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Home My Public Portal About02 Background InformationCity of Rancho Mirage Annual Budget FY 1993-94 SECTION I Background Information CITY OF RANCHO MIRAGE July 2, 1993 Honorable Mayor and Members of the City Council: This budget document, approved by you on July 1, 1993, is the adopted plan to meet the needs of the citizens of Rancho Mirage for FY 1993-94. The FY 1993-94 Budget meets the City Council's policy direction and the community's expectations for quality municipal services, a strong commitment to fiscal responsibility, and a balance between revenues and expenditures. The total General Fund operating budget of $8,987,128 is $44,113 less than last year's amended operating budget of $9,031,241 despite anticipated increases in providing insurance benefits to City Council members and City staff ($188,101), increased liability insurance premium charges by the Coachella Valley Joint Powers Insurance Authority ($130,057), increased contribution to the Convention and Visitors Bureau ($56,000) for tourist and convention promotion as a result of increased bed tax revenue, and funding in the City Manager's budget for the management audit ($30,000). The Budget provides for personnel services totalling expenditures of $3,641,191. The FY 1993-94 personnel service levels do not include any new positions or a cost of living increase for the City's existing employees. The Budget also reflects several vacant positions that based on City Council action will not be staffed at this time. The FY 1993-94 budget also provides $5,306,787 for operations and maintenance and $39,150 for acquisition of furniture and equipment. These figures are summarized below and presented in detail on the yellow Departmental Activity Detail worksheets located on pages 1 through 40 of the document: Operations Furniture Activity Personnel & Maintenance & Equipment Total City Council $ 95,014 $ 32,575 $ 1,000 $ 128,589 City Clerk 69,728 64,150 500 134,378 City Manager 399,071 73,875 0 472,946 City Attorney 195,639 209,000 0 404,639 Administrative Services 303,510 20,750 0 324,260 Finance 373,467 68,000 0 441,467 Information Services 241,098 116,975 2,800 360,873 Planning 567,502 81,800 2,500 651,802 Building & Safety 237,732 98,500 1,000 337,232 Code Enforcement 163,537 38,150 500 202,187 Engineering 471,341 165,250 18,850 655,441 Street Maintenance 285,832 507,250 10,000 803,082 Buildings & Landscaping 175,479 300,150 0 475,629 Public Safety 0 1,773,756 0 1,773,756 Summer Recreation 0 31,392 1,000 32,392 Emergency Services 0 24,227 0 24,227 General Government 62,241 573,245 1,000 636,486 Special Programs 0 242,817 0 242,817 Information & Marketing 0 723,125 0 723,125 Mandated Programs 0 161.800 0 161.800 Total General Fund Operating Budget 3,641,191 5.306,787 39,150 8,987 128 Included in the operating budget of $8,987,128 is $161,800 budgeted for programs mandated by the state or federal governments: Americans with Disabilities Act ($66,000), PM10 ($10,000), Ridesharing/ Transportation Management ($3,100), Waste Management - AB 939 ($57,700), Water Conservation -AB 325 ($5,000), and National Pollutant Discharge Elimination System ($20,000). The cost of these mandated programs is not offset by any operating revenues. The Budget Worksheet presented for each General Fund department in this document provides greater details of expenditure requests than did the Preliminary Budget and indicates the dollar amount of authorized expenditures approved by the City Council for each account. In a few instances, certain expenditure requests have been specifically denied by the City Council; these requests are highlighted by use of an "*" It is important to note that anticipated operating revenues for FY 1993-94 total $9,555,757, an amount $568,629 in excess of the $8,987,128 operating budget. This reflects City Management's policy that operating revenues equal or exceed operating expenditures. Significant operating revenues, which are summarized on page 44 together with historical data concerning revenues (green pages), include sales tax ($1,971,000), bed tax ($3,600,000), interest earnings ($578,000), and the reimbursement from the Redevelopment Agency for staff support provided by the General Fund ($943,957). It is important to note that we have reviewed the staff resources provided to the Redevelopment Agency and, accordingly, the $943,957 estimated