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Home My WebLink AboutPalm Desert Measure Overview 7824c1f3 PALM DESERT P? :d What is our City's Budget? PALM DESERT The City's overall budget includes many governmental funds, including the General Fund. Most of these funds are restricted for specific purposes. The General Fund is the City's primary fund for operations and has this year had projected revenues of $83.2 million and requested expenditures of $82.9 million. This budget relies on an estimated $16.3 million in reserves to support estimated costs. Revenues increased by approximately $7.6 million (10%) over the prior year, bul expenses also rose by 10%, partially due to nearly $6 million in cleep costs from Tropical Storm Hilary, a retroactive increase to policing services imposed by the County Sheriff, and other factors. Current Estimates of $5,508,000 in Clean Up Costior August 2023 Weather Events % nII4n ProPoved B IJSO How is the City funded? In Palm Desert, the largest sources of revenue for the General Fund are roughly, • 35%by, Sales Tax • 28% by Hotel (TOT) taxes • 12%by Property Tax • 25%Other Revenues 70%of the Citys Sales Tax revenue is generated by non-residents ui Other, P? :d PALM DESERT What is the City's fiscal outlook? PALM DESERT While the financial outlook of the City is sound for the upcoming fiscal year, there are severaltrends that could adverselyimpact the City'sfinances in subsequentyearsand will require prudent decisionmakingto maintain the current service levels In terms of revenues, the level of revenue growth experienced in recent years is not likely to continue, as increases were largely fueled by the one-time federal stimulus funding and business -friendly fiscal policies during and post pandemic. • The City's expenditures are projected to increase at a faster rate than the revenue growth in coming years. Projections indicate a deficit of as much as $14 million within five years, driven in large part by rising public safety costs. Fiscal Challenges P? :d PALM DESERT Rising costs for Public Safety and Emergency Medical Response are already impacting the City's budget, and the City is growing in terms of both residents and required services. With the dissolution of redevelopment agencies in California, the City continues to defer maintenance, in addition to the operating costs of the new Fire Station. Limited resources and increasing operating costs will present challenges in the City's ability to maintain services. To maintain the City's IoAgrm finances, staff has begun developing strategies to identify ongoing efficiencies, cost savings and potentially new revenue options. Deficit Spending based on Current Projections RLLM DESERT Estimate) Revenue 5 83416,318 $ 80,822A77 $ W,974,969 $ 88,173,718 $ 92,592,404 Increase to Property Tax(W/D from[ty Libmry) $ - $ 2400,W0 $ 2,43,600 $ 2,618,280 $ 2,749,194 ESG'mated Expenditures $ 82,I)A313 $ M,993A92 $ 85,581,255 $ 91,571,955 $ 9T.991,%2 Increase TM Out nor One MOU(T2-0-56 Nrs) $ - $ 1001000 $ 1.234,363 $ 1,320,TE0 $ 1,I13,222 Increase to Ops Expenditures h LiEmry $ 1,321,527 $ A579.520 $ 2]6MW $ ZM292 $ 3,160,023 increase TM Out for station 102 Stuffing $ - $ - $ 6,63$035 $ $101,6M $ 7,59870.9 Increase to 0at Exp WAddtl PatroVNS PW/ERP $ SM" $ 1,990,200 $ 2,129,514 $ 2,228,580 Revenue over (under) expenditures $ MA79 $ (569,135) $ (]1,T3i,393j $ (1e,265,151) $ (17,100,962) set. General Pontl Balances $ 12b,916,512 $ 10;251,178 $ 76,032,863 $ 49,313,180 $ 1A02$320 UMuraw Requests Onow Reverie) (18,865,813) (15,634,180) (15,000,0001 (11,000,000) (15,000,000) New Library($30M) (600,000) (3,2m,oim) (16,000,OOO) (10,0WE") NwM Wrem camunity PmR($ism) fiONbs (5,150,OW) (10,0001000) NMM1 Sphere Regional POr<($30M) (15,00000) (15,0.0",WO) Augs42023 WmIMr EvenC@annel Projects (8.208,000) (5,000,Wo) (5,000,OW) Additional One-9me Approarations for 202e-251 (15,16g180) Est General Fund blPrce E10;M6 m E