Rancho Mirage to end long‑standing public‑safety MOU with Agua Caliente Band; council cites legal changes, plans for budget impact
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Summary
The Rancho Mirage City Council voted unanimously to terminate a decades‑old memorandum of understanding with the Agua Caliente Band of Cahuilla Indians that has funded public‑safety support; staff said the phase‑out, effective June 30, 2026, will reduce next year’s public‑safety revenue by about $500,000 and that discussions about offsets are ongoing.
The Rancho Mirage City Council voted 5–0 on Feb. 5 to terminate a longstanding intergovernmental memorandum of understanding with the Agua Caliente Band of Cahuilla Indians that has provided an in‑lieu public‑safety payment tied to casino room nights.
City Manager Isaiah Hagerman told the council the MOU dates to the 2007 annexation of the casino and functioned like a payment in lieu of a transient‑occupancy‑style fee, with the tribe voluntarily collecting and remitting the amount to the city to help fund sheriff and fire/medical services. Hagerman said a recent federal court ruling changed the legal landscape and the tribe approached the city to end the agreement rather than pursue unilateral state action. “This action today would, terminate that MOU as of 06/30/2026,” Hagerman said during his presentation.
Staff said the termination is being phased out to finish the current fiscal year and avoid amending the existing budget. Hagerman estimated the change will reduce public‑safety funding by about $500,000 in the next fiscal year; staff repeatedly stressed there is no immediate fiscal impact to the current year’s budget but that the reduction will appear in next year’s planning. The city has historically split the MOU revenue roughly 50% to sheriff contracts and 50% to fire and medical services, and Hagerman said the tribe also directly contracts for some deputies.
Brad Anderson, a Rancho Mirage resident, spoke in support of terminating the MOU and suggested the city review other intergovernmental agreements with the tribe. Council members repeatedly acknowledged the government‑to‑government relationship with the tribe and said they expect further, cooperative discussions on future public‑safety funding arrangements.
Councilmember remarks stressed limited options given the legal context. “No one likes to see a half million dollars in revenue go away, but by law it’s got to go away,” Council member Downs said during the discussion. Council member Weil said he expected staff to pursue mutually acceptable options with the tribe.
The council’s motion to approve the amendment terminating the intergovernmental MOU carried 5–0. Staff said they have no specific offset to present at this meeting and will continue discussions; potential options mentioned included grant opportunities or arrangements tied to other capital or public‑safety projects.
Next steps: the MOU termination is effective June 30, 2026, and staff will reflect the change in next year’s budget materials and continue negotiations with tribal representatives about possible future funding offsets.
