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Follow the Money
Teresa McBroome | Accounting Manager/City Treasurer

 

General Fund Revenues for Del Mar.  2010-2011. 
Graphic provided by Teresa Broome

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The City’s Mid-Term Budget Update for this year and next projects that its top three revenue sources – Property Taxes ,$3.7 million, TOT (hotel visitor tax) ,$1.489 million, and Sales Tax, $1 million along with related in-lieu taxes - will make up 67 percent of total General Fund revenues of $10.1 million for Fiscal Year 2010-2011.

Most residents are aware of how much they personally pay in property tax and how much sales tax and Transient Occupancy Tax (TOT) costs. They may be aware too that these are the City’s top three revenue sources in the General Fund. What they may not be aware of is what percentage stays to fund City services and what percentage goes to other governmental agencies.

Out of every dollar paid by Del Mar residents in property taxes, approximately 85 cents goes to the State for school funding, the County, and special districts. Even with this high percentage already going to them, the State raided an additional eight percent of City property taxes last year to feed their budget deficit.

Of the 8.75 percent of sales tax that is paid by those that shop and eat in Del Mar, only one percent of the collections stays within the City. Six percent goes to the State General Fund, and the remainder goes to Transnet for local transportation and the County for transportation and public safety. Of the City’s sales tax revenue sources, food products (primarily restaurants) make up 67.4 percent, followed by general retail at 19.4 percent, and all other sources at 13.2 percent. The City receives approximately 35 percent of its sales tax revenue from the Fairgrounds. Of the 11.5 percent of TOT collected, 100 percent remains with the City.

The fourth and fifth highest revenues are parking violations ($612,000) and parking meter revenue ($467,000) followed by franchise tax ($335,000) and business license tax ($189,000). Parking violations remain with the City except for a $5 charge per ticket remitted to the State. All of these revenue sources go into the City’s General Fund to be allocated by the City Council for local services.

As you can see, only a small portion of the tax payments made by the Del Mar residents remain within the City. A high percentage is sent to the State and other governmental agencies. The small portion that remains within the City is used to support the important services that are provided locally such as Sheriff services, fire services, beach operations, streets and roads.


 
 

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