Measure Z was enacted in 2016, when the City of Riverside voted to impose a 1% sales tax. However, in the last decade, the forecasted budget has been eroded by inflation and rising expenses, including rising personnel costs and pension obligations.

The original Measure Z was set to expire in 2036; however, the City Council has now voted 6-1 to approve a $1.57 billion biennial budget by raising the sales tax to 1.25%. This increase will help generate approximately $106 million more annually than the previous plan, which produced $80 million.

The voting took place in response to a January warning from Fire Chief Steve McKinster. He said it wasn’t possible to respond to the growing call volume without increasing revenue.

Riverside now employs 0.69 firefighters per 1,000 citizens, which is well below the recommended 0.95 ratio. AP Triton, a Wyoming-based consultant, created a plan to combat the city’s safety issues, which calls for adding 94 new firefighters and rebuilding or relocating four stations in Wards 1 and 4. All these proposed changes cost $26.1 million per year.

Finance officials had predicted a general fund deficit of $27.1 million and $34 million in FY2026-27 in FY 2027-28 respectively. It was also projected that the previous Measure Z funds would fall short by $9.9 million and $12.4 million during those same financial years.

To eliminate this fund deficit, the city administrators proposed $18 million in combined general fund and Measure Z reductions for 2026-27, and an additional $22 million in reductions in the following financial year.

On April 1st, a Superior Court Judge asked city officials to change the measure’s title and parts of the ballot questions because they were found to be misleading.

The renewed ballot question now reads: “To fund general local city services such as 911, fire, police response; preparing for wildfires; recruiting/retaining well-trained firefighters/paramedics; preventing crime; keeping public areas safe/clean; addressing homelessness; repairing potholes/roads; shall a measure renewing the existing City of Riverside voter-approved transaction and use (sales) tax at an updated 1¼¢ rate, providing approximately $106,000,000 annually until ended by voters, subject to audits, spending disclosure, all funds controlled locally, be adopted?”

In other news, the Riverside County Board of Supervisors approved a $10.3 billion proposed budget, which was increased by 3.4% from last year’s budget. This is the second consecutive deficit budget for the county. The budget will be financed with $3.1 billion in state funds and $1.5 billion in federal funds.

“This year, county departments submitted approximately $700 million in requests for additional discretionary general fund revenue above our existing funding levels,” County Executive Officer Jeff Van Wagenen explained. “At the same time, the county continues to face rising labor costs, health care expenses, infrastructure needs, technology investments, and an increasing demand for services.”

Of the $10.3 billion budget, $8.9 billion is allocated to the restricted component, while $1.45 billion is allocated to discretionary spending.

62% of discretionary spending is allocated to public safety, and 8% to health and hospital services. The remaining 30% is divided between finance and government services, human services, public works and community services, and internal services.

The budget also includes $20 million for the augmentation fund, another $20 million for the contingency fund, and $12.5 million for the Unincorporated Communities Initiative.