How Central Coast cities spend thousands of taxpayer dollars on staff holiday parties a year
PISMO BEACH, Calif. - Central Coast cities spend thousands of taxpayer dollars on staff holiday parties each year. A KCOY 12 investigation found that Pismo Beach spent more than Santa Barbara and San Luis Obispo cities combined in recent years.
“It's one time during the year that we can acknowledge and appreciate all the hard work that [city employees] do," said Pismo Beach management services director, Jorge Garcia.
KCOY 12 filed freedom of information requests with several cities for holiday party spending for the past three years. San Luis Obispo said it spent about $3,000 each year.
Santa Barbara city said it spent about $300 in total for 2016 and 2017.
Lompoc said it didn't spend a dime.
“All of that comes out of employees own pockets," said Lompoc spokesperson, Samantha Scroggin. “Obviously the city of Lompoc is undergoing a difficult budget time right now, and we just don't have additional money for holiday parties.”
We even asked Salinas. Records show expenses added up to just over $6,000 in total.
In Pismo Beach parties ranged between $7,000 to $8,500 each year. Expenses included DJ's, photo booths, decorations, food, entertainment, party favors and other supplies.
“Would you say that this is a high number?” we asked Pismo's management services director.
“No, I wouldn't say it's a high number, I think it's a very appropriate number," said Jorge Garcia. "I think we value our employees here. The mayor and city council are supportive of our holiday party, they attend it.”
About 8,000 people live on this coastal city. The city's party spending almost comes out to a dollar per city resident. The celebrations themselves are attended by about 100 city employees a year, according to Garcia.
“[It] seems a little excessive," one Pismo Beach resident said.
“I only requested information for the last three years, but would you say that this is the budget for most years?" KCOY 12's Nathalie Vera asked.
“Yes,” said Garcia.
“Some of these, for example, holiday party entertainment, it was $1,300 and then there's also a DJ charge for $650," we asked. "What was the holiday entertainment?”
“So the entertainment includes music. And then the entertainment at last year's party was a casino-themed party. So we did have a company come in and run a non-financial, casino-style themed party," he said.
According to the 2018-2019 adopted budget report, the city's financial challenges include rising pension costs, rising risk management costs, high costs of repairing the Pier, development of a sustainable water supply, construction of projects like the Shell Beach Streetscape project, and investments in circulation and parking.
"Do you think the taxpayer might say part of the [$23,727.67 total spent between 2016-2018] should be invested in any of those efforts?" we asked.
Garcia said Pismo Beach is going through a period of community re-investment, and described the city's finances as strong.
“The Shell Bbeach streetscape is an almost $14 million project. Our Pier plaza is about a $8 to $9 million project. So our employees have been the backbone and the center stone of making those projects work," he said.
Garcia explained that Christmas parties are part of their employee retention program.
“We have very long tenured employees, and part of that is because we treat them well.”
“Well I think that's good," said Terry Brooks, who was visiting Pismo Beach from Santa Maria on Friday. "Actually, everybody else should be doing that as well because it's giving back to the community on the work that they do.”
Garcia says hiring people can cost staff 70 to 150 hours, which adds up to $3,000 to $10,000 each time. He reiterates retention is important, and goes on to say that the city's party spending is a tiny fraction of its $50 to $60 million total annual budget.
Garcia also said that money spent on these celebrations stays local because they hire talent and businesses in Pismo Beach.
KCOY 12 requested records from Santa Maria as well. The city said it did not have responsive records on holiday party spending for the past three years.
