Ron deHarte

Friend,

 

Every household in Palm Springs knows what to do when money runs tight: cut what you can, find new income, and get honest about what matters most.

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Cities aren’t so different.

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This week, the City Council passed a budget that closes a shortfall on paper — but fails to confront the deeper, structural deficit beneath it. Our costs are rising faster than our revenues. Temporary grants are expiring. Pension obligations are growing. And our economy, still heavily dependent on tourism, which, while vital, leaves us vulnerable to seasonal fluctuations and global disruptions

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The pressures are real for the city: rising cost of operations, rising labor and pension costs, and the end of key grants — like the one that’s funded our Navigation Center.

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That means doing what every responsible city must do:
• Protect core services.
• Invest in long-term revenue growth.
• And find real savings.

In my opinion, instead of meeting the moment, a choice was made to defer the hard decisions.

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I appreciate city staff who worked incredibly hard to deliver a balanced budget under difficult conditions. They fulfilled the task they were given. But direction doesn’t come from staff — it comes from us. And that’s where I believe we’ve fallen short.

In the next year, we will have a chance to change our future economic path. Our challenge is to be ready to take bold action.

 

 

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 $157,000 has been raised! Charitable Tax-Deductible Donations for Rebuild Palm Springs are being collected online – Click Here.

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Council actions at the June 25th meeting and my work since our last update.

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My approach extends beyond City Hall; I'm continuing to engage directly with residents throughout the city. I believe in open communication and accessibility for all, and a key part of that is keeping you informed on my progress.

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Interviews and Media Outreach

-During the last two weeks I was invited to participate in an NBC Universal interview on LGBTQ business support and interviews with KESQ and KNBC on the start of the Gene Autry 12-14' high wall project to reduce the number of blow sand events requiring the road to be closed to clear sand. 

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- John Taylor with KGAY, KESQ and KNBC talking about the Spirit of Palm Springs honorees.

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Community Outreach

-The LGBTQ+ Center of the Desert invited me to participate in a LGBTQ Quality of Life research study.

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-Working with our Convention Center team, I attended a meeting with the Enlisted Association of the National Guard of the United States (EANGUS) to show our appreciation of the organization considering Palm Springs for their future August conference. Bringing convention business to the city in August is a huge win for our market in a traditional slow time of year.

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-Update on the Kings Rally with Joy Silver, Courageous Resistance. On all accounts the 4,500-5,000 attendees in the downtown park participated in a safe, yet very warm, event. Prior to the event, our Police Department immediately pursued an online threat of those attending the rally and quickly arrested the individual behind the threat. Many thanks to the organizers and attendees for respecting each other and participating in a safe and peaceful manner.

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-To acknowledge the contributions of our Boards and Commission, City Council attended an Appreciation Dinner for all members. Following dinner, there was a special city council meeting, and each commission presented their goals for the coming year. The Council is providing direction to commissions to set their work plans based on supporting the strategic goals of the city council.

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-I was proud to attend the Fire Department Graduation where seven new recruits were sworn in as Palm Springs Firefighters and six firefighter’s received promotions.

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-The Spirit of Palm Springs Awards celebrated exceptional business leaders from the LGBTQ+ community in recognition of Pride Month. This special recognition highlights the outstanding entrepreneurial spirit, community involvement, and business achievements of local leaders who have significantly contributed to Palm Springs' vibrant business landscape. The six small business owners recognized are:

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- Jennifer Seymour, Hunters Palm Springs:Recognized for innovative hospitality leadership and community engagement

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- Bill Sanderson, Townie Bagels: Honored for culinary entrepreneurship and neighborhood business development

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- Tony Marchese - Trio Restaurant: Celebrated for restaurant excellence and commitment to local dining culture

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- Lucy DeBardelaben - The Palm Springs Women’s Jazz and Blues Association: Acknowledged for artistic leadership and cultural community building

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- Shann Carr - A Lesbian Concierge In The Desert: Recognized for unique service innovation and LGBTQ+ tourism advocacy

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- Tai Spendley - Owner and chef - Rooster and the Pig: Honored for culinary excellence and farm-to-table business leadership

 

 

Meetings

-I recognized Marissa and Matt Hermer the owners of Bar Issi on the opening of their first restaurant outside of the LA area. The acclaimed restaurateurs are known for Olivetta and Chez Mia and now Bar Issi in The Thompson Palm Springs. I presented a certificate of recognition and appreciation for their investment in Palm Springs. The opening provided 60 people with new jobs.

