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 firefighter-EMT positions to complete a four-person staffing plan for front-line engines. Stiles outlined other public-safety items including funding for a firearms training facility estimated at $3 million and the purchase of two fire pumpers at roughly $1.2 million each.

Major capital and project proposals in the draft budget include design funding for a convention-center renovation and connectors to downtown, continued Measure J–funded street maintenance, and $42.5 million budgeted to advance library renovation work. The budget also shows an anticipated one-time payment to CalPERS of about $28.5 million (subject to timing), a move staff said will reduce the city’s annual pension costs in later years.

Stiles flagged the navigation center as a cost driver: state and county grant funds supporting that operation will expire in May 2026, and the budget as presented assumes the general fund will absorb continuing operations without additional outside funding. “Once our state and county grant funding runs out in May 2026, the city will be responsible for more than $5,000,000 in annual operations and maintenance costs at the navigation center,” Stiles said.

On staffing and vacancies, staff reported roughly 50 funded but vacant positions across departments. Mooney said the budget includes approximately $5 million in vacancy savings and that the administration intends to place a soft hiring freeze on non‑sworn general fund positions while reviewing which vacancies are critical to fill.

The presentation also reviewed capital projects and deferred maintenance across the city, including bridge projects, park improvements at DeMuth Park, and a proposed $7 million Measure J renovation for the Swim Center building to add ADA access and interior upgrades. Councilmembers asked for further specificity on costs and timelines for the swim center, the library renovation, and pavilion repairs.

Airport and enterprise funds received a separate briefing. The airport’s draft budget reflects rising passenger traffic since 2019 and includes several large capital projects, including a baggage-handling system and terminal restroom upgrades funded partly with federal grants and airport passenger facility charges. Airport staff requested six additional positions in FY26 to support operations and maintenance as the facility grows.

Stiles closed the general-fund presentation with a clear warning to the council: if revenue does not grow as staff has conservatively modeled, “a hard hiring freeze and other cost cutting measures may need to be considered” this fall. He also asked the council for direction as staff takes the draft to the June hearings for final appropriation.

Next steps: staff will return with the full 260‑page budget document and additional project detail at the June 11 meeting. Councilmembers asked staff for written follow-up on specific lines of inquiry, including CalPERS calculations, the library funding plan and variance details on parks maintenance and vehicle replacement.