Politics & Government

Council Approves Balanced Budget

Spending on daily operations rises, while redevelopment agency spending drops.

The Palm Desert City Council approved a balanced 2011-12 fiscal year budget Thursday night that includes a rosy outlook on the city's sales tax, but scaled back employee pensions.

The council unanimously approved the budget as the end of the fiscal year nears on July 1.

Mayor Jean Benson praised the City Manager John Wohlmuth and city staff for putting together the budget.

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"We didn't cut any city services this year,'' Benson said.

The city's general fund is expected to get a boost of $850,000 in extra revenue over this past year, totaling $43.8 million, according to city documents.

Find out what's happening in Palm Desertwith free, real-time updates from Patch.

That includes $14.3 million in projected sales tax revenue, up from a projected $13.2 million last year.

The biggest share of the budget goes to a with the Riverside County Sherif's Department, for the city's policing services.

The city's redevelopment agency, which is under threat from Gov. Jerry Brown's budget proposal, is expected to rake in $84.1 million.

The council will also approved a three-year memorandum of understanding with city employees that requires those hired after Sept. 1 to be paid a smaller retirement benefit.

The employees voted 49-13 in favor of the MOU, according to city staff.

Councilman Bill Kroonen praised the city for the cutbacks.

"This has gone very smoothly and I suspect because good people were representing both parties,'' Kroonen said.

The council also directed city staff to prepare a report on whether the city's fees are too low.

"I know other cities are wrestling with this right now,'' Councilwoman Jan Harnik said.

The council also approved $246,005 in charitable contributions, and sponsorships of the 13th annual Turkey Trot 5K Run/Walk and Fashion Week El Paseo.


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