reimbursement for FY 1993-94 exceeds the total estimated reimbursement for FY 1992-93 by $345,957. FY 1993-94 is projected to begin with a very healthy undesignated fund balance of $14,161,038. Undesignated fund balance, a key indicator of fiscal strength, was further strengthened in May 1993 by the action of the Redevelopment Agency to repay $3,538,409 in loans from the General Fund. The General Fund's capital improvements and loans to the Parkland Fund total $1,544,544 for FY 1993-94 and are listed on page 43. Major projects include the City's contribution to the YMCA construction in Palm Desert, the Children's Museum, retrofitting of medians on Bob Hope and Frank Sinatra, and an additional loan to the Parkland Fund for the New Sports Complex in Palm Desert. These costs are paid out of undesignated fund balance since there are no capital revenues available to finance the capital improvements and loan. To the extent that capital revenues are not available, it is appropriate that these expenditures be paid for out of existing cash resources in order to continue efforts to invest in the community and maintain our infrastructure. Beginning on page 49 and continuing through page 77 (blue pages) are the recommended budgets for the City's other funds. These other funds, which are listed by name in Section V of the Table of Contents, account for specific revenues that are restricted to expenditures for specified purposes. Capital improvements budgeted in these other funds, including the $190,380 loaned by the General Fund to the Parkland Fund, total $6,334,443 and are summarized on pages 78 and 79. These improvements include gasoline tank removal/replacement, street work, traffic signal improvements, construction of the Library, and other miscellaneous projects. Miscellaneous information is provided in the white section of the document beginning on page 81. This information includes a listing of the City's property and anticipated General Fund receivables as of June 30, 1994 (the end of FY 1993-94), the City's salary schedule, and the definitions of various accounts used to classify expenditures. Respectfully submitted, Patrick M. Pratt City Manager ii FINANCIAL HISTORY - FUND BALANCE GENERAL FUND Millions $25 7-*FUND BALANCE $20 $15 $10 $5 $0 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 Years FINANCIAL HISTORY - GENERAL FUND FY 1973-74 THROUGH FY 1993-94 LICENSE DEVELOPMENT BUILDING PRIOR RESERVE FOR RESERVE FOR RESERVE FOR MDESIGNATED COMBINED INTEREST TAN TM PERMIT REYEMJE OPERATIONAL CAPITAL EXPENDITURE PERIOD FUID CAPITAL ENORI- LONG-TERM FIND TOTAL - YEAR SALES TAN BED TAX INCOME 226E (-40) FEE TOTAL EXPENDITURE IMVROVEMEMTS TOTAL ADJUSTMENT BALAN¢ PROJECTS B m RECEIVABLES "UNCE JUNE 30 1973-74 E 114,260 E 22,587 E 3,518 E 0 $ 193,977 S 143,197 E 648,627 E 219,696 E 518 E 220,234 E 0 E 428,393 E 0 E 0 E 0 E 428,393 E 428,393 1974-T5 196,615 16,D52 43,527 0 89,215 85,826 723,323 388,015 34,480 422,495 249 729,470 0 0 0 729,470 729,470 1975-76 241,184 28,183 42,714 0 129,428 134,588 1,018,264 839,795 457,677 1,297,472 0 450,262 0 0 0 450,262 450,262 1976-77 316,951 27,699 38,000 0 417,785 397,703 1,717,349 727,045 419,029 1,146,074 0 1,021,537 0 0 0 1,021,537 1,021,537 1977-78 391,361 39,919 110,033 0 794,188 729,869 2,838,653 1,028,460 1,489,959 2,518,419 0 1,341,771 0 0 0 1,341,7/1 1,341,771 1978-79 484,160 159,325 199,371 0 644,572 289,971 2,776,460 1,360,653 0 1,360,653 0 2,757,578 0 0 0 2,757,578 2,757,570 1979.80 707,898 616,791 462,647 0 445,778 209,136 3,331,933 1,679,414 153,578 1,832,992 56,298 4,312,817 3,123,500 0 0 1,189,317 1,189,317 1980-81 806,880 644,446 789,208 0 211,940 161,074 3,713,869 2,268,808 98,461 2,367,269 0 5,659,417 4,597,500 0 0 1,061,917 1,o61,917 1981-82 939,764 746,339 1,063,057 0 154,603 153,767 4,156,358 1,990,842 810,410 2,801,252 0 7,014,523 0 71,098 55,426 6,887,999 6,943,425 1982-83 956,052 967,142 1,034,150 0 387,834 298,179 4,796,022 2,520,661 544,782 3,065,443 60,749 8,805,851 0 196,692 42,696 8,566,463 8,609,159 1983-84 1,116,544 1,132,299 953,464 0 443,446 350,772 5,328,588 2,841,526 3,184,650 6,026,176 0 8,108,263 0 79,924 47,696 7,980,643 8,028,339 1984-85 1,189,428 1,213,675 1,214,707 0 555,006 377,009 6,003,323 3,307,280 646,187 3,953,467 0 10,158,119 0 51,803 45,000 10,061,316 10,106,316 1985-86 1,222,079 1,368,405 1,318,735 0 251,277 191,840 5,839,055 3,569,871 77,097 3,646,968 0 12,350,206 