Measure J fund shows robust financial health despite large project carryovers
The fund’s healthy position allows for projected spending of $28.2 million in fiscal year 2025-26, including $6 million for street repairs and continued funding for major capital projects.
The Palm Springs Measure J fund generated $23.18 million in revenue during fiscal year 2024-25, exceeding the city’s forecast of $21.5 million and maintaining the sales tax fund’s strong financial position.
Finance Director Kristopher Mooney presented the financial update to the Measure J Oversight Commission at its Sept. 18 meeting, showing revenue of $21.43 million slightly surpassed projections. Interest income nearly doubled to $1.35 million compared to the previous year due to higher cash balances from unspent project funds.
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The fund currently maintains $5.5 million in unassigned balance available for future projects, despite carrying over $44 million in previously approved but unspent project dollars. The carryover includes $8.25 million for community initiated projects and $36 million for capital projects that remain in various stages of completion.
“We exceeded our forecast of $21.5 million, which we’re happy about, and sales tax is still considered to be strong for Measure J,” Mooney said during the meeting.
The fund’s healthy position allows for projected spending of $28.2 million in fiscal year 2025-26, including $6 million for street repairs, $6.5 million for vehicle purchases and deferred maintenance, and continued funding for major capital projects like the library renovation and downtown revitalization.
Looking ahead, the budget projects the fund balance will grow to more than $24 million by fiscal year 2030-31, despite significant debt service obligations beginning this year for the swim center and future debt for the library and fire station projects.
Airport-specific funds, generated from aviation fuel sales taxes, have accumulated $2.9 million that must be used exclusively for airport projects under FAA regulations. The Airport Commission is expected to present project requests to the Measure J Commission in October.
The fund’s strong performance comes as major construction projects including the $125 million convention center renovation and downtown walkability improvements move into design phases over the next two years.
Measure J, approved by voters in 2012, generates revenue through a half-cent sales tax to fund capital improvements and infrastructure projects throughout Palm Springs. In November 2024, voters overwhelmingly approved an extension of the tax which will now continue indefinitely, or until voters decide to end it. The extension officially took effect on April 1.
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