CITY COUNCIL STAFF REPORT
DATE: JUNE 10, 2026 BUSINESS & LEGISLATIVE
SUBJECT: AUTHORIZATION OF ISSUANCE OF LONG TERM BONDS OR OTHER
OBLIGATIONS PAYABLE FROM ASSESSMENTS LEVIED WITHIN THE
PALM SPRINGS TOURISM INFRASTRUCTURE DISTRICT (PSTID)
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
Adopt a Resolution authorizing the issuance or incurrence of long-term obligations payable from assessments levied within the District in an amount not exceeding $55,000,000.
RECOMMENDATION:
Adopt a Resolution entitled, " AUTHORIZING THE ISSUANCE OR INCURRENCE OF
LONG-TERM OBLIGATIONS PAYABLE FROM ASSESSMENTS LEVIED AND
COLLECTED WITHIN THE BOUNDARIES OF THE PALM SPRINGS TOURISM INFRASTRUCTURE DISTRICT IN AN AMOUNT NOT EXCEEDING $55,000,000; AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS".
BACKGROUND:
The Palm Springs Tourism Infrastructure District (PSTID) is a benefit assessment district created at the May 27 meeting which will provide a revenue source to help fund capital improvements and debt service programs benefiting Palm Springs lodging businesses.
Bonds are authorized to be issued by the City for the benefit of the lodging businesses within the PSTID to finance the costs of the Convention Center improvements.
Assessments shall be levied until the final maturity of the bonds, which shall not exceed 40 years from the date of the issuance of the first series of bonds to finance the capital improvements. Pursuant to Ordinance No. 2124 (Ordinance), adding Chapter 3.29 to the Palm Springs Municipal Code, the City Council may authorize, and establish the procedures for, the use of assessment revenues generated by the District for the payment of bonds, notes, loans, interim certificates, debentures, installment purchase agreements, leases, and other obligations that the City issues or incurs. Assessments levied to the pay
City Council Staff Report
June 10, 2026 -- Page 2
Authorization of Issuance of Long Term Bonds within the Palm Springs Tourism Infrastructure 1 0
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the principal and interest on any bond shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
Under the Management District Plan (Attachment B) of the PSTID, there has been included a service plan the ability to issue bonds of the PSTID in a maximum amount of $55,000,000 for capital improvements to the Convention Center.
The Bonds of the PSTID will have a thirty (30) year term, however, the assessment may continue for a longer period in the event that there are any delinquencies in the payment of the Bonds. In no event will the assessments continue beyond forty (40) years from the date of issuance of the first series of bonds, beginning December 1, 2026, or as soon as possible thereafter.
The City will be responsible for collecting the assessment on a monthly basis from each assessed business. If funds allow, any excess revenue collected in excess of what is needed to pay principal and interest on the bonds or other obligations issued or incurred shall be forwarded to PS Resorts to fund marketing and sales programs, in accordance with the Management District Plan. The City shall be paid a fee of up to three percent (3%) of the amount of assessment collected to cover its costs of collection and administration.
The action taken at tonight’s meeting will not result in the final approval. Additional documents and a Preliminary Official Statement will be presented for the Council’s approval.
STAFF ANALYSIS:
The Council could choose not to adopt the Resolution authorizing the issuance of long- term obligations. Staff do not recommend this option.
FISCAL IMPACT:
None immediately. Upon the issuance of the bonds, the City will have additional funds to build capital improvements to the Convention Center.
REVIEWED BY:
Department Director: Kristopher J. Mooney
Economic Development Officer: Wayne Olson
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution
City Council Staff Report
June 10, 2026 -- Page 3
Authorization of Issuance of Long Term Bonds within the Palm Springs Tourism Infrastructure 1 0
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B. Management District Plan