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Home My WebLink AboutCity Budget - Civic Academy Autumn 2025CITY BUDGET 101 City of Palm Desert Veronica Chavez, Director of Finance Agenda Community Needs/Council Goals City Resources Reoccurring Operational Costs Capital Improvement Projects Preparing for the Future B U D G E T 1 0 1 2 Strategic Process (Big Picture) 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 B U D G E T 1 0 1 3 Operation Budget Plan Council Goals Community 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. B U D G E T 1 0 1 4 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 Project Funds – major purchases and/or projects planned Debt Service Funds – loans, bonds for AD’s and CFD’s Proprietary Funds (Enterprise/Internal Service) – restricted funds (DW/PVOC) or benefits Fiduciary Funds – Any Trust (610) B U D G E T 1 0 1 5 Think of them like $ buckets 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 Where are the Potential Gaps Where do we start? B U D G E T 1 0 1 6 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 B U D G E T 1 0 1 7 You are here! 2025 Goals and Priorities B U D G E T 1 0 1 8 Cal State University Palm Desert Campus Mall Redevelopment Building and Landscaping Fire Prevention Design AI Business Innovation & Entrepreneurship Hub City-Wide Median Plan Update Development Codes to Streamline Processes North Sphere Development, Infrastructure, Energy, and Funding Increase Experience Based Activities Crime Prevention Technology General Fund Resources (FY 2025-26 Est. Revenue) B U D G E T 1 0 1 9 Projecting an increase of $26.5M in budgeted revenue for FY 2025-26 Taking on the Library increased Property Tax by $2.3M beginning FY 2024-25 As of April 1, 2025 – approval of Measure G – revenue has begun to come in from the 1% tax estimated at $24M (already dedicated in the Five-Year Plan). Total Revenue: $ 109,743,818 CATEGORY / FUND FY 2024 -25 Adopted FY 2024-25 Projected FY 2025 -26 Proposed General Fund (110): 1. Sales Tax 25,000,000 24,916,701 24,916,701 2. 1% District Tax -4,000,000 24,300,000 3. Transient Occupancy Tax and Short-Term Rentals 22,905,000 22,774,332 22,755,000 4. Property Tax Secured and Unsecured**12,624,088 12,558,552 12,809,723 5. Franchises (Cable/Gas/Electric/Waste)3,400,000 3,400,000 3,731,710 6. Timeshare Mitigation Fee*1,754,107 3,465,702 1,903,014 7. Business License Tax 1,100,000 1,122,955 1,160,000 8. Transfers-In (Traffic Safety, Parkview, Housing, Cannabis, AD's)1,167,700 2,680,140 1,902,700 9. Permits/Fees 3,223,600 3,133,013 3,696,439 10. State Payments (VLF, Parking Bail, MV lieu)5,593,780 6,091,261 5,891,000 11. Interest and Rents 4,862,329 5,149,193 5,256,000 12. Reimbursements and Other Revenue 1,592,275 1,318,655 1,421,531 Totals General Fund $ 83,222,879 $ 90,610,504 $ 109,743,818 Did you know? B U D G E T 1 0 1 10 Public Safety Needs vs. Property Tax Est. Property Tax Revenue* $12.8M Public Safety GF Costs** $36.3M Balance from Other GF Source $23.5M *$2.3M increase estimated in property tax is related to Library Services transfer from County **Includes $7.7M transfer out for Fire Fund Shortage General Fund Operations (FY 2025-26 Expenditures) Total Expenditures: $ 109,424,005 B U D G E T 1 0 1 11 FY 2025-26 Public Safety Cost Estimates up $8.9M Transfers out up $15.7M PERS Costs Estimate up $.4M Measure G 1% Tax 12 B U D G E T 1 0 1 13 Capital Improvement Program (CIP) - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 2024-25 Est. Carryover 2025-26 Year 1 2026-27 Year 2 2027-28 Year 3 2028-29 Year 4 2029-30 Year 5 Capital Projects PW/Facilities Econ/Public Art Desert Willow Focus Areas 2024-25 Est. Carryover 2025-26 Year 1 2026-27 Year 2 2027-28 Year 3 2028-29 Year 4 2029-30 Year 5 Total All Years Capital Projects 18,198,007 45,259,989 79,420,000 44,570,000 8,850,000 9,600,000 205,897,996 PW/Facilities 11,262,743 15,064,758 10,548,305 10,770,183 6,600,000 6,600,000 60,845,989 Econ/Public Art 13,571,116 4,355,067 1,881,893 1,248,808 1,548,808 589,673 23,195,364 Desert Willow 528,957 2,430,991 2,129,142 4,431,397 622,458 616,863 10,759,808 Total 43,560,823 67,110,805 93,979,340 61,020,388 17,621,266 17,406,536 300,699,157 Future Considerations B U D G E T 1 0 1 14 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 Reviewed and Recognized by our Peers B U D G E T 1 0 1 15 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 B U D G E T 1 0 1 16