City manager outlines $492 million biennial draft budget; warns of operating deficits and contingency steps

City Manager Scott Stiles and Finance Director Chris Mooney presented the City of Palm Springs’ first draft biennial budget for fiscal years 2026–27 at a May 22 study session, showing $492 million in total recommended all-funds spending for FY26 and $472 million for FY27.

Stiles described the budget as “advancing in uncertain times” and said staff would use conservative revenue assumptions while continuing to prioritize public safety, economic development and infrastructure.

The draft general-fund operating budget is $173 million for FY26 and $184 million for FY27. Mooney said the plan uses one-time funding sources to move forward on strategic projects but cautioned that the operating picture requires action: “We’re facing a $1,000,000 deficit in fiscal year ’26 and a nearly $10,000,000 deficit in fiscal year ’27,” he said.

Public-safety investments are a prominent theme. The draft adds three police officer positions in FY26 to support traffic enforcement and special events, and three…