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Council adopts FY 2025–26 financial plan and CIP, approves multiple assessments; votes unanimous on budget items
Summary
Council approved the fiscal year 2025–26 financial plan and five‑year capital improvement program, plus several assessment district levies and collections (President's Plaza 1 & 3, Benefit Assessment District No. 1, consolidated Landscaping & Lighting District No. 1); all motions passed 5–0.
The Palm Desert City Council on June 26 adopted the fiscal year 2025–26 financial plan and a five‑year capital improvement program and approved several assessment district levies and collections. The financial plan projects $109.7 million in general fund revenue and $109.4 million in expenditures, producing a projected $319,000 surplus for operations. The capital improvement program (CIP) for year one totals approximately $67.1 million, including $56 million in capital projects and $11 million in facility and public works projects.
Veronica Chavez, director of finance, said the revenue increase relative to the prior year largely reflects the first full year of sales tax revenue from Measure G and modest increases in property tax. Public safety funding is a major driver of budget increases: $64.1 million is budgeted for public safety, with $39 million funded from the general fund and the remainder from fire and special grant funds.
Other council actions on consent and public hearing items included approving the engineer’s report and levy for the City of Palm Desert Benefit Assessment District No. 1, consolidated Palm Desert Landscaping and Lighting District No. 1, and President’s Plaza Property and Business Improvement Districts (President’s Plaza 1 and President’s Plaza 3) for fiscal year 2025–26; each of those votes was unanimous (5–0). Council also approved the staff allocation resolution and an out‑of‑state travel memo required by city policy.
Chavez noted the estimated year‑end fund balance for FY 2024–25 is about $99.4 million and the city’s required reserve entering 2025–26 is approximately $76 million. The council directed staff to return after summer recess with 10‑year cash flow projections and potential reserve policy considerations. Public comment on the budget items was not received at the hearing.
All budget and assessment motions passed by roll call vote with Councilmember Nastandi, Councilmember Perdido, Councilmember Quintanilla, Mayor Pro Tem Truby and Mayor Harnick voting in favor.
