History of Hesperia Sales Tax

---

The City of Hesperia has an annual budget for Fiscal Year 2025-2026. The budget notes the City of Hesperia will receive roughly $142,579,000 in Revenue, has roughly $15,700,000 in reserves and expenditures are estimated to be roughly $138,600,000. The City has a healthy, balanced budget with roughly 4 Million leftover. This information is Public and posted on the City’s website for anyone to review.

The Current Sales Tax Rate is 7.75%. The City retains 1% of the 7.75% which brings roughly $14 million per year to the City’s General Fund. 

On August 12, 2025, the City Council held a Special Workshop to Discuss Sales Tax revenue.

During this workshop, Staff provided the City Council with a report & presentation. Staff laid out the General Fund Tax Revenue details for the City:

1. Property Tax revenue approximated at $1.2 Million annually

2. Vehicle License Fees expected to be $13.4 Million for TY 2025-2026

3. Transient Occupancy Tax generates approximately $1.5 Million annually

4. Sales Tax “the most significant General Fund tax source” $14 Million in 2023-2024 and $13.6 Million projected for 2024-2025

General Fund Tax revenue is estimated at almost $28,000,000 from all tax sources. Staff proposed an additional 1% increase in sales tax revenue which would bring in another $14,000,000 or so.

Staff sought direction from City Council to proceed with a Public Engagement consultant to engage the public on a potential sales tax measure. The cost of the consultant was projected to be $50,000 to $100,000. Council unanimously approved. 

On 9/21/25 staff created a Request For Proposal to receive bids from interested contractors. The bid title was Public Opinion Polling and Outreach Consulting Services. The closing date for bids was 10/16/25.

On December 16, 2025, City Staff brought back to City Council a recommendation to authorize City Manager to enter into an agreement with Team CIV-X to conduct a public opinion poll and provide outreach consulting services for a potential sales tax initiative in an amount not to exceed $217,000, more than DOUBLE what Council members approved. It is noted in the staff report that there are cash reserves in the City budget to fund the $217,000 contract. Notice the Date of this meeting…How sad it was held during the busy Christmas season when very few of the public would be in attendance to voice their opinion.

9 Proposals were received. Each proposal was evaluated by a 7-member city management review committee. No public members were on the committee. The committee chose to invite two firms to participate in in-person interviews. The committee unanimously chose Team CIV-X as the top-ranked firm and the $217,000 contract was awarded to them.

Cost Breakdown of Service:

Consultant Services

6 Months of Consulting $47,000

Feasibility Study and Monitoring $56,000

Marketing and Outreach

Two Mailers to Registered Voters $61,000

One Digital Outreach $25,000

Total Proposed Contract $189,000

  15% Contingency $28,000

Total Award $217,000

Time Frame

Jan – Mar  Phase 1 Test Phase -- Feasibility Assessment

Mar – June Phase 2 Vet Phase – Public Outreach

June  Phase 3 Build Phase – Prepare ballot language and legal analysis

July Council Resolution Council Votes (2/3 required) to place the tax measure on ballot

August 9 Ballot Deadline Submit the resolution to the County Registrar to appear on November ballot for 2026

August Voter Guide Finalized County prepares impartial analysis and argument for/against.

October 7 Vote-By-Mail begins

November 3 Election Day  Voters decide on measure. General Tax requires 50%+1 to pass

Voters will believe that a 1% sales tax increase is but a small portion of the overall 7.75% current sales tax. It is however a DOUBLING of the 1% the city currently Receives OUT OF the 7.75%.

On March 17, 2026, the City Council met again. During this meeting the Consulting Firm was scheduled to make a presentation of Public Opinion polling results related to potential sale tax measure. The representative from the consulting company was NOT present at the meeting. Instead, a representative participated electronically and taxpayers were not able to discuss sales tax matters directly (in-person). The Feasibility Study was conducted for the City of Hesperia by TrueNorth Research, NOT the firm contracted by the City.

The study states that voters were contacted via phone, email, and text messages to participate in what looks to have been a website with survey questions. The consultants received 606 completed surveys.

With roughly 55,760 voters in Hesperia, 606 completed surveys is only 1% of the voters. The consulting firm determined with 1% of voters responding that 62% of voters might vote “yes” on a sales tax increase measure.

The report/feasibility study is 20 pages of graphs showing the results of 606 interview submissions. The next phase of their study which stretches from March to June will be what the consultants call the Vet Stage which includes public outreach. 

During the Hesperia City Council meeting, the council members were asked for a list and the expenses for all projects that an increased sales tax would pay for. There was no response, and no list was provided. For this reason, it is not believable that any project the city says may happen, without a list and assurance in writing, the council may spend the money on anything so chosen by them. The city was also asked for a list of the questions asked of the 606 persons surveyed and the list has NOT been supplied.

The consulting firm may appeal to voters noting that a 1% sales tax increase could bring more police, more paving of roads, and more City services. But the sales tax will go directly into the General Fund and there’s no telling what will happen to the money. 

What is the current annual sales in sales-taxable goods and services, in dollars, that brings in almost $14 million in sales tax? Whatever it is, what if sales drop by 20% this year? Hesperia under a 2% scenario would still be ahead of the game and we will have no assurance where the money will be spent. Safe to say that some of it will go to the golf course where money was spent in 2024 for re-pavement and re-direction of flood waters which has resulted in erosion and waters improperly directed on Peach St. Still needs to be repaired. Also, during the recent rains a large portion of 3rd St. was washed out. Two to three years ago that same portion washed out and apparently nothing was done to improve the situation.

A 1% increase amounts to 10 cents for every $10 purchase. The firm may appeal to our better nature showing that a 1% increase isn’t much to ask for in providing more City services; however, at what point do we say “No” to more taxes. All our utility rates have risen, medical costs have risen and food prices continue to rise, not to mention the cost of fuel. Most families are struggling, working 2 and 3 jobs trying to raise and feed their families. The economy is in turmoil and hope is waning. This is not a good time to suggest a sales tax increase. Most of us are expected to deal with what we have while living paycheck to paycheck. We are all finding ways to make ends meet, being creative, combining households, shopping smarter, etc. Why not demand the same from our elected officials? They currently have a balanced budget and reserves. How many families actually have a reserve/savings?

In 2010, the City suggested a ½% sales tax increase to prevent cuts in the budget. The pursuit ended with some residents stating they would support it depending on how the increased tax question was phrased. Now they’re asking for a 1% increase doubling the amount they receive from the sales tax. They are seeking an extra 14 Million dollars at the expense of Hesperia citizens.

Although 1 cent to every dollar more going to the City doesn’t sound like much, when you take into consideration what the average family spends on food, gasoline, and home goods, the increase could be anywhere from $250 to $500 per year. Can any family afford to shell out another $500 per year to the City of Hesperia?

Let the City Council know that you are not in favor of a 1% sales tax increase, a DOUBLING of current City sales tax income, before they vote to place it on the ballot.

During the City Council meeting of 4/7/26 a member of the public spoke during public comments and shared his concerns about the lack of response from consultants regarding his request for information. The video can be viewed on the Facebook page Hesperia New/ Politics/411.