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-At the Palm Springs Hospitality Association (PSHA) Board Meeting, I provided an update to the budget direction approved at the last council meeting. I was clear in my disappointment that investing in our economy was not a priority. Comments were made about how important it is for a city to invest during an economic downturn and that many businesses and organizations are planning now for 10-20% reductions in revenue for 2026. There’s a disconnect between how these businesses are preparing vs how the city is preparing for an economic downturn.

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-The Convention Center Modernization Committee continues working on multiple fronts. This week three working groups prepared their findings for Capital Improvements & Construction, Urban Planning & Connectivity and a Tourism Improvement District.

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-I meet with a group interested in establishing an annual awards event in Palm Springs. I’ll continue to provide support and connections to help the program establish roots in Palm Springs.

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-Dr. Sam Ko’s medical office sustained damage in the May 17 blast and is still closed. His landlord was demanding rent be paid even though the building has not been properly sanitized or approved by public health officials. I connected Dr Ko with the city manager who had the department of building safety provide direction.

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-As the budget planning process continued, Councilmember Bernstein and I met to talk through the planned Economic Development Budget and gain an understanding of our points of view.

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-I provided an update to the Hotel General Manager meeting on the budget challenges we were facing and other agenda items on the upcoming council schedule.

 

Highlights from the last city council meeting:

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Palm Springs City Council Meeting | June 25, 2025

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The Pledge of Allegiance was led by Isabella Esparza, an incoming senior at Palm Springs High School.

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A proclamation for Juneteenth Day, observed on June 19th, was made, and the City of Palm Springs was noted as a sponsor of the family-friendly educational Juneteenth Freedom Weekend celebration.

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Key Highlights

POW/MIA Flag Display Policy Update

Downtown Park Sprayground Renovation Contract Approval

Short Term Rental Ordinance

Small Hotel Tourism Business Improvement District Assessment

Comprehensive Budget Adoption for FY2025-2026

Discussion on City Staffing, Recruitment, and Retention

 

POW/MIA Flag Display Policy Update: This past Memorial Day, I requested the POW flag be displayed. I was told we legally could not fly the flag without council approval. At our last meeting, I asked the city council to support flying the POW/MIA Flag at city buildings and that resulted in this week’s Display Policy (Item 1K): The Council approved updating the flag display policy to include displaying the POW/MIA flag at all city facilities, as space allows, on Armed Forces Day, Memorial Day, Flag Day, Independence Day, National POW/MIA Recognition Day, and Veterans Day, while adhering to federal flag order requirements (U.S. flag, then POW flag, then state flag, then any other flag). The clarification for "as space allows" was made because some flagpoles can only accommodate three flags, which could impact the display of other flags on overlapping dates.

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Downtown Park Sprayground Renovation (Item 1Q): The Council approved a construction contract with California Waters for $520,514.75 for the full renovation of the Sprayground system at the downtown park. The system was non-functional due to unresolved deficiencies from the original construction contract with Fast-Track Construction Corporation, which was terminated for default in 2022. The new project, based on plans by Aquatic Studio Incorporated, includes demolition and full replacement of mechanical, electrical, plumbing, and control systems. The project is to be completed within 90 working days and is funded by Measure J and Quimby (park restricted funds) accounts. California Waters specializes in aquatic projects and also built the splash pad at Monarch Apartments. There is a one-year warranty on work and equipment.

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Short-Term Rental (STR) Ordinance (Item 1R): Council approved amendments to the proposed STR ordinance, specifically regarding violations and suspensions.

Proposed Amendment: The ordinance "simply states that three strikes without any time limitation, will lead to an automatic suspension or revocation." Staff clarified that the proposed wording omitted, "three violations in 12 months." Staff was directed to update the ordinance so that it aligns with the vacation rental ordinance. This item will come back to council for a vote.

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Small Hotel Tourism Business Improvement District (BID) (Item 2B): A resolution was approved confirming the advisory board's report and continue to level a 1% assessment for fiscal year 2025-2026, consistent with prior years. This levy, collected from approximately 80 small hotels (49 rooms or less), supports activities promoting tourism for these establishments and is managed by the Palm Springs Bureau of Tourism. The estimated collections for FY26 are $880,000, with the city collecting an annual administration fee of about $50,000. There was a carryover of $485,000 from the previous year due to unaccomplished programs, which will be spent this year along with new funds.

