AgdaPkt 2021.02.22 Joint SA PFA - Laserfiche WebLink

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6.C. - Page 22 of 196 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Sales Tax Revenue FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Transient Occupancy Tax Transient occupancy tax (TOT) is collected from visitors to Redwood City through a charge on hotel accommodations. TOT revenue accounts for 3.7 percent of total General Fund revenues. Although it is not a primary revenue source, it has been severely impacted by the COVID-19 pandemic; occupancy rates for hotels in the San Francisco/San Mateo area have dropped by more than 60 percent. TOT revenue in FY 2019-20 decreased by $2.6 million, or 29.7 percent, when compared to the prior fiscal year (from $8.6 million to $6.0 million). In the Redwood City area, revenue per available room, which is calculated by multiplying a hotel's average daily room rate by its occupancy rate, is down from $94 million in 2019 to just $29 million in 2020. In addition to the reduction in tourism due to the pandemic, two Redwood City hotels were sold to San Mateo County in 2020 for use as affordable housing, thereby removing them from the TOT pool as well as the property tax rolls at an annual loss to the City of over $800,000. The City has budgeted $4.5 million of this revenue source to be collected in FY 2020-21. Staff will analyze this unstable revenue on a monthly basis during the fiscal year to determine if a year-end budget amendment is needed. $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 TOT Revenue FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Property Tax Property tax accounts for 40.5 percent of total General Fund revenues and is a key indicator of the City's economic outlook. Redwood City property values have remained stable during the COVID-19 pandemic. The median sale price of homes in Redwood City is currently $1.6 million. While overall property tax revenues have viii 109