Indian Wells City Council
May 15, 2025

Council Agenda- May 15, 2025
City of Indian Wells
Fiscal Policies and Procedures Manual
events and activities, cultural events, advertising and marketing, technology goods, and memberships and dues.

B. Authorization and Acknowledgement of City Credit Cards by Eligible Employees
The issuance and revocation of City credit cards shall be at the sole discretion of the City Manager. In the absence of specific authorization from the City Manager, the standard credit limit for City credit cards shall be $10,000. The City Manager is empowered to establish credit limits on a case -by -case basis, with the maximum allowable limit not exceeding $50,000.

C. Appropriate City Credit Card Use
• City credit cards may be used for traveling on City business. • City credit cards may be used to purchase goods and services from vendors where the use of a check is not practical, such as internet purchases. • City credit cards may be used to secure reservations and locations for various City activities, attending local meetings, community events, honoree luncheons, marketing promotions, and sales missions. In addition, city credit cards may be used for all meals in conjunction with official City business, such as meetings with City Council, developers, or consultants.
• The City credit card is not intended to replace other procurement methods where proper planning and procurement enable volume discounts. Credit cards should never be used to circumvent procurement methods established in this Manual. This means purchasing goods or services that would otherwise require a specific procurement method should not be made.
• Employees shall not use City credit cards for personal expenses. Charging personal expenses on City cards is a misuse of City funds and a severe breach of the City's ethics/fraud policy. Doing so will result in disciplinary action, up to and including termination. Employees should use care when selecting between the City's credit card and their personal credit cards.

D. Travel, Meetings, & Conferences
All credit card charges must be supported by detailed charge receipts and be submitted on a travel expense report. Before travel, City employees without City credit cards may complete a credit card purchase authorization form to book airline and hotel accommodations using the Department Head's credit card. The completed form is 17

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Fiscal Policies and Procedures Manual
submitted to the employee's Department Head for approval. The approved form should support the reconciliation of the monthly credit card statement.

E. Obtaining Goods and Services
The Department Head must complete and approve a credit card purchase authorization form before purchasing any goods or services. A receipt/invoice is required to substantiate every credit card purchase.

Authorized purchases may be made in person, via an approved internet site, or by telephone. The cardholder must require vendors to itemize the receipt/invoice. An itemized receipt/invoice consists of the following information:
• Date of purchase/Date of Event
• Detailed description of goods or services purchased
• Price per item
• Amount of sales tax and the total amount
• Shipping charges, if any.

Upon completing the credit card transaction, the employee shall attach the itemized receipt to the completed credit card purchase authorization form and submit the form to the Department Head.

F. Card Restrictions
Except for an emergency, credit cards shall not be used for the following:
• Cash advances, money orders, wire transfers.
• Gasoline purchases
• Personal items and personal services
• Personal entertainment
• Long-term rentals or lease agreements
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G. Monthly Reconciliation
At the conclusion of each billing cycle, the Finance Department will upload all cardholder statements into Munis, detailing all transactions made during the period. Cardholders are required to reconcile their statements within 15 days of receipt and submit supporting documentation to the Finance Department, including account numbers and transaction descriptions.

All credit card transactions will be processed through the Munis workflow for review and approval by the Department Head or their designee. Expenditures lacking proper documentation may only be reimbursed with the approval of the City Manager. The City Manager may revoke cards from cardholders for failure to reconcile statements within the 15 -day reconciliation period. Falsification of receipts will result in disciplinary action, up to and including termination of employment.

H. Disputed Charges
Cardholders are responsible for ensuring vendors, credit card companies, and the Finance Department are notified immediately of any disputed charges. Cardholders will be responsible for resolving the disputed amount directly with the vendor or credit card company.

I. Timely Payment
The Finance Department will ensure timely payments based on the statement cycle date.

Credit card charges will be paid once reconciled by the cardholder and approved by the Finance Department.

J. Lost or Stolen Cards
Cardholders are responsible for ensuring that the credit card company and the Finance Department are notified immediately if a credit card is lost or stolen. Failure to do so may result in the cardholder being held responsible for fraudulent credit card use.

K. Surrender upon Request or Separation
The credit card will be immediately surrendered upon retirement, termination, separation, or upon request of the City Manager. Use of the credit card for any purpose after its surrender is prohibited.
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12. Capital Assets Policy and Procedures
A. Purpose
This capital assets policy and procedures aim to ensure adequate and appropriate control of City capital assets. The procedures are intended to define capital assets and establish guidelines for proper accounting, inventory, depreciation, and disposal, as amended from time to time. The Finance Department's responsibility is to determine the criteria for the asset type, class, depreciation, and accounting of the capital asset or inventory items.

City Department Heads' responsibility is to ensure that capital assets are controlled.

B. Capitalization Policy
All capital and intangible assets will be subject to capitalization, including buildings, machinery, naming rights, and equipment, with an original cost of $25,000 or greater and a life expectancy of three (3) years or greater. However, the City has made one exception to this basic rule. All computer and computer -related equipment purchases will not be capitalized.

All costs associated with purchase or construction should be considered, including ancillary costs such as freight and transportation charges, site preparation expenditures, professional fees, and legal claims directly attributable to asset acquisition. Repairs to existing capital assets will only be subject to capitalization if it extends the asset's useful life by a minimum of three (3) years or greater.

Capital projects will be capitalized as "construction in progress" until completed. Costs to be capitalized include direct costs, such as labor and materials, ancillary costs, and any construction period interest costs as required by the GASB pronouncements.

C. Inventory Control
Individual departments safeguard the City's capital assets from theft or loss. Inventory control is applied only to movable capital assets. Capital assets subject to inventory control will be accounted for and controlled through the same systems and procedures used to account for and manage capital assets subject to capitalization. 20

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D. Depreciation
Depreciation is calculated on all capital assets per GASB Statement No. 34 standards.

Including an intangible asset is based on GASB Statement No. 51 provision. Intangible assets are amortized over their useful contractual lives.

All depreciation is booked using the straight-line method and average month conventions.

The book value and depreciation life cycles are determined using general industry guidelines. Depreciation is charged as an expense against operations, and accumulated depreciation and reported on the balance sheet.

The range of lives for depreciation purposes for each capital asset class is as follows:
• Building and improvements 10-50 years
• Equipment 3-15 years
• Infrastructure 5-60 years
• Intangible assets Depreciated over the contractual life E. Surplus Property
Occasionally it becomes necessary to dispose of surplus property, including materials, supplies, and equipment no longer needed by the City. The Finance Department shall be responsible for the disposal of all City surplus property. The Finance Department shall periodically submit a surplus property list to the City Manager for review and consideration. The disposal method may be by public auction, private sale, or donation, determined by the City Manager at the time of disposal.

13. Reimbursement Policy and Procedures
It is the policy of the City to reimburse expenses incurred by elected and appointed officials, officers, and employees of the City when such expenses are incurred while on authorized City business. Any employee traveling on City business shall receive approval from their Department Head or the City Manager. The Reimbursement and Travel policy is based on the conscientious and thoughtful use of City resources. Within that ideal, the City recognizes responsibility for the travelers' physical needs, convenience, and safety.

A. Expense Reimbursement Procedure
A Travel Expense Report should be prepared by the employee and submitted to the Finance Department within one (1) week after incurring travel or meeting expenses. All 21

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Fiscal Policies and Procedures Manual
receipts and supporting documentation shall be attached to the expense report to account for all travel expenditures claimed.

After the Department Head approves, the Travel Expense Report shall be submitted to the Finance Department for review and processing. Any Travel Expense Report with insufficient documentation or inappropriate claims will be returned unpaid until corrected.

In the case of reimbursement, the report form will be considered a payment request. If a refund is due to the employee, the Finance Department will issue a reimbursement check following the Accounts Payable Schedule.

B. Expense Reimbursement Procedure for Elected and Appointed Officials/Reports Regarding Meeting Attended
A Travel Expense Report should be prepared by an elected or appointed official and submitted to the Finance Department within one (1) week after incurring travel or meeting expenses. The expense report shall show the total expenses incurred for travel and meetings and a reconciliation of any travel advances granted. All receipts and supporting documentation shall be attached to the expense report to account for all travel expenditures claimed. Any Travel Expense Report with insufficient documentation or inappropriate claims will be returned unpaid until corrected.

In addition to submitting an expense report, the elected or appointed official will be required to provide a brief report on the conference or meeting attended for which the expenses were incurred at the next regular meeting of their respective legislative body.

C. Allowable Expenses
Mileage - Mileage is paid at the prevailing rate the Internal Revenue Service provides.

To be eligible for mileage reimbursement, management must approve an employee to attend an outside function or conduct City business away from City premises.

Reimbursement mileage is calculated from the City (or closest starting point) to the destination and back to the City (or closest ending point). Employees receiving a City auto allowance are subject to a seventy-five (75) mile deduction for mileage reimbursements. While attending the event, incidental mileage is reimbursed up to ten (10) miles per day.

Parking — Employees and elected and appointed officials will be reimbursed for parking.

However, depending on the length of the trip, alternative transportation services to and from the airport, such as an airport shuttle or a taxicab, should be considered if they are less expensive.

Air Travel - Air transportation from the most suitable airport will be acquired at the most economical fare consistent with the traveler's needs. Coach seating is preferred; however, 22

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consistent with the traveler's needs, an upgrade to a Business Class seat or its equivalent may be purchased, especially on longer domestic or international flights. Priority boarding and baggage services may be purchased to accommodate the traveler's needs. Advance purchases of tickets are encouraged and may be overseen via a travel agent, the Internet, or individual airlines. The authorization shall be granted before purchasing tickets. A City credit card or check may be used to make the purchase.

Hotel Accommodations - Employees and elected and appointed officials will make lodging arrangements based on value, convenience, and safety for the Traveler. Hotels should be reasonably priced. Individuals attending conventions and conferences are encouraged to stay at the hotel specified or local area for that convention or conference.

If such lodging is connected with a conference or other educational activity, employees and elected and appointed officials shall request the group rate published by the conference or event sponsor for the meeting in question, provided such rates are available at the time of booking. If the group rate is unavailable, employees and elected and appointed officials shall request the government rate. If government rates are unavailable at a given time, employees and elected and appointed officials shall request the most favorable rate.

Individuals will be allowed one (1) single room. For the traveler's convenience, hotel accommodations are allowed up to one (1) night prior and one (1) night after conducting official business.

Employees and elected and appointed officials are strongly encouraged to pay separately for all ancillary lodging expenses, such as gift shop and movies, and not charge these to the main hotel bill. Employees and elected, appointed officials must indicate personal expenses charged to the hotel bill, such as toiletries, magazines, hairdresser, barbershop, health club expenses, in -room movies, and mini -bar, and report them as personal on the hotel bill and deduct them from the overall reimbursable expenses. Reimbursable lodging expenses must be summarized and totaled on the hotel bill.

Ground Transportation - The City will reimburse ground transportation expenses associated with the City business. Individuals traveling between the airport and the hotel are encouraged to use the least expensive transportation.

Car Rental - Car rental associated with City business is a reimbursable expense provided the rental cost is less than the cost of travel by cab or other less expensive forms of transportation. The Traveler should use a company offering the lowest available rental cost if a rental car is necessary. The employee should make advance arrangements if a car is required at the destination. Vehicle selection should be based on the most cost- effective class that satisfies the Traveler's requirements, passengers' requirements, and any equipment that may need to be transported. Supplemental auto insurance coverage 23

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offered by car rental agencies will be declined, as the City's insurance policy provides liability and collision coverage.

Meals —City Employees — While traveling, City employees will receive a $110.00 per day Travel Per Diem. The Travel Per Diem shall be used for meals, meal tips, and room - services charges. Detailed receipts and other documentation are not required. The travel days eligible for the Travel Per Diem shall be approved by the Traveler's Department Head or the City Manager after the conclusion of travel. Once approved, the Travel Per Diem shall be paid on the employee's next regularly scheduled payroll disbursement and is subject to applicable payroll taxes.

Use of the Travel Per Diem for one -day meetings, training, or similar one -day events is prohibited. Meal expenditures incurred for one -day meetings, training, or similar one -day events will be reimbursed at actual cost, including reasonable tips, not to exceed $90.00 per day.

Meals — Elected Officials/ Appointed Officials/Non-Payroll Travelers/One-Day Meetings or Training- Meals are allowable at actual cost, including reasonable tips and room -services charges, not to exceed $90.00 per day. Elected and Appointed Officials, non -payroll travelers, and City employees attending one -day meetings or other one -day events must provide detailed receipts and other documentation, if necessary, to support all expenditures.

