The Desert Hot Springs City Council may soon be taking the first steps towards declaring bankruptcy. City officials say the staff will recommend city leaders approve a fiscal emergency, a legal maneuver that gives the city greater flexibility to negotiate its debts and work with employee unions. Under new revenue projections, Desert Hot Springs is on track to spend about $6.9 million more than it has in revenues for the current fiscal year. That figure does not factor in city debts, including $6.7 million in unfunded pensions. City staff warned that Desert Hot Springs could run out of cash by the end of March.
