After facing repeated budget shortfalls, the Apple Valley Town Council voted Tuesday to place a 1-cent sales tax measure on the November ballot.
If voters pass the measure, it will generate approximately $9 million annually in locally controlled revenue to fund town services.
The 2024 ballot measure comes nearly four years after Apple Valley voters rejected Measure O, a proposed 1% sales tax increase designed to help fund general town services.
Budget deficits
In a Wednesday press release, town staff reported that budget deficits since 2016 and projects increasing shortfalls may result in cuts to town programs and services, including those impacting public safety and infrastructure.
The town experienced the following estimated deficits:
- $3.18 million in 2023
- $3.4 million in 2022
- $6.3 million in 2020
- $991,000 in 2018
- $4.01 million in 2017
- $1.36 million in 2016
These amounts exclude American Rescue Plan Act funds, as these were extraordinary one-time revenue sources, staff stated.
In fiscal year 2023-24, the general fund was budgeted for $35.8 million in revenue and $41.3 million in expenditures, resulting in a projected deficit of $5.5 million.
In fiscal year 2024-25, the general fund is budgeted for $39.4 million in revenue and $42.5 million in expenditures, resulting in a projected deficit of $3.1 million.
Sales tax
A 1-cent sales tax would equate to an extra penny per $1 purchase of taxable goods. Exempted from sales tax are unprocessed groceries, rent, prescription medicine, and personal services such as medical, dental, and legal, staff said.
All revenues raised by the tax would remain in the town and not be shared with other agencies, including San Bernardino County and the state of California.
If approved, the funds would be subject to regular audits and public spending disclosures.
As described in the ballot measure and if approved by voters, funds generated through the sales tax may be used for town services and programs, such as:
- Maintaining 911 response times
- Safe routes to school programs
- Responding to property crimes, thefts, and burglaries
- Hiring and retaining sheriff’s deputies
- Repairing streets and potholes
- Retaining and attracting local businesses
- Addressing homelessness
- Cleaning and maintaining public areas and parks
- General town services.
Budget deficits ‘threaten essential services’
According to a recent survey on budget priorities conducted by the town, nearly 74% of respondents believe there is a need for additional funds to provide town services. The prioritization of services by town residents is reflected in the ballot measure, according to the town.
“The Town Council’s decision to place this measure on the ballot allows our residents to decide on a potential solution to the ongoing budget deficits that threaten essential services,” said Town Manager Doug Robertson in a press release. “This measure, if approved, aims to provide stable funding for crucial services such as public safety, infrastructure maintenance, and other vital community needs.”
The measure will appear on the ballot as shown below.
Town of Apple Valley Public Safety/Town Services Measure:
Shall the measure funding Town of Apple Valley services such as maintaining 911 response times, safe routes to schools programs; responding to property crimes/thefts/burglaries; hiring/retaining sheriff’s deputies; repairing streets/potholes; retaining/attracting local businesses; addressing homelessness; cleaning/maintaining public areas/parks; general town services; by establishing a 1¢ sales tax providing approximately $9,000,000 annually until ended by voters; requiring audits/public spending disclosure, all funds used locally, be adopted?”
Outcome of 2020’s Measure O
In 2020, Apple Valley voters shot down Measure O, a proposed 1% sales tax increase designed to generate upwards of $7 million for the town.
The results of Measure O included 66% of voters voting no and 33.7% voting yes, out of 32,547 votes, according to the San Bernardino County Elections Office.
Town officials previously said the passing of Measure O would pay for law enforcement officers, road construction, and improvement of parks and ball fields. It also would fund community events, concerts, and recreation programs and provide reserves for preparation for future crises or revenue impacts.
A 2020 town-issued FAQ sheet said the town would have to consider cuts to services to balance its budget as costs rise. Possible cuts include reducing law enforcement personnel, delaying or suspending road improvements, and reducing aquatics and other recreational programs.
“These are difficult times and while we are disappointed in the results, we appreciate the community’s input,” Mayor Scott Nassif said in response to Measure O’s defeat. “We’ve significantly curbed spending over the last few years but will now have to make deeper cuts to parks, recreation, and public safety, unfortunately, to live within our means.”
During the same election, Victorville voters approved Measure P, enacting a 1% general transaction and use tax, enabling the city to expand essential services and increase safety for the city’s growing population, city staff said.
Daily Press reporter Rene Ray De La Cruz may be reached at RDeLaCruz@VVDailyPress.com. Follow him on X @DP_ReneDeLaCruz