Gratuities — Employees and elected and appointed officials will be reimbursed for reasonable non -meal -related gratuities such as those to bell captains, valets, taxi drivers, etc. Gratuity standards can vary from Traveler to Traveler; the City encourages a practical and modest approach to gratuities considering these are public funds. Note: Meal gratuities are governed by the two meal -related provisions immediately preceding this paragraph.

Laundry - If the trip is extended to more than five (5) overnights, the City will reimburse for reasonable cleaning and laundry expenses. Reimbursable cleaning and laundry expenses are limited to traveling and unavailable once the Traveler has returned from travel.

Internet - Employees and elected and appointed officials may be reimbursed for internet access and usage fees away from home if internet access is necessary for City -related business.

Office Supplies - The City will reimburse any office supplies expenses necessary to perform official City duties.
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Fiscal Policies and Procedures Manual
Other Expenses — The City may reimburse for other expenses, provided these are not the type of Incidental Expenditures listed below.

Incidental Expenditures - The City will not reimburse for incidental expenses.

Incidental expenses are the responsibility of the employee and the elected or appointed official. The following are examples of such non -reimbursable expenses while traveling:

Alcohol
Babysitting
Barbers and hairdressers
Candy, gum, and snacks
Cigarettes
Clothing
Dietary supplements or vitamins
Dues for frequent guest programs (airline, hotel, restaurant) Expenses for travel companions
Expenses related to vacation or personal days while on a business trip Gifts
Golf fees
Health club fees
Lost baggage
Luggage and briefcases
Magazines, books, newspapers
Movies (including in-flight and hotel in-house films)
Optional travel or baggage insurance
Parking or traffic tickets
Personal accident insurance
Personal entertainment, including sports events
Personal toiletries
Pet care
Postage costs (unless for City business)
Routine auto maintenance
Sauna and massage services
Shoeshine
Souvenirs and personal gifts
Spousal tours
Family Member Accompaniment - All costs associated with family member travel shall be at the sole expense of the Traveler.

D. Elected and Appointed Officials and Limitation on the Type of Reimbursable Occurrences
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Limitations - City funds, equipment, supplies (including letterhead), and staff time must only be used for authorized City business. Expenses incurred in connection with the following types of activities constitute authorized expenses if the other requirements of this policy are met:
• Communicating with regional, state, and national government representatives on City adopted policy positions.
• Attending educational seminars designed to improve officials' skills and information levels
• Participating in regional, state, and national organizations whose activities affect the City's interests
• Recognizing service to the City
• Attending City events
• Implementing a City -approved strategy for attracting or retaining businesses to the City, which will typically involve at least one staff member • Performing activities at home or office in furtherance of official City duties Other Occurrences - All other expenditures for occurrences not included herein require prior approval by the City Council in a regular public meeting.

14. Federally Funded Procurements
The following procurement procedures shall be complied with in connection with the utilization of federal grant funding subject to 2 CFR Part 200. These procedures are in addition to and are not intended to replace or supersede the City's other procurement requirements or state law requirements. In the case of a conflict between these procedures, the more stringent requirement shall govern, provided that the more stringent requirement would not violate a federal procurement requirement. In such a case, the federal requirement shall govern federally funded contracts.

General Procurement Standards
Code of Conduct - As representatives of the City, all employees are expected to conduct themselves professionally and ethically, maintaining exacting standards of integrity and using good judgment. Employees are expected to be principled in their business 26

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interactions and act in good faith with individuals inside and outside the City. The following Code of Conduct shall govern the performance, behavior, and actions of the City, including employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts and grants, and the administration and supervision of contracts:
• No employee, director, appointed or elected official, volunteer, or agent of the City shall participate in the selection, award, or administration of contracts supported by a federal award if a conflict of interest is real or apparent to a reasonable person.
• Conflicts of interest may arise when an employee, officer, or agent of the City, any member of their immediate family, their partner, or an organization that employs or is about to employ any of the parties indicated herein, has an actual or apparent financial or other interest in or a tangible personal benefit form a firm considered for the contract.
• No employee, director, appointed or elected official, volunteer, or agent of the City shall do business with, award contracts to, or show favoritism toward a member of their immediate family, spouse's family, or to any company, vendor, contractor, or parties to subcontractors who either employ or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of federal, state and local procurement laws and policies established to maximize free and open competition among qualified vendors.
• The City's employees, directors, appointed or elected officials, volunteers, or agents shall neither solicit nor accept gratuities, favors, gifts, consulting fees, trips, or anything having a monetary value above twenty-five dollars ($25.00) from a vendor, potential vendor, family or employees of a vendor, contractor, or parties to subcontractors.
• Disciplinary measures for violations of the Code of Conduct by employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts and grants, and the administration and supervision of contracts could result in disciplinary action, up to and including dismissal, subject to the applicable due process as prescribed in the City's Personnel Policies and Procedures.
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Solicitation Procedures
The City shall maintain administrative oversight of contractors to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.

Acquisition of unnecessary or duplicative items must be avoided. Consideration should be given to consolidating or dividing procurements to obtain a more economical purchase.

When appropriate, an analysis of lease versus purchase alternatives and any other proper research will be made to determine the most economical approach.

To foster greater economy and efficiency, and in accordance with efforts to promote cost- effective use of shared services, the City is encouraged to enter into state and local intergovernmental agreements or inter -entity agreements where appropriate for procurement or use of common or shared goods and services.

Procuring federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs shall be utilized.

Value engineering clauses may be used in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at an overall lower cost.

Contracts shall only be awarded to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement.

Consideration will be given to such matters as contractor integrity, public policy compliance, proper classification of employees (see the Fair Labor Standards Act, 29 U.S.C. 201, chapter 8), past performance record, and financial and technical resources.

Records will be maintained sufficient to detail the history of procurement. These records will include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The City Clerk will be the repository for said records and shall be maintained for no less than seven (7) years.

Time and material -type contracts (open-ended) may be used only after determining that no other contract is suitable. A time and material type contract means a contract where the cost to the City is the sum of the actual cost of materials and direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit. Each time and material contract will set a ceiling price the contractor exceeds 28

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at its own risk. A higher degree of oversight is required to reasonably ensure that the contractor uses efficient methods and adequate cost controls.

The City alone will be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include but are not limited to source evaluation, protests, disputes, and claims. These standards do not relieve the City of any contractual responsibilities under its contracts. The Federal awarding agency will not substitute its judgment for that of the City unless the matter is primarily a federal concern. Violations of law will be referred to the local, state, or federal authority having proper jurisdiction.

Competition
All procurement transactions must be conducted to provide complete and open competition. To ensure objective contractor performance and eliminate unfair competitive advantage, contractors who develop or draft specifications, requirements, statements of work, and invitations for bids or proposals will be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include, but are not limited to:
• Placing unreasonable requirements on firms in order for them to qualify to do business
• Requiring unnecessary experience and excessive bonding • Noncompetitive pricing practices between firms or between affiliated companies • Noncompetitive contracts to consultants that are on retainer contracts • Organizational conflicts of interest
• Specifying only a brand name product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement
• Any arbitrary action in the procurement process
For Federal awards prior to October 1, 2024, procurements shall be conducted in a manner that prohibits the use of statutorily or administratively imposed state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this Section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection 29

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criterion, provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

All solicitations will clearly and accurately describe the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features that unduly restrict competition. The description may include a statement of the qualitative nature of the material, product, or service to be procured. When necessary, it must set forth those minimum essential characteristics and standards to which it must conform to satisfy its intended use. Detailed product specifications should be avoided if possible. When it is impractical or uneconomical to clearly and accurately describe the technical requirements, a brand name or equivalent description may be used to define the performance or other relevant procurement requirements. The specific features of the named brand which offers must meet must be clearly stated.

Bids and proposals shall identify all the requirements the offerors must fulfill and all other factors to be used in evaluating bids or proposals.

The City shall ensure that all prequalified lists of persons, firms, or products used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The City shall not preclude potential bidders from qualifying during the solicitation period.

Methods of Procurement - The thresholds below are federal. If City thresholds are lower, the more restrictive requirement shall govern, notwithstanding the provisions herein.

Informal Procurement Methods. When the value of the procurement for property or services under a federal award does not exceed the Simplified Acquisition Threshold (SAT) (e.g., currently set at purchases of $250,000 or less) or a lower threshold established by the City, formal procurement methods are not required. The City may use informal procurement methods to expedite the completion of its transactions and minimize the associated administrative burden and cost. The informal methods used for procurement of property or services at or below the SAT include:

Micro -purchase: Purchases of supplies or services where the aggregate dollar amount does not exceed $10,000, or the current limitation set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1, where this threshold is periodically adjusted for inflation, may be awarded without soliciting competitive quotations if the City considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. To the extent practicable, the City must distribute micro -purchases equitably among qualified suppliers. 30

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Small purchase: Purchases of property or services up to the Simplified Acquisition Threshold (SAT), which is currently $250,000. Price quotations must be received from no less than three (3) sources.

Formal Procurement Methods: When the value of the procurement for property or services exceeds the SAT or a lower threshold established by the City, formal procurement methods are required. Formal procurement methods require following documented procedures. Formal procurement methods also require public advertising unless noncompetitive procurement can be used in accordance with the below. The following formal methods of procurement are used for the procurement of property or services above the SAT or a value below the SAT the City determines to be appropriate:

Sealed bid: Under this purchase method, formal solicitation is required. The fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest price. This method is the preferred procurement method for construction contracts. For sealed bidding to be feasible, there must be:
• A complete, adequate, realistic specification or purchase description is available. • Two or more responsible bidders are willing and able to compete effectively for the business.
• The procurement lends itself to a firm -fixed -price contract, and the successful bidder selection can be made principally based on price.

If this method is used, the following requirements shall apply:
• The invitation for bids will be publicly advertised and must be solicited from an adequate number of known suppliers, providing them with sufficient response time before opening the bids.
• The invitation for bids, which will include any specifications and pertinent attachments, must define the terms of services for the bidder to respond appropriately.
• All bids will be publicly opened at the time and place prescribed in the invitation for bids.
• A firm -fixed -price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts will only be used in determining which bid is the lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of. 31

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• Any or all bids may be rejected if there is a sound documented reason.

Competitive proposals: This procurement method requires formal solicitation, fixed - price, or cost -reimbursement contracts and is used when unsuitable sealed bids. If this method is used, the following requirements apply:
• Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical.
• Proposals must be solicited from an adequate number of qualified sources. • The methods for conducting technical evaluations of the proposals received and selecting recipients may include, but are not limited to, oral interviews, references, past performance, availability to perform work, and certifications as determined by project scope.
• Any response that takes exception to any mandatory items in this proposal process may be rejected and not considered.
• Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and, • Competitive proposal procedures may be used for qualifications- based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated, and the most qualified competitor is selected, subject to fair and reasonable compensation negotiation. The method, where the price is not used as a selection factor, can only be used to procure A/E professional services. It cannot be used to purchase other types of services, though A/E firms are a potential source to perform the proposed effort.

Noncompetitive Procurement: Noncompetitive procurement can only be awarded when one or more of the following criteria are met:
• The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro -purchase threshold.
• The item is available only from a sole source.
• The public exigency or emergency for the requirement will not permit a delay resulting from the competitive solicitation.
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• The Federal awarding agency or pass -through entity expressly authorizes noncompetitive proposals in response to a written request from the non-federal entity; or
• After solicitation of several sources, competition is determined to be inadequate.

Contract Cost and Price: A cost or price analysis shall be performed in connection with every procurement action in excess of the Simplified Acquisition Threshold (currently $250,000), including contract modifications. The method and degree of analysis are dependent on the facts surrounding the particular procurement situation, but as a starting point, independent estimates shall be made prior to receiving bids and proposals.

For Federal awards prior to October 1, 2024, profit shall be negotiated as a separate element of the price for each contract in which there is no price competition and, in all cases, where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

Costs or prices based on estimated costs for contracts under the federal award are allowable only to the extent that costs incurred, or cost estimates included in negotiated prices would be acceptable for the City under Subpart E- Cost Principles of Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The cost plus a percentage of cost and construction cost contracting methods shall be used.

Federal Awarding Agency or Pass -Through Entity Review: The City shall make available, upon request of the federal awarding Agency or pass -through entity, technical specifications on proposed procurements where the federal awarding Agency or pass - through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review will generally take place before the specification is incorporated into a solicitation document. However, if the City desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass -through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.

