Two Important SB Tax Revenues Decline
by Bonnie Donovan
Sales and Transient Occupancy Tax Revenue Declines
The City of Santa Barbara reported a total sales tax revenue of $7.8 million for the quarter ending June 30, 2024, marking the conclusion of the fiscal year. This figure reflects a performance that is approximately 4.0% lower than the budgeted expectations for the year. The sales tax revenue budget for Fiscal Year 2024 was set at $30.6 million, indicating that the city did not meet its financial projections for this revenue stream. The sales tax is a critical component of the city's overall financial health, influencing various public services and infrastructure projects.
In addition to sales tax, the City of Santa Barbara also reported its Transient Occupancy Tax (TOT) results for July 2024, which amounted to $4.0 million. This figure represents the first month of the new fiscal year and indicates that the city has already begun to generate revenue from transient guests. Of the total TOT collected, approximately $3.6 million was sourced from hotels, while short-term rentals contributed around $400,000. However, it is noteworthy that the year-to-date TOT revenues are currently 3.0% below the budgeted expectations, which could have implications for the city's financial planning and resource allocation.
The Transient Occupancy Tax is levied on guests who stay in various lodging establishments for less than 30 days, and the city's current TOT budget is set at $34.5 million, with $28.7 million allocated to the General Fund. The tax rate for TOT stands at 12.0%, with 10.0% directed to the General Fund and the remaining 2.0% allocated to the Creeks/Clean Water Fund. This revenue is essential for maintaining city services and supporting environmental initiatives. For those interested in further financial insights, the City’s Budget & Reporting web page provides additional current and historical data regarding these tax revenues.
Down and Down It Goes
Here are the confirmed amounts that the City contributed to Visit Santa Barbara directly over the past 5 years. Please note that this does not consider any of their Tourism Business Improvement District (TBID) or other revenues.
FY2021 – $1,311,000
FY2022 – $1,311,000
FY2023 – $1,000,000
FY2024 – $950,000
FY2025 - $950,000
Total - $5,522,000
Another Day Off and Deeper in Debt
This week, the City Council took another break, recognizing that their part-time employment – which earns each council member $84,000 annually – are entitled to their paid day off as well.
$5,522,000 to a Private Company
Over the past five years, the same council members have allocated more than $5.5 million to Visit Santa Barbara, a private organization that promotes tourism in the area. The financial contributions from the City to Visit Santa Barbara have been substantial, with specific amounts confirmed for each fiscal year. For instance, in FY2021 and FY2022, the City contributed $1,311,000 each year, followed by $1,000,000 in FY2023, and $950,000 for both FY2024 and FY2025. These figures highlight a consistent investment in tourism, but they also raise questions about the sustainability and effectiveness of such funding. (Please note that this does not consider any of their TBID or other revenues.)
Did the City Put This Contract Out to Bid?
Given the current economic climate and the recent downturn in Transient Occupancy Tax (TOT) revenues, it is imperative to reconsider the ongoing financial support provided to Visit Santa Barbara (a private entity using taxpayer funds). The establishment of the TBID has created a new funding mechanism that allows the tourism industry to finance its own advertising efforts. As such, it may be prudent to halt further taxpayer contributions to this private entity, especially considering the declining TOT revenues. Redirecting these funds could ensure that taxpayer money is utilized more effectively, potentially addressing other pressing community needs rather than continuing to support an organization that now has alternative funding sources.
With the establishment of the TBID by the TOT industry, there is now a mechanism in place for funding the advertising efforts for Santa Barbara. Given the recent decline in TOT revenue, it is prudent to reassess the necessity of further contributions from the City to Visit Santa Barbara.
There’ll Be No Carbajal/Cole Debate
Salud Carbajal’s people have issued a statement regarding his decision not to participate in the upcoming debate, which he communicated through a press release rather than during a direct interview. This approach is reminiscent of the strategies often employed by members of the Democrat Party, where prepared statements are utilized to convey messages without the necessity of engaging in live dialogue.
