Desert Hot Springs voters will be deciding this fall whether to approve a one cent sales tax to help pay for city services.

On Tuesday, the city council unanimously adopted a resolution to add a sales tax measure on the Nov. 5 ballot in order to maintain services like emergency response, disaster preparation and pothole repairs. It would raise about $2,400,000 annually if it passes.

The city’s current sales tax is 7.75%, with 1% of revenue going to itself and the remainder going to California and other agencies.

A look at Desert Hot Springs’ city budget reveals a need for funds

The city’s budget has taken a hit due to major expenses such as Hilary storm repairs, a new homeless shelter and purchasing a former library building from Riverside County. Its cannabis revenues have also dropped after the council approved a lower cannabis cultivation tax in an effort to offer some financial relief to local businesses, which have shared that the industry is struggling due to issues like high taxes and competition with the black market.

Desert Hot Springs used reserves to cover an estimated $1.5 million budget deficit for fiscal year 2023-24 and is facing a $1 million deficit for fiscal year 2024-25 if it doesn’t find a way to fund its homeless shelter without reserves. The city has made $3.1 million in budget cuts to help balance the budget, according to a city staff report.

“One of the fastest-growing cities in the region, the population of Desert Hot Springs has increased by over 25% in the last 10 years alone. Businesses have also increased in that time, leading to an increased need for basic services,” said Deputy City Manager Doria Wilms. “Also during that time, the state has taken away local funds and handed down unfunded mandates to the city costing millions, and the cost of providing basic services has risen significantly.”

The city surveyed residents and found that 73% of those who responded agreed Desert Hot Springs needs more funding. It also reached out to the community through methods like mailers and community meetings, and got input from over 500 residents about their priorities, according to the city staff report.

What’s on the ballot for Desert Hot Springs residents

The Desert Hot Springs Fiscal Stability/Local Control Measure is a general purpose tax measure, which means that the council can decide to use its generated revenue toward any of the city’s needs rather than only for a specific purpose like with a special tax. If approved, the city must disclose how it’s spending the revenue so residents are aware if it’s being effectively used for what it was intended for.

The measure will have the following phrasing, according to the city staff report:

• Shall the measure to maintain Desert Hot Springs’ fiscal stability/general services, including maintaining 911 emergency/police response; anti- gang/drug programs; crime prevention/investigation; disaster preparation; pothole repair; preventing road/bridge closures; homelessness prevention; attracting local businesses by keeping public areas clean, safe, well-lit; by establishing a 1c sales tax, providing approximately $2,400,000 annually until ended by voters, with public spending disclosure/all funds spent in Desert Hot Springs, be adopted?

Desert Hot Springs isn’t unique in adding a tax measure this election year. Palm Desert voters will choose if they want to raise their sales tax by 1%, and Cathedral City is surveying residents before it determines if it wants to add a half-cent sales tax measure.

Next steps for the city council

The council also approved extending its contract with Lew Edwards Group to continue its consulting work for the election for up to $68,500 on Tuesday. The group’s work includes things like meeting with city staff to look over how to communicate election information and making up to three mailers about the election.

Desert Hot Springs needs to file the measure by Aug. 9. so that it can be on the Nov. 5 ballot. Arguments either in favor or opposed to the measure have to be filed to the city clerk on Aug. 19 at the latest, according to the city staff report. Rebuttal arguments must be filed by Aug. 29.

 Ani Gasparyan covers the western Coachella Valley cities of Desert Hot Springs and Cathedral City. Reach her at ani.gasparyan@desertsun.com.

This article originally appeared on Palm Springs Desert Sun: Desert Hot Springs voters will consider raising local sales tax