Measure J sales tax revenue shows slight increase; budget projects conservative growth

Palm Springs’ Measure J sales tax revenue is showing signs of moderate growth, with year-to-date collections reaching $11.7 million, representing a 1.5% increase over the prior year’s $11.5 million for the same period.

During the April 17 Measure J Oversight Commission meeting, Director of Finance and Treasurer Kristopher Mooney presented the positive financial news while outlining the proposed budget for fiscal years 2025-2026 and 2026-2027. Mooney reported that despite earlier forecasting for more neutral revenue performance, the city appears on track to meet its annual budget target of $25 million in Measure J sales tax revenue.

For the upcoming two-year budget cycle, Mooney has incorporated a conservative growth estimate of 1.5% for each year, noting that while not substantial, it represents anticipated organic growth based on standard inflation rates. The budget presentation included projected revenues of approximately $21.8 million for 2025-2026 and $22.1 million for 2026-2027.

Measure J is a one-cent sales tax approved by city voters in 2011. The majority is used for infrastructure projects, while some is set aside to fund projects submitted by community members. The budget outlined at the meeting by Mooney shows significant infrastructure investments across the city, with several key projects receiving substantial funding. 

The street repairs program will maintain its $9 million annual allocation through at least 2027, a funding level that City Engineer Joel Montalvo specifically requested to continue. Additionally, $650,000 has been approved for design services for the renovation of the city swim center, with construction funding of $7 million spread across fiscal years 2025-2026 and 2026-2027.

The budget also allocates $3.5 million over two years for an in-ground pedestrian system replacement project that will update aging technology at crosswalks throughout the city. Montalvo explained that many existing crosswalk systems use outdated technology with batteries that frequently malfunction. The new systems will be more reliable and improve pedestrian safety.

Measure J will continue to fund community-initiated projects with $1 million set aside annually for future projects. The commission has already allocated an available $6 million budgeted for current community projects, plus $1.2 million in overages, meaning new community projects will need to wait for future funding cycles.

The Commission will reconvene on May 15 to consider formally approving and recommending the proposed budget to the Palm Springs City Council, which needs to adopt the next city budget by June 30.

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