Economic Growth

Projecting Steady Growth, Victorville Budget Yields Optimistic Outlook

According to the Victorville Daily Press, June 3, 2018, city officials enter fiscal year 2019 with a feeling of turning the corner and backed by steady growth in major general fund revenue sources. Key economic indicators like sales tax, home building and transit occupancy tax are each projected to rise this coming fiscal year, a period that begins July 1, officials say. Victorville also hopes to inch closer to its $9.2 million general fund reserves floor, anticipating $5.53 million in the rainy day fund, a figure that has grown by about $2 million from three years ago. The City Council was presented with a proposed $72.3 million budget for the coming fiscal year against $72 million in expenses. Sales tax experienced conservative growth in line with the county, region and state between 2016 and 2017, and was projected to grow slightly less, 1.3 percent, this coming fiscal year. However, that projection does not account for recently opened restaurants such as Cracker Barrel, according to Deputy City Manager Sophie Smith. While general consumer goods and auto and transportation comprise nearly two-thirds of all sales tax in the city, restaurants and hotels (11 percent of all sales tax) are still among its strongest sectors. Officials view family apparel, service stations and office supplies/furniture as business opportunities in the new fiscal year as they hope to build on recent wins that include the Home2 Suites by Hilton hotel and development of Dunia Plaza. Single-family housing construction should also far surpass the number of permits issued in recent years. With already 100 issued during the first quarter of 2018, officials project 500 will be issued next fiscal year, up 25 percent over this calendar year’s expectations. Homes are selling in the upper $200,000/lower $300,000 range, officials said, and the southwest corner of Bear Valley Road and Highway 395 has been particularly active.

NEXT >
Back to Victor Valley Profile
< PREVIOUS

Related Articles

Translate »