Riverside City Council directed staff Monday to return February 24 with formal proposals for all five revenue measure options—including a quarter-cent sales tax increase and extending Measure Z beyond its 2036 expiration—despite multiple council members expressing concern that voters may reject new taxes after years of increases.
The directive sets up a February 24 meeting where the Council must decide which measures, if any, to place on the June 2 ballot. Missing the March 6 deadline would push any revenue measures to 2028.
"We both looked people in the eye and said that we think this is the last time we'll have to go the well," Councilmember Chuck Conder said. "We are reaching that point where we may get rejected."
The timing isn't arbitrary. California law limits local tax measures to even-year elections when council members appear on the ballot—2026, 2028, or 2030 this decade.
The five options range from a hotel tax increase paid primarily by visitors to a combined package that could generate more than $100 million annually.
City Manager Mike Futrell called the current budget "strong" but said revenue measures could address "unmet needs, particularly in the fire department" and opportunities like convention center expansion.
Councilmember Clarissa Cervantes cited "economic uncertainty nationally" and concerns from "our immigrant community" affecting the local economy.
New quarter-cent sales tax would raise Riverside's rate from 8.75% to 9%, generating an estimated $21 million annually—$5 million less than the Fire Department's identified $26.1 million staffing need.
Extend Measure Z beyond its current 2036 sunset date. Without extension, the city faces a $103 million revenue loss in 2036—equal to 19% of the combined general fund and Measure Z budget. The decade-old sales tax currently generates $81-86 million annually and funds 164 public safety positions, though staff corrected Monday that 68% goes to public safety, not the 80% figure initially stated in presentation materials.
Increase transient occupancy tax from 13% to 14% and explore a Tourism Business Improvement District. With approximately 1,000 new hotel rooms in the development pipeline, the increase could eventually generate $6.8 million annually to support the proposed $200 million Convention Center expansion.
Combined approach that extends Measure Z while adding a quarter-cent increase, generating roughly $103 million annually total.
Take no action, meaning the next opportunity wouldn't come until 2028.
Council Debate: Economic Pressures vs Future Needs
Council members expressed varying levels of support.
Councilmember Phil Falcone said he's reviewed the city's finances and concluded the revenue measures are necessary despite challenges.
Councilmember Steven Robillard emphasized that "these are local revenue measures, so unlike some of our state taxes and some federal taxes, these literally will stay here locally for the services for our community."
Councilmember Steve Hemenway warned that if Riverside doesn't claim available sales tax capacity, "somebody else will"—a reference to other agencies eying the same revenue source.
But Conder said Monday he could support extending Measure Z and increasing hotel taxes but expressed reservations about the sales tax increase.
"The city of Riverside is growing and the need for municipal services is growing," Conder said. "Councilman Perry and I have been up here the longest. We both looked people in the eye and said that we think this is the last time we'll have to go the well. We are reaching that point where we may get rejected."
"The people just can't take a heck of a lot more out there right now," Conder said. "Let's look at 'em, let's discuss 'em. I'm a little wary on the quarter percent but the measures, the extension, the transient occupancy tax. I think that's some solid ones I could get behind."
Councilmember Jim Perry insisted any measure must use "very specific" language about how money would be spent, "not in general terms."
The comment appeared directed at Measure Z's history—approved in 2016 with general language about preventing cuts to police and firefighters, but later criticized for funding items not explicitly mentioned in the ballot measure.
Despite the reservations, no council member objected when Futrell summarized at meeting's end: "What I heard from the majority of council is to bring back all five options and we will do all of the research and bring those back. And again on Feb. 24 we will tee those up for an actual vote of the city council on which of the five options to pursue."
The Fire Department Emergency
The discussion centered on what Futrell called an "emergency need immediately" in the Fire Department. The fire master plan presented Jan. 14 showed the department operates with 225 firefighters—a ratio of 0.69 per 1,000 residents compared to a national standard of 1.35—despite a 26% increase in emergency calls since 2018.
To reach the national standard would require 84 new firefighters at $26.1 million annual cost. A quarter-cent sales tax increase would generate $21 million annually—covering 80% of that need but leaving a $5 million gap.
The city's current 8.75% rate matches Anaheim, Ontario and San Bernardino. A quarter-cent increase would bring Riverside to 9%—below Bakersfield (9%), Santa Ana and Palm Springs (9.25%), and well below Los Angeles (9.75%) or Long Beach (10.5%).
The Measure Z Question
Measure Z, approved in 2016 with 59.64% support, promised $48 million annually to "prevent cutting police, firefighters, paramedics, 911 emergency response." Instead, it has generated $81-86 million annually.
Yet the Fire Department, which the measure was designed to protect, faces a staffing shortage that requires 84 new firefighters immediately. The master plan projects the department will reach "overload" status—handling 4-6 concurrent emergencies—54% of the time by 2040 if staffing doesn't increase from current levels.
Measure Z—generating $81-86 million annually—is already "fully committed through 2028 and provides no funding for Phase 1 improvements," according to the Jan. 14 staff report.
Measure Z generates roughly $85 million annually but is "fully committed" with no room for the fire department's $26 million need.
Staff reports show Measure Z funds 164 public safety full-time positions across police and fire departments. The percentage dedicated to public safety is 68%, staff said.
In a 2019 op-ed, Conder argued Measure Z dollars were spent on items "not mentioned in that ballot measure." He warned then that "without major spending discipline," Riverside risked San Bernardino-style fiscal crisis.
What Happens Next
Staff will return Feb. 24 with fiscal analysis, proposed ballot language, and community outreach plans. Any measures approved that day would need to be filed with the County Board of Supervisors by March 6 to appear on the June 2 ballot.
If Council misses the March 6 deadline, the next opportunity wouldn't come until 2028.
For voters, June could bring decisions on extending an existing tax they've been paying for a decade, approving new taxes on purchases or hotel stays, or some combination.
The February 24 meeting will reveal whether Council narrows the options or places multiple measures before voters, and whether the language addresses Perry's call for specificity over the general terms that characterized past revenue measures.
City Council will discuss placing tax measures on the June ballot including a potential 0.25% sales tax generating $21 million annually and consider warehouse development restrictions.
