Indio council approves FY2025–26 midyear budget updates; staff projects $6 million additional revenue

The Indio City Council on Feb. 18 approved midyear amendments to the FY 2025–26 budget, accepted updates to the authorized positions list and the citywide classification and compensation schedule, and reviewed a summary for the Indio Water Authority.

Finance Director Ruby Walla presented the midyear report, telling the council staff projects about $6,000,000 in additional revenue for the fiscal year. "We're projecting to have an additional $6,000,000 in additional revenue," Walla said, explaining the gain stems from several sources, including transient occupancy taxes and stronger-than-expected collections from short‑term rentals (STRs).

Walla walked council through the general fund overview and a multiyear projection. She said the city’s ending fund balance for FY 2024–25 was approximately $75,680,000 and that the council has set aside an $18,500,000 emergency reserve and PARS and OPEB commitments to reduce unfunded liabilities. The city created a separate Measure X capital fund to preserve voter‑approved capital dollars and avoid commingling with operating funds.

The presentation covered key revenue drivers: sales and use taxes, Measure X, TOT (where Walla said about 75% of recent TOT growth is from STRs), property tax in lieu receipts, and ambulance/other service revenues. Walla cautioned that tourism‑driven revenues can be volatile and staff used conservative recurring‑revenue baselines in projections.

On capital planning, staff described a $205,000,000 capital program across funds and noted approximately $11,000,000 of one‑time discretionary projects over a three‑year horizon. Walla also summarized the Indio Water Authority budget: a total budget of $36,700,000 that includes about $15,000,000 in capital needs and $21,000,000 for operations; staff noted ongoing actions related to water bond refunding and rate‑study impacts on water sales and debt coverage.

As part of the midyear package, staff requested approval to increase authorized full‑time positions from 298 to 299 by adding one community beautification worker to support the residential rental inspection program; staff said the position would be funded through program revenues.

Council members asked for clarification on recurring vs. one‑time revenues and discussed potential uses of one‑time funds, including providing a local match for an anticipated $7,000,000 sports‑complex grant that would require a 100% local match. Mayor Pro Tem Furman and others emphasized fiscal discipline and the council’s ability to decide how to allocate one‑time resources during the May budget workshops.

Mayor Pro Tem Furman moved to approve the recommended budget amendments, the updated authorized position list, and the classification and compensation schedule; Council member Roscoe Ortiz seconded the motion and it passed on council vote.

Next steps: staff will carry the approved midyear adjustments into the city’s budget records, continue outreach on staffing and retention priorities for the May budget sessions, and return with additional information on proposed uses of any confirmed one‑time funds.