Agenda Item B.4
PR
ESENTATION
Meeting Date: May 5, 2026
TO: Mayor and Councilmembers
SUBMITTED BY: Luz “Nina” Buelna, Public Works Director
PREPARED BY: Melissa Angeles, Project Manager
SUBJECT: Hollister Avenue Old Town Interim Striping Project Update RECOMMENDATION:
Receive an update on the Hollister Avenue Old Town Interim Striping Project performance.
BACKGROUND:
The City Council approved the project and preliminary design for the Hollister Avenue Old Town Interim Striping Project (Project) in January 2021. The Project was developed based on the Hollister Avenue Complete Streets Corridor Plan, which resulted from an 18 -month public outreach process that included surv eys, workshops, stakeholder meetings, and walking and biking tours. This outreach effort helped shape street design concepts aimed at improving multi -modal access and parking efficiency, ultimately guiding the development of the Project. The Project included reducing travel lanes from two lanes to one lane in each direction, increasing on-street parking with angled 90-minute spaces, and installing Class II bike lanes on Hollister Avenue between Fairview Avenue and Kinman Avenue. The proposed improvements focus on the following key goals:
Increase parking spaces and availability
Reduce traffic speeds
Reduce collisions
Improve conditions for bikes and pedestrians
Maintain traffic flow
Public Works staff proposed implementing changes to Hollister Avenue in Old Town using easily adjustable, cost-effective materials. Traffic conditions were studied to assess how well the Project met its goals, and the resulting street configuration could h elp support future grant funding opportunities for a permanent streetscape project.
The City Council approved the plans and specifications for the Project and authorized staff to call for bids in April 2023. No bids were received during the Project’s firs t advertisement, so the Project was rebid in July 2023. The two bids received were 118% and 144% above the engineer’s estimate. The City Council rejected all bids and directed 1 Meeting Date: May 5, 2026
staff to incorporate the Project into Project Connect through a construction change order.
Public Works staff negotiated the change order, resulting in a reduction of approximately $2 million in construction costs . The Project was implemented on July 12, 2024.
Modifications, including three additional parking spaces and left turn accommodations for school buses at the Goleta Community Center, were completed in October 2024.
In preparation for the implementation of this Project, Public Works staff collected traffic volume and speed data on Hollister Avenue and the adjacent roadway network in October 2022 to serve as a baseline for pre-Project traffic conditions and for comparison with post- project traffic conditions. Public Works staff have monitored traffic conditions throughout Old Town and Project Connect construction areas. Signal timing adjustments have been made all along the Hollister Avenue corridor between Fairview Avenue and Ward Drive as necessary. Operational modifications have also been made at the Hollister Avenue and State Route (SR) 217 Southbound Ramps to improve traffic flow due to construction interruptions.
Staff collected traffic data from late 2024 to early 2025 and again from late 2025 to early 2026 to assess how the striping changes have affected traffic conditions in Old Town .
This report summarizes this data and provides information on how the project is meeting its goals.
Outreach
Staff provided an update on the Project at the March 18, 2025, City Council meeting. At that time, staff reported that t he Project included extensive community stakeholder involvement and public outreach. In total, n ine (9) community meetings were held between 2018 and 2024. When the Project was incorporated as a change order to Project Connect, outreach efforts were managed by the Project Connect outre ach team. These efforts included in-person visits to over 100 Old Town businesses, postcard mailers to over 2,000 parcels, articles in the Monarch Press, media releases, personalized outreach to the Santa Barbara Metropolitan Transit District, Goleta Unified School District, private and charter schools within the project area , Goleta Community Center, Santa Barbara South Coast Chamber of Commerce, Greater Santa Barbara Hispanic Chamber of Commerce, and property managers of impacted multi -family residential properties. The dedicated Project webpage was regularly updated with construction details , and a dedicated phone number and email address were maintained to respond to public inquiries.
As previously reported, between May and November 2024, the City received 121 public inquiries regarding the Project. The majority (75) expressed concerns primarily about angled-back-in parking and traffic impacts. Ten (10) inquiries were compliments, appreciating the safety improvements, while the rest were general que stions. Interest peaked in July, with an average of nineteen (19) weekly inquiries, but declined afterward, with only seven (7) inquiries recorded between November 2024 and February 2025.
Since that time, feedback has remained limited. Between March 2025 and March 2026, the City has received a total of ten (10) inquiries. These comments were primarily related 2 Meeting Date: May 5, 2026
to concerns and dislike of the back -in angled parking. Additional feedback included one request for Americans with Disabilities Act (ADA)-accessible parking in Old Town and one request for parking signage in Spanish.
