The City Council of the City of Cathedral City unanimously approved and adopted the biennial budget (fiscal year 2025-2026 and 2026-2027) at the regular meeting on Wednesday, May 28, 2025. The biennial budget addresses the priorities of the community while generating revenues that meet city expenditures and focuses on the City’s Five-Year Strategic Plan, which was updated in March 2025.
For FY 2025-2026, the City’s General Fund forecasted budgeted revenues are $70.8 million and budgeted expenditures are $76.6 million. The net deficit is $5.8 million, which includes $4.7 million in discretionary or non-recurring expenditures. For FY 2026-2027, the City’s General Fund forecasted budgeted revenues are $73.5 million and budgeted expenditures are $78.1 million. The net deficit is $4.5 million, which includes $4.5 million in discretionary expenditures, resulting in a structurally balanced budget.
During the past twelve years, FY 2012-2013 through FY 2024-2025, the City has been able to stabilize and achieve not only balanced budgets but has also grown fund balance over the years to provide ample savings in order to navigate through uncertain economic times. To the extent the unassigned fund balance is positive, the City may draw upon the fund balance to provide cash financing for capital projects or other one-time purchases.
Strategic Focus and Development Process
Staff developed the City’s biennial budget after five months of preparation, reviews, and discussions, with a primary focus to accomplish City Council strategic plans and corresponding goals established in January 2023, with updates made in March 2025. Departments reviewed past accomplishments and developed objectives focusing on achieving these overarching Council strategies and goals:
- Serving the Community with Pride and Dedication
- Community Investment
- Fiscal Stability and Sustainability
- Innovation
- Safety
- Embracing, Inclusive City
“This budget represents our continued commitment to investing in high-quality city services while maintaining fiscal responsibility,” said City Manager Charlie McClendon. “Through careful planning and strategic prioritization, we’re able to address community needs while ensuring Cathedral City’s long-term financial stability.”
Budget Efficiency and Recognition
To achieve time and cost efficiencies over a traditional annual budget, the City of Cathedral City prepares and adopts two one-year budgets simultaneously. Using this cycle, the second year does not require formal adoption by City Council, though each year remains separate and distinct. This biennial budget forecasts the financial plan over the next two years for the City’s 50+ funds.
The City of Cathedral City has received the Government Financial Officers Association (GFOA) budget award for the last nine budget cycles, and staff will submit this adopted biennial budget to continue this tradition of excellence in financial planning and transparency.
Major Infrastructure Transformations and Community Investments
Transportation improvements include the Date Palm North of I-10 Expansion, a $5.3 million project that will create a 6-lane roadway providing safe travel and proper storm water drainage in one of the city’s key corridors. Additionally, the Whispering Palms Trail Bike Lane project will add bicycle lanes in one of the City’s most densely populated areas, enhancing walkability and alternative transportation options.
Comprehensive Transportation and Safety Improvements
The FY 2025/2026 and FY 2026/2027 Capital Improvement Program includes an extensive array of transportation safety projects designed to enhance traffic flow and pedestrian safety throughout the city. Key projects include multiple Highway Safety Improvement Program (HSIP) initiatives: twelve intersections will receive traffic signal updates, intersections without traffic lights will be upgraded for safety, and two new signalized crossings will be installed to protect pedestrians.
The comprehensive plan also includes citywide traffic signal hardware upgrades and a dedicated pedestrian crossing at 30th Avenue and San Eljay. Major roadway improvements will transform key corridors with the East Palm Canyon Widening and Master Undergrounding Plan, including traffic signal improvements at East Palm Canyon Drive and Cree Road.
Additional infrastructure investments include pavement reconstruction projects on Vista Chino from Date Palm Drive to Horizon Road and Date Palm Drive from Vista Chino to 30th Avenue. The Landau Public Alley Reconstruction from Vista Chino to 30th Avenue will improve neighborhood connectivity, while the Edom Hill Truck Climbing Lane design north of Varner Road will enhance traffic safety for commercial vehicles.
Bicycle infrastructure continues to expand with SB821 Class IV Bike Lane improvements on Perez Road from Cathedral Canyon Drive to Date Palm Drive, complementing the previously mentioned Whispering Palms Trail bike lanes.
Enhanced Emergency Response and Public Safety
The City of Cathedral City is significantly expanding emergency medical response capabilities with the addition of a Fourth Ambulance and Enhanced Paramedic Services. This expansion includes 6 additional Firefighter Paramedic positions funded by Measure W, ensuring faster response times and better coverage across the community.
The Police Department is also growing strategically with 2 net new positions, including 3 additional Police Officers in Investigative Services and 2 additional Public Safety Dispatchers to improve emergency response coordination.
Measure W: Voter-Approved Community Enhancements
Thanks to voter approval of Measure W, the budget includes funding for the Desert Recreation District Partnership, which will bring professional park maintenance and recreational programming directly to City of Cathedral City residents through annexation into the Desert Recreation District. The budget also sets aside funds for the future construction of a Community Recreation Center, demonstrating long-term planning for resident needs.
Technology and Innovation Upgrades
The budget prioritizes modernizing city services through IT Infrastructure Modernization, implementing the IT Master Plan with enhanced cybersecurity, improved public Wi-Fi access, and streamlined digital services for residents. New Digital Government Services will include implementation of online services to make government more accessible and efficient for residents and businesses.
This budget ensures the City continues to proactively pay long-term liabilities and continue capital investments in critical infrastructure, supporting Goal C of the Five-Year Strategic Plan: Fiscal Stability and Sustainability. The objective remains clear: the City of Cathedral City will continue to prosper economically by facilitating private investment in high-quality development that benefits the community while remaining financially solvent through prudent fiscal policies and transparent financial practices.
With any budget, whether at work or home, there is always more need than available resources. This financial plan adopted by the City Council keeps the City of Cathedral City moving forward in a prudent manner while addressing the priorities most raised by residents, businesses, and seasonal visitors.
For more information about the biennial budget, please visit https://www.cathedralcity.gov/departments/financial-services-department.
Related posts:
Sign Up Today! Cathedral City Embraces the Future of Civic Engagement with FlashVote Community Surveys
Meeting The Moment: 2024 State of the City Now Available Online, LeAnn Rimes Announced as Balloon Festival Headliner
FlashVote Scientific Surveys Launching Soon, Residents May Receive Text Messages to Participate
