One of the things you’ll hear me say in the State of the City address from this February is that balancing a budget in this economy, when the State of California has a tendency to take more and more funds, is extremely difficult.
It has taken a lot of work by City management and all of us on City Council to get to a balance budget. It forced many difficult decisions affecting all levels of City government. Those decisions, however, were made in a way that maintained critical service levels that taxpayers need and expect.
I’m happy to say that the budget is balanced. And while we all continue to anxiously watch the economy on a national scale, and keep an eye on our very important tourism markets, I believe the fundamentals for Palm Springs are on the right track.
Recent reports reinforce this: Hotel occupancy is up, meaning Our Transient Occupancy Tax revenue is also up double digits, as is sales tax revenue. Downtown retail vacancy rates have held at a respectable level as well. These all help city budget, and while property taxes continue to be a challenge due to housing prices, other areas like tourism continue to be a source of good news for us.
City budget information is available at the City website by clicking here.
