County of Santa Barbara
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1 County of Santa Barbara Annual Transient Occupancy Tax Report Fiscal Year Ended June 30, 2010 TOT Revenue Up In Second Half of FY09-10 Percent Growth 5% -5% - -15% 1stQ 2ndQ 3rdQ 4thQ In 1963, local governments were granted the power to tax the privilege of occupying a room or other living space in a hotel, motel, inn, tourist home, or other lodging (such as campgrounds) for 30 days or less. The transient occupancy tax (TOT) is collected by the operator and then remitted to city finance departments or the County Treasurer for the unincorporated area. The transient occupancy tax is currently (12% for the City of Santa Barbara) of the daily rent. The transient occupancy tax reached $30.0 million in fiscal year , a 5.1% decline from fiscal year The unincorporated area generated $5.97 million, while the incorporated cities received the largest share of TOT at $24.13 million. Hotel / Motel Room Transient Occupancy Taxes by Jurisdiction 1 Summary of the County / City Revenue Neutrality Agreement for Goleta: Agreement in effect from February 1, 2002 until June 30, of TOT generated in the City of Goleta goes to the City and 4 goes to the County. For hotels/motels opened after February 1, 2002, 10 of TOT generated in the City of Goleta goes to the City. INSIDE THIS ISSUE: TOT by Jurisdiction.1 TOT Highlights 2 FY Versus Prerecession...4 TOT by Area 6 10 Year TOT Trend.7 Forecast 7 Hotel / Motel Listing 8 Cities: Amount Change from Prior Year Amount Change from Prior Year Santa Barbara $14,445, % $13,757, % Goleta City Share 1 2,457, % 2,102, % Solvang 2,235, % 2,354, % Santa Maria 2,201, % 2,116, % Lompoc 1,482, % 1,371, % Carpinteria 1,326, % 1,275, % Buellton 1,223, % 1,151, % Guadalupe Total $25,373, % $24,128, % Unincorporated Areas: Montecito 3,276, % 3,207, % Goleta County Share 1 1,331, % 1,126, % Goleta Valley 1,207, % 1,103, % Santa Ynez 460, % 445, % North County 85, % 71,660-16% South County 11, Total $6,361, % $5,967, % Countywide Total $31,734, % $30,095, % TOT revenue was provided by each city s finance department, and County Treasurer-Tax Collector s Office Published by the Office of the Auditor-Controller, Robert W. Geis, CPA,
2 Page 2 COUNTY OF SANTA BARBARA Incorporated Cities TOT Highlights for FY Carpinteria 5% TOT Sources - Cities Lompoc 6% Buellton 5% Solvang Santa Maria 9% Goleta 9% Santa Barbara 56% TOT generated in the cities reached $24.1 million, a decline of 4.9% from the prior year. The City of Santa Barbara, arguably one of the most beautiful cities in the United States, generated 56% of the total TOT earned by the incorporated cities. In fiscal year , the economic downturn resulted in the continued decline of the Cities TOT revenues. In the first two quarters, TOT revenues were down across most of the cities. As the fiscal year continued, some cities began to see modest recoveries; specifically, those cities that were first to experience the effects of the recession in fiscal year TOT Growth / Decline By Fiscal Quarter - Incorporated Cities FY Carpinteria Santa Barbara Goleta Solvang Buellton Lompoc Santa Maria st Qtr 2nd Qtr 3rd Qtr 4th Qtr
3 COUNTY OF SANTA BARBARA Page 3 Unincorporated Area TOT Highlights for FY Santa Ynez 7% TOT Sources - Unincorporated Area South County North County 1% Goleta Valley 18% Montecito 55% Goleta City 19% The unincorporated area generated $6 million in TOT, a 6.1% decline from the prior year. When comparing current year totals to the pre-recession totals, the premier destination resorts had the largest declines. The Montecito area generated about 55% of the TOT earned in the unincorporated area; the dominant generators in that area being the Four Seasons Biltmore and the San Ysidro Ranch. In the first half of the fiscal year, TOT revenues were down by large percentages across all of the unincorporated areas. As the fiscal year continued, the County began to see the beginning of a modest recovery in the areas that were the first to experience the effects of the economic downturn in fiscal year TOT Growth / Decline By Fiscal Quarter - Unincorporated Area FY Montecito Goleta - Incorp. Goleta - Unincorp. Santa Ynez North County st Qtr 2nd Qtr 3rd Qtr 4th Qtr