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Fiscal Year 2025-2026 Comprehensive Budgets Adoption (Item 2C): The Council narrowly adopted the comprehensive budgets with several key modifications based on discussions. Councilmember Ready and I voted no.

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I voted against this budget because I believe the residents of Palm Springs deserve better. The budget avoids tough decisions to plan for revenue shortfalls, misses the opportunity to invest in growth, and leaves us more vulnerable tomorrow than we were yesterday.

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We needed to face our fiscal reality NOW — not paper over it. To invest in the future — not repeat the past. To lead — not drift.

• $3 million budgeted set-asides for affordable housing remain in the budget.

• The City has a $200 million pension liability. Normally we set aside $6 million to pay down that debt. We postponed this savings strategy and are putting $1 million aside in FY26 and FY27.

• I called for the reduction of contractual services by $400,000 for FY26 and $350,000 for FY27. This is a real cut to the budget.

• Each department was asked to find savings or tighten their belt. $560,000 in travel, supplies and training was cut – these are real cuts.

• I called for the economic development budget to be increased by $500,000 annually for FY26 and FY27. This increase is partly supported by moving an electrical grid project (totaling $500,000) from the General Fund to Measure J, thereby reducing a general fund expense and utilizing Measure J funds for an infrastructure project. This is not additional spending. It moved a general fund project to Measure J.

• The budget calls for an unassigned fund balance of $55.9 million in FY26 and $50.2 million in FY27. The final budget shows a surplus of about $3.7 million in FY26 and $80,000 in FY27.

• Measure J funds are being used to fund more projects than originally planned, including $5.2 million in FY26 and nearly $4 million in FY27 for various infrastructure and deferred maintenance projects. Additionally, $2.8 million for 22 public safety vehicles will be funded by Measure J in FY27.

• The street maintenance program remains whole at $8.5 million in FY26, with Measure A, RMRA funds, and gas tax fund making up for reductions in Measure J funding for this specific program.

• The airport budget projects operating deficits of $5.3 million in FY26 and $5.5 million in FY27 (including depreciation), but these figures include large transfers to capital projects and revenue sharing with airlines. If these transfers are excluded, the airport operating account would have a surplus of about $2.5 million each fiscal year. The airport is adding six new maintenance positions at a cost of approximately $1.5 million.

 

Assembly Bill 2561 (Employee Vacancies) (Item 2A): The city's Human Resources Director provided an annual report on workforce vacancies, recruitment, and retention efforts. The overall vacancy rate stands at 10.1%, with all bargaining units below the 20% threshold outlined in AB 2561. Both fire units are currently fully staffed due to strategic underfilling. This was a receive and file item, meaning no direct action was taken, but the department was commended for its efforts, including successfully negotiating a collective bargaining agreement with the Police Officers Association (POA) and Police Management Association (PMA).

 

Other Noteworthy Discussions

• Public Art Investment: The Thompson Hotel was commended for its significant investment in public art on its property, featuring museum-quality pieces, including works by indigenous artists like Gerald Clark.

• Skate Park Success: The extension of the contract with Action Park Alliance for the Palm Springs Skate Park was highlighted as a successful public-private partnership contributing to sports tourism and community engagement.

• Cannabis Ordinance Amendments: The City Manager was asked to agendize a discussion on modifying the cannabis ordinance to align with state law changes regarding usage lounges, potentially allowing entertainment.

• Airport Escalator: The Airport Director provided an update on the escalator at the airport, stating it is on track for completion by summer or early May of next year.

• Fleet Management: The city manager is "still taking a look at and evaluating" contracting out fleet management. It's an "initiative" that might eventually lead to savings but is not currently reflected as such in the budget.

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Upcoming

July 9 – Regular Meeting

• College of the Desert Palm Springs Campus Update

• Appeal of Approval for Commercial Expansion at 1100 S Palm Cyn

• PS Resorts Agreement Extension

• Discussion of Legislative Platform

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July 21 – Regular Meeting

• Pedicab Ordinance

• Convention Center Management Agreement

• Airport Economic Impact Study

• Annual Street Lighting/Parkway Maintenance Districts

• South Palm Canyon @ Bogert Trail Bridge Project

• Gene Autry Housing Negotiation Agreement

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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

 

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Best regards,

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Ron deHarte - Mayor of Palm Springs