The City will make available upon request for the Federal awarding agency or pass - through entity pre -procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:
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• Procurement procedures or operations fail to comply with the procurement standards in this part.
• The procurement is expected to exceed the Simplified Acquisition Threshold (currently $250,000). It is to be awarded without competition, or only one bid or offer is received in response to a solicitation.
• The procurement, expected to exceed the Simplified Acquisition Threshold, specifies a "brand name" product.
• The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or
• A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold.

The City is exempt from the pre -procurement review in the paragraph above of this Section if the Federal awarding agency or pass -through entity determines that its procurement systems comply with the standards of this part.

The City may request that its procurement system be reviewed by the federal awarding Agency or pass -through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high -dollar funding, and third -party contracts are awarded on a regular basis.

The City may self -certify its procurement system. Such self -certification must not limit the federal awarding Agency's right to survey the system. Under a self -certification procedure, the Federal awarding agency may rely on written assurances from the City that it is complying with these standards. The City must cite specific policies, procedures, regulations, or standards as following these requirements and have its system available for review.

Bonding Requirements: For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold (currently $250,000), the federal awarding or pass -through entity may accept the bonding policy and requirements of the City provided that the federal awarding Agency or pass -through entity has determined that the federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
• A bid guarantee from each bidder is equivalent to five percent (5°/o) of the bid price. The bid guarantee must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance 34

Council Agenda- May 15, 2025
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Fiscal Policies and Procedures Manual
that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. • A performance bond on the contractor's part for 100 percent (100°/0) of the contract price. A performance bond is executed with a contract to secure the fulfillment of all the contractor's obligations under such a contract. • A payment bond on the contractor's part for 100 percent (100°/o) of the contract price. A payment bond is executed in connection with a contract to assure payment as required by the law of all persons supplying labor and material to execute the work provided for in the contract.

Contract Provisions: The City's contracts shall contain the applicable provisions described in Appendix II to Part 200 — Contract Provisions for Non -Federal Entity Contracts Under Federal Awards.

Contracting with small businesses, minority businesses, women's business enterprises, veteran -owned businesses, and labor surplus area firms: When possible, the City should ensure that small businesses, minority businesses, women's business enterprises, veteran -owned businesses, and labor surplus area firms are considered as set forth below:
• These business types are included on solicitation lists • These business types are solicited whenever they are deemed eligible as potential sources.
• Dividing procurement transactions into separate procurements to permit maximum participation by these business types.
• Establishing delivery schedules (for example the percentage of an order to be delivered by a given date of each month) that encourage participation by these business types.
• Utilitzing organizations such as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce • Requiring a contractor under a Federal award to apply this section to subcontracts.

Domestic Preferences for Procurements.

As appropriate and to the extent consistent with law, the City should, to the greatest extent practicable under a Federal award, provide a preference for the purchase, 35

Council Agenda- May 15, 2025
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acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this Section must be included in all sub -awards, including all contracts and purchase orders for work or products under this award.

For purposes of this Section:
• "Produced in the United States" means, for iron and steel products, all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
• "Manufactured products" means items and construction materials composed in whole or part of non-ferrous metals such as aluminum; plastics and polymer -based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, optical fiber; and lumber.

Procurement of Recovered Materials.

For procurements covered under these procedures, the City and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with these requirements, the City shall only procure items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. This requirement applies to purchases of items when the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeds $10,000.

The City and its contractors should, to the greatest extent practicable and consistent with law, purchase, acquire, or use products and services that can be reused, refurbished, or recycled; contain recycled content, are biobased, or are energy and water efficient; and are sustainable. This may include purchasing compostable items and other products and services that reduce the use of single -use plastic products. See Executive Order 14057, section 101, Policy.

Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment.

The City shall not allow contractors to contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system or as critical 36

Council Agenda- May 15, 2025
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Fiscal Policies and Procedures Manual
technology as part of any system funded under this contract. As described in Public Law 115-232, section 889, covered telecommunications equipment is produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

See 2 CFR §200.216.

Costs
The following Section outlines the allowable costs for grants, contracts, and sub -awards.

The policy is justified by the requirement of the Code of Federal Regulations (CFR) Title 2 Grants and Agreements, Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly known as Uniform Grant Guidance (UGG). It provides the essential criteria to determine direct allowable and indirect allocable costs on federally funded programs regardless of the funding agency sponsoring them. The City shall adhere to the UGG Administrative Requirements as updated.

Payment- Generally, the City receives payments of federal award funds on a reimbursement basis. In some cases, the City may receive an advance of federal grant funds.
• Reimbursements
o The City will request reimbursement for actual expenditures incurred under federal grants at least quarterly or more often as deemed appropriate. o Reimbursement requests will be submitted with appropriate documentation and signed by the City's designated representative. All reimbursements are based on actual disbursements, not on obligations.
o The City will maintain supporting documentation of federal expenditures (invoices, payroll records) and make such documentation available to awarding agencies upon request.
• Advances
o When the City receives advance payments of federal grant funds, it must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass -through entity and the disbursement of those funds on allowable costs of the applicable federal program. (2 CFR 200.305) o To the extent available, the City will disburse funds from program income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments. (2 CFR 200.305)
37

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o The City will maintain advance payments of federal awards in insured, interest -bearing accounts whenever not precluded by the Federal award grant guidance or when exceptions per 2 CFR 200.305(8) do not apply. The City may retain annual interest amounts of up to $500 for administrative expenses. Any additional interest earned on Federal advance payments deposited in interest -bearing accounts must be remitted annually to the Department of Health and Human Services Payment Management System (PMS) through an electronic medium using an Automated Clearing House (ACH) network or a Fedwire Funds Service payment. [2 CFR 200.305(9)] Allowable Costs - 2 CFR, part 200, subpart E, Cost Principles identifies direct and indirect costs that can be charged to federal awards; it also identifies those costs that cannot be charged to grant agreements and are considered unallowable expenses. The City adopts the five tests provided by this regulation to determine the allowability of costs applied to federally funded services:
• Reasonability: For a cost to be considered reasonable, it must be necessary for the fulfillment of the grant objective, acquired by means consistent with federal and state laws and regulations and consistent with City policies and practices. • Allocability: A cost is allocable to a program if the goods/services involved are charged in accordance with the relative benefits received by that program. To be considered allocable, a cost must be incurred solely to advance the work under the sponsored program or benefit both the sponsored program and other programs of the City in proportions that can be approximated through the use of the City cost allocation methods not to exceed the limit imposed by the grant agreements.
• Consistency: Similar costs are treated as direct or Facilities and Administration (F & A) costs when incurred in like circumstances. Costs generally charged as a direct cost to a sponsored program should not be included as F&A costs on other projects when incurred for the same purposes. Where the City treats a particular type of cost as a direct cost of sponsored programs, all costs incurred for the same purpose in like circumstances shall be treated as direct costs of all other activities of the City.
• Limitation: Cost must conform to any limitations or exclusions in the sponsored agreement.
• Documentation: Cost must be adequately documented.

Expenditures must be aligned with approved budgeted items. Any deviation from the approved award budget will require prior approval from the awarding Agency. Allowability 38

Council Agenda- May 15, 2025
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Fiscal Policies and Procedures Manual
of costs will be determined prior to obligating and spending federal funds on a proposed good or service. State and City rules or policies must also be considered. Whichever allowability requirements are stricter will govern whether a cost is allowable.

Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards per 2 CFR 200.403:
• Be necessary and reasonable for the Federal award's performance and be allocable under these principles.
• Conform to any limitations or exclusions set forth in these principles or the Federal award as to types or amount of cost items.
• Be consistent with policies and procedures that apply uniformly to the City's federally financed and other activities.
• Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in the circumstances has been allocated to the Federal award as an indirect cost. • Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in the current or a prior period. Also, reference § 200.306, Cost sharing or matching, paragraph (b). • Be adequately documented. Also, reference §§ 200.300, Statutory and national policy requirements, through 200.309, period of performance, of 200 CFR Part 200.

Direct Costs - Direct costs can be explicitly identified with a particular award. Costs that can be directly assigned to an activity with high accuracy will be directly imputed to that activity. Identification with the grant rather than the nature of the goods and services involved is the determining factor in distinguishing direct from indirect F&A costs of grant agreements. Examples of some of the costs charged directly include:
• Personnel salaries/fringe benefits
• Capital expenditures
• Software
• Consultants
• Equipment
39

Council Agenda- May 15, 2025
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• Materials and supplies
Facilities and Administrative Costs (Indirect/Overhead Costs) - Costs incurred for common or joint objectives that cannot be explicitly identified with a sponsored program are treated as indirect costs. Examples of indirect costs include:
• Utilities
• Maintenance and operation
• Building and equipment expenses
• Administrative costs
Most grant agreements include a percentage of the direct cost to cover these charges, known as the Facilities and Administrative Cost Rate (F&A), which refer to individual grant agreement guidelines for indirect cost rates. Federal regulations limit instances where administrative costs can be charged directly to grants and contracts. An exception may be made if there is extensive use of such expenses, the expenses have been appropriately justified/documented in the grant/contract proposal, and they have been approved as a direct cost by the appropriate federal Agency.

Examples below list the types of expenses that are generally not allowable as a direct cost:
• Administrative and clerical salaries and wages
• Printing and copying costs
• Office supplies
• Postage and mail
• Telephone and internet

15. Cash Receipts
Checks and cash received should be given to the Finance Department with a specific description and the proper account coding on the day received. City employees should not hold cash and checks overnight. The cash register maintains a $100 change drawer. 40

Council Agenda- May 15, 2025
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Fiscal Policies and Procedures Manual
The register is closed out daily and stored in the City's vault.

City funds shall be deposited upon the aggregate receipt of $25,000 in cash and checks.

A deposit is required on the last day of each month, regardless of the funds collected.

The deposit and reconciliation of funds shall be conducted under the internal control procedures established by the Finance Department. The Finance Department will prepare and deliver the deposit to the bank.

16. Billing for Services
The Finance Department shall invoice individuals and companies for services rendered or damage to City property. In cases where a permit fee or deposit is required, the payment shall be made before the issuance of said permit or performance of other City services.

If the payment on an invoice is not received after 30 days, a delinquent notice shall be mailed requesting immediate payment. Those invoices remaining unpaid after 90 days may be referred to collections. When payment is received, a copy of the receipt shall be attached to the invoice. The receipt and applicable backup are filed in the revenue file for the appropriate vendor.

17. Refundable Deposits
Deposits or disbursements of refundable deposits shall be directed by the appropriate Department requiring the deposit. All refundable deposits shall be placed in the Special Deposits Fund upon receipt. A "Refundable Deposit" form must be completed and submitted to the Finance Department staff responsible for receipting the deposit. The form will be validated upon receipt of monies. The Finance Department shall reconcile the Special Deposits Fund every quarter. The Finance Department shall notify the appropriate Department of the status and aging of refundable deposits held by the City.

18. Claims and Demands Upon the City
Claims against the City seeking money or damages are governed by the Government Claims Act (Government Code sections 810 to 998.3) and Chapter 3.20 of the City's Municipal Code. For such claims received by the City under 625,000, but not subject to coverage by the California Joint Powers Insurance Authority, the City Manager is authorized to handle the claim, including, among other things, reviewing the claim for sufficiency and rejecting, accepting, or settling the claim. 41

Council Agenda- May 15, 2025

INDIAN WELLS CITY COUNCIL
May 15, 2025
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Fiscal Years 2025-27 Biennial Operating Budget and Five - Year Capital Improvement Plan
RECOMMENDED ACTIONS:

Council REVIEWS, DISCUSSES, and APPROVES or APPROVES AS AMENDED the Biennial Operating Budget and Capital Improvement Plan from July 1, 2025, through June 30, 2027; and
FINDS the project to be exempt from the California Environmental Quality Act (CEQA) provision pursuant to Section 15060.

BACKGROUND:

The City of Indian Wells remains committed to enhancing the Resident's quality of life in Indian Wells. The proposed biennial budget for the fiscal years 2025-26 and 2026-27 are presented for your review. Indian Wells is conservative by nature, and the updated cash flows presented in this budget reflect it. For the reader's convenience, a complete version of the City's operating budget is readily accessible online. To explore the full document and gain deeper insight into the City's financial planning, please visit:
https://www.cityofindianwel Is.org/city-hall/departments/finance/operating-budget.

Summary of Budget Enhancements for the Current Fiscal Year The City proposes strategic investments that enhance services, strengthen community engagement, and improve residents' overall quality of life. This year's budget includes key funding increases that support greater transparency, expanded amenities, improved public access to information, and long-term financial preparedness. These enhancements reflect the City's ongoing commitment to responsible growth, operational excellence, and the well-being of our community.

