AGENDA ITEM #
STAFF REPORT
TO: Mayor and City Council DATE: March 6, 2025
FROM: Joseph E. Carpenter, Assistant Director of Administrative Services Kofi Antobam, Director of Administrative Services
SUBJECT: Fiscal Year 2024-2025 Mid-Year Budget Adjustments
SPECIFIC REQUEST OR RECOMMENDATION
That the City Council adopt Resolution No. 2025-(Next-in-Order), amending the Fiscal Year 2024-2025 Budget.
JUSTIFICATION OR INFORMATION
BACKGROUND:
Each year, the Finance Division in collaboration with the Director of Administrative Services and the City Manager conducts a mid-year review of revenues and expenditures during the months of January-February to identify any problematic financial situations that have occurred or may be expected to occur prior to the end of the fiscal year. The primary objective of the mid-year review is to perform a division analysis of General Fund expenditures and identify items that may have a material impact on the current budget.
FISCAL YEAR 2024-2025 MID-YEAR ADJUSTMENTS:
Several budget adjustments, which are covered in greater detail in the following pages, are being proposed. The table below summarizes the impact of the budget adjustments on the General Fund’s operating revenues and expenditures.
The proposed budget adjustments are detailed on the next page and have been separated into four different categories for clarity.
FY 2024-2025
Original
Budget
Mid-Year
Budget
Adjustments
Proposed
Amended
Budget
Operating Revenues $34,915,296 $215,000 $35,130,296
Operating Expenditures 33,574,521 (239,000) 33,335,521 Operating Surplus/(Deficit)$1,340,775 $454,000 $1,794,775 5-1
DATE: March 6, 2025 Page 2 of 4
Fiscal Year 2024-2025 Mid-Year Budget Adjustments
JUSTIFICATION OR INFORMATION CONTINUED
AGENDA ITEM #
1. GENERAL FUND OPERATING REVENUES
Account Description Amount
Property Tax In-Lieu of VLF Revised projection from consultant $30,000 Sales Tax Revised projection from consultant (400,000)
Franchise Tax Actual revenue trending higher 100,000
Transient Occupancy Tax Actual revenue trending higher 100,000 Public Works Inspections Timing of development activity (20,000) Building Permits Timing of development activity (100,000) Planning Fees Timing of development activity (25,000)
Fines Actual revenue trending higher 25,000
Technology Enhancement Fee Actual revenue trending higher 20,000 General Plan Update Fee Actual revenue trending higher 85,000 Interest on Investments Actual revenue trending higher 50,000 Interest w/ 3rd Party Actual revenue. No budget adopted. 50,000 Transfer from CFD Funds Actual revenue trending higher 300,000 SUB-TOTAL $215,000
2. GENERAL FUND OPERATING EXPENDITURES
The General Fund has three types of operating expenditures for budgeting purposes: 1) salaries and benefits; 2) operations and maintenance; and 3) department capital (i.e. furniture and equipment). Proposed budget adjustments are as follows –
Salaries and Benefits
No proposed adjustments. Total General Fund salaries and benefits are anticipated to be close to the budgeted amount at year end due. Required budget adjustments, if any, for individual divisions will be brought to the City Council for consideration with year-end budget adjustments.
Operations and Maintenance
Account Description Amount
City Attorney
Professional/Technical Reduction in litigation expense ($75,000) Public Safety
Professional/Technical Actual cost of LPR cameras 250,000 Public Safety
Operating Transfers Out
Increase in CFD #1 revenue results in
reduction of Fire Fund subsidy (825,000)
General Government
Insurance and Bonds Actual cost 326,000
Special Programs
Historic Preservation Commiss. Historic Resource Survey 85,000 SUB-TOTAL ($239,000)
5-2
DATE: March 6, 2025 Page 3 of 4
Fiscal Year 2024-2025 Mid-Year Budget Adjustments
JUSTIFICATION OR INFORMATION CONTINUED
AGENDA ITEM #
Department Capital
No proposed adjustments.