DISCUSSION:
At the time of preparation of this report, the Project has been in place for approximately 18 months. C onstruction of Project Connect has continued in the Project’s vicinity. As Project Connect construction moves forward, traffic patterns have changed and will continue to change in future phases. The relatively short time frame and ongoing construction traffic affect the ability to draw meaningful conclusions about t he striping change's impact on traffic safety. However, the data shows positive trends toward the Project achieving its stated goals. Public Works collected pre-project data in 2022. Staff and the City’s traffic consultants have collected post-project traffic and parking data in Old Town during late 2024/early 2025 and late 2025/early 2026 to track project performance.
Traffic Volumes
The Hollister Avenue Complete Streets Corridor Plan determined that approximately two- thirds of Old Town Holli ster Avenue traffic trips were associated with residences or businesses in Old Town. The remaining third of traffic traveled through Old Town to other areas.
Through analysis of travel patterns, Public Works staff hypothesized that the lane reductions on Hollister Avenue could cause nearly half of these through trips to choose other routes, reducing the overall daily traffic volume by up to 15%.
The data shown in Table 1 demonstrate that daily traffic volumes have been reduced by approximately 12%, or by f ewer than 2,200 daily trips, compared with pre-Project conditions. No analysis has been carried out to determine whether this overall reduction in volume is due to a reduction in through traffic, but this could be a component of future data collection. It is also difficult to determine whether this traffic reduction is due to the lane reductions in Old Town, the traffic staging for the Hollister Avenue Bridge Replacement Project, the SR 217 roundabouts, or other reasons not known at this time.
Table 1 – Hollister Avenue Old Town Daily Traffic Volumes Pre and Post Project
Condition Daily Traffic Volume
Pre-Project (2022) 18,442
Post Project (24/25) 16,548
Post Project (25/26) 16,280
Change in Traffic Volumes Percent Change
2024/2025 to 2025/2026 -1.6%
Pre-Project (2022) to 2025/2026 -12%
3 Meeting Date: May 5, 2026
Data was collected on parallel routes to Hollister Avenue to determine whether the Project would divert significant traffic volumes. Table 2 shows the comparisons between the pre- and post-Project volumes. Volumes on these parallel routes increased after the restriping, but the data show these volumes are generally leveling off or decreasing, with a trend towards pre -project levels. While some parallel routes have experienced increases in traffic volumes, all ob served volumes remain at or below 1,500 vehicles per day, a commonly referenced upper range for residential streets. These levels are within typical operating conditions for residential streets . Increased volumes on Armitos Avenue may be partially associated with the 2024 opening of Armitos Park and Community Gardens.
Table 2 – Old Town Neighborhood Daily Traffic Volumes
Pre and Post Project
Armitos
Avenue
Gato
Avenue
Gaviota
Street
Mandarin
Drive
Pre-Project (2022) 729 819 571 1,308
Post Project (24/25) 920 753 818 1,524
Post Project (25/26) 917 915 763 1,430
Change In Traffic Volumes
2024/2025 to 2025/2026 - +22% -7% -6%
Pre-Project (2022) to 2025/2026 +26% +12% +34% +9%
On-Street Parking
The Project increased the overall on-street parking supply by converting parallel parking along the north side of Hollister Avenue to back -in angled parking. In addition to increasing supply, 90-minute time restrictions were implemented in Old Town to support parking turnover in the commercial area.
As shown in Table 3, on-street parking increased by 19 spaces. Parking occupancy data collected in March 2026 indicates that peak occupancy occurs during the mid -morning period. Peak occupancy increased to 76%, compared to 52% in 2025 and 66% in the 2012 Walker Parking Study.
On the north side of Hollister Avenue, occupancy has increased between Orange Avenue and Tecolote Avenue, while the parking supply in this segment increased by more than 50%. Along the remainder of the north side, parking occupancy has rem ained generally consistent with 2025 levels and is lower than levels observed in 2012.
4 Meeting Date: May 5, 2026
Table 3 – Old Town Hollister Avenue Parking Spaces and Peak Occupancy Pre and Post Project
No. Spaces Peak Occupancy
Pre-Project (2012) 69 66%
Post Project (January 2025) 88 52%
Post Project (March 2026) 88 76%
Change in Conditions
January 2025 to March 2026 0% 24%
Pre-Project (2012) to March 2026 28% 10%
Traffic Speeds
Table 4 shows that the prevailing speed on Hollister Avenue has been reduced to under 30 mph. The number of drivers traveling more than 10 mph over the posted speed limit has been cut in half, to 1% of the traveling public.
