Indio approves balanced $459 million budget as costs outpace revenue growth

The Indio City Council unanimously approved a balanced $459 million budget for fiscal year 2025-26 on Wednesday, a 28% increase compared to the year before.

The budget reflects what city officials have been discussing for months: “Revenues are really flattening out, not increasing … our expenditures are increasing at a higher rate than what our revenue generation is,” said Ruby Walla, the city’s director of finance, during her budget presentation.

The approved budget includes $129.8 million for the general fund, representing a 5% increase from the previous year. Sales tax and Measure X revenue projections were scaled back during budget development as economic data showed more conservative expectations than initially projected.

The budget includes $205 million in capital improvement projects, including major projects like the completion of the new city hall and library complex expected this fall, and the ongoing Indio Sports Park development.

Significant funding has been allocated for the Monroe Interchange project, with approximately $23 million designated for future construction.

Councilmembers considered the increasing costs of contracts with outside entities responsible for important city services, like animal control and fire services.

The city contracts with the county of Riverside for animal control, fire protection, and ambulance services, but Councilmember Benjamin Guitron said the city should take a closer look at contracts and recommends more oversight and communication. 

This year’s budget recommends a $100,000 increase for animal control services, a sore spot for residents and councilmembers who say the service is not reliable.

“Not only do I not think we should give them $100,000 I also think we should take money back,” Mayor Glen Miller said. “We’re supposed to be having three [full-time animal control officers] in the city…and we don’t. They really need to justify the raised rates on this thing.”

City staff said they will bring a new contract to council for their consideration at the next meeting on June 18. 

The budget calls for about $23 million for fire and ambulance service, “My understanding,” Guitron said. “[our bill] has grown by six or seven million in five years.” He said it’s anticipated to grow even more in the coming years.

The budget relies on $6.1 million in fund balance to cover the gap between expenditures and expected revenue. General fund revenue is projected at $123.7 million, reflecting more conservative projections for sales tax and other sources.

The city’s financial position includes a healthy $19 million emergency reserve, representing 15.4% of ongoing general fund revenue, which meets Government Finance Officers’ Association guidelines.

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