3.GENERAL FUND NON-OPERATING REVENUES
Account Description Amount
Federal Grants Remainder of grant not anticipated until FY 2025-2026 due to timing of project ($620,000)
SUB-TOTAL ($620,000)
4.GENERAL FUND NON-OPERATING EXPENDITURES
Account Description Amount
Capital Improvements
Amphitheater Improvements
City Council abandoned project on
September 19, 2024 ($4,000,000)
Capital Improvements
Ramon Road Street Widening
Project completion anticipated in FY
2025/2026 (400,000)
SUB-TOTAL ($4,400,000)
The combined impact of the proposed budget adjustments on the General Fund are detailed in the table below.
If approved, the projected operating surplus will increase $454,000 from $1,340,775 to $1,794,775 and the projected total net use of reserves will decrease $4,234,000 from $4,126,225 to a total surplus of $107,775. The adjustments noted in the tables of this staff report are summarized in Exhibit “A” of the mid-year budget resolution found in Attachment 1.
FY 2024-2025
Original
Budget
Mid-Year
Budget
Adjustments
Proposed
Amended
Budget
Operating Revenues $34,915,296 $215,000 $35,130,296
Operating Expenditures 33,574,521 (239,000) 33,335,521 Operating Surplus/(Deficit) [A]1,340,775 454,000 1,794,775 Non-Op Revenue 660,000 (620,000) 40,000
Non-Op Expenditures 6,127,000 (4,400,000) 1,727,000 Non-Op Surplus/(Reserve Spending) [B](5,467,000) 3,780,000 (1,687,000) Total Surplus/(Net Use of Reserves) [A] + [B](4,126,225) 4,234,000 107,775 5-3
DATE: March 6, 2025 Page 4 of 4
Fiscal Year 2024-2025 Mid-Year Budget Adjustments
JUSTIFICATION OR INFORMATION CONTINUED
AGENDA ITEM #
RECOMMENDATION:
That the City Council of the City of Rancho Mirage adopt Resolution No. 2025-(Next in Order), amending the Fiscal Year 2024-2025 Budget.
ATTACHMENT(S):
1. Draft Resolution
2. Fund Balance Schedule
5-4
ATTACHMENT 1
FISCAL YEAR 2024-2025 MID-YEAR
BUDGET ADJUSTMENTS RESOLUTION
(SEE ATTACHED)
5-5
RESOLUTION NO. 2025-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO MIRAGE APPROVING AND ADOPTING THE FISCAL YEAR 2024-2025 MID-YEAR BUDGET
ADJUSTMENTS
WHEREAS, the City Council of the City of Rancho Mirage (“City”) adopted by resolution the Fiscal Year 2024-2025 Budget based on planned expenditures and anticipated revenues at the time; and
WHEREAS, the City Council reviewed the Fiscal Year 2024-2025 Mid-Year Budget Adjustments proposed by staff (“Fiscal Year 2024-2025 Mid-Year Budget Adjustments”), a copy of which is attached hereto and incorporated herein by this reference as Exhibit “A,” and determined that certain unanticipated expenditures require that further appropriations be made via a budget adjustment; and
WHEREAS, Government Code Section 37208 (B) states that warrants or checks drawn in payment of demands certified as conforming to the budget need not be audited by the legislative body if the budget is adopted by resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO MIRAGE HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1. Recitals.
That the Recitals set forth above are true and correct.
Section 2. Mid-Year Budget Adjustments.
That the City Council hereby approve and adopt the Fiscal Year 2024-2025 Mid- Year Budget Adjustments.
Section 3. Severability.
That should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.
Section 4. Repeal of Conflicting Provisions.
That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed. 5-6
Section 5. Effective Date.
That this Resolution shall take effect upon its adoption.
Section 6. Certification.
That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
[THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]
5-7
PASSED, APPROVED, and ADOPTED on this 6th day of March 2025.
____________________________
Ted Weill, Mayor
ATTEST:
_______________________________
Kristie Ramos, City Clerk
APPROVED AS TO FORM:
_______________________________
Colin Kirkpatrick, City Attorney
5-8
EXHIBIT “A”
FISCAL YEAR 2024-2025
MID-YEAR BUDGET ADJUSTMENTS
(SEE ATTACHED)
5-9
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FUND BALANCE SCHEDULE
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