Palm Springs staff present $519 million biennial budget; council grills plan to shore up $1.3M FY26, $8.5M FY27 gaps

City Manager Scott Stiles and Finance Director Christopher (Chris) Mooney presented a biennial budget package on Wednesday that proposes a $519 million all‑funds plan for fiscal years 2025–26 and 2026–27 and a $173.4 million general fund operating budget for FY26 (rising to $182.3 million in FY27). Stiles called the package “advancing in uncertain times,” emphasizing investments in public safety, facilities and housing while warning the council the plan still shows an operating gap of roughly $1.3 million in FY26 and $8.5 million in FY27 if no additional adjustments are approved.

The nut of staff’s fix-it plan is a mix of one‑time fixes and operational controls intended to protect reserve balances while the city pursues revenue growth. Finance Director Chris Mooney told the council the city will make a $29 million lump‑sum payment to CalPERS (the California Public Employees’ Retirement System) to reduce the unfunded liability and that actuarial adjustments should produce an immediate roughly $2 million annual budget benefit. Mooney also described a package of near‑term proposals to reduce FY26 pressure: up to $5 million of Measure J funds to cover deferred maintenance or vehicle purchases, temporarily moving six public‑safety positions currently paid by the general fund into public‑safety–dedicated funds (saving about $1.2 million in FY26), and pausing a portion of the annual CalPERS reserve contribution from $6 million to $1 million (a $5 million FY26 saving). Mooney said those moves are intended as one‑time relief to bridge the city to FY28, when staff hopes higher revenues or structural expense reductions will restore balance.

Why it matters: the city has sizable capital and operating commitments — a $15 million library renovation budget phase, an airport modernization program and multiple bridge, street and park projects — but revenue growth is…