Perris city manager warns rising construction costs and potential e-commerce tax cuts threaten parks, services
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Summary
Perris City Manager Claire Mira Montes said sharply higher construction material costs and proposed changes to e-commerce sales tax revenue could force the city to phase projects, draw on reserves and delay parks and a new South Perris fire station.
Claire Mira Montes, Perris city manager, warned city residents that sharply higher construction costs and possible statewide changes to e-commerce sales tax revenue are putting the city’s finances under strain.
Montes said "material costs for construction have almost tripled in recent years," forcing Perris to "scale back on the number of much needed community facilities and parks." She said the city is "starting to heavily tap into the city's general fund reserves" to keep projects moving and to sustain services.
The city manager said the proposed statewide changes could "cause that our e-commerce sales tax revenue would be cut in half overnight." Montes added that e-commerce sales taxes represent about "3% of our overall budget" and fund core services such as parks, public safety, street improvements, drainage and other infrastructure.
Montes noted Perris has 28 parks and local attractions including the Southern California Railway Museum and Skydive Perris as examples of assets supported by city services. She told residents the city historically relied on community benefits from logistics development but, "based on resident feedback, we are looking to change direction on how we grow" and are seeking alternative revenue opportunities.
Because revenue is not keeping pace with rising costs, Montes said the city is prioritizing and phasing capital projects — including a planned new fire station in South Perris — so it does not deplete its general fund savings. "Our capital facilities projects, such as our new fire station, new parks, and drainage facilities can only be built in phases at this time so that we don't deplete our general fund reserves," she said.
Montes also pointed to Perris’s tax context, saying the city has the lowest sales tax rate in Riverside County and is therefore trying to maintain service levels with fewer resources than neighboring jurisdictions. Looking ahead she said the city expects additional needs for fire and police services, roads, drainage and parks as growth continues.
No formal motions or council votes were recorded in the provided transcript; Montes framed these remarks as an update on fiscal pressures and priorities and said the city will continue to work with residents on growth and service decisions.
