Added bed tax helps Westlake rest easy

Added bed tax helps Westlake rest easy By Daniel Wolowicz Danielw@theacorn.com

With more than 400 new hotel rooms soon to open, Westlake Village officials are forecasting a sizeable increase in bed tax revenue during the next two years.

City Manager Raymond Taylor presented a Westlake midyear budget report during a March 9 city council meeting and said more hotel rooms will not only increase the city’s revenue, but also make the income more diverse.

The biggest sources of revenue in the city’s $9.3 million budget are sales taxes, property taxes and bed taxes. Westlake receives only a portion of the sales tax and property tax generated in the city, but it gets to keep all of the bed tax.

With the addition of the new hotels, Taylor said the city budget is "in good shape."

Officials predict hotel tax revenue will increase from the 2005 estimated revenue of $600,000 to $1.6 million by 2007. The increase would make the bed tax the second largest source of revenue, surpassing property taxes, which currently bring in about $1.3 million per year.

Construction of the 267-room Four Seasons Hotel at the Dole Wellness Center and the 160-room Marriott Residence Inn located on Lindero Canyon and Russell Ranch Roads will give city revenue a healthy shot in arm.

The resurgence of hotel construction in Westlake Village mirrors a national trend.

Following 9/11, hotel occupancy throughout the United States decreased by a half, and is just now recovering. The boost in occupancy rates means more hotels are being built, including locally.

Also on the rebound following the 9/11 recession is sales tax revenue for the cities.

Taylor said the lion’s share of the $2.8 million in annual sales tax revenue for Westlake Village comes from Costco and the stores in the Westlake Village Marketplace. Since 1996 when the two shopping areas opened, there has been a 130 percent increase in the city’s sales tax collections.

Other budgetary issues discussed by the Westlake council included expected fee increases for services provided by the Los Angeles County Sheriff’s Department.

Officials initially feared a double-digit fee increase when the city renews its contract with the Sheriff’s Department in July. Recently awarded wage and benefit increases are contributing factors. Taylor believes the increase will more likely be about 6 percent, but still significant.

The city also is working to complete an appraisal of the Westlake Village Medical Center. The 6.5-acre property on Lakeview Canyon and Agoura Roads was recently put on the market by the Hospital Corporation of America, owners of Los Robles Hospital.

And, the council instructed the Cultural and Recreations Committee to examine the financial impact of keeping the Westlake Village Public Library open on Sundays.

Currently, the library is open Tuesday through Saturday.