Cathedral City approves services and tax-transfer agreements to join Desert Recreation District
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Summary
City council voted unanimously to approve a services agreement with the Desert Recreation District and a tax‑exchange to fund park maintenance and recreation programming, using Measure W proceeds and a property‑tax transfer estimated at about $1 million per year.
The Cathedral City Council on Tuesday approved two agreements to annex the city into the Desert Recreation District (DRD): a services agreement for park maintenance and recreation programming, and a tax‑exchange that transfers a portion of the city’s property tax to pay for those services.
City Manager Charlie told the council the agreements are the culmination of more than a decade of planning and public hearings and described the arrangement as “one of the biggest achievements” for the city. "The DRD is the largest park and recreation district in California," he said, noting DRD manages parks across the Coachella Valley and will provide staffing, maintenance and programming in Cathedral City beginning July 1 whether the formal LAFCO annexation is complete or not.
The agreements are intended to provide ongoing park maintenance and a broader slate of recreation services (youth and adult classes, swim programming and signature events) while preserving city budget capacity for other priorities. Staff said Measure W, a half‑cent transaction and use tax approved by voters, will fund the city’s payments to DRD and that the tax exchange will transfer roughly 15 percent of the city’s property tax receipts — approximately $1,000,000 per year in the 2025–26 budget — to the DRD. City staff described the services agreement as totaling about $1.8 million; the council was told the city will pay the remaining operating cost directly to DRD in quarterly payments, with an annual true‑up to reconcile actuals.
City staff said the agreement includes a local DRD staff presence in Cathedral City to accept registrations and coordinate programming, continued in‑district rates for Cathedral City residents at DRD programs, and a park attendant program to provide day‑to‑day staffing for the city’s parks. The summer swim program previously carried in the city’s budget — $120,000 — will be included in DRD’s scope of services.
Councilmember Ernesto Gutierrez moved to approve the services agreement; Mayor Pro Tem Gregory seconded. The motion passed unanimously, 5–0. Council then separately approved the tax‑exchange agreement, again by a unanimous vote (moved by Mayor Pro Tem Gregory, second by Councilmember Lam). No dissenting votes were recorded.
Why it matters: Council and staff said annexation will deliver more consistent park maintenance and a broader range of recreation programming without increasing net cost to the general fund because Measure W proceeds will offset the transferred property tax. The annexation must still complete the Riverside Local Agency Formation Committee (LAFCO) annexation steps; staff said the services will begin July 1 using a direct payment mechanism if the LAFCO process is not complete by that date.
What the council directed or decided: formal approval of (a) the services agreement with the Desert Recreation District and (b) a tax‑exchange agreement sharing approximately 15% of the city’s property tax receipts with DRD to fund the services. Staff and DRD were authorized to implement the two agreements and to proceed with the annexation steps with LAFCO.
What the record shows the city will pay: staff stated the services agreement totals approximately $1.8 million; about $1,000,000 per year will be funded via a 15% property‑tax transfer; remaining annual service costs (budgeted as direct payments) were described in staff remarks as roughly $785,000 and will be reconciled with a year‑end true‑up.
Votes at a glance: Services agreement (approved 5–0; motion by Councilmember Gutierrez, second by Mayor Pro Tem Gregory). Tax‑exchange agreement (approved 5–0; motion by Mayor Pro Tem Gregory, second by Councilmember Lam).
