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Growth Is Good And Challenging At The Same Time
There are many good things about Cathedral City’s growth. People choose to live in Cathedral City because of convenience, affordability, and because the city has the lowest crime rate in the Valley. But that’s not all. Cathedral City, despite all its growth, still has that homey feel to it. However, growth without the necessary additional funds to provide basic public safety services is an issue of which the community needs to be aware. Doing more with less can only go so far, eventually something will eventually slip through the cracks in an emergency.

What About Streets And Other Public Works Projects?
Public Works has developed a 5-year street re-surfacing and re-striping program which they are currently carrying out. You may have also seen Cathedral City Public Works staff at some major intersection where flooding occurs during rain storms snarling up traffic. They are putting in inverted siphons that will redirect rain water off of the intersections making them safer.

However, just like Police and Fire, Public Works is basically staffed 1998 levels for a 2008 population. There is more traffic wearing down already tired streets, more nuisance water, more graffiti and vandalism. Public Works is staffed to deal with immediate essentials – not to be proactive.

Why Is This A Problem For Cathedral City And Not Other Valley Cities?
All the challenges mentioned above are primarily due to the fact that Cathedral City does not have a stable source of income. Since, as a post-Proposition 13 City, Cathedral City does not get adequate income from property tax (for example Palm Springs with a population of about 47,000 receives $17.7 million in property tax, while Cathedral City, with a population of around 54,000 receives only $1.5 million). Cathedral City is dependent on sales tax for its income.

Most other Valley Cities have had additional voter approved taxes such as utility taxes, parcel taxes, community facility district taxes and other taxes to add to and stabilize their sales tax. Cathedral City, when it incorporated, had a Community Service District tax that was repealed by voters. If that tax had not been repealed, it would be bringing in some $6 million a year to the City’s general Fund today.

Cathedral City has both the lowest tax revenue income per person ($251 compared to Palm Springs’s $1,138) and the lowest General Fund per person ($633 compared to Palm Springs’ $1,365). If there is any good news in these numbers, it is that Cathedral City is doing more with less!

What Can be Done About It?
Although bringing new business to Cathedral City plus focusing on economic development and business retention might improve the city’s bottom line, it is still not enough to keep Cathedral City solvent. If over the next few years Cathedral City were to double its sales tax to be roughly on par with Palm Desert, Cathedral City would still not have enough money to operate – the budget would still be $20 million less than the smaller desert city.

It’s About Cathedral City’s Future.
Cathedral City is currently spending down its reserves to meet basic demands for service. If the community chooses to do nothing the city would run out of money in 3 to 5 years and current levels of service would deteriorate further. Cathedral City would be in a financial crisis. Some services might go back to Riverside County which is also having financial difficulties.

Some say cut staffing: About 65% of the City’s budget goes to Police, Fire, Emergency Medicine and Public Works. The City has already completely eliminated its’ Parks & Recreation Department and not filled many other positions. Further staff cuts would worsen the already concerning emergency response times. Street sweeping, street repair and median maintenance services would further deteriorate. This could affect property values, insurance rates and drive away existing and potential businesses that provide the City’s desperately needed sales tax.

Others suggest Cathedral City Council put a tax measure on the ballot, but cities cannot impose a tax. Only resident voters can do that. Taxes could take the form of a utility tax, a parcel tax or a sales tax.