Cities Respond To Lack Of Redevelopment Funds

When the amount of money that goes out is more than what comes in, problems arise.

“With the loss of redevelopment, we have serious budget challenges. This is an opportunity to hear from the public, their thoughts,” Cathedral City Mayor Kathy DeRosa said.

Nearly 50 community members showed up at the city of Cathedral City’s first of three public meetings Thursday night. Some suggested that council members lose their pensions. Others suggested lower salaries instead of layoffs.

“If we had more development and the time was good and there was plenty of money here, we would have more revenue and wouldn’t have this problem,” DeRosa said.

Cathedral City isn’t the only one with this problem. Palm Desert is now operating with 15 fewer employees after it laid off three employees and twelve more took early retirement.

The city of Palm Desert said lack of redevelopment caused it to make difficult decisions, which leaders two towns over will soon have to make, as well. The loss of redevelopment will cost them $2 million a year.

“After that, we have another $4 million a year at risk for the next two years. In the next two years, that $12 million out of our general fund that will be totally lost,” DeRosa added.

Community members have answers to the problems, though.

“We need to get some hotels, motels, and we need to get more retail businesses. That’s the answer,” Cathedral City resident Gershwin Haltman said. “They’ve already got a 1 cent sales tax that goes on for another three and a half years. They have a revenue tax they’re collecting from the public. I don’t think they’re going to get any more money form the public.”

“We need to find ways then to fix the system that may be broken, find out where some changes need to be made,” DeRosa said.

The city made a list of all problems and suggestions to discuss at the next meeting.