San Juan Capistrano : City Expects $25,000 Revenue Boost From Tax

A proposed 2% increase in the city’s bed tax has won final and unanimous approval from the City Council. Starting Nov. 1, the city’s two motels will pay a transit occupancy tax of 8% per bed used.

With its vote Tuesday night to raise the tax from 6%, the council expects to raise an additional $25,000 in revenues this fiscal year. The money will go into the city’s general fund, which helps pay for police protection and other municipal services.

The council rejected one motel owner’s request that the additional revenue be used for promotion of the city to lure more visitors.

In other matters, the council voted unanimously to hire Long Beach-based Special Events Marketing as a consultant to help plan and organize the San Juan Capistrano Heritage Festival to celebrate the city’s 25th anniversary. The Heritage Festival, planned for March, 1986, will be the new name for the annual festivities that mark the return of the swallows to city.

City Clerk Mary Ann Hanover said that the city is interested in improving the image that activities during the annual Swallows Day Parade have earned the city over the years.

“(City administrators) are trying to change the perception of the parade,” Hanover said. “It used to be that there was a lot of drinking and fights.”

The council, with all but Mayor Pro Tem Gary Hausdorfer present, voted to pay the marketing firm $12,000 to portray the community “in a new, positive way” during preparations for the festival.