HomeMy WebLinkAboutCity of Palm Desert - FinalCITY OF PALM DESERT
CALIFORNIA
POPULAR ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR
ENDED JUNE 30, 2025
CITY OF PLEASANTON POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2024
CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Meet the City Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Community Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Types of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Fund Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Long Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
GLOSSARY OF TERMS
Here is a quick reference to some terms used in the report:
Assets - Property or equipment that has a monetary value.
Fiscal Year - A one year period that the City used for accounting purposes and preparing financial report.
The fiscal year for the City begins on July 1 of every year and ends on June 30. The City issues its annual
financial reports at the end of each calendar year.
Fund - A method to account financial transactions that are for a specific purpose.
Liability - A legal monetary obligation.
Other Assets - Cash, investments, and money owed to the City.
Public Entity - A state or local government, as well as any agency, office, or department run by
a state or local government.
CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
INTRODUCTION
Welcome to the City of Palm Desert’s Popular Annual Financial Report (PAFR). This report is designed to give
residents, businesses, and community members a clear and easy-to-understand overview of the City’s finances
for the fiscal year ended June 30, 2025.
Incorporated in 1973, Palm Desert has grown from a small desert community into a vibrant city known for
thoughtful planning, fiscal responsibility, and strong community investment. Centrally located in the Coachella
Valley and surrounded by the local mountains, Palm Desert enjoys a unique setting that supports year-round
outdoor recreation, tourism, and economic activity.
Palm Desert benefits from a strong and diverse local economy supported by strategic economic development
efforts that encourage business growth, attract investment, and create jobs. Tourism plays an important role in
the City’s success, bringing visitors to its resorts, shopping areas, attractions, special events, and recreational
amenities. Visitor spending generates revenues that help fund City services, maintain infrastructure, and
support community programs, contributing to Palm Desert’s long-term financial stability.
This PAFR shows how City resources are used to deliver everyday services such as public safety, street and
facility maintenance, recreation, and community programs. Through summaries, charts, and plain language, the
report highlights how financial decisions support the City’s priorities and help maintain a high quality of life for
residents.
The information in this report comes from the City’s audited Annual Comprehensive Financial Report (ACFR),
which contains detailed financial statements and technical disclosures. The PAFR focuses on key highlights and
trends across all City funds and component units to make the information more accessible to a broad audience.
The City of Palm Desert is committed to transparency, responsible financial management, and accountability to
the community. This PAFR is prepared in accordance with the Government Finance Officers Association’s PAFR
Award Program guidelines. Residents seeking additional detail are encouraged to review the City’s ACFR,
available on the City’s website located at www.palmdesert.gov. It is important to note that the financial data in
1 these reports has been prepared in accordance with Generally Accepted Accounting Principles (GAAP).
1 Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards and guidelines for financial accounting and reporting. They govern the
form and content of the financial statements of an entity. GAAP encompasses the conventions, rules and procedures necessary to define accepted
accounting practice at a particular time. They include not only board guidelines of general application, but also detailed practices and procedures. GAAP
provides a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local
governments is the Governmental Accounting Standards Board (GASB).
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
ORGANIZATION CHART RESIDENTS
HUMAN RESOURCES
LIBRARY SERVICES
ECONOMIC DEVELOPMENT
FINANCE
COMMUNITY DEVELOPMENT
CAPITAL PROJECTS
INFORMATION TECHNOLOGY
PUBLIC SAFETY
CITY CLERK
PUBLIC WORKS
MAYOR & CITY COUNCIL
CITY MANAGER CITY ATTORNEY
Mayor Jan Harnik
Mayor Pro Tem Evan Trubee
Council Member Gina Nestande
Council Member Karina Quintanilla
Council Member Joe Pradetto
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
Palm Desert Community Profile
$81,877
Average Household Income
(Family of 2)
Industry Most Likely
to Work In
69.2% 9.5% 21.3%
White Collar Blue Collar Services
The City of Palm Desert is a
diverse community that offers an
excellent quality of life for
residents, workers, and visitors.
