The Perris City Council on Dec. 9 unanimously adopted a resolution declaring a fiscal emergency as a preventive preparedness measure after staff outlined a drop in reserves and several downward revenue trends.

Assistant City Manager/Finance Ernie Reyna summarized the city’s financial assessment: unassigned reserves dropped from about $42 million to a projected $27 million, overall reserves fell about 19% year‑over‑year, and expenditures have grown faster than revenues (revenues up ~$18 million since 2023 vs. expenditures up ~$31 million in the same period). Staff highlighted a near‑halving of e‑commerce/warehouse sales tax receipts (peak ~$10M earlier vs. projected ~$5M this year) and a decline in cannabis revenue (from a 2021 peak near $6M to roughly half that level), alongside rapidly rising public safety contract costs and insurance expenses. Staff also flagged the potential effect of state Bradley Burns sales tax reform and other structural risks.

Why it matters: Staff presented the declaration as a tool that would allow the city to proactively explore revenue measures, budget adjustments and other remedies to protect service levels. Council members framed the resolution as a forward‑looking step to develop alternatives to reliance on a small set of volatile revenue sources.

Council action: Councilman Corona moved to adopt the resolution; Mayor Pro Tem Rapp seconded. The motion carried 5‑0. The council asked staff to develop options and return with policy choices for maintaining service levels and shoring up reserves.

What staff will do next: Staff said they will research revenue measures and report back with options, potentially including targeted taxes, fee changes, and prioritized cuts or program restructures. Staff also recommended continuing efforts to diversify the tax base via economic development and downtown revitalization strategies already under consideration by the council.