Expensive Program
Oct 03, 2024
Clarification for Voters and City Council Members,
At the council meeting on August 24, 2024 (at 48m 20s thru 54 minutes), a Council Member shared that the program to run short-term rentals was expensive and therefore not profitable to the city.
It turns out this is not quite true.
I found the source where the Council Member mentioned that the city is still short $40,000. It's on page 76 of the FY23-24 city budget book. Essentially, the permit fees short-term rentals paid amounted to $243,300, while the cost of the STR program was $285,300 — leaving a shortfall of $42,000.
However, the permit fees are just a small portion of what our Airbnb operators contribute. Including the TOT, we've already contributed $2M, while the city's cost is only $285K. And of course, in addition to ToT there are the millions of dollars in tourism revenue that goes directly to small businesses. I think this point deserves clarification.
In solidarity with numerous small businesses across multiple districts, we stand against the City Council's proposal to implement a 90-day cap on unhosted rentals. This proposed ordinance not only poses a threat to small businesses but also unfairly penalizes operators who have consistently maintained good standing. The decision is not only fiscally irresponsible but also detrimental to the economic well-being of Pacifica.
- Arlene