Board approves $1 million in transient‑occupancy tax grants after reallocations; supervisors discuss further district adjustments

The Sacramento County Board of Supervisors on June 10 approved the county’s Fiscal Year 2025‑26 Transient Occupancy Tax (TOT) grant program recommendations, authorizing execution of the $1,000,000 in grant agreements and confirming district‑directed allocations.

Amanda Thomas, the county’s chief fiscal officer, told the board the TOT grant program uses revenue from a 12% charge on local hotel and short‑term rental stays. The program allocates $1,000,000 annually, split into two pots: $500,000 for the highest‑ranking merit applications across four categories and $500,000 for district discretion (five districts, $100,000 each). Thomas reported the county received 289 applications for 2025‑26, of which 258 were eligible, and the total amount requested exceeded available funding by approximately $8.8 million.

Thomas highlighted selected prior recipients from 2023‑24 and said the program historically awards funds through subject‑matter expert panels and a TOT review panel that includes supervisors and chiefs of staff. Examples cited in the presentation included Meals on Wheels by ACC receiving $40,000 for emergency shelf‑stable meals to seniors, and Ellica Health Centers receiving $25,000 for a comprehensive care program for people experiencing homelessness.

The board heard eight public speakers on the item. April Javis of the Sacramento Literacy Foundation asked the board to fill an $82,000 gap to provide a free book at wellness visits for children ages 0–5; she said the county award would cover about 22% of the project’s unincorporated‑area costs and that the city of Sacramento contributed additional funds. Other speakers included Midtown Association (urban arts event), Anti‑Recidivism Coalition (mental health services), Food Literacy Center, Josh’s Heart, Asian Resources Inc., the American River Natural History Association, and My Sister’s House — many emphasized measurable community benefits and urged fuller funding.

Board members discussed the difficulty of allocating limited dollars across many worthy applicants and praised the volunteer panels that evaluate applications. Supervisors also proposed modest reallocations among district‑directed awards and some merit‑based awards to free additional funds for the Literacy Foundation’s request. Supervisor Hume proposed specific small reductions (Elk Grove Food Bank, Capital Air Show, Lock Foundation reduced from $10,000 to $9,000 each, plus small reductions to other awards) to generate funds. Supervisor Serna proposed reductions in other merit awards (Alconis CDC, SAC Regional Family Justice Center and HackerLab from $10,000 to $7,500; Tahoe Park Neighborhood Association from $6,600 to $5,900) and suggested a shared commitment from First 5 to help cover early‑childhood program needs.

After deliberation and some pledges by supervisors to use discretionary community service funds where needed, the board voted unanimously to approve the TOT grant program recommendations with district‑level adjustments reflected in the record. The clerk recorded an unanimous vote.

Clarifying details noted in the meeting: the TOT program year runs July 1 through May 31 (application window Jan. 13–Feb. 14), the county received a 75% increase in applications from the prior cycle, and $500,000 of the total is set aside for district discretion. Attachment lists and scoring notes are available to applicants upon request to the TOT administrator.

(Ending) The board approved the $1 million TOT grant package and authorized the county executive to execute the awarded funding agreements. Supervisors signaled plans to refine the schedule and process for future cycles to provide more time for district deliberations and potential additional outreach to applicants.