Possesses a Bachelor's Degree
43% of Residents
43%
51,980
People Live Here
53%
Female
47%
Male
Community Demographics Economic Development Housing
JW Marriot - Desert Springs Resort & DS
Villas - 2,304 Employees
Universal Protection Services - 1,500 Employees
25,596 Total Residential Units Securitas/Security Service USA - 700 Employees
Avida Caregivers - 550 Employees
Organization of Legal Pro's - 501 Employees Fire
147
Fires Extinguished
12,155 13 Parks Emergency Responses 16 Playgrounds
56 Miles of Trails
Police
1,145
Physical Arrests
1,411
Parking Violations 36 Golf 173 Miles Courses 6,502 Maintained Traffic Violations City Streets 4
White (66.6%) Hispanic (26.9%)
Asian (4.7%) Black (1.7%)
American Indian (0.1%)
CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
PUBLIC ENTITY
City of Palm Desert is a public entity that manages its monies as governed by the generally
accepted accounting practices. A public entity must ensure appropriate use of public funds.
Types of City Funds
The City of Palm Desert manages a number of funds to
provide a wide variety of programs and services to the
community.
GENERAL FUND
Day to day city services
(non-restricted_
supported by general
taxes
SPECIAL REVENUE FUNDS
Restricted funds
with specific
purposes
CAPITAL PROJECT FUNDS
Major purchases
and/or projects
DEBT SERVICE FUNDS
PROPRIETARY FUNDS (ENTERPRISE/INTERNAL SERVICE)
Restricted funds for
Desert Willow/ Park
View Office Complex
or benefits
FIDUCIARY FUNDS
Trusts Loans, bonds, for
Assessment Districts
and Community
Facilities District
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
GOVERNMENTAL FUNDS
Governmental funds are a group of funds (sources) that a government entity collects during the year
and are used to provide most of the City services. These funds include monies collected through taxes,
permits, licenses, fines, fees for services, etc. They are typically used for services that are not restricted
by usage. Examples of programs funded through Governmental Funds include police and fire services,
libraries, parks, and public works.
Where does money come from?
Taxes like property tax, sales tax, and transient occupancy tax comprise the largest portion of
governmental funds. This makes up about 68% of the total revenues in this category. The table below
breaks down the different revenues collected by the City in FY2022-23 compared with FY2023-24 and
FY2024-25.
Revenue by Sources (in millions) FY 2023 FY 2024 FY 2025
Property Taxes & Special Assessments $17.5 $19.0 $19.9
Sales Tax 26.4 25.4 31.4
Other Taxes 46.4 46.6 52.5
Other Sources 13.0 30.5 18.3
Fines, Forfeitures & Fees 20.9 21.8 22.7
Intergovernmental 6.7 11.4 8.1
Total $130.9 $154.7 $152.9
Property Taxes (13%) Sales Tax (21%)
Other Taxes (34%) Other Sources (12%)
Fines, Forfeitures, & Fees (15%) Intergovernmental (5%)
Where does money get spent?
The governmental funds are used for typical City operations split into five categories: General
Government, Public Safety, Community Development, Public Works, and Community Activities. Public
safety makes up for 31% of the expenses as contracted police and firefighting services continue to
develop as the city grows. The table below breaks down the different programs funded by the City in
FY2022-23 compared with FY2023-24 and FY2024-25.
