Indio’s Measure X tax revenue beats expectations, but officials warn a dip could be ahead

Online purchases count toward Measure X, according to city staff.

Indio collected $19,055,075 from its Measure X sales tax in fiscal year 2025-26, $855,075 more than the $18.2 million budgeted, according to preliminary figures presented Oct. 8 to the city’s Citizens’ Finance Advisory Commission.

Finance Director Ruby Walla said the total surprised staff, who had hoped for at least $18.5 million. She said the city expects revenue to stay near $18.5 million or dip slightly. The budget for fiscal year 2026-27 assumes $18,953,496. The figures are unaudited and could change, she said.

Answering a commissioner’s question about household budgets, Walla said consumer behavior drives the revenue and the city’s sales tax consultant, HDL, monitors the market. Staff can adjust projections at midyear, she said. She also said the tax follows where goods are delivered, so online purchases count, which is why Measure X outpaces the city’s local sales tax.

Measure X spending totaled $17.9 million, or about $490,000 under budget, according to the staff presentation. Most of the difference came from debt service on the city’s 2022 lease revenue bonds. The fund’s preliminary year-end balance is about $34 million, up from $32.9 million a year earlier but down from $47.1 million in 2022-23.

The city budgeted $70,944,560 for capital projects and spent $17,993,268 from Measure X and the general fund, leaving $52,951,293 to carry forward. Walla said unspent project money rolls over with the project rather than building up in a separate pot.

She said the city draws on grants, development impact fees, gas tax revenue and state road funds before using general fund or Measure X money. A commissioner described Measure X as a filler rather than a primary source, and Walla agreed.

That explains why some projects show little or no Measure X spending. The project tables show only Measure X and general fund commitments, not total project costs. Highway 111 landscape improvements, for example, had $80,855 budgeted and nothing charged.

The audit of fiscal year 2026 begins within about a week from now, Walla said. She hopes to have draft reports by December and return to the commission in January or February, before they go to the City Council. The commission then would recommend that the council receive and file them.