Vista budget not seriously affected by pandemic; cannabis tax revenues exceed projections

The impacts of the COVID-19 pandemic on the city of Vista were milder than predicted, City Council members were told this month.

Some unexpected revenue helped balance the projected $92.3 million budget, as did sales tax and property tax revenue coming in higher than expected.

The biggest unexpected boost came in a projected $4 million in medical cannabis tax, which originally was expected to generate $1.3 million.

Vista also received $1.8 million in Coronavirus Aid, Relief, and Economic Security funding from the county, which allocated the funds to 17 cities that did not directly receive federal CARES Act funds.

In September, Vista senior management analyst Sara Taylor said the operating budget was expected to be almost $1 million less than what was projected in 2019 because of the impact the pandemic had on sales tax, transient occupancy taxes and other revenue. The city uses a two-year budget cycle.

At the City Council’s April 13 meeting, Taylor said the original projected budget of $85.5 million had been revised to $92.3 million.

Taylor said the $4 million from medical cannabis businesses resulted from the opening of 11 store fronts and revenues coming in greater than expected.

Sales taxes overall accounted for almost $21 million in the projected budget, up from an earlier projected $19 million. The largest single revenue source was $26 million in property taxes, which had been expected to generate $25 million.

Transient occupancy taxes from hotels are expected to decrease from an earlier projected $1.6 million to about $1.2 million, but is expected to be at $1.6 million in the 2022-23 budget.

With activities down, city revenue from charges for services was revised from $14.6 million to a projected $14 million, but is expected to be up to $15.3 million in 2022-23.

Likewise, revenue from licenses and permits was revised from $1.9 million to $1.7 million, but is expected to be up to about $1.9 million in fiscal year 2022-23.

The pandemic also increased subsidies the city pays for some attractions. With the Wave Waterpark closed, subsidies increased from $400,000 to $733,000. The Moonlight Amphitheater had no shows, resulting in subsidies to Moonlight Stage Productions increasing from $200,000 to $233,000. More people participated in the city’s senior nutrition program, which saw subsidies increase from $375,000 to a projected $417,000.

With word that next year’s budget should be more healthy than expected, some council members suggested a wish list of new services.

Councilwoman Corinna Contreras suggested using revenue from cannabis sales on youth programs, such as a partnership with the Vista United School District and Vista Chamber of Commerce.

Councilman Joe Green suggested using the cannabis revenue to help with subsidies. He also suggested the city pursue more solar energy options, hire an additional social worker and create a dog park in the north part of Vista.

Councilwoman Katie Melendez also said she would like the city to have another social worker, and she suggested using cannabis tax revenue for youth and recovery programs.

Councilman John Franklin said he would like the city to add any deputy, preferably one on the psychiatric emergency response team.