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Chief Administrative Office recommending the Board:
1) Direct staff to work with the Budget Ad Hoc Committee to research additional discretionary revenue-generating options and return to the Board with a recommendation;
2) Provide direction to staff on suggested changes to Board Budget Policy B-16 to be incorporated into changes for Board approval on April 22, 2025; and
3) Receive a presentation and provide direction to staff on how to develop the Discretionary Transient Occupancy Tax (DTOT) budget for Board consideration on April 22, 2025.
FUNDING: Countywide Budget and DTOT.
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DISCUSSION / BACKGROUND
Each year in April, the Chief Administrative Office (CAO) requests direction from the Board regarding the Recommended Budget. During this meeting, the Board reviews Policy B-16 and considers any revisions suggested by the CAO or requested by Board Members. The Board also provides direction on the allocation of DTOT funding for the upcoming fiscal year (FY).
To prepare for the April meeting, staff is seeking direction on which County departments and outside agencies should be approached to submit funding requests for DTOT funding in FY 2025-26. DTOT funding in the past has been allocated to outside agencies and County departments for tourism promotion, tourism impacts, economic development, and veterans’ programs per the Board Budget Policy on Discretionary Transient Occupancy Tax. It is projected that FY 2025-26 DTOT revenue will be $2.75 million less than the highest year of collections in FY 2021-22, a 28% decrease over four years. To prepare for reductions in the allocation of DTOT funding, staff is seeking Board direction on how to approach the development of the FY 2025-26 DTOT budget for Board consideration on April 22, 2025.
In reviewing the slowing discretionary revenues with the Budget Ad Hoc Committee, it was determined that the Budget Ad Hoc Committee would like to explore increasing revenue through ballot measures. This could be through S...
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