T6,047,4163 E RRX3,6W s 1A028,320 E (latm A2) $140.000.000 om,000,000 51ro,000,000 $W.W0.000 $W.W0,000 $40.N0,000 $20.W0.000 General Fund Five Year Forecast FY 202324 FY 202 25 FY 202 26 FY 202&27 FY 202 --28 FY 202 29 FY 202930 FY 203031 EatimaR Revenue — FAlknat l Expenddams —Est Gmeral Fund Ell —Linear (Estmated R Mue) —Luca, (Estmated E pendbnree) Palm Desert Public Safety, Roads, City Services Measure r? What is the City of Palm Desert Public PALM DESERT Safety, Roads, City Services Measure? The measure is being proposed to fund Palm Desert's lotWm finances and to maintain city services for our residents and businesses. It will increase the current sales tax by 1 %, which is equal to one cent on even dollar spent on taxable goods. If passed, it will generate approximately $26 million each year in local funding to maintain Palm Desert City services including Public Safety, maintenance of streets, roads and other infrastructure, and other services maintained by the City's General Fund. P? What is the City of Palm Desert Public PALM DESERT Safety, Roads, City Services Measure? "PALM DESERT PUBLIC SAFETY, ROADS, CITY SERVICES MEASURE. To maintain Palm Desert's long-term finances, City services such as 911 emergency medical/police/fire response, fire protection, response to property crime/thefts, keeping public areas safe/clean, maintaining streets, roads, parks, youth/senior programs; retain/attract local businesses; and for general government use, shall the measure establishing a 1¢ sales tax generating approximately $26,000,000 annually until ended by voters, requiring public spending disclosure, funds controlled locally, be adopted?" PALM DESERT Current Sales Tax Rates in Coachella Valley Cities. city Sales Tax Palm Springs 9.25% Cathedral City 8.75% Coachella 8.75% Indio 8.75% La Quinta 8.75% Desert Hot Springs 7.75% Indian Wells, 7.75% Rancho Mirage 7.75% Breakdown of Current Sales Tax Current CKy Sales T" Rate: 7.75% �I THE UNITED STATES a c z 11,0 / z 0 =' o W G 00012460 FrA O 0 W z F W H > P? :d PALM DESERT r'! A Voter Approved OneCent Local Measure Would Bring the City to an "' PALM DESERT 8.75%rate, with 100%of new funds staying local in Palm Desert LS P? Certain Purchases are Exempt PALM DESERT from Sales Tax: • Most groceries • Prescriptions/many medical supplies • Medical/Dental Services • Rent/Real Estate • Utilities "No additional taxes would be le vied on these items P? :d Facts About the Measure: PALM DESERT Revenue raised by the measure, estimated at $26 million per year, will stay in Palm Desert, and cannot be taken by the state, county, regional agencies, or special districts. The measure may be ended by voters at any time at a subsequent election. 70% of sales tax dollars collected in Palm Desert come from tourists and visitors from surrounding areas. P? What Would a 1 cent Increase Mean? PALM DESERT $15 Dishwasher Pods $100 Shoes 15 cent increase $1 increase Spending Priorities r? :d PALM DESERT As part of the deliberations and development of this measure, the City Council adopted a 5year Spending Priorities Plan. PRIORITY -FIRE PREVENTIONIEMERGENCY RESPONSE • ProjectNl: Fire Station 102 Construction and Staffing • Project82: Fire Station 33 Rehabilitation • Project83: Fire Station 71 Reconstruction PRIORITY -PUBLIC SAFETY • Project8l: Increase Public Safety Patrol Staffing (3) PRIORITY -INFRASTRUCTURE REPAIR AND EQUIPMENT REPLACEMENT • Project8l: North Sphere Flood Control Infrastructure and Emergency Plan • Project#2: North Sphere Public Works Staffing (3) Spending Priorities PRIORITY -PARKS, RECREATION, AND LIBRARY EXPANSION • Project #1: Palm Desert Library Construction and Staffing • Project #2: North Sphere Regional Park and Staffing PRIORITY- FINANCIAL RESERVES • Project #1: Replenishment of Emergency and Operation Reserves More information on these priorities and the Measure itself can be found at XXXXXXXXXXX.XXX P? :d PALM DESERT Thank you Q uestions?