HomeMy WebLinkAbout04a+Ex+to+Reso+-+Priorities+and+Spending+PlanPRIORITY - FIRE PREVENTION/EMERGENCY RESPONSE
Project #1: Fire Station 102 Construction and Staffing
The City has reallocated bond proceeds intended for lower priority projects to build Fire Station 102.Upon its
opening,the Fire Services costs are estimated to increase $7.5M in the first year to operate the new staion and
ladder truck.Additionally,Cal-Fire who provides the staffing for fire services in Palm Desert through the contract
with the County of Riverside,has implemented new requirements that require additional staffing to accommodate
the various changes including limiting the max number of hours each fire person is permitted to work.The
associated costs immediately increase costs by an additional $3M annually beginning in 2025-26.Revenues
associated with the growth in the North Sphere grow at a much slower pace and will not be able to support the
increased staffing needs to maintain current emergency service levels.Funding from the could be used for these
Project #2: Fire Station 33 Rehabilitation
Over a period of years,the City has transferred funds from the General Fund to reserve funds necessary to
rehabilitate the 30+year old Fire Station 33.Current estimates are at $6M.Costs to house the staff during
rehabilitation have not been included in the budget.Funding from the Tax could be used to pay these costs,while
not limiting service to the community or risking the safety of the staff during that time.
Project #3: Fire Station 71 Reconstruction
Over a period of years,the City has transferred funds from the General Fund to reserve funds necessary to
rehabilitate the 30+year old Fire Station 71.Current estimates are at $7M.Costs to house the staff during
rehabilitation have not been included in the budget.Funding from the Tax could be used to pay these costs,while
PRIORITY - PUBLIC SAFETY
Project #1: Increase Public Safety Patrol Staffing (3)
rising crime rates.The cost for 3 additional police officers is $1.3M in FY 2024-25.Overall public safety costs
typically increase at approximately 3-5%annually.As the City continues to grow,we anticipate the need for an
PRIORITY - INFRASTRUCTURE REPAIR AND EQUIPMENT REPLACEMENT
Project #1: North Sphere Flood Control Infrastructure and Emergency Plan
As a result of Tropical Storm Hilary,City staff has analyzed ways to address those areas of the City that were
adversely impacted.The North Sphere was impacted by flooding,silt,and debris that moved eastward from the
Morongo basin.The $6M in cleanup costs were covered by City emergency reserve funds.Staff hopes to recover
approximately $3-4M of those costs through insurance and FEMA claims.However,maintaining and improving
infrastructure,expanding retention basin areas,and ensuring the cities storm water infrastructure network is
Project #2: North Sphere Public Works Staffing (3)
As the City continues to grow,additional public works crews are required to maintain the city's infrastructure
network .Staff estimates the cost for 3 additional crew members to be roughly $360,000 in 2024-25 dollars.The
growth in north PD including new roadways,sidewalk,drainage and park infrastructure and additional staffing or
PALM DESERT TRANSACTION AND USE TAX - 5 YEAR SPENDING PLAN AND PRIORITIES
PRIORITY - PARKS, RECREATION, AND LIBRARY EXPANSION
Project #1: Palm Desert Library Construction and Staffing
The City has reallocated bond proceeds intended for lower priority projects to help build the Palm Desert Municipal
Library.Costs are currently estimated at $30M for construction.There currently is approximately $20M in
proceeds available,with the remaining $10M requiring the use of reserves and/or funding from another source
Project #2: North Sphere Regional Park and Staffing
bond proceeds.However,the majority of the $20M estimated costs would be paid through the use of reserve
funds,or funding from another source,such as the sales tax to complete construction.Depending on the ultimate
design and use of the park facilities,additional staffing will be required,which could be paid from the sales tax
PRIORITY - FINANCIAL RESERVES
Project #1: Replenishment of Emergency and Operation Reserves
The City may be required to use reserve funds to pay for numerous facility maintenance and capital improvement
costs over the next 5 years.Additionally,planning and preparing for natural disasters,by reserving for emergencies
is important,as evidenced by the swift response to Tropical Storm Hilary.Palm Desert's ability to recover from such
events is necessary to support community resilliency.Sales tax revenue would be allocated to replenish the
reductions to reserve in accordance with the reserve policy.This standard supports the City's conintued effort to
maintain fiscal responsibility and not having to rely on debt financing.
Category FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Total 5-Yr Plan
1 cent sales tax 25,164,510 25,869,116 26,515,844 27,311,320 104,860,790
Current Planned Costs
New Fire Services Staffing Public Safety 900,000 10,657,440 10,971,472 11,232,818 11,496,338 45,258,067
Fire Station 33 Renovation/Temp Site Public Safety 1,200,000 1,200,000
Fire Station 71 Renovation/Temp Site Public Safety 1,200,000 1,200,000
New Police Services Staffing Public Safety 1,300,000 1,352,000 1,406,080 2,812,160 2,924,646 9,794,886
Storm Channel and Retention Basin Imps Infrastructure/H&S 5,508,000 8,000,000 5,000,000 18,508,000
City-Wide Facility and Equipment Replacement Infrastructure/H&S 8,397,001 9,944,665 7,798,734 12,865,305 9,264,802 48,270,506
New Public Works Staffing Public Works 360,000 370,800 381,924 786,763 810,366 2,709,854
Library Construction ($20M Pd from Bonds)Community Amenity 10,000,000 10,000,000
North Sphere Regional Park Community Amenity 15,000,000 15,000,000 30,000,000
Spending Contingency/Reserve Replenishment Fiscal Discipline/Responsibility 2,815,167 2,815,167
Total Planned Costs 16,465,001 32,724,905 40,558,210 52,697,046 27,311,319 169,756,480
Additional Amount needed from Reserve or Other Source (16,465,001) (7,560,395) (14,689,094) (26,181,202) 0 (64,895,690)
PALM DESERT TRANSACTION AND USE TAX - 5 YEAR SPENDING PLAN AND PRIORITIES
***Annual allocations subject to City Council approval of Annual Budget