Budget Report.pdf

The City of Desert Hot Springs has prepared a one-year operating budget for FY 2020-2021, with a total revenue of $23,368,855 and total expenditures of $23,714,130, resulting in an annual deficit of $345,275.

Consolidated General Fund

The Consolidated General Fund consists of three funds: General Fund, Health & Wellness Fund, and Public Safety Fund. The General Fund is expected to receive $17,260,155 in revenues and incur $9,509,123 in expenditures. The Health & Wellness Fund is expected to receive $40,000 in revenues and incur $479,921 in expenditures, while the Public Safety Fund is expected to receive $6,068,700 in revenues and incur $13,725,086 in expenditures.

Revenue Sources

The General Fund revenue sources include:

Property taxes, expected to decrease by 2.0%
Transient Occupancy Taxes, expected to decrease by 13%
Sales & Use Taxes, expected to decrease by 14%
Development and Related Fees, expected to decrease by 8%

Expenditure Activity

The General Fund expenditure activity by department includes:

City Council: continuation of contractual costs for debris removal and CVAG Homeless Program
City Manager: continuation of special events and additional supplies needed for the new City Hall
Finance: increase in contract services for payroll processing
Non-Departmental: increase of almost $500,000 in Transfers Out to other funds
Building & Safety: continuation of Building Plan Check contract services
Planning: addition of Housing Element update and Zoning Update
* Economic Development: continuation of costs for marketing and promotional materials

Use of Reserves

The City is requesting the use of reserves in the amount of $345,275 to cover the deficit. The Consolidated General Fund has an over $3.7 million reserve balance for natural or fiscal emergencies.