4 Page 4 COUNTY OF SANTA BARBARA Cities: FY Versus Pre-Recession (FY ) City % Decline $ Decline Goleta -24% (680,394) Santa Maria -12% (280,181) Buellton -11% (139,222) Carpinteria - (139,958) Santa Barbara -11% (1,765,777) Lompoc -8% (120,640) Solvang -3% (63,464) -12% (3,189,636) When comparing fiscal year TOT revenue to the pre-recession revenue, TOT revenues are down $3.19 million (-12%). The current economic downturn has had the biggest affect on the City of Goleta and the City of Santa Barbara. Compared to the pre-recession TOT revenues, the City of Goleta is down 24% ($680,394) and the City of Santa Barbara is down 11% ($1,765,777). The City of Solvang appears to be the least affected by the current economic downturn. Compared to the pre-recession TOT revenues, the City of Solvang is only down 3% ($63,464). In the 2nd and 4th quarter of fiscal year , the City of Solvang and the City of Lompoc had growth compared to pre-recession revenue. TOT Growth / Decline By Fiscal Quarter - Incorporated Cities FY VS FY Carpinteria Santa Barbara Goleta Solvang Buellton Lompoc Santa Maria st Qtr 2nd Qtr 3rd Qtr 4th Qtr
5 COUNTY OF SANTA BARBARA Page 5 Unincorporated Area: FY Versus Pre-Recession (FY ) Area % Decline $ Decline Goleta -County Share -3 (472,160) Montecito -17% (653,350) North County -15% (12,446) Goleta Valley -4% (45,545) Santa Ynez -4% (20,584) South County NA 11,609-17% (1,192,475) When comparing fiscal year TOT revenue to the pre-recession revenue, TOT revenue is down $1.19 million (-17%). The current economic downturn has had the biggest effect on the Goleta incorporated area shared revenue and the Montecito area. Compared to the pre-recession TOT revenues, the Goleta incorporated area is down 3 ($472,160) and the Montecito area is down 17% ($653,350). The unincorporated Goleta area (Goleta Valley) and the Santa Ynez area appear to be the least affected by the current economic downturn. Compared to the pre-recession TOT revenues, the unincorporated Goleta area is only down 4% ($45,545) and the Santa Ynez area is only down 4% ($20,584). In the 4th quarter of fiscal year , the North County unincorporated area had growth when compared to the pre-recession revenue. TOT Growth / Decline By Fiscal Quarter - Unincorporated Area FY VS FY Montecito Goleta - Incorp. Goleta - Unincorp. Santa Ynez North County st Qtr 2nd Qtr 3rd Qtr 4th Qtr
6 Page 6 COUNTY OF SANTA BARBARA TOT Revenues by Geographic Area Percent Decline / Incline By Area Revenue (in Millions) By Area $0 $5 $10 $15 $20 $25 $30 Santa Barbara County currently contains an estimated total of 183 hotels and motels throughout the north and south regions. Including 168 vacation rentals and bed & breakfast locations, the entire county generates TOT revenues from 351 applicable businesses within county lines. South South county cities and unincorporated areas account for 75%, or $22.6 million of the county s total TOT. During fiscal year , TOT revenues fell by 6.2% in the South county. The City of Santa Barbara accounted for 61% of the South county area s TOT revenues. The Montecito area had the strongest recovery when compared to fiscal year ; the Goleta Incorporated area continued to perform well below the other South county areas. North North county cities and unincorporated areas accounted for 25%, or $7.5 million of the county s total TOT. In the economic downturn, the North county fared better than the South county; during fiscal year , TOT revenues fell by only 2.3%. The City of Solvang accounted for 31% of the North county area s TOT revenues. The City of Solvang had the strongest recovery when compared to fiscal year ; the unincorporated North county area performed well below the other North county areas.
