In a contentious meeting held on November 20, 2024, the La Quinta County Board of Commissioners approved a significant tax increase for the fiscal year 2025, raising the real estate tax millage by 33%. This decision comes in response to a staggering preliminary budget deficit projected at $37 million, a figure that has escalated over the past four years.
Chief Financial Officer David Bolzano outlined the dire financial situation, noting that the county's general fund balance has plummeted from $26 million in 2017 to an anticipated $15 million. He emphasized that the county's expenses have surged by 80-90% during the same period, while assessed valuations have only increased by 10%. The approved tax structure includes a total millage of 89.98 mills, with specific allocations for general county purposes, debt service, library funding, and cultural and educational initiatives.
Commissioners expressed their frustration over the necessity of the tax hike, acknowledging the burden it places on residents already grappling with rising living costs. Commissioner Chris Chermak criticized the increase as premature and unnecessary, arguing that there are still savings to be found within the budget. He urged for a more thorough examination of potential cuts before imposing such a drastic tax burden on constituents.
In contrast, Commissioners McGloin and Gahan defended the budget, asserting that the increase is essential for maintaining county services and addressing long-standing financial mismanagement. They highlighted the elimination of an entire department and cuts to personnel as part of their efforts to reduce the deficit. McGloin emphasized the importance of transparency and honesty in the budgeting process, stating that the current budget reflects a realistic assessment of the county's financial condition.
The meeting underscored the deep divisions among the commissioners regarding fiscal responsibility and the best path forward for La Quinta County. As the board moves ahead with the approved budget, residents are left to navigate the implications of this significant tax increase amidst ongoing economic challenges.