1. Expanded Budget Transparency Measures — Increased line -item detail within budgeted programs to improve financial reporting and accountability.

Council Agenda- May 15, 2025

2. Expansion of Resident Amenities Program — Enhanced funding to foster community connectivity and inclusivity. Proposed initiatives include an author - speaking series, expanded resident social events, a new wellness program, resident bus tours, a dedicated Resident's Day at the Palm Springs Air Museum, new yoga sessions, commemorative Veterans and Memorial Day ceremonies, and resident events at the Living Desert Zoo during Wildlights.

3. Federal Legislative Advocacy — Additional funding allocated to support a Federal Legislative trip to Washington, D.C., ensuring continued engagement on policy and funding opportunities.

4. City Website Enhancement Project — Dedicated funding to modernize the City's website, improving public access to municipal services, facilitating real-time updates, and enhancing digital engagement with residents.

5. Increased Professional Development Funding — Additional resources provided for Council Members and staff to participate in professional training, workshops, and conferences, reinforcing informed decision -making and effective governance.

6. New Community Assistance Funding — Council -specific budget allocations established in accordance with Council policy, including the creation of a dedicated line item for City Council Contributions — Prior Year Carry Forwards.

7. Legal Contingency — A new budgetary provision for potential litigation expenses to ensure financial preparedness and mitigate fiscal risks associated with legal proceedings.

8. Citywide Landscaping Budget Adjustment — Increased allocation to accommodate anticipated cost escalations under the upcoming Request for Proposal (RFP) process.

9. Administrative Cost Adjustment — A 3% increase in administrative expenses to align with operational requirements.

10. General Expense Inflationary Adjustment — An average 3% increase in general expenditures, reflecting contractual obligations and cost -of -living considerations.

11. Municipal Code Update Initiative — Dedicated funding to support a comprehensive review and revision of the City's municipal code, ensuring regulatory clarity and compliance.

Council Agenda- May 15, 2025

12. Contracted Police Services Adjustment — An 8.5% increase in budgeted costs for contracted law enforcement services, reflecting cost estimates provided by the Riverside County Sheriff's Department.

To support the City Council's review and evaluation of the proposed budget, staff prepared the table below outlining 11 distinct cost changes between the previous fiscal year's budget and the current proposal. A "Status" column has been added to indicate whether each expense is recurring or one-time in nature. Additionally, a column has been included to show the financial impact of each cost change as a percentage of the total budget, providing further context for informed decision -making.

Description Status Total
Shown as a %
of the Total
Budget
1 Increase in Police Service Costs
2 Citywide municipal code update
3 Inflationary cost Increases
4 Administrative Costs
5 Increased Citywide Landscaping
6 Dedicated budget line item for potential litigation expenses Reoccurring
One-time expense
Reoccurring
Reoccurring
One-time expense
Reoccurring
521,800
350,000
308,600
198,600
150,000
100,000

2.2%
L4%

1.3%

0.8%

0.6%

0.4%
7 Provided Council -specific funding for Community Assistance programs 8 Increased Professional Development funding
Provided new funding for the City website improvement project to 9 enhance public communication
10 Federal Legislative Trip
11 Expanded Resident Amenities program
Reoccurring
Reoccurring
One-time expense
Reoccurring
Reoccurring
70,000
61,500
55,000
28,000
22,500

0.3%

0.3%

0.2%

0.1%

0.1%
Total New Costs
1,866,000 7.7%
Budget Overview
The General Fund serves as the City's primary operating fund, encompassing the financial resources that are primarily discretionary and allocated at the discretion of the City Council. This fund supports a broad range of municipal activities, programs, and services deemed essential and beneficial to the community. Additionally, the General Fund accounts for all general revenues not specifically levied or designated for other restricted City funds and the corresponding expenditures associated with core governmental functions.

The General Fund is primarily supported by various revenue streams, ensuring the City's ability to maintain essential operations and strategic initiatives. These revenue sources include sales taxes, property taxes, franchise fees, business license fees, unrestricted state allocations, fines, forfeitures, and interest income.

The financial resources generated through these streams enable the City to fund critical municipal functions, including but not limited to community development, economic development, public safety, public works, and other essential services. By prudently

Council Agenda- May 15, 2025
managing these revenues and aligning expenditures with long-term fiscal sustainability, the City ensures the continued provision of high -quality services to residents and businesses while maintaining financial resilience.

General Fund Forecast
The General Fund forecast provides a comprehensive financial outlook, assessing projected revenues, anticipated expenditures, and long-term fiscal sustainability. This analysis enables the City to allocate resources strategically, ensure financial stability, and maintain a balanced approach to meeting community needs while adhering to sound fiscal management principles.

General Fund Forecast
ACCOUNT TYPE 2025E 2026B 2027B 2028F 2029F 2030F 2031F 2032F General Fund
Revenues 28,933,500 29,400,700 30,273,600 31,354,391 32,474,813 33,636,350 34,840,543 36,088,990 Annual % Change 1.6% 3.0% 3.6% 3.6% 3.6% 3.6% 3.6%
General Fund
Expenditures 22,279,494 24,145,500 24,855,000 25,889,350 26,974,940 28,114,720 29,311,832 30,569,614 Annual %Change 8.4% 2.9% 4.2% 4.2% 4.2% 4.3% 4.3%
Net Change
in Fund Balance 6,654,006 5,255,200 5,418,600 5,465,041 5,499,873 5,521,630 5,528,711 5,519,377 Allocating the general fund surplus to key reserves is a fiscally responsible approach that strengthens the City's Tong -term financial health. This strategy balances immediate preparedness with future planning, ensuring that existing assets and anticipated needs are supported without putting additional strain on future budgets.

Proposed Allocation of General Fund Surplus:
• 20% — Capital Reserves
o Prepares for emergency infrastructure needs
o Reduces risk of future budget shortfalls
• 20% — Golf Resort Reserves
o Supports maintenance and upgrades
o Preserves a key community and revenue -generating asset • 20% — Pension Reserves
o Addresses long-term pension liabilities
o Eases future pressure on the general fund
• 40% — Future Capital Investments
o Funds strategic projects and growth initiatives
o Reduces reliance on new debt or unpredictable revenues

Council Agenda- May 15, 2025
General Fund Revenues
Projected Fiscal Year 2026 Revenues
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000

TRANSIENT ADMISSION TAX PROPERTY TAX SALES TAX FRANCHISE OTHER

OCCUPANCY FEES REVENUE
TAX

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
Transient Occupancy Tax (TOT): Transient Occupancy Tax (TOT) constitutes a critical component of the City's financial structure, contributing 43.6% of total General Fund revenues. This tax is levied on short-term lodging accommodations, including hotels and vacation rentals, and serves as a primary funding source for municipal operations and community services. The City's economic stability and fiscal health are closely tied to the performance of its tourism sector, making TOT revenues a key driver of financial sustainability.

Admissions Tax: Additionally, the City imposes an Admissions Tax, which is applied to the ticket price of entry into entertainment venues and events within Indian Wells. The current Admissions Tax rate is 10%, generating a significant revenue stream, particularly from major events such as the BNP Paribas Open at the Indian Wells Tennis Garden. This premier tennis tournament's continued success and growth are expected to drive increased Admissions Tax revenues, further strengthening the City's General Fund.

Sales Tax Revenue: Sales tax revenues account for 6.6% of the City's General Fund revenues and are governed by the California Sales and Use Tax Law. Under this framework, sales tax is imposed on retailers for the sale of tangible personal property, unless specifically exempted by law. The City receives 1% of the total sales tax collected

Council Agenda- May 15, 2025
on each taxable transaction occurring within its jurisdiction, providing an important source of revenue to support essential public services.

The City's sales tax revenue forecast is based on projected economic growth of the tourism sector. As visitor activity increases and consumer spending expands, sales tax revenues are expected to experience steady growth, reinforcing the City's overall fiscal outlook.

By maintaining a diversified revenue base and leveraging the strength of its tourism and hospitality industries, the City continues to ensure long-term financial resilience and the capacity to fund vital community services.

General Fund Expenses
Projected Fiscal Year 2026 Expenses
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000

30.2%

27.4%
Qib\ OO <.

Q
L

35.0%

30.0%

25.0 20.0%

15.10 10.0E

5.0%

0.0��
J�\5 <,
o
k
The General Fund budget for the fiscal year allocates $24.1 million in operating expenditures, ensuring the continued delivery of essential municipal services while maintaining fiscal responsibility and long-term financial sustainability. Despite persistent inflationary pressures, rising public safety costs, and contractual obligations, City staff have effectively managed expenditure levels without compromising service quality or operational efficiency.

Council Agenda- May 15, 2025
A key area of long-term fiscal concern is the escalating cost of public safety services.

Public safety expenditures, which constitute nearly 28% of the General Fund budget, are subject to rising personnel costs, increasing pension liabilities, and expanding service demands. As these costs continue to grow at a rate that outpace revenue growth, the City must remain proactive in assessing funding strategies, exploring efficiency measures, and evaluating sustainable service delivery models to ensure that public safety needs are met without jeopardizing the City's overall financial health.

By maintaining a structurally balanced budget and adhering to sound financial stewardship, the City reinforces its ability to meet current service demands while positioning itself for long-term fiscal resilience and economic sustainability. However, given the increasing financial pressures associated with public safety, the City must continue to evaluate cost-effective solutions, leverage technology, and explore intergovernmental partnerships to maintain service levels while ensuring long-term fiscal viability.

Additional Considerations discussed in Strategic Planning In addition to the core components of the proposed budget, the City Council considered several strategic initiatives and capital priorities during its recent strategic planning sessions. These items reflect the Council's ongoing commitment to enhancing community services, improving operational efficiency, and investing in long-term infrastructure and cultural assets. The following initiatives and capital projects were identified as priorities based on their alignment with the City's strategic goals and the anticipated benefits to residents and stakeholders. Each item has been preliminarily evaluated for feasibility, funding potential, and alignment with available resources, and is presented below for Council consideration as part of the broader financial planning framework.

Dedicated Funding Source for the Rehabilitation of the Celebrity Course Funding Source: Golf Fund
The Celebrity Course will need to be rehabilitated in the next few years, including its tee boxes, greens, bunkers, and irrigation system. Staff, in consultation with the Finance Committee, recommends that former redevelopment loan funds (approximately $6.8 million due to the City) be placed into the Golf Resort Fund to fund this future project.

Expansion of the Resident Amenities Program
Funding Source: General Fund
This initiative is intended to broaden access to existing resident programming while facilitating the development of new community events. Although the exact costs are yet to be determined, a provisional allocation of $25,000 is recommended to accommodate

Council Agenda- May 15, 2025
anticipated programming needs as they are identified. This allocation represents approximately 0.1% of the total General Fund Budget.

Operational Efficiency Study
Funding Source: General Fund (Oversight by Finance Committee) A comprehensive Workforce Analysis or Workload and Staffing Study is proposed to assess the City's operational efficiency. The study would examine staffing adequacy, role alignment, and overall resource utilization, with the goal of identifying opportunities to enhance workforce deployment. While the final cost is undetermined at this time, a provisional allocation of $45,000 is recommended. This represents approximately 0.2% of the total General Fund Budget.

Holiday Decorations Program Expansion
Funding Source: General Fund
This proposal includes expanding citywide holiday decorations to enhance seasonal aesthetics and promote community engagement. Although the final scope and associated costs have not yet been finalized, a provisional allocation of $100,000 or more is recommended. This allocation represents approximately 0.4% of the total General Fund Budget.

Additional Capital Projects
Public Art Projects
Funding Source: Arts in Public Places Fund
Several new public art installations are proposed as part of the City's ongoing beautification and cultural enrichment efforts. A placeholder allocation of $500,000 is recommended, subject to final project design and site determination. Funding would be provided through the City's Art in Public Places Fund, which currently has a cash balance of $740,000. This is not a General Fund expense. Potential project sites include:
• Kestrel
• Indian Wells Lane Monument Sign
• Fairway Park
• Player's Course

Council Agenda- May 15, 2025
Indian Wells Golf Resort Facility Improvements
Funding Source: Golf Fund
This initiative proposes the issuance of a Request for Proposals (RFP) to retain qualified design consultants to prepare construction documents and detailed cost estimates for a series of planned improvements at the Indian Wells Golf Resort (IWGR). A provisional allocation of $400,000 is recommended for the initial design and planning phase for the banquet kitchen, pavilion upgrades, and parking lot expansion. In addition, a provisional allocation of $100,000 is recommended for constructing the Legacy Wall at the Clubhouse, implementing a comprehensive wayfinding signage system throughout the IWGR, and reconfiguring the Pro Shop to increase retail space. This allocation will also fund additional projects to enhance wayfinding, increase retail space, and develop a legacy wall.

