Perris voters just gave their city another $18 million a year

There's no price tag on peace of mind — except perhaps in Perris, where voters delivered an $18 million ray of sunshine for the city's challenged finances.

That's how much Measure B — approved with 60% of the vote in the June 2 primary — will raise each year via a 1 percentage point increase in Perris' sales tax from 7.75% to 8.75%.

Similar measures in other Inland cities fell short this month. Voters in Riverside and Loma Linda rejected sales tax hikes that, like Measure B, were pitched as much-needed booster shots for public services.

Measure B's passage comes about six months after the Perris City Council declared a fiscal emergency.

At the time, officials described the declaration as a proactive measure intended to get ahead of forecasts showing falling revenues. The emergency declaration remains in place, city spokesperson Stephen Hale said.

A 115-year-old city of more than 80,000 people, between Riverside and Menifee, Perris has seen a drop in tax revenue from cannabis dispensaries — at least six have closed in the past five years — and warehouses.

The city also lost money when Wayfair opened a warehouse in Lathrop — just south of Stockton — and siphoned sales tax income from Wayfair's Perris location. Perris also stands to lose as much as 10% of its sales tax income if state lawmakers change how logistics centers are credited for sales, according to a Measure B explainer on the city's website.

At the same time, Perris' expenses have grown 55% in the past five years, with rising costs for police and fire protection — almost half of the city's $89 million budget — and insurance leading the way. Revenues only grew 25% in the same timeframe.

Matthew Schenk, Perris' finance director, said the city council asked staff “to come up with a couple of options” for fixing Perris' finances. One of those options was Measure B, which the council chose to put before voters; California law requires cities and counties to seek voter approval for sales tax hikes.

Without Measure B, the city would have to look at cutting services, Schenk said. Besides paying the Riverside County Sheriff's Department and Cal Fire for police and fire services, Perris also maintains streets, runs parks and recreation programs and handles building permits among other programs.

To sell Measure B to voters, officials held at least six town halls throughout the city and used mailers and social media to promote the ballot measure.

Perris' new 8.75% sales tax rate matches that of other nearby cities, including Riverside and Lake Elsinore. California cities share sales tax revenue with the state, school districts and other public agencies.

Lupe Gomez, a former Perris planning commissioner who's announced plans to run for city council in November, has some concerns about Measure B, specifically its oversight.

Besides establishing a Measure B oversight committee, Gomez, who attended town halls on the ballot measure, said she suggested Measure B revenue “be designated to a specific expenditure and not just the general fund” to ensure it's being spent properly.

Hale, the Perris spokesperson, said the ballot measure's language includes an oversight committee, which will take shape after Riverside County certifies the June primary results.

Measure B revenues also will be subject to an independent audit, and Schenk noted the public can review budget documents posted online and weigh in on Perris' budget in public meetings.

Gomez also is skeptical of Perris' fiscal emergency. She questioned what happened to the city's savings and criticized spending money on events and new landscaping after the emergency declaration.

“Normally a fiscal emergency means you put a pause to certain expenditures in the city because” they're not necessary, Gomez said. “You only do what is urgent to keep the city moving. The other extra services or events kind of get put on a pause and you don't have them.”

Schenk said the city's reserves covered Perris' entire budget three or four years ago. Since then, the city has used its savings to build parks and cover unexpected construction costs tied to those projects, he said.