The transient occupancy tax (TOT) is largely paid for by visitors to the Grover Beach community. Due to the passage of Measure L-18 in November 2018, along with steady growth in TOT, revenue for FY 2019 increased by 16.7%. However, due to COVID-19 and the related impact on the tourism industry, TOT is projected to see a decrease in the last quarter of FY 2019-20 and the first two quarters of FY 2020-21. Because of this, the original estimates for FY 2020-21 have been reduced by $200,000. The tourism industry has been one of the hardest-hit sectors nationwide by the current economic downturn; it is unclear when it will recover and become a regular or reliable source of revenue. While the TOT is a comparatively smaller General Fund revenue source (5%), it is also used to help fund core city services and programs, such as infrastructure projects and the City’s contract with the Five Cities Fire Authority for fire protection and suppression services.
For additional information on the City’s current budget, you can review and download the FY 2020-21 Adopted Budget.