The novel coronavirus pandemic, the shutdown of many businesses and Californians largely sheltering at home is costing Hemet revenue it needs to pay for services, including fire and police protection.
The loss of 34% of sales tax revenue, as consumer spending is down and many businesses are closed to the public, has hit the city hard, according to City Manager Christopher Lopez, as has the loss of tax revenue from hotel stays. Sales tax from auto dealerships, normally one of the city’s biggest sources of revenue, is down 75%.
“We anticipate, from the point of the middle of March to June 30, and the rest of the fiscal year of 2020-21 to see a reduction in revenue of about $7.5 million,” Lopez said.
Normally, the city brings in about $41 million a year.