Recently, the State of the City Address, hosted by the Scotts Valley Senior Life Association, was presented at The Landing Performing Arts Center. Presenters included myself, Scotts Valley Police Chief Jayson Rutherford, Scotts Valley Fire Chief Mark Correira, Scotts Valley Water District General Manager David McNair and School District Superintendent Tanya Krause. It was a very informative program, available to view here: youtube.com/watch?v=Prqe31N9TYc.
The following is a brief summary of the information presented.
Town Center
The Town Center is closer than ever to becoming a reality. The City has worked hard over the last two years to update the community vision and specific plan for the project. Swenson Builders was selected as the development partner. Swenson has ties to Scotts Valley, as many of their team members live nearby, so they know the community, Skypark and the Town Center site well. A formal project is expected to be submitted to the City in 2027. If all goes well, we could break ground in 2029!
Housing
Since 2020, the California legislature has passed more than 100 housing-related bills. Three of four affordable projects have moved forward under state measures that bypass local control and public input. They are 4575 Scotts Valley Drive, with 100 affordable rental units; 4444 Scotts Valley Drive, with 25 affordable rental units; and 75 Mt Hermon Road, with 40 affordable rental units. The fourth, on Erba Lane, includes 19 for-sale townhomes, three of them dedicated affordable units, and was approved at a public hearing.
Parks and Recreation
The Parks and Recreation program struggled after the pandemic. With staffing restored over the past couple of years, the City has been able to offer several community programs again. Thanks to Congresswoman Anna Eshoo, the City was awarded $750,000 in Community Project Funding to replace the large children’s playground at Skypark, which has become a countywide family destination.
Public Works
Public Works has been working to catch up on street and park maintenance projects delayed by staffing and funding shortages. Upgrades on Scotts Valley Drive, including new, wider bike lanes, have been well received. Improvements under the Skypark master plan are underway, and the buildout of Al Shugart Park is beginning with environmental review. The Granite Creek overcrossing is in the design phase, with construction pending additional funding. Stormwater infrastructure and Wastewater Treatment Plant upgrades are also in progress, along with several projects improving local parks and the Senior Center.
Business License Tax
The modernization of the Business License Tax has had a significant impact. The City has moved from a system based on the number of employees to one based on gross receipts. Most businesses remain in the lowest revenue category. The change has increased annual revenue from approximately $350,000 to between $1 million and $1.2 million. The goal is to maintain community services while putting the City on stronger financial footing.
Transient Occupancy Tax
The Transient Occupancy Tax (TOT, or hotel tax) generates about $2 million a year, roughly 10% of our General Fund revenue, and fluctuates with tourism and hotel activity. Scotts Valley’s current rate is 11%, while the rest of the county is at 12%. If approved, Measure G would increase the rate from 11% to 13% and is estimated to generate an additional $300,000 to $400,000 per year.
Financial Outlook
The City has made significant progress in addressing its long-term financial challenges. Just two years ago, our forecast showed annual General Fund deficits of more than $2 million. That gap is now steadily narrowing as we modernize revenues, manage costs, retain employees and continue investments in roads, parks and technology. We still have work to do, but we are moving toward a more sustainable long-term financial position.
Police
The City celebrated its 60th birthday on Aug. 2 this year with a wonderful community celebration. Chief Rutherford noted that the Scotts Valley Police Department will celebrate its own 60th birthday on Nov. 7! He shared photos from the early days and credited Chief Pittenger, Officer Bob Corbett and even me in my early days, as well as his current staff. He shared statistics, including a 24% increase in traffic stops, a decrease in non-injury accidents, but a 61% increase in injury accidents. With criminal activity, burglaries decreased, thefts remained about the same, and calls for service increased slightly. Chief Rutherford noted a large increase in DUI arrests, with the Department conducting several traffic, pedestrian and e-bike campaigns. The Department was awarded two separate grants totaling $160,000 to assist with traffic safety, education and equipment.
Fire
Fire Chief Correira reported that Scotts Valley Fire serves 30,000 residents, covering 30 square miles, including Pasatiempo and other areas outside the City limits. The District operates three fire stations under its own funding. Last year, crews responded to 2,512 calls, including responses across the State for mutual aid. Chief Correira presented the District’s financial history, showing its work in cutting expenses and the steps being taken due to the unsafe condition of the Erba Fire Station. Temporarily Administration moved to Glenwood, dorms moved to former Admin offices, temporary repairs have been made and the public meeting room was closed.
Water
General Manager McNair shared updates on the District’s water supply, including a project that turns stormwater into groundwater recharge. He also reported on the Intertie project connecting the City of Santa Cruz and the Scotts Valley Water District. The Grace Way well is the District’s largest-producing well. The water supply remains strong, thanks to residents’ conservation and water-saving technology in new construction. Looking ahead, the District plans $33.5 million in capital improvements through fiscal year 2031.
Schools
Superintendent Krause thanked the community for supporting recent bond measures. She shared photos of the new all-weather track and field stadium, expected to be completed soon, and described construction of multipurpose rooms at elementary schools for indoor dining, events and assemblies. Other funded projects include replacing old and unsafe playground equipment and repairing leaking roofs and pipes.
Thank you to our presenters and to the Scotts Valley Senior Life Association for hosting this event for the 10th year!
Donna Lind is Mayor of Scotts Valley. To reach Lind, email dl***@**********ey.gov or call 831-438-4187.
