Council approves Desert Recreation District services, tax-transfer and several agenda items including ATP amendment

The Cathedral City City Council voted unanimously to approve a services agreement with the Desert Recreation District (DRD) and a companion tax-exchange agreement that will transfer a slice of property-tax revenue and provide DRD-operated parks maintenance and community programming for city parks.

Why it matters: The agreements are intended to create a consistent parks and recreation program for Cathedral City residents, give residents in-district rates for DRD programs, and shift day-to-day park operations to the regional district while preserving the city’s capital role on larger park improvement projects.

Details of the agreements and budget effects: The total first-year contractual cost for DRD services was presented as roughly $1,798,000. Staff described matching and offsetting steps so that the net effect on the city’s general fund would be neutral: the city will transfer approximately 15% of its property tax receipts—about $1,000,000 in fiscal 2025–26—to the DRD through the tax-exchange agreement; Measure W receipts (a half-cent transaction and use tax) will partially replace that revenue in the city budget. The remainder of the first-year service cost, about $798,000, will be paid in quarterly payments from the city to DRD, with a year-end true-up provision.

Services and programs: Under the services agreement, DRD will provide maintenance at city parks including Century Park, Panorama, Ocotillo, Dennis Keats Soccer Park, Town Square Park, Memorial Park, the Cathedral City Amphitheater, Patriot Park, the downtown dog park and the soon-to-be-completed Esperanza Park. The city will continue to maintain Town Square Park, the Downtown Dog Park, Memorial Park and the amphitheater; day-to-day maintenance for most other parks will transfer to DRD. DRD will place a staff member in the city to take registrations and help coordinate programming. The ongoing summer swim program at Cathedral City High School will be run by DRD and will continue to offer in-district rates to Cathedral City residents.

Council discussion and concerns: Council members and staff discussed service levels, dog-park maintenance and capital-improvement thresholds. DRD representatives said dog parks in existing agreements are maintained five days a week for two hours a day (trash removal, bag restocking, bench cleaning and pressure washing) and that signage and posted hours will be coordinated with city staff. Council discussed that capital improvements costing more than $10,000 per item would remain a city responsibility and require prior authorization.

Public comment and communications requests: Commenters including Danny Lee and consultant Dorian Whitney urged a clear public communications plan that explains how Measure W and the annexation-related transfers will be used and what residents can expect on the timeline to a new community recreation center. One resident also asked that the community amphitheater remain accessible to the public rather than closed for events.

Other votes at the meeting: Council approved a special-use permit for the Color the Spectrum Art Festival (an autism‑focused event in the community amphitheater on April 6) and accepted a Public Arts Commission recommendation to fund a Karen and Tony Barone sculpture exhibition in Town Square with an allocation of $2,300. The council also approved an amendment to a professional-services agreement for construction engineering support on two Active Transportation Program (ATP) Cycle 5 projects, authorizing an extra $110,000 to cover inspection and material-testing costs caused by unanticipated utility and county‑review delays.

Voting and motions: The services agreement (Item 5A) was moved by Councilmember Ernesto Gutierrez, seconded by Councilmember Carnivale, and passed on a unanimous vote. The tax-exchange agreement (Item 5B) was moved by Mayor Pro Tem Mary Gregory, seconded by Councilmember Lam, and passed unanimously. The ATP amendment and the event approvals were each approved by unanimous vote.

Ending: City staff said a LAFCO annexation process will follow the intergovernmental agreements; annexation requires additional legal steps and approval by the Riverside Local Agency Formation Commission. Council directed staff to return with routine implementation details and annual budgets.