This method allows for a carefully crafted message that minimizes the potential for spontaneous remarks or misinterpretations that can occur in live discussions. Given his recent presence in the community (interestingly, it is worth noting that Salud was present in the area just last week), one might wonder if a more direct engagement with constituents could have been beneficial in fostering a dialogue around the issues at hand.
FROM KEYT ARTICLE: “SANTA BARBARA, Calif. - Incumbent Salud Carbajal says he will not debate Thomas Cole, the Republican candidate for California's 24th Congressional District in any forum. Cole reacted to the announcement calling the congressman, "chicken."
Carbajal's spokesperson, Ian Mariani, said the congressman does not want to give Cole a forum to share messages that "pose a threat to Central Coast residents."
“Thomas Cole’s campaign,” Mariani posits, “spews hateful rhetoric against LGBTQ+ individuals, using the same anti-trans conspiracies that put transgender lives at risk every single day in America. Cole demonizes and fearmongers about immigrants fleeing violence and seeking asylum in the United States. He also accuses Salud Carbajal – an immigrant himself – of supporting sex trafficking and human smuggling. And he’s even tried bringing failed MAGA policies to the Central Coast, fighting for extremist book bans in local schools.”
Apparently, debates between candidates – unless they present some advantage to a Democrat – have been relegated to the dustbin of history.
•••
At this time, I have not yet received any response to my Public Records Act Request (PRAR) from the City.
SB Current is a reader-supported publication. If you enjoy receiving our mix of daily features please consider upgrading to a paid subscription.
Have you reserved your Presidential Debate Watch Party tickets yet? Nearly half have already been sold.
Your friends at Santa Barbara Current are organizing a Trump / Harris Presidential Debate Watch Party at Mesa Cafe from 5 pm to 8:30 pm, on Tuesday night, September 10. We would very much like for you to join us.
You’ll enjoy a Cash Bar, Heavy Appetizers (provided by Mesa Cafe), Mutual Respect, and, most of all, Friendship (and maybe even some Laughter)
Please invite your friends. This presidential debate is sure to be a pivotal (and probably only) 2024 presidential debate between Trump and Harris!
Mesa Cafe is ordinarily closed after 3 pm, so tickets will be $20/in advance or $30/at the door (if still available). Only 150 tickets will be sold so please order in advance by clicking here
Thank you, Bonnie for your invaluable community service. Whenever I talk to people who live here I guide them to your column. They always say they had no real idea of where their money's going before reading you.
About the Carbajal/Cole debate: it should be mandatory for Carbajal, or any of our other elected officials, to engage in regular debates. That he's allowed to stay in his “safe space” where he refuses to debate Cole and can pretend to be protecting his constituency from possible “hate” speech is absurd and proves he's a minor-league dictator. And should be illegal.
If Carbajal really was trying to protect people he would welcome the debate as a chance to do so. The truth is Carbajal cares nothing about anyone or anything except himself. I don't think he's completely stupid - he definitely is canny in his ambition. But for him to play the immigrant card is disgusting. He's a disgrace to all other immigrants in this country.
And here's where I want to say something about Trump. I'm tired of hearing the anti-Trumpers blather on about how he wants to be a dictator and he's going to take away our freedoms. Dictators do what Carbajal is doing. They refuse to address their public and answer questions. Trump is ready any time to talk to anyone.
This is a really key thing that I hope Santa Barbarans will wake up to. All the Democratic Party does is censor and cancel. They won't even tell us who's actually running the country right now. And anyone who asks is called an “agent of Putin” (like even I was here yesterday). We have to take back our country and it's as important to get someone accountable running Santa Barbara as it is in the White House.
According to Carbajal, his opponent Thomas Cole:
1….hates LGBTQ+
2. ….wants transsexuals dead
3…..hates unvetted open borders
4…..hates age inappropriate books in tax payer supported public schools
Carbajal
1…….hates Trump ……..and 50% + of the US population
2. ……hates ….hateful rhetoric
Shame on you, Salud. You have brought disrepute to the political process and those who have continued to pay your Congressional salary and will be forced to pay your life time pension.