7 COUNTY OF SANTA BARBARA Page 7 10 Year TOT Revenue Trend 30,000, ,000, ,000, ,000, ,000, ,000, Revenue Forecast Unincorporated Areas It is our expectation that TOT revenues will continue with a modest recovery in fiscal year We do not anticipate TOT revenues to reach the levels that we saw prior to the economic downturn (i.e. fiscal year ) for at least another one to two years. $1,000,000 $800,000 $600,000 3 Year Monthly Revenue Trend Pre-Recession FY FY (est.) $400,000 $200,000 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Note: Trend includes unincorporated areas and county share (4) of City of Goleta TOT
8 Page 8 COUNTY OF SANTA BARBARA Countywide Hotel / Motels UNINCORPORATED AREA Montecito Four Seasons Biltmore Inn on Summer Hill Pacific Graduate Institute San Ysidro Ranch Summerland Inn Westmont College Goleta Valley Bjorkland Circle Bar B Ranch Resort El Capitan Campground Extended Stay America Fontainebleu Friendship Manor Hope Ranch Inn Ramada Limited Tropicana Gardens Santa Ynez Ballard Inn Cuatro Viento Vineyard Edison Street Inn Fess Parker s Wine Country Meadowlark Motel Molly Dolle Rancho Oso Sanja Cota Motel Santa Ynez Inn Zaca Lake Foundation North County Alamo Motel Skyview Motel Union Hotel Victorian Mansion at Los Alamos White Oaks...plus 55 Vacation Rentals CITY OF GOLETA Bacara Resort & Spa Hampton Inn Holiday Inn Santa Barbara Pacifica Suites South Coast Inn Super 8 Motel CITY OF CARPINTERIA Best Western Carpinteria Shores Casa Del Sol Holiday Inn Express Eugenia Motel La Cabana Prufrocks Garden Inn Sandyland Reef Inn Solimar Sands Sunset Shores Sea Shells Apartments...plus 3 Bed and Breakfasts CITY OF SANTA BARBARA Agave Inn Ala Mar Motel Avania Inn Bath Street Inn Beach House Motel Best Western Inn Blue Sands Motel Brisas del Mar Cabrillo Inn Canary Hotel Casa Del Mar Castillo Inn Cheshire Cat Inn Coast Village Inn Colonial Beach Inn Days Inn Doubletree Resort Eagle Inn El Encanto Hotel El Prado Motor Inn Encina Motor Lodge Fiesta Inn Flower Garden Inn Franciscan Motel Hacienda Motel Harbor House Harbor View Inn Holiday Inn Express Holiday Lodge Hotel Mar Monte Hotel Santa Barbara Inn at East Beach Inn by the Harbor Inn of Spanish Garden James House Lemon Tree Inn Marina Beach Motel Mason Beach Inn Montecito Inn #1 #2 Oasis Inn & Suites Oceana Hotel Old Yacht Club Orange Tree Inn Pacific Crest Inn by the Sea Parkside Inn Pepper Tree Presidio Motel Quality Inn Sandman Inn Sandpiper Lodge Santa Barbara Inn Santa Barbara Tourist Hostel Secret Garden Inn Simpson House Inn State Street Hotel Sunset Motel The Orchid Inn Tiffany Inn Town & Country Inn Upham Hotel Villa Elegante Villa Rosa West Beach Inn White Jasmine Inn...plus 110 Vacation Rentals CITY OF SANTA MARIA Best Value Inn Big America Hotel Buckboard Motor Lodge Colonial Motel Deville Motel Economy Inn Fairfield Inn & Suites Fountain Motel Guest House Inn Historic Santa Maria Inn Holiday Inn Holiday Motel Laura Lodge Mission Hotel Palms Motor Motel Plaza Motel Radisson Hotel Restwell Motel Rodeway Inn Rose Garden Inn Santa Maria Quality Inn Sundown Motel The North Broadway Town & Country Motel Valley Motel Villa Motel Western Motel CITY OF LOMPOC 1890 House Best Value Inn Best Western Budget Inn Days Inn Embassy Suites Travel Lodge Holiday Inn Express Lompoc Motel O Cairns Inn Quality Inn Star Motel CITY OF BUELLTON A Country Lane Andersen s Best Western Inn Days Inn Farmhouse Motel Flying Flags Travel Park Quality Inn Red Rose Court San Marcos Motel Santa Ynez Valley Marriott Sleepy Hollow Motel CITY OF SOLVANG Alisal Guest Ranch Hadsten House Inn Hamlet Motel Holiday Inn Express Hotel Corque King Fredrick Kronborg Inn Mirabelle Petersen Village Royal Copenhagen Solvang Gardens Solvang Inn & Cottages Svendsgaard Lodge Viking Motel Wine Valley Inn Worldmark Club
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