Ron deHarte

 

 

 

Friend,

My efforts last night to secure increased economic development investment fell short of our collective expectations. I remain concerned that we are planning for 1% growth in this uncertain climate. We are navigating a downturn in international travel, widespread economic uncertainty, and a housing market at its lowest point since 2009. These are not mere obstacles to me; they are urgent calls to action. My commitment to driving robust economic growth remains unwavering.

At the start of the council meeting, I said the budget we are working on is more than just numbers; it's a multi-year strategy designed to build a Palm Springs that thrives for everyone who lives and works here year-round. It's about diversifying our economy, championing our small businesses, and making critical investments in the very foundations of our city: housing, parks, streamlining processes, and building resilient infrastructure. We are investing significantly in public safety and community services and making crucial strides in affordable housing.

I am particularly energized by the Economic Development Department's (EDD) goals and objectives. It's no secret that our economy has relied heavily on tourism, which, while vital, leaves us vulnerable to seasonal fluctuations, an uncertain economy and global disruptions. For too long, we've depended on a single season. Click here to read (starting on page 172) the EDD multi-year goals and objectives to diversify our economy, empower small businesses, and forge pathways for our future.

​

EDD demands our immediate and bold attention. The budget allocates $1 million to fuel a thriving business environment—aimed at creating jobs, filling storefronts, and ensuring our economy hums year-round. Excluding salaries, the total EDD budget is $525,000 for programs and expenses, of which $400,000 is pre-programmed. $125,000 remains to fuel robust economic development marketing, amplified consumer spending initiatives, seed funding to attract dynamic arts and culture programs, innovative incentive programs for new development, and aggressive business retention and attraction strategies.

​

While I believe this department is significantly underfunded, opinions expressed at the meeting called for the completion of the EDD strategic plan and detailed program discussions before approving funding. I disagree. Igniting economic growth calls for Bold Action Now!

​

Rebuild Palm Springs Update

Many in the community are answering the call to raise funds to support those grappling with damage not covered by their insurance and $120,000 has been raised! Charitable Tax-Deductible Donations for Rebuild Palm Springs are being collected online – Click Here.

​

Immigration Resources

Riverside County has compiled a list of resources for community members who need assistance with immigration services. Click Here.

​

Council actions at the June 11th meeting and my work since our last update.

​

I'm not just sticking to formal meetings; I'm actively getting out into the community. It's really important to me to be transparent and accessible to all our city's residents, and keeping you updated is part of that commitment!

​

Interviews and Media Outreach

Chief Mills and I participated in an interview discussing homelessness in Palm Springs with Jeff Stahl from KESQ.

​

Community Outreach

-City Council previously asked for two community meetings be organized to hear public comment on the proposed Low Flow Bridge on South Palm Canyon. One meeting was in person and the second was via Zoom. Both were well attended. I did not speak at either meeting, but I attended to hear comments firsthand.

​

-Local business owner Matt Grigoryan and I met for “Breakfast with the Mayor.” I appreciated the opportunity to learn about Matt and his design agency Creative Compass Pro. He specializes in advertising, branding, and media production. Matt was a good sport by winning the breakfast at a fundraising event for the Desert Business Association.

​

-I joined Assemblymember Greg Wallis as he recognized our local organization Do the Right Thing as Nonprofit of the Year. Do the Right Thing, lead by founder Terri Ketover, recognizes and rewards school-age youths in the Greater Palm Springs area for their positive attitude, behavior, and accomplishments.

​

-On a sunny and warm afternoon in the downtown park, community members gathered to celebrate the 99th Birthday Marilyn Monroe. Organized by P.S. Resorts, the event recognized the new location of Forever Marilyn and included a Marilyn Monroe look-alike contest.

​

-It was a rainy night, but the Palm Springs High Graduation occurred June 3 at the Ralph Watt Stadium. High school seniors were celebrated for their accomplishments. "American Idol" winner and Indio native Abi Carter sang and offered words of encouragement to the graduates. It was a long and wet evening and very rewarding to see so many of our talented youth celebrate this significant milestone.

​

-LGBTQ+ History & Archives invited me to present a 50th Anniversary Proclamation to the owners of El Mirasol Villas. It was a fun gathering especially as the rain encouraged everyone to gather under the patio gazebo.

​

-The Vibe Neighborhood organized their first Pride celebration, and I had the opportunity to meet many residents – all who love living at the Vibe.

​

-I recorded a social media message about Pollinator Week to help raise awareness about the importance of pollinators like butterflies and birds in our ecosystem, economies, and agriculture.

​

-Provided remarks at the Kings Circle Fundraiser. The organization is dedicated to nurturing the potential of young Black, teen boys from Palm Springs Unified School District. They provide a vital brotherhood focused on character building, academic and personal growth, and cultural enrichment.

​

Meetings

-The new president of the Palm Springs Hospitality Association, John Shay and I discussed plans for the organization's future.

