Budget Impacts.pdf

The City Council meeting on June 22, 2009, discussed the FY2009-10 Annual Operating Budget, which faces challenges due to the weakening economy. Key factors affecting the budget include:

Decline in sales tax and building activity
State impacts, including deferred or lost funding
High unemployment rate (17.5%+)
Significant decrease in property taxes (29%)
Decrease in Transient Occupancy Tax (TOT) revenues

Projected Revenue Impacts

Property Tax: Down $1,026,100
Sales Tax: Down $72,000
TOT: Down $50,000
Grants: Down $235,000
Total Revenue Impacts: -$1,535,450

Projected Cost Impacts

One-time costs: $828,750 (including MSHCP, General Plan update, and annexation costs)
Police Department costs: Up $1,612,563 (including new officers, MOU adjustments, and workers' compensation)
Total Cost Impacts: $2,427,503

Net Initial Projected Deficit

$3,962,953

Measures to Address Deficit

Department budget cuts
Funding one-time expenditures with one-time revenues
Early retirements
Layoffs/Furloughs/Benefit Modifications
Revenue measures and city overhead recovery

General Fund Revenues and Expenditures

Revenues: $13,799,688
Expenditures: $13,978,724

Community Development and Public Safety

I-10 Annexation: expected to increase housing and employment opportunities, improve public services, and provide a future revenue source
Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP): requires the City to protect sensitive plant and animal species
General Plan Update: invites public input and provides a website, newsletter, and community news

Public Outreach and Collaboration

City Newsletter and website improvements
Collaboration with hoteliers, Desert Hot Springs Chamber of Commerce, and other organizations
* Citizen communication and public outreach efforts