HomeMy WebLinkAbout1988-04-26; City Council; 9408; Transient Occupancy Tax & Parks Bond InitiativeCIV OF CARLSBAD - AGENP- BILL
RESPONSE TO COUNCIL QUESTIONS - MTG. 4/26/88 TRANSIENT OCCUPANCY TAX AND
DEPT. FIN THE PARKS BOND INITIATIVE
RECOMMENDED ACTION:
No ction required.
ITEM EXPLANATION
"!
At the Council meeting of April 12, 1988, the City Council raised several
questions about the City's Transient Occupancy Tax and the proposed park bond
initiative as it relates to Hosp Grove funding. The following information should
answer the Council members' questions:
1. A) How does the City use the existing TOT revenue?
The City presently collects Transient Occupancy taxes from all hotels
located in Carlsbad based on a 6% tax rate. This rate will provide
about $1.9 million to the City during 1987-88. All revenue goes into
the General Fund to pay for operations and maintenance of the City. The
General Fund supports expenses such as Fire, Police, Parks, Library,
Planning, Engineering, Administration, Streets Maintenance and other
operations.
B) How will the City spend the additional 2% Transient Occupancy Tax
revenue collected under Proposition C?
Proposition C will provide about $730,000 to the City next year all of
which will be deposited to the General Fund. This additional revenue
will help the City absorb
programs such as:
Project
Calavera Hills Park
Hosp Grove Debt
Fire Station 415
Fire Station 86
Library-South
Senior Citizens Ctr
Alta Mira Park
Alga Norte Park
Traffic Signals
Street Projects
TOTAL
1988-89
$ 278,000
350,000
200,000 - - - - -
70,000
170,000
$1,068,000
the cost of operating new facilities and
OPERATING COSTS
1989-90
$ 278,000
700,000
500,000
800,000
200,000
-
- -
100,000
190,000
$2,768,000
1990-91
$ 278,000
700,000
500,000
500,000
800,000
200,000
272,000
122,000
190,000
$3,562,000
-
1991-92
$ 278,000
700,000
500,000
500,000
800,000
200,000
272,000
200,000
150,000
190,000
$3,790,000
Page 2 of AB # 7qor
As you can see, the additional TOT revenue will not cover all costs
related to the above facilities and programs. The TOT increase
represents only one of several steps being taken by Council and staff to
improve revenues for 1988-89.
C) How will the City spend the additional 2% Transient Occupancy Tax
revenue collected under Proposition D (the golf course proposal)?
Revenues collected under Proposition D will be restricted as shown in
the proposition.
Proposition :
There are four uses of funds included in the
1. $200,000 - Convention & Visitors Bureau Support
2. $900,000 - Debt Service for bonds issued to build a
golf course and tennis facility
3. $200,000 - Expansion and maintenance of the golf
course facility
4. Any funds in excess of $1.3 million would go to the General
Fund. Revenues for 1988-89 should total about $730,000. TOT
revenues should grow to about $1.5 million by 1993-94.
2. Will the City receive $1 million from the Proposition 70 Parks Bond Act for
Hosp Grove Acquisition?
According to the Act no funds have been specifically designated for Hosp
Grove. The Act includes several categories of grants to public agencies and
San Diego County that could include projects such as Hosp Grove.
these grants would require the City to apply and compete against projects
proposed by other agencies.
However,
The Act will provide a total of $776 million for park, open space, wildlife
conservation and related uses. Carlsbad's share of the bond proceeds is
presently $176,205 based on the allocation of $140 million of bond act funds
on a per capita basis.
A conversation with the staff of Californians for Parks and Wildlife
indicated that the funds provided will be allocated as shown in the text of
the Act. Any prior agreements not correctly specified in the Act would not
be binding.
to the City can be assumed.
Since Carlsbad is not specifically mentioned, no direct grant