Pacifica city officials expect a double-digit decline in transient occupancy tax revenue this year due to fewer people staying in hotels during the pandemic with the subsequent travel restrictions.

Pacifica earned some revenue from short-term rentals but that has declined as well, said City Manager Kevin Woodhouse.

“Anticipating the pandemic impacts, we have budgeted $1,202,000 for FY20-21 TOT revenues, which represents a 30 percent decline from prior year actuals,” he wrote in an email.

The decline had not been so steep before the pandemic, Woodhouse related. TOT fell by 8 percent, from $1,777,011 to $1,627,437, in fiscal year 2019-20 compared to the prior year. In the 2019-20 fiscal year, TOT

was budgeted at 3 percent of the general fund revenue, $1.2 million out of $36.9 million. The prior year TOT was budgeted to represent 4.7 percent of general fund revenues.

City Council will hear a full midyear budget update at its meeting on Jan. 25. All aspects of the pandemic’s effect on the city’s revenues and expenses will be discussed, including an estimate of TOT performance for the first five months of this fiscal year, Woodhouse said.

“We are like most cities in California facing increased expenses and declining revenue,” said Councilmember Mike O’Neill.

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