Desert Hot Springs City leaders are exploring permitting and taxing medical marijuana dispensaries. If approved, Desert Hot Springs would join Palm Springs as one of two cities in Riverside County to permit marijuana dispensaries to operate. An audit conducted last year by Palm Springs of its three legal dispensaries revealed they generate about $4.5 million annually in combined proceeds. And in February, the Palm Springs City Council approved a fourth dispensary, which is expected to open as soon as July. Desert Hot Springs City leaders see marijuana as an opportunity to bring in much needed revenue to the cash-strapped city facing a $3-million deficit.