​

-The Tourism Improvement District (TID) is a sub-committee of the Convention Center stakeholder working group. Peggy Trott (Chair) led the discussion to explore revenue opportunities to be earmarked for future convention center improvements.

-Meeting with College of the Desert’s president Val Martinez Garcia and trustees Joel Kinnaman and Ron Oden to hear updates and discuss areas of collaboration and shared initiatives between the City of Palm Springs and College of the Desert.

​

-Urban Planning & Connectivity Convention Center stakeholder working group discussed walkway urban connectors from the convention center. This concept stems from the 2030 Convention Center Vision to create a lively, pedestrian-friendly district that celebrates local art, culture, and mid-century architecture while offering seamless access to dining, shopping, and community experiences. Chair, Lauri Kibby led the discussion of approaching the project in phases. Phase 1 will look at walkway opportunities on Andreas & Amado. Later phases will address connecting Tahquitz and Alejo. Map development, community outreach, the RFQ process, and design team selection were topics discussed. The early-stage urban connector design work will be funded by a budget allocation from Measure J. The urban planning project budget is estimated at $25 M, which includes total construction costs. However, this number is tentative and subject to change.

​

-Site visit with Gary Armstrong, Chair of the Public Arts Commission, to look at potential relocation space for the Morris Kight memorial plaque and the LGBT Veterans marker in Francis Stevens Park. Kight was recognized with the plaque in 2002 in celebration of his national role in the fight for gay rights going back to the 1950.

-David Anderson with the Little Tuscany Neighborhood Organization to discuss a contribution to Rebuild Palm Springs.

​​

​

​

​

​

​

​

​​

​

 

Other:

 

• Technology Information and incubation economic development working group.

• Coachella Valley Association of Governments Executive Committee meeting

• West Coast Challenge to discuss the possibility of bringing the tournament to Palm Springs.

• Participated in the Tourism General Manager meeting

• United States Conference of Mayors

• Ad Hoc Interviews for City commission appointments.

• Attended the ONE-PS Monthly Meeting

 

Highlights from the last city council meeting:

​

Palm Springs City Council Meeting | June 11, 2025

​

Key Highlights

• Fiscal Budget Review 2025/26 & 2026/27

• Temporary Library Location Approved

• Managed Co-Owned Housing Units Ordinance Amendments

• Historic Site Designation Approved

​

Proclamations Celebrating Community Milestones:

El Mirasol Villas 50th Anniversary: On June 3rd, the city celebrated the 50th anniversary of El Mirasol Villas, a historic gay resort in the Warm Sands neighborhood, recognized for fostering a sense of belonging, pride, and connection in Palm Springs.

​

National HIV Long Term Survivors Awareness Day: Proclaimed on June 5th, this day honors individuals who have lived with HIV for an extended period, acknowledging their resilience, contributions, and ongoing challenges.

​

Pollinator Week: From June 16th to June 22nd, Pollinator Week is an annual event that raises awareness about the importance of pollinators like butterflies and birds in our ecosystem, economies, and agriculture, and highlights steps to protect them.

​

MAJOR DECISIONS & UPDATES

​

City Projects and Financing:

Budget Discussion: Navigating "Advancing in Uncertain Times"

City Manager Scott Styles and Finance Director Chris Mooney presented the biennial budget for Fiscal Years 2025-26 and 2026-27, emphasizing a strategy to "rebuild capacity" and advance the city's strategic goals amidst economic uncertainty. The finance team will incorporate the Council's direction into the final budget documents, which will be brought back for consideration and adoption on June 25th.

​

Overall Financial Picture:

The total recommended all-funds budget is $519 million for FY26 and $521.5 million for FY27.

The General Fund operating budget is $173.4 million for FY26 and $182.3 million for FY27.

The budget reveals a $1.3 million deficit in FY26 and an $8.5 million deficit in FY27 in the General Fund.

​

Major revenue streams (Transient Occupancy Tax (TOT), sales tax, property tax) are stable but projecting significant growth is cautious due to economic uncertainties

Controlling salary and benefit growth, which is outpacing revenue, is a critical focus.

​

A "soft hiring freeze" for 50 non-sworn general fund positions is anticipated over the summer and fall to realize vacancy savings. There are currently 66 vacant positions.

Key Discussions & Council Direction on General Fund Balancing:

​

CalPERS Liability: The city is sending $29 million to CalPERS on June 12 to reduce its $200 million unfunded accrued liability, which is expected to yield a $2 million benefit in the annual payment for July. The Council directed to reduce the annual pension contribution from $6 million to $1 million, saving $5 million in the current budget.

​

Affordable Housing Reserve: Despite financial pressures and staff recommendation, to pause the $3 million annual contribution to the Affordable Housing Reserve, this is earmark remains in the budget. Current balances are sufficient for currently identified projects like Desert Highlands ($2.9 million) and the potential future projects like Gene Autry (up to $8 million may be required to secure the project).

