROPOSED
ANNEXATION OF BERMUDA DUNES
SCOPE OF WORK
The proposed Scope of Work for the Bermuda Dunes Annexation Feasibility Study is outlined
below and will meet the applicable requirement of the Cortese -Knox Local Government
Reorganization Act of 1985. The primary focus of the scope of work is to determine the
financial feasibility of annexation. The community of Bermuda Dunes must be a financially
viable addition to the City. Prepatory to determining the financial conditions will require
extensive data collection of financial, demographic, and land use information from the State,
County, and local sources. The community desired levels of municipal services will be
contrasted with existing service levels and the costs compared to reasonably expected revenues.
Multiyear budgets will be prepared. Recommendations for the City boundary will be
formulated based upon geopolitical constraints and a brief discussion will be provided to review
the effects of local control on land use decisions.
The following Scope of Work provides a framework within which to prepare the study and meet
the City's objectives. We welcome the opportunity to further describe the work effort involved.
I. ANALYZE TH9 PROPOSED ANNEXATION STUDY AREA
A. Community History and Background
B. Study Area Boundaries
C. Local Geography Considerations
D. Transportation Access
E. Residential and Commercial Development
II. ANALYZE THE CURRENT DELIVER OF MUNICIPAL SERVICES
A. General Government
B. Public Safety
C. Parks, Recreation and Community Services
D. Community Development
E. Public Works, Engineering and Public Utilities
F. Discussion of Service Levels
III. DETERMINE FISCAL FEASIBILITY OF PROVIDING MUNICIPAL
SERVICES
A. Current Fiscal Year Costs of Municipal Services Provided
B. Current Fiscal Year Revenues Available to the City
C. Comparative Analysis of Expenses Versus Revenues for Purposes of
Determining Fiscal Feasibility
D. Determine Property Tax Transfer Requirement - Negotiation with County
n
IV. DETERMINE EFFECTS OF TRANSITION OF MUNICIPAL SERVICES
A. Preliminary Recommendations for Transition of Municipal Services
B. Criteria for Transition of Municipal Services Responsibility
C. Estimated Savings or Loss to County due to Annexation
V. DEVELOP PRELIMINARY FIRST TWO FULL FISCAL YEARS BUDGET
A. City Revenues for the First Two Full Fiscal Years of Operations
B. Estimated Costs of Services for the First Two Fiscal Years
C. Comparison of Costs and Revenues - First Two Fiscal Years
D. Discussion of Potential Capital Improvements
VI. DISCUSSION OF LOCAL GOVERNMENTAL CONTROL
A. General Plan
B. Land Uses and Zoning
C. County Redevelopment Area
VII. DETERMINE PROCESS AND REQUIREMENT FOR ANNEXATION
A. LAFCO Proceedings
B. Property Tax Transfer
C. Proposed Appropriations Limits (GANN)
D. Recommended Terms and Conditions for LAFCO Decision
VIII. DEVELOP AND PRESENT FINAL REPORT