Council approves midyear budget adjustments projecting $2.18 million in additional revenue

The Desert Hot Springs City Council on March 4 approved midyear budget adjustments for fiscal year 2024–25 that increase projected consolidated general fund revenues by $2,179,218 and estimate an ending general fund balance of about $7.6 million.

Finance presenter Becker outlined the revenue increases — including $161,000 in property tax increases linked to tax-increment trust funds from the former redevelopment agency and nearly $400,000 in expected grant revenue — and identified offsets in expenditures for salaries, workers’ compensation, capital projects and facility repairs. Becker said sales tax increases tied to Measure P and higher plan-check and permit fees contributed to the revenue uptick, while retail cannabis tax receipts were down and required a downward adjustment.

Becker said administrative services would realize some savings from changes in legal services contracting and that some public-safety staffing ramp-up did not occur as quickly as planned, producing temporary savings. The presentation included planned transfers for recreation equipment and citywide landscaping and described capital-fund adjustments tied to grants such as the Hacienda Avenue improvements.

Council asked clarifying questions: the "inspiring minds" program has contributed about $8,000 in voluntary donations so far this year; the Furbie legacy account balance is $455,253 and the city plans to use $160,700 for pool repairs (leaving an estimated $294,000 balance); and the city is seeking to implement a new accounting software. The council noted public hearings on the two-year budget and will provide multiple opportunities for public review before adoption.

A motion to approve the midyear adjustments passed unanimously.