Proposed improvements in the design phase include:

Budget: $400,000
• Construction of a banquet kitchen adjacent to the Pavilion • Pavilion upgrades to enable enhanced, year-round banquet operations • Expansion of the existing parking lot
Proposed improvements ready for construction include:

Budget $100,000
• Legacy Wall at the Clubhouse
• Implementation of a comprehensive wayfinding signage system throughout the IWGR
• Reconfiguration of the Pro Shop to increase retail space Together, these initiatives represent a proactive and forward -looking approach to municipal governance, ensuring that City resources are strategically aligned with community priorities and long-term objectives. As funding needs are further refined and project scopes are developed, staff will return to the City Council with detailed proposals, cost estimates, and implementation timelines. Council direction on these preliminary allocations will provide a critical foundation for advancing key initiatives while maintaining fiscal responsibility and transparency.

Capital Budget Overview
Capital budgeting is a critical component of the municipal budgetary process, enabling the City to strategically plan, control, and allocate financial resources among competing

Council Agenda- May 15, 2025
capital investment needs. As municipalities face increasing demands for infrastructure improvements and long-term asset management, effective capital budgeting ensures the prudent allocation of public funds, balancing fiscal constraints with community priorities.

The City's five-year Capital Improvement Plan (CIP) encompasses fifty-six capital projects with a total budget of $67.8 million. To the greatest extent possible, the City actively seeks grant funding and external financial contributions to reduce reliance on the General Fund and maximize available capital investment resources.

Five -Year Capital Improvement Plan Overview
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
Capital Improvements

31.8%

28.7%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
It is essential to recognize that this represents a point -in -time analysis. Throughout the five-year period, variables such as revised cost assumptions, cash flow fluctuations, project timing issues, discrepancies between projected and actual bids, and changes in anticipated grant funding may influence the scope, scheduling, or overall feasibility of specific capital projects.

Deviations in individual project costs that adversely affect the City's projected financial position compared to the approved budget will be brought forward for City Council consideration at a duly noticed public meeting. The table below presents the currently identified funding sources expected to support capital investments during this five-year period.

Council Agenda- May 15, 2025
Five -Year Capital Needs Assessment
Identified Capital
Funding Sources
City Cash and Bond Proceeds 24,023,146
Grants and Federal Funding 43,787,730
Total Funding 67,810,876
The capital budget details comprehensive project descriptions, funding allocations, and locations, ensuring transparency and accountability in the City's infrastructure investment strategy. By maintaining a rigorous and strategic approach to capital planning, the City reinforces its commitment to fiscal responsibility, infrastructure sustainability, and long- term community development.

Maintaining Strong Cash Reserves
Cash Reserves
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000

0.9%

13.1%

0.7%

38.7%

GENERAL FUND GOLF RESORT INTERNAL DISASTER CAPITAL FUNDS CAPITAL

OPERATIONS SERVICE FUNDS RECOVERY RESERVE FUNDS
FUNDS

45.0%

40.0%

35.0%

30.0%

25.0%
'0.0%

15.0%

10.0%

5.0%

0.0%
The City of Indian Wells currently maintains capital reserves totaling $26.6 million, which form a key component of its broader cash reserves, which amount to nearly $68.9 million.

These reserves serve as a critical financial safeguard, ensuring the City can fund long- term capital projects while maintaining fiscal stability.

Council Agenda- May 15, 2025
By maintaining a structured capital reserve strategy, the City ensures that critical infrastructure investments are appropriately funded without over -reliance on external borrowing or one-time revenue sources. This prudent financial management approach supports the City's long-term economic sustainability while safeguarding its ability to meet future capital demands efficiently and effectively.

Indian Wells Golf Resort
The Golf Resort is projecting an after -capital surplus of $130,440 for Fiscal Year 2025-

26. This represents an improvement compared to the forecasted after -capital deficit of $206,435 for Fiscal Year 2024-25, although it remains below the actual after -capital surplus of $973,084 realized in Fiscal Year 2023-24.

Below is an overview of the Golf Resort's Fiscal Year 2025-26 operating and capital budget, structured to align with the strategic operational deliverables established by the City Council.

Indian Wells Golf Resort
Budget Simmary
Consolidated
2025-26 2024-25 2023-24
Budget Forecast Actual
Founds 70,994 65,771 80,629
Covers 216,447 201,579 241,131
Revenues 18, 230,849 16, 748,503 19, 318, 039
Expenses 17, 747, 009 16,404, 704 17,649, 392
Net Operating Income 483,840 343,799 1,668,647
Capital Cost 353,400 550,234 695,563
Net Income after Capital 130,440 (206,435) 973,084
In pursuit of sustained after -capital profitability, the City has established a set of clearly defined financial performance objectives and benchmarks that Troon, the Resort's contracted operator, is expected to achieve. These benchmarks emphasize financial sustainability and operational efficiency, serving as the foundation upon which Troon has developed its proposed budget —subject to formal Council approval.

Council Agenda- May 15, 2025
Council Goals Compared to the Proposed Budget:

Profit Center
Council FY2025-26
Goal Budget
Golf
25%
29%
Merchandise
27%
28%
FFstaurant
8%
8%
Beverage Carts
38%
38%
Banquets
30%
31%
MN
30%
38%
Food Truck / Slack Bar
30%
30%
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that the ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a "project" as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Resolution

2. Golf Resort Budget

ti
�\ d
City and Golf Resort
Budget Presentation
Fiscal Year 2025-26 & Fiscal Year 2026-27
City Council Meeting:

May 15, 2025 - Presentation
General Business Item I.5

City and Golf Resort Budget
Presentation Agenda:
• General Fund Forecast
• Capital Improvement projects
• Golf Resort Operations (Troon)

Budget Forecast
Forecast for the 24-25 Fiscal Year:
• $6.7 million operating surplus.

Budget for the 25-26 Fiscal Year:
• $5.3 million operating surplus.

Ten -Year Forecast:
• $54.5 million operating surplus.

Building Additional Reserves
Recommended Reserve Funding:
• Capital Reserves: 20%
• Golf Resort Reserves: 20%
• Pension Reserves: 20%
• Capital Investments: 40%
-ice
Cif,. Hall
Closed f rum I V
lip toIpmi

Capital Improvement Projects
Five -Year Capital Improvement Plan
• Fifty -Six (56) Capital Projects
• $67.8 million total
Identified Funding Sources
• Cash and Bond Proceeds $24.0 million
• Grants and Federal Funding: $43.8 million

Golf Resort Operations
Council Goals compared to the proposed Budget:

Council FY 2025-26
Profit Center Goal Budget
Golf
25%
29%
Merchandise
27%
28%
Restaurant
8%
8%
Beverage Carts
38%
38%
Banquets
30%
31%
SI
T N
30%
38%
Food
Truck / Snack
Bar
30%
30%

'rte" •r" -
Golf Resort Operations
Budget Summary:

Indian Wells Golf Resort
Budget Summary
Net Operating
Income
Capital Cost
Net Income after
Capital
2025-26
Budget
Consolidated
2024- 25
Forecast
483,840 343,799
2411 Actual
1,668,61
353,400 550,234
13O,44O (206,435)

1.11 695, 5631
973,084

Thank You!

Council Agenda- May 15, 2025
ATTACHMENT #1
RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY OF INDIAN WELLS, CALIFORNIA,

ADOPTING THE CITY OPERATING AND CAPITAL BUDGETS FOR THE CITY OF INDIAN WELLS FOR THE FISCAL YEAR 2025-26 AND FISCAL YEAR 2026-27, AND APPROVING A PROCEDURE FOR PAYMENT OF

CLAIMS WITHOUT THE ISSUANCE OF WARRANTS PURSUANT TO
GOVERNMENT CODE SECTION 53910 ET SEQ.

WHEREAS, the City Council held a public Council Meeting on May 15, 2025, to review, consider, deliberate, amend as needed, and collect public input regarding the proposed biennial operating budget and capital improvement budget for the City of Indian Wells for fiscal year 2025-26 and fiscal year 2026-27; and,
WHEREAS, the proposed biennial operating budget and capital improvement budget submitted have been reviewed by the City Council; and
WHEREAS, under Government Code Section 53910, the City's governing body may, by resolution, authorize practices concerning form, issuance, delivery, endorsement, and payment of warrants it deems convenient, efficient, and in the public interest, conforming substantially to those practices specified in Sections 53911, 53912, 53913, or 53914 of said Code; and WHEREAS, Government Code Section 53912 authorizes a city's governing body to stipulate that when funds are available for the payment of approved claims, the approval of claims for payment shall, without the issuance of any warrant, serve as the authority for the custodian of its funds to pay the claims by check or electronic transfer, provided that related registers and transfers contain substantially the same information as required by law to be maintained for a warrant; and
WHEREAS, the City Council for the City of Indian Wells deems it convenient, efficient, and in the public interest to provide that when funds are available for the payment of approved claims, the approval of claims for payment shall, without the issuance of any warrant, be the authority to the Finance Director / Agency Treasurer to pay the claims by check or electronic transfer.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1: Operating and Capital Budget Approved for Adoption. Pursuant to and in accordance with applicable provisions of the Charter of the City of Indian Wells, the biennial operating budget and capital improvement budget for fiscal year 2025-26 and fiscal year 2026- 27, submitted by the City Manager to the City Council on May 15, 2025, is hereby approved for adoption.

SECTION 2: Proposed Budget for Fiscal Year 2025-26 and Fiscal Year 2026-27 There is hereby appropriated from the unappropriated fund balances anticipated to be available on July 1, 2025, and from the estimated revenues and transfers to be received during the Fiscal Year(s) beginning July 1, 2025, and ending June 30, 2027, the following amounts necessary to

Council Agenda- May 15, 2025
City of Indian Wells
Resolution No. 2025 -

fund the operating programs of the City Departments and the Capital Improvements Program for the City of Indian Wells during said Fiscal Years:

Fscal Year
2025/26
Fiscal Year
2026/27
101
General Fund
68,252,759
65,640,559
202
Traffic Safety
38,878
39,678
203
Public Safety 1/2 Cent Sales Tax
53,364
54,764
204
Measure "A"
407,994
418,994
209
F.A.M.D. #1
3,169,698
3,362,598
210
SCAQMD (VEHICLE REG.)
26,021
26,421
211
AB 3229 COPS Funding
215,750
222,150
214
Gas Tax 2103 Maintenance
50,042
51,542
215
Gas Tax 2105 Maintenance
33,546
34,646
216
Gas Tax 2106 Contruct/Maint
26,871
27,771
217
Gas Tax 2107 Maintenance
45,418
46,818
218
Gas Tax 2107.5 Eng/Admin
1,400
1,600
219
Gas Tax RMRA
139,955
144,155
228
Emergency Upgrade Services
15,541,678
13,526,878
247
AB 939 Recycling Fund
436,136
421,136
248
Solid Waste
1,745,536
1,819,836
251
Street Lighting District 2001
23,809
25,009
271
Eldorado Drive LLMD
193,842
202,042
272
Montecito/Stardust LLMD
52,714
55,214
273
Casa Dorado LLMD
34,503
35,503
274
The Cove LLMD
28,868
29,768
275
SH111/IWGR (Entrance) LLMD
640,296
664,196
276
Club/IW Lane LLMD
100,693
105,093
277
Colony LLMD
198,031
192,831
278
Colony Cove Estates LLMD
65,004
57,104
279
Desert Horizons LLMD
620,761
639,361
280
Mountain Gate LLMD
169,513
171,213
281
Mountain Gate Estates LLMD
70,089
70,789
282
Villegio LLMD
403,625
399,925
283
Vaidya LLMD
46,388
43,788
284
Club, South of 111 LLMD
53,090
52,790
285
Montelena LLMD
202,835
197,235
286
Sundance LLMD
60,662
62,562
287
Province LLMD
326,535
333,235
288
Province DBAD
597,062
564,762
311
Transportation Facilities
69,600
71,800
312
Storm Drain Facilities
0 0
313
Receration Facilities
115,800
119 400
314
Park -in -Lieu Fees
(1,340,137)
(1,338,637)
315
Citywide Public Improvement Fee
27,000
27,900
316
Capital Improvement
11,553,456
10,957,156
319
Art In Public Places
1,444,802
1,431,102
321
Highway 111 Circulation Imp Fee
52,017
59,117
326
Buildings Capital Reserve
2,867,076
3,245,476
327
Bridges Capital Reserve
2,642,030
3,012,030
328
Medians & Parkways Capital Reserve
2,232,237
2,586,937
329
Storm Drains Capital Reserve
1,441,193
1,766,493
330
Traffic Signal Capital Reserve
1,295,058
1,614,458
331
Technology Capital Reserve
1,239,097
1,556,897
332
City Streets Capital Reserve
19,897,840
20,909,440
333
City Vehicles Capital Reserve
773,993
1,074,993
350
Disaster Recovery Reserve
920,753
1,213,953
253
Indian Wells Villas
1,265,599
1,300,699
254
Mountain View Villas
2,584,200
2,635,700
256
Housing Authority
21,619,184
21,750,584
453
Debt Service Whitewater RDA
(55,481,662)
(47,490,804)
456
Redevelopment Obligation Retirement Fund
13,990,000
15,037,000
460
IW Finance Authorit
7,524,129
8,441,229
560
Indian Wells Golf Resort
52,432,923
55,950,523
601
Retirement Benefit Fund
7,185,440
6,807,540
602
Compensated Absences Reserve
758,898
758,898
Total All Funds 191,183,890 203,241,848

Council Agenda- May 15, 2025
City of Indian Wells
Resolution No. 2025 -

SECTION 3: Authorized Interfund Transfers for Fiscal Year 2025-26 and Fiscal Year 2026-27. There are hereby authorized the transfers of the following amounts from one fund to another fund for Fiscal Year 2025-26 and Fiscal Year 2026-27.

