To: Board of Supervisors
Department or Agency Name(s): County Executive’s Office
Staff Name and Phone Number: M. Christina Rivera and McCall Miller, 707-565-2431
Vote Requirement: Majority
Supervisorial District(s): First and Third
Title:
Title
FY 25-26 Tourism Impact Fund Grant Awards
End
Recommended Action:
Recommended action
A) Authorize the County Executive, or designee, to execute an agreement with the following grantees: North Bay Organizing Project, $20,000; Centro Laboral de Graton, $60,000; Los Cien Sonoma County Inc., $25,000; Secure Families Collaborative, $10,000; and Museum of Sonoma County, $5,000.
B) Authorize the allocation of $70,000 of District Priorities Funds from the First District to the Highway 116 Roundabout Art Project.
C) Authorize the County Executive, or designee, to amend these agreements to lengthen the time schedules and make minor modifications to the allowed uses that do not increase the amount awarded under the agreements. (First and Third)
end
Executive Summary:
The Tourism Impact Fund was established to meet the unique and urgent needs of unincorporated Sonoma County and may be used for activities such as safety improvements, environmental impact mitigation, public safety, and other tourism mitigation activities. Funds may also be used for projects that benefit the community, or to support organizations that coordinate community improvements, such as the Municipal Advisory Councils.
Staff recommends award of a total of $110,000 in grants and $80,000 in project allocations (for a total of $190,000), and requests authorization for the County Executive, or designee, to execute the funding agreements and to make minor modifications that do not increase the amount awarded under the agreements.
Activities performed utilizing the Community Investment Program funds provide public benefit that serve important community needs under Government Code Section 26227.
Discussion:
Transient Occupancy Tax Funding
The Sonoma County Transient Occupancy Tax (TOT or Hotel Bed Tax) was established in 1965 and is authorized under State Revenue and Taxation Code Section 7280. TOT, a general tax, is currently levied at a rate of 12%, a rate established in 2016 by the voter-approved Measure L. TOT revenue is allocated 25% to the General Fund; 50% to the Community Investment Fund; and 25% to the Measure L Fund.
Community Investment Fund Program and Policy
The Community Investment Fund Program, established in 1986 as the Advertising and Promotions Program, allocates a portion of the Transient Occupancy Tax to encourage economic development, community engagement, and culture in the County through a variety of grant award and funding avenues. The program provides grants to community-based organizations for a wide range of activities including economic development, community and countywide events, and advertising and promoting the county as a visitor destination with the goal of advancing economic growth through tourism. Additionally, the program provides grants to address impacts on safety due to tourism and to enhance community services throughout the county. The program provides funding to the Regional Parks Department, the Economic Development Collaborative, and additional county activities. Community Investment Funds are allocated per the Community Investment Fund Policy (Policy) (Community Investment Fund Policy <https://sonomacounty.gov/administrative-support-and-fiscal-services/county-executives-office/community-investment-fund-program/community-investment-program-policy>).
On September 16, 2025, the Board adopted revisions to the Policy, consolidating funding priorities into three funding categories: County Department Funding, District Priorities, and Community Funding. Staff are working on updating the application process to align with the new funding categories. In order to minimize impacts to the community, applications in process will continue to be processed based on the current Policy.
Revised District Priorities Category
The revised District Priorities funding category provides funds to events, organizations, and Supervisorial District priorities. Funding may be distributed through grants or assigned to County departments. The funds available in this category include $100,000 for each supervisorial district ($500,000 total) from the Community Investment Fund and 10% of Measure L revenue to be allocated to each supervisorial district proportionate to the amount of Transient Occupancy Tax collected within the district in the previous fiscal year. Unused funds
will be accounted for and available for use in future years. Organizations may make their requests directly to each Supervisorial District.
Funds in this category may be used for activities such as safety improvements, environmental impact mitigation, public safety, and other tourism mitigation activities, such as parking enforcement. Funds may be used for projects that benefit the community, or to support organizations that coordinate community improvements, such as the Municipal Advisory Councils. The Board may award funding to County Departments or to Supervisorial Districts to complete priority projects. Funding may be used to cover salary and benefit costs associated with changed or additional staff, and other costs associated with added staffing such as office space.
Funds will be distributed upon approval of these awards by the Board of Supervisors and execution of the Community Investment Fund grant agreement by the entity. The agreements will be executed by the County Executive, or designee. The agreements require the County seal on promotional materials produced using the grant award.
Because a project may require modification as the work/project may not be completed within the fiscal year, an extension of time or modification of allowed uses for the organization to complete the project may be necessary. Therefore, it is recommended that the County Executive, or designee, be authorized to amend the contracts to lengthen the time schedules and make minor modifications to the allowed uses that do not increase the amount awarded under the agreement.
Funding Recommendations First District - Total $185,000
1. North Bay Organizing Project, grant award of $20,000 for the Food for All/Comida Para Todos culturally responsive food program.
2. Centro Laboral de Graton, grant award of $60,000 for the CLG Assist Program serving seniors, single parent households, and people with disabilities.
3. Los Cien Sonoma County Inc., grant award of $25,000 for the Bridge Program (Building Representation, Inclusion, Diversity, and Governance Excellence).
4. Secure Families Collaborative, grant award of $10,000 for ongoing program costs.
5. Highway 116 Roundabout Art Project, allocation of $70,000 for ongoing costs of the project.
Third District - Total $5,000
1. Museum of Sonoma County, grant award of $5,000 for the “Running Fence at 50” exhibition.
Activities performed utilizing Community Investment Program funds provide public benefits that serve important community needs under Government Code Section 26227.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
10/14/2025, 11/7/2025, and 12/9/2025 - Awarded FY 25-26 Tourism Impact Fund Grants
10/28/2025 and 1/6/2026 - Awarded FY 25-26 First District Community Investment Fund Grants
Fiscal Summary
|
Expenditures |
FY 25-26 Adopted |
FY 26-27 Projected |
FY 27-28 Projected |
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Budgeted Expenses |
Fund 11015: $2,041.82 Fund 11016: $187,958.18 |
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Additional Appropriation Requested |
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|
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Total Expenditures |
$190,000 |
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|
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Funding Sources |
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General Fund/WA GF |
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|
|
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State/Federal |
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|
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Fees/Other |
Fund 11015: $2,041.82 Fund 11016: $187,958.18 |
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Use of Fund Balance |
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|
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General Fund Contingencies |
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Total Sources |
$190,000 |
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Narrative Explanation of Fiscal Impacts:
Tourism Impact Funds and Community Investment Funds are included in the FY 25-26 budget.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Sample Tourism Impact Fund Grant Agreement
Related Items “On File” with the Clerk of the Board:
None