Expenditures by Program (in millions) FY 2023 FY 2024 FY 2025
General Government $24.9 $34.7 $35.3
Public Safety 40.7 43.5 45.4
Community Development 10.3 13.1 9.5
Public Works 15.3 14.1 12.6
Community Activities 17.7 19.5 18.4
Capital & Debt 8.2 25.2 24.6
Total $117.1 $150.1 $145.8
General Government (23.8%) Public Safety (30.7%)
Community Development (6.9%) Public Works (8.9%)
Community Activities (12.9%) Capital & Debt (16.8%) 6
CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
ENTERPRISE (BUSINESS OR PROPRIETARY) FUNDS
Enterprise or Business Funds are a group of funds that are managed similar to a business entity. These
funds collect fees to cover the cost of service and all monies collected can only be used to provide the
same service. These funds are typically used for utilities and business-type activities; in Palm Desert,
they support the Parkview Office Complex and Desert Willow Golf Course.
Where does money come from?
The City's Enterprise Fund revenues are generated primarily by the Desert Willow Golf Course, which
accounts for the majority of total Enterprise Fund activity. Unlike governmental funds, each fund is a
separate entity and funds from one source cannot be mixed with another. The table below breaks down
the different revenues collected by the City in FY2022-23 compared with FY2023-24 and FY2024-25.
Revenue by Sources (in millions) FY 2023 FY 2024 FY 2025
Parkview Office Complex $1.5 $1.2 $1.3
Desert Willow Golf Course 12.4 12.2 12.6
Total $13.9 $13.4 $13.9
Parkview (9%) Desert Willow (91%)
Where does money get spent?
The Enterprise Funds are used specifically for the purpose for which the revenue is collected. For
example, revenue generated by the golf course can only be used to support golf course operations and
related costs. This includes operating costs of the entity, and capital projects needed to maintain the
infrastructure and equipment for operations. The table below breaks down the different programs funded
by the City in FY2022-23 compared with FY2023-24 and FY2024-25.
Expenditures by Program (in millions) FY 2023 FY 2024 FY 2025
Parkview Office Complex $1.4 $1.4 $3.4
Desert Willow Golf Course 11.0 11.6 12.4
Total $12.4 $13.0 $15.8
Parkview (22) Desert Willow (78)
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
NET POSITION
The net position is an overview of the City’s assets and liabilities. The change in total net position shows
how much the balance of assets and liabilities has changed in the past year. The change in net position
from FY2023-24 to FY2024-25 was an increase of three percent. This indicates that the City gained
more assets while also decreasing its liabilities. The goal is to ensure the City’s assets always exceed
the liabilities.
Net Position (in millions)
City Assets - What we own FY 2023 FY 2024 FY 2025
Current Assets (consisting mainly of cash and amounts owed to City) $418.4 $423.6 $423.2
Capital assets consisting primarily of buildings, equipment and vehicles 491.8 481.3 496.5
Total City Assets 910.2 904.9 919.7
Deferred outflows of resources (future assets) 18.1 19.4 14.9
Total City Assets and Deferred Outflows 928.3 924.3 934.6
Current Liabilities consisting of all amounts the City owes, except for debt $46.0 $46.2 $35.4
Non-current liabilities (including long-term debt and pension obligations) 46.9 57.1 53.3
Total City Liabilities 92.9 103.3 88.7
Deferred inflows of resources (future liabilities) 10.3 8.4 10.3
Total City Liabilities and Deferred Inflows 103.2 111.7 99.0
City Liabilities - What we owe FY 2023 FY 2024 FY 2025
City’s Net Financial Position $825.1 $812.6 $835.6
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
FUND BALANCES
A fund balance is essentially the left over monies in a fund in addition to the assets owned by the fund
after meeting all liabilities for the fund. Think of it as the account balance in a checking account left at
the end of the month, after all the monthly purchases and bills are paid. These funds are then available
for allocation to use in the next fiscal year and to retain as reserves. The City manages each fund to
maintain a healthy fund balance that helps with long range planning and fiscal sustainability. The
following charts show the fund balances for various governmental and enterprise funds.
Governmental Funds - Fund Balance (in millions)
Enterprise Funds - Available Fund Balance (in millions)
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
INVESTMENTS
The City’s investments are in compliance with the City's Investment Policy, which is designed to
emphasize safety, liquidity and return on its investments that limits exposure to losses arising from a
volatile market. The City limits investment to a maximum of five years of maturity. The City’s
investments are rated by nationally recognized rating organizations. The following table shows the
amounts contributed by the City in the various types of investments.
