HomeMy WebLinkAboutSpring 2025 Palm Desert Civic Academy - FinanceCITY BUDGET 101
City of Palm Desert
Veronica Chavez,
Director of Finance
Agenda
Community Needs/Council Goals
City Resources
Reoccurring Operational Costs
Capital Projects
Preparing for the Future
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Strategic Process
Mission Statement:
The City of Palm Desert provides exemplary and
sustainable services, amenities and programs for the
benefit of the community.
Core Values:
•Integrity
•Stewardship
•Service
•Community
•Innovation
•Teamwork
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Operation
Budget
Plan
Council Goals
Priorities
Challenges
Mission/Values
Annual Budget/Financial Plan
(Best Practices)
•NEEDS TO BE FOUR THINGS:
•Policy Document – Should address policy issues like tax,
funding priorities, and macro problems facing the community.
•Financial Plan – Should show where your resources come
from and how they are used.
•Operations Guide – Should show how you are organized to
deliver services. Should provide measures as to how effectively
we are doing this.
•Communications Tool – Should be prepared in a way that
communicates economic and fiscal issues to policy makers and
the public.
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Financial Plan Organization (By Fund)
General Fund – day
to day city services
(non-restricted)
supported by general
taxes
Special Revenue
Funds – restricted
funds w/specific
purpose
Capital Projects –
major purchases
and/or projects
planned
Debt Service – loans,
bonds for AD’s and
CFD’s
Proprietary Funds
(Enterprise/Internal
Service) – restricted
funds (DW/PVOC)
or benefits
Fiduciary Funds –
Any Trust (610)
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Think of them like $ buckets
Budget Process
Goals Session
Jan.–Feb.
Departments begin
entering requests
Jan.–Feb.
Operations and CIP
Requests Due to
Finance
March
Finance assimilates data
and puts study session
presentation and
documents together
Mar.–Apr.
Departments run
through requests with
CM for his
input/approval
Mar.–Apr.
Study Sessions are held
for City Council, with
several opportunities for
public input/comments
Apr.–May
Last Meeting in June –
Budget is presented to
Council for approval
June
Beginning of New
Fiscal Year
July 1
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2025 Goals and Priorities
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Cal State
University Palm
Desert Campus City Medians
Assessment
Building and
Landscaping Fire Prevention Design
North Sphere
Development
and
Infrastructure
Planning
AI Business
Innovation &
Entrepreneurship
Hub
Mall
Redevelopment
Update Development Codes to Streamline
Processes
North Sphere
Energy
Increase
Experience Based
Activities
Grant Funding
for Electrical
Storage
Crime Prevention
Technology
Budget Development
•Council Goals Drive how Departments
Prioritize Budgets
Based on Goals
•Specific
•Measurable
•Achievable
•Realistic
•Timely
Goals must be SMART
•Anticipated revenue and expenditures
•Internal and external environmental
forecasts/challenges
Informed by
•Ask the “why” questions early and determine if
program or funding is still necessary.
•Zero based Budget for FY 2025-26
Is it necessary?
Where do we start?
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General Fund
Resources
(FY 2024-25 Revenue)
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Projecting flat growth in General Fund revenue for FY 2025-26
Taking on the Library increased our Property Tax by $2.3M
As of April 1, 2025 – with approval of Measure G – we will also see revenue
from the 1% tax estimated at $24M (already dedicated in the Five-Year Plan).
FY 2023-2024
Budget
FY 2023-2024
Projected
FY 2024-2025
Proposed
1 Sales Tax 26,623,447 25,000,000 25,000,000
2 Transient Occupancy Tax and Short Term Rentals 21,005,000 21,748,160 22,905,000
3 Property Tax Secured and Unsecured**8,746,728 10,123,452 12,624,088
4 Franchises (Cable/Gas/Electric/Waste)3,200,000 3,574,273 3,400,000
5 Timeshare Mitigation Fee*1,711,324 3,311,324 1,754,107
6 Business License Tax 1,300,000 1,261,209 1,100,000
7 Transfers-In (Traffic Safety, Parkview, Housing, Cannabis, AD's)1,852,700 1,200,000 1,167,700
8 Permits/Fees 3,296,768 4,887,061 3,223,600
9 State Payments (VLF, Parking Bail, MV lieu)5,029,000 5,444,988 5,593,780
10 Interest and Rents 871,000 4,850,365 4,862,327
11 Reimbursements and Other Revenue 1,918,500 2,045,486 1,592,275
TOTAL GENERAL FUND 75,554,467 83,446,318 83,222,877
Total Revenue: $ 83,222,877
Did you know?
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Public Safety Needs vs. Property Tax
Est. Property Tax Revenue* $10.1M
Public Safety GF Costs** $27.2M
Balance from Other GF Source $17.1M
*$2M increase estimated in property tax is related to Library Services transfer from County
General Fund
Operations
(FY 2024-25 Expenditures)
Total Expenditures: $ 83,063,012
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FY 2025-26 Public Safety Cost Estimates up $8.89M
Salaries and Benefit Cost Estimates up $1.6M (pursuant to MOU)
PERS Costs Estimate up $.5M
Measure G
1% Tax
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Capital Improvement Program (CIP)
1 0 / 9 / 2 0 2 3
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Est. FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Carryover Year 1 Year 2 Year 3 Year 4 Year 5
Street Projects 16,423,981 24,160,000 16,740,000 15,290,000 10,855,000 9,955,000
Parks & Landscaping 2,145,530 9,250,000 29,224,344 17,050,000 325,000 325,000
Facilities 3,988,213 30,400,000 38,650,000 2,025,000 1,950,000 1,350,000
Desert Willow 500,000 2,219,259 2,050,028 1,814,786 4,237,952 310,000
Equipment Replacement 110,000 2,866,783 1,961,655 460,072 340,183
Other Projects 14,120,625 5,535,739 3,758,559 2,662,882 3,684,823 2,425,000
Totals 37,913,516 74,431,781 92,384,586 39,302,740 21,392,958 14,365,000
Future Considerations
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Public Safety Costs –
continue to rise -
meeting response
times comes at a cost
Energy
Infrastructure – IID
is not fully prepared
to support energy
needs
Storm Related
Infrastructure –
Hillary uncovered a
few issues
Library Services –
The city is currently in
design for a new
location to meet the
current needs of the
community
Regional Park
Needs – Operational
cost will be
determined on size
and amenities
requested
Education and Job
Opportunities –
Economic
Development
investments are
necessary to sustain
both efforts
Thank you
•Veronica Chavez, Director of Finance
•vchavez@palmdesert.gov
•City Website:
•https://www.palmdesert.gov
•Budget Book is at: https://www.palmdesert.gov/departments/finance-/city-
budget
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