Indio proposes $130 million budget with surplus, big investments in public safety and infrastructure
The city’s spending plan for the coming fiscal year calls for new police radios, an additional ambulance and nearly $200 million in capital projects over five years — while still finishing in the black.
Indio is entering the next fiscal year with a balanced budget and a modest surplus, as the city proposes a $130 million spending plan for fiscal year 2026-27 that increases investment in public safety, infrastructure, and economic development while maintaining financial reserves above the city’s minimum threshold.
The overall budget carries a surplus of approximately $992,000, with operational revenues of $114 million outpacing operational expenses of $112 million — producing an operational surplus of $1.3 million.
Finance Director Ruby Walla presented the plan at a study session Wednesday, framing the budget as one built on steady growth.
“Over the last 10 years, we really saw the city just take off in revenue growth, but now we are flat, so we have to change our thinking a little bit,” she said. “We have a balanced operational budget, and that’s our goal.”
Staff recommended setting aside an additional $500,000 toward reserves, which would bring the city’s reserve fund to $19.5 million — or about 17% of the budget, above the city’s 15% minimum. The recommendation leaves the final decision to the council.
Measure X, the city’s local sales tax measure, is projected to generate $18.9 million in the coming year. Those funds are kept separate from general operations and directed toward three areas: $5 million for street and road repairs, $10 million in debt service obligations, and $3.9 million transferred to a dedicated capital fund.
The proposed budget includes $7.3 million in one-time expenditures — items the city does not expect to repeat in future years. Among the larger items: $870,000 for Motorola police radios, $85,500 for a SWAT tactical robot, $2 million for land acquisition and $1.5 million toward the city’s retiree benefit obligations.
The city’s police budget is set to get a $4 million increase. Walla said the increase will be used for travel and training, body worn cameras, ai-power report software, increases to concert services and overetime and increases to medical and lab services, “due to rising demand in investigations.”
Walla explained the $400,000 increase in concert services would be reimbursed by Goldenvoice.
The budget also adds an ambulance to the city’s fleet — a decision driven by data showing the existing fleet is being stretched thin. A city official explained to the council that the city had, on multiple occasions, exhausted all available reserve units. “We have run into several times where not only are all the different services — all the reserves — and so we’re borrowing from our partners over the cove communities,” the official said.
On the capital side, the city is proposing a five-year, $195 million Capital Improvement Plan, with $80 million committed from Measure X and general fund sources. The plan includes $23.7 million toward the Monroe freeway interchange project, which will be managed by the county, and future funding set aside for a Jackson Street project estimated at $20 million.
The council is expected to take up a formal budget adoption in June.
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