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RiversideCA.govLocal Revenue Measure Options and Ballot DeadlinesCity Council January 27, 2026City Manager’s Office RiversideCA.gov2
ELECTION CONTEXT & CRITICAL DEADLINES•June 2, 2026, is the next available electionfor local tax measures.•Critical Deadline: March 6, 2026(88 days before election).•Must file consolidation resolution by deadline to meet ballot placement requirement.•Next opportunity after 2026 would be 2028.•Local tax measures only in even-numbered years under California Constitution.
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•Option 1:New 0.25% Sales Tax Measure•Option 2:Measure Z Extension •Option 3:Transient Occupancy Tax (TOT) Increase•Option 4: Combine Option – Increase Sales Tax and Extend Measure Z•Option 5:Receive report, take no further action•Next StepsAGENDAElection Context and Timeline RiversideCA.gov4
OPTION 1: NEW 0.25% SALES TAX MEASUREIncrease combined rate from 8.75% to 9.00%•Estimated annual revenue: ~$21 million(fully implemented)•Consumer impact: 25 cents on $100 purchase•Rate remains competitive within Southern California•Approval requirement: Simple majority vote•Revenue type: General purpose funds for City priorities
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REGIONAL SALES TAX RATESRateCity7.75%Irvine and Huntington Beach8.35%Fresno8.75%Anaheim, Ontario, San Bernardino8.75%Riverside (Current)9.00%Bakersfield9.25%Santa Ana and Palm Springs9.375%San Jose9.75%Los Angeles10.25%Pasadena and Pomona10.50%Glendale and Long BeachProposed 9% - Competitive RiversideCA.gov6
OPTION 2: MEASURE Z EXTENSION1% sales tax approved in 2016,currently expires in 2036•80% of revenue dedicated to public safety•Critical funding for police and fire personnel•Supports 30-year capital improvement planning•Renewal prevents major 2036 fiscal crisis•Approval requirement: Simple majority vote
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MEASURE Z FISCAL IMPACTWithout Renewal in 2036:•Significant drop in general fund revenue of approximately $103M and loss of critical public safety fundingKey Benefits:•Predictable revenue continuity•Supports 30-year capital financing•Essential for maintaining and enhancing current public safety levels RiversideCA.gov8
OPTION 3: TRANSIENT OCCUPANCY TAX (TOT) INCREASEIncrease from 13% to 14% + explore Tourism Business Improvement District•Current annual TOT revenue: ~$8.6-8.9 million•Revenue impact: Each 1% increase generates $640,000 annually•Growth opportunity: 1,000+ new hotel rooms in development pipeline –Potential to generate an additional $6.8 million with TOT increase•Potential use: Convention Center expansion and tourism marketing
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TOT RATES: REGIONAL COMPARISONTOT + TBID TBID RateTOT RateCity13.00%0%13%Riverside (Current)13.75%2%11.75%Ontario12.50%-14.50%1%11.5-13.5%Palm Springs13.75%-15.75%2%11.75-13.75%San Diego15.50%1.5%14%Los Angeles17.00%2%15%Anaheim RiversideCA.gov10
TOT: VISITOR-FUNDED SERVICESCost Burden on Visitors, Not ResidentsVisitors attending events pay TOT that directly funds public safety and infrastructure.Practical Impact Examples:•1% rate increase = ~$2 on $200 hotel room•Collectively generates millions in annual revenue•Facilitates Convention Center expansion to 150,000 sq ft•Attracts additional larger conferences and events increasing revenue opportunities
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OPTION 4: INCREASE SALES TAX AND EXTEND MEASURE ZIncreasing the combined rate from 8.75% to 9.00%, along with the continuation and adjustment of Measure Z, would secure approximately $103 million in annual revenue.Consumer Impact:25 cents on $100 purchaseRate remains competitive within Southern CaliforniaApproval Requirement:Simple majority voteRevenue Type:General purpose funds for City priorities•Predictable revenue continuity•Supports 30-year capital financing•Essential for maintaining current public safety levels EE1
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OPTION 5: RECEIVE REPORT, TAKE NO FURTHER ACTION•Limits near-term ballot opportunities to the June 2026 election or the November 2028 election. •Council must consider not only the substance of potential ballot measures, but also the timing, sequencing, and readiness of those measures in light of statutory deadlines, voter approval thresholds, and public outreach requirements.
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NEXT STEPS & TIMELINECRITICAL DEADLINE: March 6, 2026•Must file resolution 88 days before June 2 electionIf Council Directs Staff to Proceed:•Comprehensive fiscal analysis and revenue projections•Community stakeholder engagement plan•Ballot measure language and required resolutions•Return to Council well in advance of March 6 deadline RiversideCA.gov14
LONG-TERM FISCAL SUSTAINABILITYThese revenue options are critical tools for addressing:•Public Safety staffing and equipment•Improvements to Streets and Roads infrastructure•Parks and community services•Long-term Capital planning•Economic development and tourism
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CHOOSE PATH FORWARDNew 0.25% Sales Tax MeasureReceive report,take no further actionOPTION5 OPTION1
Measure Z Extension OPTION2
Extend and Adjust Measure ZTransient Occupancy Tax (TOT) IncreaseOPTION3 OPTION4