Spending the night in Turlock could be a little more expensive in 2025.
The Turlock City Council met Tuesday for the for the first time in nearly a month — and for the last time in 2023 — and authorized city staff to begin the process of amending the Transient Occupancy Tax rate from 9 percent to 14 percent.
Because the revenue is a tax, a ballot measure is required to amend the rate. So, the ultimate fate of the TOT’s increase will be decided by Turlockers during the November 2024 election, and likely wouldn’t go into effect until early 2025.
The motion to pursue the ballot measure was approved by a 3-1 vote, with councilmembers Kevin Bixel (District 1), Cassandra Abram (District 3) and Pam Franco (District 4) voting in favor, while Mayor Amy Bublak dissented. Councilmember Rebecka Monez (District 2) was absent.
Currently, for a $100 room, a $9 tax is added, per night, that goes to compensate the city for increased public-service costs incurred by serving tourists. That tax would increase to $14 for a $100 room if voters approve it.
By way of comparison, the city of San Francisco’s TOT rate is 14 percent, Napa and Los Angeles County come in at 12 percent, while San Diego and Monterey currently operate at 10.5 percent.
During discussion, Bixel asked whether hotel owners had given their input on the proposed increase.
“I’m sure I could meet with the hotel owners,” said city manager Reagan Wilson. “The last time I met with the hotel owners, which was several months ago now, I actually brought up the idea that we were probably going to raise the tax, and they were all for it.”
The Transient Occupancy Tax (TOT) is a tax on short-term rental accommodation for each city. The tax was originally designed to compensate local government for the increased public service costs incurred by serving local tourists. This tax is only collected on stays that are 30 consecutive calendar days or fewer.
TOT is currently part of the city’s general fund revenues. The city’s TOT revenues are allocated as follows: Fund 110 General Fund (66.67 percent), Fund 120 Tourism (20 percent) and Fund 205 Sports Facilities (13.33 percent).
The general fund is projected to see an increase $740,510.48 and a total of $1,110,710.18 for all funds by raising the rate to 14 percent. According to the staff report, increased funds could assist with public safety, recreation, roads, and any other services the city provides.
Also at Tuesday’s meeting:
* The council appropriated $20,650 from Fund 120 Tourism for the Downtown Turlock Security Enhancement Pilot Program. For a business to participate in the Fusus video surveillance program, there’s one-time cost of $200 for a service box and $150 for an annual subscription. The city’s pilot program will pick up the tab for the first year for up to 59 downtown businesses to participate throughout 2024. Upon conclusion of the first year, businesses wishing to continue the service will be responsible for the $150 annual subscription fee.
“Fusus is real-time crime-center information,” said Turlock police chief Jason Hedden. “For example, there’s a call at the corner of Main Street and Golden State. If the business has a camera (linked with Fusus) and there’s something going on at that intersection, we can pop that camera up in real-time and direct officers as to what’s unfolding live.”
Hedden stressed that the video is not preserved by Fusus or the police department, and is only viewable live.
* The council accepted a compensation study from Sloan Sakai Yeung and Wong.
In April, the city approved the firm to conduct a study assessing compensation for city employees
According to consultant Geoffrey Rothman, Turlock is below market when it comes to salaries, but just about at market for total compensation (salary, benefits and pension).
The city has paid nearly $25,000 for the study.
* The council voted unanimously to submit an application for grant funds from the Manufactured Housing Opportunity and Revitalization program — part of the benefits, state’s Department of Housing and Community Development — for roughly $3.5 million. If granted, the city could use the funds to make repairs on residents’ mobile homes.
