How much does it cost for Laguna to be “A Destination”

Revenue the City government receives from visitors falls short of covering the additional expenses the city incurs due to visitors. A 2017 report to a City Council subcommittee looking into the issue of the imbalance between revenue from visitors and costs due to visitors indicated that while City government revenue attributable to visitors comprises 35% of all revenue, 61% of City government expenditures are attributable to visitors.

The resultant difference between revenue attributable to visitors and expenditures attributable to visitors was for the 2017-2018 fiscal year estimated to be more than $23 million. That is, residents were estimated to subsidize visitors by $23 million for that year. That means $1,000 per year of revenue attributable to residents, or over $2,000 per year per Laguna household, is diverted to pay costs of providing City services to visitors since revenue from visitors is not sufficient to do so. If the City could collect from visitors enough revenue to cover the additional costs the visitors are responsible for, could that $23 million per year be put to a better use that would benefit the residents who are providing the revenue?

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