​

Measure J Funding: Measure J (the city's sales tax for infrastructure and services) will fund deferred maintenance and public safety vehicle purchases, rather than making direct transfers from the General Fund. This includes $5 million in FY26 and $8.5 million in FY27. This approach aims to leverage Measure J for its intended purposes while relieving pressure on the General Fund.

​

Public Safety Personnel Reallocation: Six public safety personnel (3 police, 3 firefighters) currently funded by the General Fund will be charged to the Public Safety Fund, providing $1.2 million in relief to the General Fund in FY26.

​

Capital Budget Summary:

The capital budget includes significant projects like the Indian Union Pacific Railroad Bridge ($60 million), the Library Renovation ($42.5 million), Pickleball Courts ($6 million), and Demuth Park improvements ($7.5 million).

​

The annual street paving program is set at $8.5 million for FY26 and $9.5 million for FY27, with flexibility to use other transportation-restricted funds (e.g., gas tax, Measure A) to maintain this level of street maintenance. The city engineer noted that $9 million is the baseline to prevent street deterioration.

​

$13 million over two years is allocated to support deferred maintenance projects and motor vehicle purchases (heavily weighted towards public safety). Measure J fund will be used to help relieve the General Fund deficit.

​

Airport Budget Summary:

The Airport is an enterprise fund, meaning its operations and staffing do not impact the General Fund.

​

Palm Springs International Airport is experiencing passenger growth, up 4.3% this fiscal year, with March setting a record for passengers. New seasonal routes have been added.

​

Significant grant revenue ($28 million in FY26, $32 million in FY27), is expected for the baggage handling system ($80 million project).

6 New positions have been added to airport staff, including a fire prevention specialist and maintenance roles.

​

Major capital projects include baggage handling system upgrades, escalator replacements, and terminal restroom renovations. The airport is also purchasing emissions-free buses and trucks.

​

Despite a large deficit in FY27 ($15 million), the Airport has a substantial unassigned reserve (projected $100 million at end of FY25), making the deficit less concerning. The airport aims to double passenger numbers over the next 20 years.

​

Temporary Library Location Approved: A three-year lease agreement with Pacific Castle Rimrock for a temporary library location at the Vons shopping Center was approved to facilitate renovations at the main Palm Springs Public Library. The main library renovation is expected to take about 18 months for construction, with the goal to move into the temporary location by August 1st. Library services will continue, including passport services and functioning as a cooling center, with plans to expand outreach to community centers and schools.

​

Managed Co-Owned Housing Units Ordinance Amendments: The City Council conducted the first reading of an ordinance to amend regulations for managed co-owned housing units so that they mirror Short Term Rental regulations. Key changes include:

• Removing an automatic three-year termination date for the 30-home cap, replacing it with a Council-determined termination date, with a review planned within three years.

• Aligning daytime guest occupancy limits with existing vacation rental ordinances (two persons per bedroom, plus minors 12 and under, plus four additional occupants).

• Clarifying the definition of "median house price" to apply solely to single-family residential properties for housing permit issuance.

• Requiring applicants to provide information such as government-issued IDs and corporate/trust documents.

• A 30-day compliance timeline was set for the five existing homes. The policy for automatic revocation upon a third citation, subject to appeal.

 

Upcoming Agenda Items:

Library Board Alternate Commissioner: An agenda item will be brought forward to approve Michael Hirschbein as an alternate commissioner for the library board.

​

Pedicab Regulations Review: An ordinance is being prepared to potentially reduce the required liability insurance for pedicab operators from $10 million to $1 million to address difficulties in obtaining insurance.

​

Convention Center Management Agreement: Expected to be completed and ready for Council consideration by July 21st.

​

Drainage Bridge Project Update: The southbound lane drainage bridge project is targeted for the July 21st agenda, and neighborhood organizations will be notified.

 

Upcoming Council Meetings

June 17th: Joint meeting with all Boards and Commissions

June 25th: Approval of the 2025/26 & 2026/27 Budgets

July 9th: College of the Desert campus update presentation, appeal of approval for commercial expansion, and the PS Resorts Agreement Extension

 

Helpful Links & Contacts:

• Mayors Website – Read past updates on the Mayors Website

• PSPD App - to report law enforcement and non-emergency issues.

• MyPalmSprings App - to report issues within City limits, including homelessness, graffiti, and code compliance.

• Engagepalmsprings.com - This website was created as a space for residents to share ideas, discuss important topics, ask questions and receive updates about City projects.

• ONE-PS - is a network of Palm Springs neighborhoods that gives voice to the issues and concerns of our community.

• To submit public comment, contact the City Clerk's office @ CityClerk@PalmSpringsCA.gov.

• For other City-related issues, please visit our website

• ​

Send this link to invite others to join our Newsletter list - Join Mayor's Newsletter list.

 

 

Best regards,

​

Ron deHarte ,City of Palm Springs Mayor