Watsonville tax revenue holds steady amid pandemic

WATSONVILLE, Calif. (KION) Many Central Coast cities have seen a decline in revenue during the COVID-19 pandemic, but it appears to be a different story in Watsonville.

In the last City Council meeting, officials said the city's tax revenue has held steady due to online and local shopping, and now they are looking at ways to use the extra money.

The city of Watsonville has managed to maintain its overall sales tax revenue, surpassing expectations for the year and performing slightly below what the city has seen before the pandemic.

Aurelio Gonzalez, City Council Member of Watsonville, believes that this increase in tax revenue is due to people staying home and shopping locally.

"If somebody works in Salinas and they live here in Watsonville, most likely, they would have shopped in Salinas but maybe because they're in business now or their job has told them you could stay home and work from home, they're no longer doing that shopping in Salinas right? They're going to go locally to our Target, to our Nob Hills, and to our local stores," says Gonzalez.

Originally, the city is expected to end the fiscal year 5 million about what their projections were in June. City leaders initially projected a 20% loss in revenue.

City Council member Eduardo Montesino believes that because the majority of the population in Watsonville are essential workers, they've managed to keep their jobs.

"We're all essential workers. We're farmers, We're bus drivers, we're county workers, we're city workers so by doing all that stuff, buying locally and a lot of online shopping. Our budget is in a very healthy places," says Montesino. 

Council members believe that once economic restrictions are lifted, Watsonville residents may lessen their local shopping but encourage residents to keep their tax dollars in small and local business.