Amount
U.S. Government Agencies 46,459,921
Medium-term Corporate Notes 21,122,330
California Asset Management Program (CAMP) 228,863,550
California Local Agency Investment Fund (LAIF) 2,048,197
U.S. Government Agencies (13)
Corporate (6)
California Asset Management Program(CAMP) (63)
California Local Agency Investment Fund (LAIF) (1)
Other (18)
Other 63,382,628
Total Investments $ 361,876,626
The City’s investments are rated by nationally recognized rating organizations. The City’s policy
requires a rating of “A” or better. As of June 30, 2025, the ratings for the City’s investment portfolio,
excluding pension related investments, are as follows:
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
LONG TERM OBLIGATIONS
The City maintains fiscal responsibility by avoiding operating debt and reserves strategically. When the
City has used long-term debt, it has been limited to specific infrastructure or improvement projects with
dedicated funding sources. Long-term debt is used sparingly and responsibly for major projects that
provide lasting community benefits. By budgeting within its means, the City’s General Fund is less
vulnerable to economic downturns or unexpected expenses. A debt-free General fund gives the City the
ability to respond to emergencies, invest in priorities, or maintain services without having to cut
programs or raise taxes suddenly. Avoiding operating debt also helps keep the City financially healthy
year after year, protecting both current residents and future generations.
Additionally, the City participates in the California Public Employees’ Retirement System (CalPERS).
The employee benefits are determined by date of hire, years of service, salary and age at retirement.
Both the City and employees contribute toward the pension fund.
The City of Palm Desert also provides retiree health benefits to employees that retire directly from the
City. The value of this benefit is determined by negotiated labor contracts. The City established an
irrevocable trust set up with the California Employer’s Retiree Benefit Trust (CERBT) program
administered by CalPERS, to help fund future health benefits.
The following table illustrates the City long-term obligation balances for FY2024-25 as compared with
FY2023-24.
ACFR Source FY 2024-25 % of Total FY 2023-24 % of Total
Limited Obligation Bonds 1.0 2% 1.1 2%
Claims and Judgments 0.8 1% 3.7 7%
Compensated Absences 2.6 5% 2.7 5%
Lease and Subscriptions Payable 2.4 5% 2.5 4%
Direct Borrowing 0.1 0% 0.2 0%
Subtotal Long-Term Obligations Note 6 6.9 13%10.2 18%
Net Pension Liability Note 12 42.2 82% 44.0 79%
Net OPEB Obligations Note 13 2.6 5% 1.9 3%
Total 51.7 100%56.1 100%
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CITY OF PALM DESERT POPULAR ANNUAL FINANCIAL REPORT | YEAR ENDED JUNE 30, 2025
CONTACT US
The City of Palm Desert welcomes your comments and questions and every employee is committed to
responding as soon as possible. The City has a strong presence across various social media platforms
and provided regular updates on a variety of topics. Please follow us to receive regular updates.
City of Palm Desert
For news, updates, and major projects happening around the City
of Palm Desert, follow us on social media: @CityofPalmDesert
or visit our website at palmdesert.gov.
Engage Palm Desert
Engage Palm Desert is the City’s online hub for community input,
surveys, and projects, your place to share ideas and stay
involved: engagepalmdesert.com.
Palm Desert Library
Stay up to date on your favorite programs and services at the Palm
Desert Library! Follow @palmdesertlibrary on our socials and
explore palmdesertlibrary.org for everything happening.
Discover Palm Desert
Explore events, attractions, and the best of Palm Desert! Visit
discoverpalmdesert.com or visit our socials
@discoverpalmdesert.
For a full employee directory please visit
palmdesert.gov/our-city/sta˜-directory
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