Transfers In/Out reconciliation
IN
2560000 499900
3160000 499900
3260000 499900
3270000 499900
3280000 499900
3290000 499900
3300000 499900
3310000 499900
3320000 499900
3330000 499900
3500000 499900
4530000 499900
4600000 499900
5600000 499900
5600000 499900
6010000 499900
Total Transfers In
OUT
1016602 599900
1016602 599900
1016602 599900
1016602 599900
1016602 599900
1016602 599900
4566602 599900
3116602 599900
3136602 599900
3156602 599900
2566602 599900
2286602 599900
Description
FY 2026 FY 2027
ROPS Loan 20% Housing
General Fund - CIP Funding
General Fund - Capital Reserves
General Fund - Capital Reserves
General Fund - Capital Reserves
General Fund - Capital Reserves
General Fund - Capital Reserves
General Fund - Capital Reserves
General Fund - Capital Reserves
General Fund - Capital Reserves
General Fund - Capital Reserves
ROPS Payment from 456
IWFA Debt Service
General Fund - Additional Golf Course Reserves
ROPS Loan 80% Golf Course
General Fund - Additional Pension Reserves
Description
750,000
2,000,000
110,000
110,000
110,000
110,000
110,000
110,000
110,000
110,000
110,000
9,900,000
980,000
1,000,000
3,000,000
1,000,000
750,000
2,000,000
110,000
110,000
110,000
110,000
110,000
110,000
110,000
110,000
110,000
10,197, 000
980,000
1,000,000
3,000,000
1,000,000
19, 620, 000 19, 917, 000
FY 2026 FY 2027
ROPS Loan 20% Housing
ROPS Loan 80% Golf Course
General Fund - Capital Reserves
General Fund - Golf Course Reserves
General Fund - Pension Reserves
General Fund - CIP Funding
ROPS Payment from 456
IWFA Debt Service
IWFA Debt Service
IWFA Debt Service
IWFA Debt Service
IWFA Debt Service
750,000
3,000,000
990,000
1,000,000
1,000,000
2,000,000
9,900,000
152,000
441,000
152,000
88,000
147,000
750,000
3,000,000
990,000
1,000,000
1,000,000
2,000,000
10,197, 000
152,000
441,000
152,000
88,000
147,000
Total Transfers Out 19,620,000 19,917,000
SECTION 4: Legislative Control. The legislative format of the adopted budget shall be by Fund and Program for the operating budget and by Fund and Capital Project Group for the Capital Budget, as specified above in Section 1, and the change of any appropriation authorized above shall be subject to the approval of the City Council.

Council Agenda- May 15, 2025
City of Indian Wells
Resolution No. 2025 -

SECTION 5: Administrative Budget Control. It is hereby declared that, in addition to the legislative format, there is a need for administrative control over the adopted budget; and that the Finance Director, under the direction of the City Manager, shall detail the adopted budget to administrative control accounts; and that such detailing shall be consistent with the legislative format by the program for the operating budget and by project and expense item within a Capital Program Group for the capital budget.

SECTION 6: Budget Carryovers. It is hereby approved that all appropriations for prior fiscal years shall lapse at the end of Fiscal Year 2024-25. Any remaining amounts shall be credited to their respective fund balances, except for specific orders or encumbrances for operating and capital budgets outstanding at the end of the year, and as deemed necessary by the Finance Director, under the direction of the City Manager, may be carried over to the following fiscal year. The appropriation shall be carried over without further action by the City Council.

SECTION 7: Findings concerning City Charter. The City Council finds that expenditures set forth in the biennial operating budget for official meetings/conferences and for community presentations as set forth in the City Council department budget do not constitute payment for or reimbursement by the City to City Council Members for their personal use or benefit, as generally outlined in Section 101 of the City Charter, but instead pertain to matters of City business.

SECTION 8: Filing the Adopted Budget in the Office of the City Clerk. The City Clerk is hereby DIRECTED to file the biennial operating budget and capital improvement budget for fiscal year 2025-26 and fiscal year 2026-27 as adopted by the City Council on May 15, 2025, in the Office of the City Clerk.

SECTION 9: Use of Checks and Electronic Transfers in Lieu of Warrants. It is hereby approved that when funds are available for the payment of claims, the audit and approval of said claims by either the Finance Director, when authorized in Section 2.16.020 of the Indian Wells Municipal Code, or by the City Council in all other cases, shall, without the issuance of a warrant, be the authority to the legal depository holding the funds in the City Treasury to pay the audited claims by check or electronic transfer as authorized by Government Code § 53912.

Registers and transfers maintained by the Finance Director pertaining to said checks and electronic transfers shall contain substantially the same information as required by law or ordinance to be maintained in connection with the use of warrants for payment of claims.

SECTION 10: Effective Date. This resolution shall take full force and effect on July 1, 2025, after its adoption by the City Council.

Council Agenda- May 15, 2025
City of Indian Wells
Resolution No. 2025 -

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Indian Wells, California, on this 15th day of May 2025.

BRUCE WHITMAN
MAYOR
CERTIFICATION FOR RESOLUTION NO. 2025-
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that the whole number of the members of the City Council is five (5); that the above and foregoing resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Indian Wells the 15th day of May 2025, by the following vote:

AYES:

NOES:

ATTEST: APPROVED AS TO FORM:

ANGELICA AVILA

CITY CLERK

TODD LEISHMAN FOR

BEST BEST & KRIEGER LLP

CITY ATTORNEY

Council Agenda- May 15, 2025
ATTACHMENT #2

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

CONSOLIDATED
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
ROUNDS
70,994
65,771
5,223
80,629
(9,635)
COVERS
216,447
201,579
14,868
241,131
(24,684)

REVENUES

GOLF FEES
9,921,123
8,984,130
936,993
10,072,282
(151,159)

MERCHANDISE
1,468,816
1,468,755
61 1,764,656
(295,840)

FOOD & BEVERAGE
6,196,859
5,698,047
498,812
6,748,615
(551,756)

RANGE, RENTAL & OTHER
644,051
597,571
46,480
732,486
(88,435)
T•TAL •EVENUES
1:,23,,:4•
1•,74:,513
1,4:2,34.
1•,31:,•3•
(1,0:7,1• o)

COST OF SALES
COS — MERCHANDISE
796,693
781,093
15,600
946,769
(150,076)
AS % OF REVENUE

54.24%

53.18%

1.06%

53.65%

0.59%

COS - FOOD & BEVERAGE
1,776,348
1,570,293
206,055
1,761,235
15,113
AS % OF REVENUE

28.67%

27.56%

1.11%

26.10%

2.57%

GOLF COS
161,526
143,603
17,923
198,034
(36,508)
AS % OF REVENUE

1.63%

1.60%

0.03%

1.97%
-0.34%

GROSS MARGIN
15,496,282
14,253,514
1,242,768
16,412,001
(915,719)

PAYROLL

PAYROLL
9,719,739
8,779,736
940,003
9,310,346
409,393

TOTAL PAYROLL
9,719,739
8,779,736
940,003
9,310,346
409,393
AS °/o OF REVENUE

53.31%

52.42%

0.89%

48.20%

5.12%

OPERATING EXPENSES

OPERATING EXPENSES
5,292,703
5,129,979
162,724
5,433,008
(140,305)

TOTAL OPERATING EXPENSES
5,292,703
5,129,979
162,724
5,433,008
(140,305)
AS % OF REVENUE

29.03%

30.63%
-1.60%

28.12%

0.91%
NET•'E' TINGINC•ME
3'3,7'
•4:3,:4
1 1,141
1,••:,•47
(1,1:4,: 7)
AS % OF REVENUE

2.65%

2.05%

0.60%

8.64%
-5.98%

RESIDENT AMENITY

RESIDENT GOLF AMENITY FEE
3,118,005
(3,118,005)

OTHER NON -OPERATING INCOME/EXPENSE

OTHER NON -OPERATING INCOME/EXPENSE
13,115
(13,115)

TOTAL RESIDENT/MISC
3,131,120
(3,131,120)
AS % OF REVENUE

16.21%
-16.21%

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
75,438
91,402
(15,964)
154,725
(79,287)
T • TAL ' • U LEASE • E' ' ECIATI • N EX' ENSES
75, 3:
2 •1,
(15, . ' )
154,725
(7' ,2: 7)
AS °/o OF REVENUE

9.47%

11.70%
-2.23%

16.34%
-6.87%
NETINC•ME.ft r•E 'ECIATI•N
4•:,4 2
252,3 7
15•,1
�)
AS % OF REVENUE

2.24%

1.51%

0.73%

24.05%
,23•,•
-21.80%

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

GOLF, GOLF ACADEMY, MERCHANDISE AND GOLF MAINTENANCE
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
ROUNDS

RESIDENT ROUNDS
19,347
18,040
1,307
20,054
(707)

RESIDENT GUEST ROUNDS
4,796
4,393
403
4,813
(17)

TOURNAMENT/GROUP ROUNDS
13,226
12,951
275
16,651
(3,425)

ALL OTHER ROUNDS
33,625
30,387
3,238
39,111
(5,486)

TOTAL ROUNDS
70,994
65,771
5,223
80,629
(9,635)

AVERAGE PER ROUND
139.75
136.60
124.92

REVENUES

RESIDENT REVENUE
810,963
746,027
64,936
838,458
(27,495)

RESIDENT GUEST REVENUE
487,581
457,032
30,549
500,836
(13,255)

TOURNAMENT/GROUP REVENUE
2,423,813
2,172,038
251,775
2,379,813
44,000

ALL OTHER GOLF FEE REVENUE
6,198,766
5,609,033
589,733
6,353,175
(154,409)
G•LFFEEREVENUES
•21,123
,':4,13.
'3•,"3
1','72,2:2
(151,15')

OTHER GOLF REVENUES

MERCHANDISE REVENUE
1,468,816
1,468,755
61 1,764,656
(295,840)

RANGE, RENTAL & OTHER REVENUE
513,651
485,862
27,789
549,871
(36,220)

GOLF ACADEMY
110,600
92,605
17,995
126,228
(15,628)
TAT L •THE' GOLF •EVENUES
2,''3,'.7
2, 47,222
45,:45
2,'40 ,755
(347,•::)
T•TALG•LF EVENUES
12,'14,1''
11, 31,352
• :2,:3:
12,513, 37
(4• :,:47)

COST OF SALES

COST OF SALES - MERCHANDISE
796,693
781,093
15,600
946,769
(150,076)

COST OF SALES - RANGE, RENTAL, OTHER
91,656
84,367
7,289
115,108
(23,452)

COST OF SALES - GOLF ACADEMY
69,870
59,236
10,634
82,926
(13,056)

TOTAL COST OF SALES
AS % OF REVENUE
958,219

7.98%
924,696 33,523

8.38%
-0.41%
1,144,803

9.15%
(186,584)
-1.17%
G' •SS MA'GIN
11,e55,'71
1�,1� •,•5•
'4',315
11,3•:,234
(312,2.3)