0 0 301,103 12,049,103 12,350,206 1986-87 1,472,136 1,384,887 1,115,212 0 534,486 332,884 6,643,888 4,087,036 1,026,286 5,113,322 (143,871) 13,736,901 0 410,140 1,916,640 11,410,121 13,326,761 1987-88 1,551,886 1,975,243 1,027,195 0 402,527 404,364 7,278,913 4,676,767 2,300,375 6,977,142 0 14,038,68 0 189,647 256,103 13,592,922 13,849,025 1988-89 1,711,690 2,736,231 1,146,206 0 144,517 527,781 9,505,040 6,678,587 2,300,547 5,979,134 362,796 14,927,374 2,131,729 586,4]7 3,404,400 8,804,768 12,209,168 1989-90 1,796,955 2,444,130 1,213,744 0 298,138 341,483 9,537,904 6,461,536 2,813,679 9,275,215 0 15,190,063 0 459,224 3,404,400 11,326,439 14, 73D,839 1990-91 1,942,971 2,129,846 1,063,986 0 290,869 356,821 10,671,681 7,304,311 1,465,306 8,769,617 36,478 17,128,605 1,021,000 358,413 3,454,400 12,294,792 15,749,192 1991-92 1,744,501 3,044,050 922,798 546,417 120,937 287,381 9,795,726 7,272,266 765,231 8,037,497" 594,851 18,931,6351° 2,084,405° 123,546 3,657,809'`' 12,956,983'01 16,614,792"' 1992-93• 1,797,000 3,400,000 650,000 830,000 0 190,000 14,757,325 8,765,986 5,021,754 13,787,74001 0 21,259,368°1 1,939,935101 0 5,002,442"' 14,161,038 19,163,480"' 1993-94•• 1,971,000 3,600,000 650,000 804,000 0 170,000 10,431,757 8,987,128 1,544,544 10,531,672 0 21,336,99510 2,305,717°1 0 5,179,9841[1 13,185,123 18,365,107' • ESTIMATED BUDGET $18,931,635 = !19,506,685 ftXW balance per 6-30-92 CAFR Less coneensated absences ($345,581) end claim payable ($229,469) reserved in General Lmg-te Debt Account Group. ° f 2,084,405 = $1,117,770 continuing appropriations less $90,000 of continuing appropriations for non-capital projects plus reserves for development fee/ license tax (!546,417) aM TMCA ($510,218) c' Receivables identified on page 48 of the the IT 1993-94 Budget. 512,956,983 = $13,532,033 udesignataci fund balance per 6-30-92 CAIN Less $345,581 end $229,469 identified in footnote A. Sun of reserve for long-term receivables plus udesignated fud balance. " $ 8,037,497 = $8,012,497 of expenditures per 6-30-92 CAIN plus 525,000 loan to Parkland Ford. 101 $ 1,939,935 = FY 1991-92 and FY 1992-93 reserve for license tax (5546,417 + $830,000 • $53,300 Of reserved interest) and FT 1941-92 reserve for YMCA ($510,218). $21,259,368 = 6-30-92 ford balance + total revenues of 514,757,325 Less total expenditures of 213,787,740 • 5475,148 of increased Parkland Fuci receivables and $883,000 of increased RDA receivables. 0 $13,787,740 = $8,765,986 operating expenditures plus 55,021,754 of capital inorovements7 Loans. $ 2,305,717 = $1,939,935 estimated 6.30-93 • $804,000 license tax + $72,000 of reserved interest - reserve for YMCA to be expended in FY 1993-94 (5510,21B). $21,336,995 = 6-30-93 fucl balance + total revenues of $10,431,757 Less total expenditures of $10,531,672 + $190,380 of increased Perklarxl I" receivables - $12,838 decreased CVB receivable. FINANCIAL HISTORY REVENUES & OPERATING EXPENDITURES GENERAL FUND Millions $16 . $14 - ® REVENUES EXPENDITURES $12 - - $10 $8 $6 . $4 - - $2 $0 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 Years FINANCIAL HISTORY REVENUES & TOTAL EXPENDITURES GENERAL FUND Millions $16 $14 $12 $10 $8 $6 $4 $2 $0 D REVENUES N EXPEND/ TURES 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 Years * Not Reimbursed 5.1 WHERE THE MONEY COMES FROM GENERAL FUND FY 1993-94 Fees for Services 3% Bed Tax 32% RDA Interes 2% License Tax 7% Interest Income 6% RDA Reimbursement 8% Various Tax Receipts 8% Dev. Related Fees 4% Other Revenue 5% Sales Tax 17% Fund Balance 9% WHERE THE MONEY GOES GENERAL FUND FY 1993-94 Community Development 10% Public Works 17% Public Safety 16% Nondepartmental 16% Capital Improvements 12% Capital Proj. Reserves 8% Capital Loans 2% Administration 20% CITY OF RANCHO MIRAGE COMPARISON OF ANNUAL BUDGET TO APPROPRIATIONS LIMIT FY 1993-94 Total Appropriations............................................................14,004,232 Less: Non-tax Proceeds.............................................................................5,016,378 FY 1993-94 Appropriation of Tax Proceeds Subject to the Appropriations Limit...........................................................8,987,854 FY 1993-94 Appropriations Limit.............................................................21,513,266 FY 1993-94 Appropriations Under the Appropriations Limit...................................................................................12,525,412