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Orange County Coastal Regional Sediment Management Plan
percent goes to cities (e.g., San Clemente). This money is dedicated to general fund revenues.
This rate is consistent with the vast majority of cities/counties in the state though a few cities in
Alameda County such as Berkeley ($16.10), Oakland ($16.10) and Piedmont ($14.10) charge
significantly higher rates. Although raising the property transfer tax and dedicating some or all
of this is possible, it is likely to be less politically feasible than other solutions.
3.8.4 San Clemente Case Study
In this section of the report, to examine the funding proposals in more detail, they have been
applied to the City of San Clemente as an example. San Clemente, with a population of just
over 60,000, is typical of many smaller beach cities in Orange County. It has an active beach,
with over two million visitors per year, though its economy has many other facets.
Transient Occupancy Taxes
Table 3.15 below examines the TOT collections for the City of San Clemente since 2007. King
(2001a) found that 57 percent of the hotel TOTs were beach related. Including short term
condo rentals this value increases to 62 percent of all TOT revenues. Given this, dedicating
some TOT revenues to beaches may be reasonable. Currently San Clemente levies a 10
percent TOT like most other coastal cities in Orange County. A 1 percent increase in the TOT
would have netted just over $150,000 in income per year. This is a substantial amount, but
much less than the amount necessary to support a large nourishment project. If San Clemente
“banks” this revenue it could raise $1 million in just over six years. Doubling the increase to a 2
percent increase would essentially double the revenue (assuming no significant impacts on
demand) to $300,000 per year. As the data below indicates hotel revenue was higher in 2008,
before the current recession hit, so it is also likely that San Clemente will see some recovery in
hotel revenues (and hence TOT) in the coming years.
Table 3.15 TOT for San Clemente from 2007 through 2010
YEAR 2007 2008 2009 2010
TOT Base $13,620,150 $14,658,520 $13,096,440 $13,719,370
10% (current) $1,362,015 $1,465,852 $1,309,644 $1,371,937
11% $1,498,217 $1,612,437 $1,440,608 $1,509,131
Effect of 1% increase $149,822 $161,244 $144,061 $150,913
Source: City of San Clemente
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