PAYROLL

PAYROLL
4,477,485
3,950,405
527,080
4,393,428
84,057

TOTAL PAYROLL
4,477,485
3,950,405
527,080
4,393,428
84,057
AS % OF REVENUE

37.27%
35 81%

1.46%

35.11%

2.16%

OPERATING EXPENSES

OPERATING EXPENSES
2,299,392
1,928,533
370,859
2,207,202
92,190
TOTAL • •E' •TING EXPENSES
2,2• •,3.2
1,•2:,533

37.,:5'
2,217,212
•2,1'
AS % OF REVENUE

19.14%

17.48%

1.66%

17.64%

1.50%

UTILITIES

UTILITIES
789,068
772,668
16,400
791,166
(2,098)

TOTAL UTILITIES
789,068
772,668
16,400
791,166
(2,098)
AS % OF REVENUE

6.57%

7.00%
-0.44%

6.32%

0.25%
NET �'E• TINGINC•ME
3,4.1,12.
3,455,151
34,'7.
3,'7.,'3:
(4:.,412)
AS % OF REVENUE

29.05°/o

31.32%
-2.27%

31.78%
-2.73%

RESIDENT AMENITY

RESIDENT GOLF AMENITY FEE
-
-
3,118,005
(3,118,005)

TOTAL RESIDENT AMENITY
3,118,005
(3,118,005)
AS % OF REVENUE

0.00%

0.00%

0.00%

24.92%
-24.92%

NET INCOME
3,490,026
3,455,050
34,976
7,094,443
2,631,593
FTES

72.37 71.61

74.08

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

GOLF & GOLF ACADEMY
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
ROUNDS

RESIDENT ROUNDS
19,347
18,040
1307
20,054
(707)

RESIDENT GUEST ROUNDS
4,796
4,393
403
4,813
(17)

TOURNAMENT/GROUP ROUNDS
13,226
12,951
275
16,651
(3,425)

ALL OTHER ROUNDS
33,625
30,387
3238
39,111
(5,486)

TOTAL ROUNDS
70,994
65,771
5,223
80,629
(9,635)

AVERAGE PER ROUND
139.75
136.60
124.92

REVENUES

RESIDENT REVENUE
810,963
746,027
64,936
838,458
(27,495)

RESIDENT GUEST REVENUE
487,581
457,032
30,549
500,836
(13,255)

TOURNAMENT/GROUP REVENUE
2,423,813
2,172,038
251,775
2,379,813
44,000

ALL OTHER GOLF FEE REVENUE
6,198,766
5,609,033
589,733
6,353,175
(154,409)

GOLF FEE REVENUES
9,921,123
8,984,130
936,993
10,072,282
(151,159)

OTHER GOLF REVENUES

RANGE, RENTAL & OTHER REVENUE
513,651
485,862
27,789
549,871
(36,220)

GOLF ACADEMY
110,600
92,605
17,995
126,228
(15,628)
TOTAL THE' G•LF'EVENUES
•24,251
57:,4.7
45,7:'
.7•,,"
(51,:4:)
T•TALG•LF• VENUES
1 ,545,374

5. 2,5.7
':2,777
11,7 :,3:1
(2'3,''7)

COST OF SALES

COST OF SALES - RANGE, RENTAL, OTHER
91,656
84,367
7,289
115,108
(23,452)

COST OF SALES - GOLF ACADEMY
69,870
59,236
10,634
82,926
(13,056)

TOTAL COST OF SALES
AS % OF REVENUE
161,526

1.53%
143,603 17,923

1.50%

0.03%
198,034

1.84%
(36,508)
-0.31%
G' �SSMA'GIN
1�,3:3,:
41:,''4
4,:54
1�,55�,347
•
(1..,4'')

PAYROLL

PAYROLL
1,838,909
1,624,934
213,975
1,768,051
70,858

TOTAL PAYROLL
1,838,909
1,624,934
213,975
1,768,051
70,858
AS % OF REVENUE

17.44%

16.99%

0.45%

16.45%

0.99%

OPERATING EXPENSES

OPERATING EXPENSES
992,247
865,762
126,485
876,262
115,985

TOTAL OPERATING EXPENSES
992,247
865,762
126,485
876,262
115,985
AS % OF REVENUE

9.41%

9.05%

0.36%

8.15%

1.26%
NET' •E' TINGINC�ME
7,552,.•2
.,•2:,2•:
•24,3.4
7,•'.,'3•
(353,342)
AS %° OF REVENUE

71.62%

72.45%
-0.83%

73.56%
-1.93%

RESIDENT AMENITY

RESIDENT GOLF AMENITY FEE
3,118,005
(3,118,005)

TOTAL RESIDENT AMENITY
3,118,005
(3,118,005)
AS % OF REVENUE

29.01%
-29.01%

NET INCOME
7,552,692
6,928,298
624,394
11,024,039
(3,471,347)
FTES

30.17 30.14

31.66

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

MERCHANDISE
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE

REVENUES

MERCHANDISE REVENUE
1,468,816
1,468,755
61 1,764,656
(295,840)
T•TALME'CHAN•ISE'EVENUES

AVERAGE PER ROUND
1,•.:,:1•

20.69 1,4.:,755

22.33 .1
1,7.•,•5•

21.89 (2.5,:•x)

COST OF SALES

COST OF SALES - MERCHANDISE
796,693
781,093
15,600
946,769
(150,076)

TOTAL COST OF SALES
796,693
781,093
15,600
946,769
(150,076)
AS % OF REVENUE

54.24%

53.18%

1.06%

53.65%

0.59%

GROSS MARGIN
672,123
687,662
(15,539)
817,887
(145,764)

PAYROLL

PAYROLL
243,244
215,399
27,845
233,417
9,827

TOTAL PAYROLL
243,244
215,399
27,845
233,417
9,827
AS % OF REVENUE

16.56%

14.67%

1.90%

13.23%

3.33%

OPERATING EXPENSES

OPERATING EXPENSES
15,050
10,951
4,099
13,790
1,260

TOTAL OPERATING EXPENSES
15,050
10,951
(4,099)
13,790
(1,260)
AS % OF REVENUE

1.02%
_ 0.75%

0.28%

0.78%

0.24%

NET OPERATING INCOME
413,829
461,312
(47,483)
570,680
(156,851)
AS % OF REVENUE

28.17%

31.41%
-3.23%

32.34%
-4.17%
F7E'S

3.20 3.07

3.44

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

GOLF COURSE MAINTENANCE
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE

PAYROLL

PAYROLL
2,395,332
2,110,072
285,260
2,391,960
3,372

TOTAL PAYROLL
2,395,332
2,110,072
285,260
2,391,960
3,372

OPERATING EXPENSES

OPERATING EXPENSES
1,292,095
1,051,820
240,275
1,317,150
(25,055)
• • •
1,2 2,' 5
1,151,:2.
(24 ,275)
1,317,15'
25,155

UTILITIES

UTILITIES
789,068
772,668
16,400
791,166
(2,098)

TOTAL UTILITIES
789,068
772,668
(16,400)
791,166
2,098
NETINC�ME(L�SS)
(4,47•,4.5)
•(3,•34,5.0 (541,'35)
(4,5'1,27•)
23,7`•1
F/E'S

39.00 38.40

38.98

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

BUILDING MAINTENANCE
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE

PAYROLL

PAYROLL
654,870
554,169
100,701
555,578
99,292

TOTAL PAYROLL
654,870
554,169
100,701
555,578
99,292

OPERATING EXPENSES

OPERATING EXPENSES
158,910
160,732
(1,822)
145,027
13,883
TOTAL • •E' TING EXPENSES
15:,•1,

1. ',732
(1,:22)
145,'27
(13,::3)

UTILITIES

UTILITIES
359,166
370,162
(10,996)
386,025
(26,859)

TOTAL UTILITIES
359,166
370,162
(10,996)
386,025
(26,859)

NETINC'ME(LISS)
(1,172,•4•)
(1,1:5,1.3)
(:7,::3)
(1,1:.,.31)
(:•,31•)
F/E'S

9.00 7.95

8.26

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

GENERAL AND ADMINISTRATIVE
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE

OTHER NON -OPERATING INCOME

OTHER NON -OPERATING INCOME
19,800
19,104
696
56,387
(36,587)

TOTAL OTHER NON -OPERATING INCOME
19,800
19,104
696
56,387
(36,587)

PAYROLL

PAYROLL
1,359,084
1,288,735
70,349
1,327,501
31,583

TOTAL PAYROLL
1,359,084
1,288,735
70,349
1,327,501
31,583

OPERATING EXPENSES

OPERATING EXPENSES
855,612
919,700
(64,088)
1,065,413
(209,801)
T'TAL••E••TINGEX'ENSES
:55,•12
•1•,71'
(•4,.::)
1,x•5,•13
(2'•,:.1)

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
75,438
91,402
(15,964)
154,725
(79,287)
T�TL'�ULE•5E �E'•ECIATI•NEX•ENSES
75,'3:
•1,'.2
(15,'•4)
154,725
(7•,2:7)

OTHER NON -OPERATING INCOME/EXPENSE

OTHER NON -OPERATING INCOME/EXPENSE
(13,115)
13,115
NET INCOME (L+ aN
(2,271 ,334)
(2,2: x,733)
11,3• •
(2,47`:,137)

2.7,:.3
FTES

9.70 8.77

9.97

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

CONSOLIDATED F&B
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
COVERS

COVERS - RESTAURANT
206,509
192,801
13708
235,352
-28843

COVERS - RESIDENT
9,938
8,778
1160
5,779
4159

TOTAL COVERS
216,447
201,579
14,868
241,131
(24,684)

AVERAGE PER COVER

28.63 28.27

27.99 REVENUES

FOOD & BEVERAGE REVENUE
6,196,859
5,698,047
498,812
6,748,615
(551,756)

TOTAL REVENUES
6,196,859
5,698,047
498,812
6,748,615
(551,756)

COST OF SALES

COST OF SALES
1,776,348
1,570,293
206,055
1,761,235
15,113

TOTAL COST OF SALES
AS % OF REVENUE
1,776,348
1,570,293 206,055
1,761,235
15,113

28.67%

27.56%

26.10%

2.57%

GROSS MARGIN
4,420,511
4,127,754
292,757
4,987,380
(566,869)

PAYROLL

PAYROLL
3,228,300
2,986,427
241,873
3,033,839
194,461

TOTAL PAYROLL
3,228,300
2,986,427
241,873
3,033,839
194,461
AS % OF REVENUE

52.10%

52.41%
-0.32%

44.95%

7.14%

OPERATING EXPENSES

OPERATING EXPENSES
830,555
978,184
(147,629)
838,175
(7,620)

TOTAL OPERATING EXPENSES
830,555
978,184
(147,629)
838,175
(7,620)
AS % OF REVENUE

13.40%

17.17%
-3.76%

12.42%

0.98%

NET E TINGING ME

3.1,.5•

1.3,143
1' ,513
1,115,3••
(753,710
AS % OF REVENUE

5.84%

2.86%

2.97%

16.53%
-10.69%
FTE'S

49.33 57.91

48.44

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

KESTREL
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
COVERS

COVERS- RESTAURANT
49,147
44,001
5146
54,364
-5217

COVERS - RESIDENT
9,938
8,778
1160
5,779
4159

TOTAL COVERS
59,085
52,779
6,306
60,143
(1,058)

AVERAGE PER COVER

38.62 37.89

35.05 REVENUES

FOOD & BEVERAGE REVENUE
2,281,739
1999,913
281,826
2,108,208
173,531

TOTAL REVENUES
2,281,739
1,999,913
281,826
2,108,208
173,531

COST OF SALES

COST OF SALES
621,393
564,957
56,436
590,769
30,624

TOTAL COST OF SALES
AS % OF REVENUE
621,393
564,957 56,436
590,769
30,624

27.23%

28.25%
-1.02%

28.02%
-0.79%

GROSS MARGIN
1,660,346
1,434,956
225,390
1,517,439
142,907

PAYROLL

PAYROLL
1,186,011
1,179,147
6,864
1,193,435
(7,424)

TOTAL PAYROLL
1,186,011
1,179,147
6,864
1,193,435
(7,424)
AS % OF REVENUE

51.98%
58 96%
-6.98%

56.61%
-4.63%

OPERATING EXPENSES

OPERATING EXPENSES
291,849
434,843
(142,994)
271,337
20,512

TOTAL OPERATING EXPENSES
291,849
434,843
(142,994)
271,337
20,512
AS % OF REVENUE

12.79%

21.74%
-8.95%

12.87%
-0.08%
NET E TINGINC.ME
1:2,4:.
(17', 34)

