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8.A. - Page 33 of 104 <br />Transient Occupancy Tax <br />Transient occupancy tax (TOT) is collected from visitors to Redwood City through a charge on hotel <br />accommodations. As a result of the pandemic, occupancy rates for hotels in the San Francisco/San <br />Mateo area have dropped by more than 60%. In the Redwood City area, revenue per available room <br />(RevPAR), which is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy <br />rate, is down from $94 million in 2019 to just $29 million in 2020. The hotel market forecast in our <br />region does not anticipate a full recovery until 2024-2025. With TOT representing 5% of Redwood City's <br />operating revenue, this presents a less significant challenge than in many neighboring jurisdictions <br />where TOT has provided a larger percentage of municipal revenues than in Redwood City. <br />0 <br />_2p <br />.0-- <br />40-- <br />-100-- <br />Redwood <br />m-,m <br />W ,p MW .wn M wy <br />Property Tax <br />Approximately 40% of <br />Redwood City's operating <br />revenues come from <br />property tax. <br />Redwood City property <br />values remain stable, <br />having risen 1% over the <br />past year. The median <br />value of single family <br />homes and condominiums <br />in Redwood City is currently <br />over $1.5 million. <br />Development activity and associated Redwood City revenues have also remained stable during the first <br />six months of the pandemic, and interest in commercial and multi -family development in the downtown <br />core remains strong. The Forecast does not take into account potential revenue changes associated with <br />Propositions 15 and 19 on the November 2020 ballot. <br />Redwood City Area Hotels <br />-49% <br />-45%. <br />-71� <br />-87% <br />rr AV MW an y wo <br />2020 48% $123 $29m <br />-Ocwo..h' —R R —R. M <br />2019 87% $206 $94m <br />BUDGET MESSAGE ?4?02 <br />