Desert Hot Springs Could Declare Another Fiscal Emergency

Desert Hot Springs could be declaring yet another fiscal emergency at Tuesday’s city council meeting.

On the agenda, the council will hear from staff about declaring a fiscal emergency. The City Council previously declared a fiscal emergency in November of last year.

In a staff report to council City Manager Martin Magana says the city’s need for additional revenue is immediate. There is only $10,000 budgeted for contingencies such as emergencies like fire, earthquakes, floods and public safety issues, this after the city cut 1.6 million dollars in Fiscal year 2014-15 in order to maintain the minimum acceptable level of general fund cash of 1.5 million dollars which is used to make payroll and pay bills between July 1st, 2015 and late January 2016.

If the resolution is approved according to the staff memo, staff will be directed to investigate and recommend further actions necessary to increase revenue and mitigate revenue losses.

Also on the agenda, The city council will vote to adopt a resolution placing a general tax measure proposing a 1 percent increase in the sales, transaction and use tax on the November 4th ballot. It will also vote on whether to approve medical marijuana dispensaries in the city. To add this to the November election the council would have to declare a state of fiscal emergency, due to the fact that the next General election for Desert Hot Springs is not until 2015. By declaring a fiscal emergency it can be placed on the upcoming November 4th ballot. If approved and placed on the ballot, the tax measure would only need a majority of voters to pass the tax increase unlike Measure F which failed in June, which needed 75 percent of the voters to pass.

Check back tonight for updates on the decisions.