Change in Land Prices

Hesperia Finances are Balanced and ‘Booming’

As mentioned in the Victorville Daily Press, July 1, 2018, Hesperia will begin the fiscal year with an operating budget of just over $74 million that includes a number of infrastructure projects. The Hesperia City Council put the final touches on next year’s budget when they approved the city’s new 2018/19 Capital Improvement Program budget that includes some $30 million in projects. A few of the new and continued CIP projects include numerous street improvements, an I Avenue Corridor Enhancement Study in anticipation of the construction of the Tapestry Project and the addition of traffic signals along Ranchero Road at Cottonwood and Maple avenues. The approved balanced budget includes anticipated revenue for the city to increase overall by 10 percent or $8.7 million, with the General Fund also increasing by 6 percent or $1.7 million to an estimated ending reserve balance of $7.4 million. The increases are primarily due to Sales and Use Tax increasing by $400,000, Vehicle License Fee increasing by $600,000 and Development-Related Revenue, as 200 building permits are planned to be issued, increasing by $400,000 over last year. Water District revenues are expected to increase by 13 percent over last year’s fiscal budget. The largest increase in the city’s revenue by percentage is streets related, which is anticipated to increase by 24 percent or $3.2 million. The primary factor for this increase is the combined $2.6 million increase in Development Impact Fees for streets and storm drainage. This gain is also due to the anticipated continuation of growth in development activity. The new budget proposes expenditures of over $104 million, which is a 10 percent or $9.9 million increase over last year’s budget of $95 million. The proposed budget consists of $30.6 million of Capital Improvement Program projects, $6.4 million of debt service, and $68 million for normal operations. With a total of nearly $16 million, the city’s contract with the San Bernardino Sheriff’s Department takes up a quarter of the yearly budget. The Hesperia Fire Protection District, which is currently being annexed by San Bernardino County, has a budget of $12 million.

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