3.1,52

AS % OF REVENUE

8.00%
-8.95%

16.95%

2.50%

5.50%
FTE'S

23.02 34.52
2520

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

F&B ADMINISTRATION
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE

PAYROLL

PAYROLL
1,124,107
839,415 284,692
682,894
441,213

TOTAL PAYROLL
1,124,107
839,415 284,692
682,894
441,213
FTE'S

9.66 5.46

4.93

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

BEVERAGE CARTS
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
COVERS

COVERS - BEV CART/SNACK BAR
70,994
65,859
5135
80,629
-9635

TOTAL COVERS
70,994
65,859
5,135
80,629
(9,635)

AVERAGE PER COVER

7.02 9.84

9.17 REVENUES

FOOD & BEVERAGE REVENUE
498,070
647,815
(149,745)
739,637
(241,567)

TOTAL REVENUES
498,070
647,815
(149,745)
739,637
(241,567)

COST OF SALES

COST OF SALES
103,214
149,101
(45,887)
177,896
(74,682)

TOTAL COST OF SALES
AS % OF REVENUE
103,214

20.72%
149,101 (45,887)

23.02%

2.29%
177,896

24.05%
(74,682)
-3.33%

GROSS MARGIN
394,856
498,714
(103,858)
561,741
(166,885)

PAYROLL

PAYROLL
114,158
129,602
(15,444)
156,409
(42,251)

TOTAL PAYROLL
114,158
129,602
(15,444)
156,409
(42,251)
AS % OF REVENUE

22.92%

20.01%

2.91%

21.15%

1.77%

OPERATING EXPENSES

OPERATING EXPENSES
91,392
111,901
(20,509)
84,769
6,623

TOTAL OPERATING EXPENSES
91,392
111,901
(20,509)
84,769
6,623
AS % OF REVENUE

18.35%

17.27%

1.08%

11.46%

6.89%

NET OPERATING INCOME
189,306
257,211
(67,905)
320,563
(131,257)
AS % OF REVENUE

38.01%

39.70%
-1.70%

43.34%
-5.33%
FIES

1.96 2.45

2.87

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

BANQUET & CATERING
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
COVERS

COVERS - BANQUET
15,374
13,718
1656
19,730
-4356

TOTAL COVERS
15,374
13,718
1,656
19,730
(4,356)

AVERAGE PER COVER
128.50
134.56
137.71

REVENUES

FOOD & BEVERAGE REVENUE
1,975,565
1,845,917
129,648
2,716,923
(741,358)

TOTAL REVENUES
1,975,565
1,845,917
129,648
2,716,923
(741,358)

COST OF SALES

COST OF SALES
741,978
615,413
126,565
767,237
(25,259)

TOTAL COST OF SALES
AS % OF REVENUE
741,978

37.56%
615,413 126,565

33.34%

4.22%
767,237

28.24%
(25,259)

9.32%

GROSS MARGIN
1,233,587
1,230,504
3,083
1,949,686
(716,099)

PAYROLL

PAYROLL
429,277
570,704
(141,427)
725,292
(296,015)

TOTAL PAYROLL
429,277
570,704
(141,427)
725,292
(296,015)
AS % OF REVENUE

21.73%

30.92%
-9.19%

26.70%
-4.97%

OPERATING EXPENSES

OPERATING EXPENSES
182,699
204,540
(21,841)
292,845
(110,146)
TOTAL •E'•TING EXPENSES
1:2,."

2.',5'
2'2,:'5
AS % OF REVENUE

9.25%

11.08%
(21,:41)
-1.83%

10.78%
(111,14.)
-1.53%

NET OPERATING INCOME
621,611
455,260
166,351
931,549
(309,938)
AS % OF REVENUE

31.46%

24.66%

6.80%

34.29%
-2.82%
FIES

7.81 11.05

10.11

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

FOOD TRUCK/SNACK BAR
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE
COVERS

COVERS - FOOD TRUCK
70,994
69,223
1771
80,629
-9635

TOTAL COVERS
70,994
69,223
1,771
80,629
(9,635)

AVERAGE PER COVER

9.26 6.01

4.88 REVENUES

FOOD & BEVERAGE REVENUE
657,755
416,077
241,678
393,545
264,210

TOTAL REVENUES
657,755
416,077
241,678
393,545
264,210

COST OF SALES

COST OF SALES
156,799
114,877
41,922
98,335
58,464

TOTAL COST OF SALES
AS % OF REVENUE
156,799

23.84%
114,877 41,922

27.61%
-3.77%
98,335

24.99%
58,464
-1.15%

GROSS MARGIN
500,956
301,200
199,756
295,210
205,746

PAYROLL

PAYROLL
258,456
182,228
76,228
163,803
94,653

TOTAL PAYROLL
258,456
182,228
76,228
163,803
94,653
AS % OF REVENUE

39.29%

43.80%
-4.50%

41.62%
-2.33%

OPERATING EXPENSES

OPERATING EXPENSES
44,769
61,427
(16,658)
47,700
(2,931)

TOTAL OPERATING EXPENSES
44,769
61,427
(16,658)
47,700
(2,931)
AS % OF REVENUE

6.81%

14.76%
-7.96%

12.12%
-5.31%

NET OPERATING INCOME
197,731
57,545
140,186
83,707
114,024
AS % OF REVENUE

30.06%

13.83%

16.23%

21.27%

8.79%
F7ES

4.20 3.03

3.90

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

SHOTS IN THE NIGHT
2025-2026
BUDGET
2024-2025

FORECAST/ACT

VARIANCE
2023-2024

ACTUALS

VARIANCE

REVENUES

FOOD & BEVERAGE REVENUE
783,730
788,325
(4,595)
790,302
(6,572)

TOTAL REVENUES
783,730
788,325
(4,595)
790,302
(6,572)

COST OF SALES

COST OF SALES
152,964
125,945
27,019
126,998
25,966

TOTAL COST OF SALES
AS % OF REVENUE
152,964

19.52%
125,945 27,019

15.98%

3.54%
126,998

16.07%
25,966

3.45%

GROSS MARGIN
630,766
662,380
(31,614)
663,304
(32,538)

PAYROLL

PAYROLL
116,291
85,331
30,960
112,006
4,285

TOTAL PAYROLL
116,291
85,331
30,960
112,006
4,285
AS % OF REVENUE

14.84%

10.82%

4.01%

14.17%

0.67%

OPERATING EXPENSES

OPERATING EXPENSES
219,846
165,473
54,373
141,524
78,322
T�TL •E• STING EXPENSES
21•,:4.

1.5,473
54,373

1.1,52•
7:,322
AS % OF REVENUE

28.05./o

20.99%

7.06%

17.91%

10.14%
NET •PERATING INCOME

2.4,.2'
411,57•
(11•,'47)
•,77'
(115,145)
AS % OF REVENUE

37.59%

52.21%
-14.62%

51.85%
-14.26%
FTE5

2.68 1.40

1.43

Council Agenda- May 15, 2025

INDIAN WELLS GOLF RESORT
2025-2026 BUDGET SUMMARY

CAPITAL EXPENSES

CAPITAL EXPENSES
Exterior lighting and power Pavilion
30,000
#6 Celebrity vault - 25 HP centrifugal pump
15,000
Drainage in Cart Barn
15,000
Merchandise Shop Lighting Upgrade
10,000
Way Finding/Directions Signage
25,000
Push Carts (Electric)
40,000
Range Picker and gangs
20,000
(2) Utility Carts
30,000
Ice Machine
10,000
AC Mini -Split - Show Kitchen
5,000
Water Feature Mirror Replacement
12,000
Music System Upgrade
12,000
Gate Arm for Overflow Parking
8,000
Projects for CM Approval
100,000
Wedding Suite Furniture
9,000
48" Gas Countertop radiant charbroiler
8,400
Refrigeration Units - Stand
4,000

TOTAL CAPITAL
353,400

Council Agenda- May 15, 2025

INDIAN WELLS CITY COUNCIL
May 15, 2025
To: City Council
From: City Manager Department
Prepared by: Christopher Freeland, City Manager
Subject: Councilmember Taylor Request to Place a Discussion Item on a Future City Council Agenda —Support the Formation of the Coachella Valley Coalition for Clean Air

RECOMMENDED
ACTIONS:

Council DISCUSSES and provides DIRECTION on Councilmember Taylor's request to place a discussion to support the formation of the Coachella Valley Coalition for Clean Air on a future City Council agenda; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

Pursuant to Section 2.06.040 of the City Council Policy Manual, Council Member Taylor seeks to initiate a discussion regarding the formation of the Coachella Valley Coalition for Clean Air.

Additionally, the Indian Wells City Council Policy Manual Section 3.01.030 addresses the process for a Council Member to request items for placement on the City Council Agenda.

Section 3.01.030 PLACING ITEMS ON AGENDA. A Council member may request an Item be considered on a future agenda, verbally during a City Council meeting or by informing the City Manager. The request shall be submitted wherever reasonably possible at 14 calendar days in advance of a Council meeting. The item will be agendized at the next regularly scheduled meeting for consideration by the Council under the Council Reports section of the agenda with the initiating Council member's name. The Council Member may, at their discretion, prepare a written report.

In Councilmember Taylor's research on existing studies done on the air quality in the Coachella Valley, this region experiences a disproportionately high level of air pollution, which has been shown to harm public health, exacerbate respiratory conditions, and impact economic sustainability for local businesses. Residents, workers, and visitors alike

Council Agenda- May 15, 2025
are affected by harmful air quality, particularly the alarming rates of ozone and particulate matter pollution that surpass safe levels in the region. Efforts to address this issue have not been successful. As such, Councilmember Taylor is seeking the Council's support to bring to its June City Council meeting a discussion on forming and supporting the formation of the Coachella Valley Coalition for Clean Air. Attached is a draft press release that Councilmember Taylor has asked to be included in this report, which includes the various proposed policy demands of the coalition.

Policy Demands of the Coalition
The Coachella Valley Coalition for Clean Air is calling on local, state, and federal agencies to:
• Conduct research on the health implications of air borne particulate matter, specifically PM10.
• Implement aggressive air quality improvement plans that significantly reduce particulate matter and ozone pollution.
• Review the toxicity of airborne matter emanating from the Salton Sea. • Enhance environmental monitoring and public health protections to ensure communities are informed and safeguarded, especially those more vulnerable communities.

Council Member Taylor requests that the City Council consider this matter for discussion.

In accordance with the Council Policy Manual, should the Council express interest, staff will prepare and present this item for formal consideration at the June 2025 City Council meeting.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that this resolution is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a "project" as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Draft Coachella Valley Clean Air Coalition Press Release

Council Agenda- May 15, 2025
ATTACHMENT #1

FOR IMMEDIATE RELEASE

COACHELLA VALLEY COALITION FOR CLEAN AIR DEMANDS URGENT ACTION

ON POLLUTION
Coachella Valley, CA — Today, a powerful new coalition of government leaders and business organizations across the Coachella Valley has united to demand clean air for all residents, workers, and visitors. The Coachella Valley Coalition for Clean Air, founded by the cities of Indian Wells, La Quinta, Rancho Mirage, Palm Desert, and Indio — along with prominent businesses including Eisenhower Hospital, Grand Hyatt Indian Wells Resort, the Renaissance Esmeralda Resort, and world-renowned festivals Coachella and Stagecoach —calls for immediate and ambitious action to reduce ozone and particulate matter pollution throughout the region.

The Coachella Valley experiences disproportionately high levels of air pollution, which has been shown to harm public health, exacerbate respiratory conditions, and impact economic sustainability for local businesses. Residents, workers, and visitors alike are affected by harmful air quality, particularly the alarming rates of ozone and particulate matter pollution that surpass safe levels in the region. "This coalition represents a unified voice from local governments and businesses demanding immediate action to protect public health, our environment, and our economy," said Indian Wells Councilman Toper Taylor. "We will no longer accept slow - moving policies that fail to address the crisis. It is time for government organizations at all levels to commit to ambitious and meaningful air pollution reduction efforts in the Coachella Valley."

Council Agenda- May 15, 2025
Key Policy Demands of the Coalition
The Coachella Valley Coalition for Clean Air is calling on local, state, and federal agencies to:
• Conduct research on the health implications of air borne particulate matter, specifically PM10.
• Implement aggressive air quality improvement plans that significantly reduce particulate matter and ozone pollution.
• Review the toxicity of airborne matter emanating from the Salton Sea. • Enhance environmental monitoring and public health protections to ensure communities are informed and safeguarded, especially those more vulnerable communities.

The coalition will work to hold government entities accountable, advocate for stronger environmental policies, fund research, and partner with businesses to create a cleaner, healthier Coachella Valley.

For more information on the Coachella Valley Coalition for Clean Air, visit www.cvcleanair.orq or contact Toper Taylor at [email protected]