Table 4 – Old Town Hollister Avenue Prevailing and Extreme Speeds Pre and Post Project
85th percentile mph % >35 mph
Pre-Project 31.4 4%
Post Project (24/25) 28 2%
Post Project (25/26) 27 1%
Reported Collisions
Approximately 18 months of post -project collision data are available. Safety evaluations typically rely on multiple years of data, which is a limited dataset. Reported collision data show a decrease in total collisions compared to pre -project conditions. I njury collisions are lower than pre -project levels, with variation between post -project years. Bicycle - involved collisions are consistent with pre -project levels. One fatal pedestrian -involved collision was reported during the post-project period.
Table 5 – Old Town Hollister Avenue Reported Collision Summary Pre and Post Project
Total Fatal Injury Ped Bike
Pre-Project 12 0 6 0 2
Post Project (24/25) 7 1 2 1 0
Post Project (25/26) 4 0 3 0 2
Change in Reported Collisions
2024/2025 to 2025/2026 -43% -100% +50% -100% 0%
Pre-Project (2022) to 2025/2026 -67% - -50% - 0%
5 Meeting Date: May 5, 2026
Alternative Travel Modes
Pedestrian and bicycle activity during commute hours has increased. Counts at the Hollister Avenue and Pine/Nectarine Avenue intersection show increases in bicycle activity (Table 6A) during the morning peak hour and in pedestrian activity (Table 6B) during the afternoon peak hour.
Table 6A – Hollister Avenue and Pine/Nectarine Avenue
Peak Hour Bike Volumes
Pre and Post Project
Condition AM PM
Pre-Project 25 65
Post Project (24/25) 36 70
Post Project (25/26) 71 85
Change in Bicycle Volumes
2024/2025 to 2025/2026 +44% +21%
Pre-Project (2022) to 2025/2026 +184% +31%
Table 6B – Hollister Avenue and Pine/Nectarine Avenue
Peak Hour Pedestrian Volumes
Pre and Post Project
Condition AM PM
Pre-Project 80 103
Post Project (24/25) 89 172
Post Project (25/26) 149 320
Change in Pedestrian Volume
2024/2025 to 2025/2026 67% 86%
Pre-Project (2022) to 2025/2026 86% 211%
Vehicle Delay / Level of Service (LOS)
Analysis of Old Town intersections in 2022 found that most intersections operated at a level of service (LOS) B, with an average motorist delay of up to 20 seconds during the peak hour. Orange Avenue and Rutherford Avenue operated at LOS C (up to 35 seconds of average delay) during the peak hour. Public Works staff projected that the overall level of service along the corridor would degrade with the reduction in lanes, but with anticipated reductions in through traffic on Hollister Avenue, left-turn restrictions, and signal timing adjustments, an LOS C could be maintained throughout the corridor. Using recent traffic volume data, calculations at Hollister Avenue and Pine/Nectarine Avenue show that Old Town's intersection with the highest volumes operates at LOS C. (23 seconds of average delay).
There have been and will continue to be instances when the Hollister Avenue corridor performs below this level of service. Queues in the eastbound direction extending from 6 Meeting Date: May 5, 2026
SR 217 into Old Town have occurred in association with lane reductions and traffic control required for construction activities at the SR 217 ramp intersections with Hollister Avenue.
The roundabouts were placed into operation on March 1, 2026, and are currently in an interim configu ration that does not reflect final operating conditions. Traffic data summarized in this report were collected prior to and during the early implementation of these conditions and do not include post -implementation performance under the final configuration. Public Works staff will continue to monitor operations and coordinate with the contractor on construction staging and traffic control adjustments as necessary.
Additional Project Improvements
The Project utilized rubberized asphalt, a material that incorporates recycled tires. Pre - paving noise levels were measured at 83 decibels, while post-paving levels measured 58 decibels. The Project also enhanced visibility of roadway markings, crosswalks, and signage. New Intelligent Transportation Systems were installed at traffic signals, allowing staff to monitor traffic conditions and adjust signal timing remotely.
Public Works staff have implemented modifications requested by businesses, residents, the City Council, and the public that align with the Proje ct’s goals. These modifications include adjustments to parking restrictions, changes to permitted driving movements, and signal timing adjustments.
Economic and Financial Trend Analysis of Old Town Businesses
In addition to traffic and parking data, staf f conducted a sales tax analysis to assess economic and financial performance in Old Town. This analysis covers the third quarter (July through September) of 2023, 2024, and 2025, allowing for a year -over-year comparison of the same three-month period before and after Project implementation. The analysis focuses on the Old Town “Triangle” area by reviewing local sales tax data and considering broader economic factors that influence consumer spending. Sales tax reflects activity from businesses that sell tax able goods and services, such as retail, restaurants, and select service providers. While it is a valuable indicator of spending patterns and business activity, it does not capture the full scope of Old Town’s economy, as many essential services (such as healthcare, professional services, and most financial transactions) are not subject to sales tax. Sales tax data is preliminary and may change pending future audits. Figures and tables in this section present "unadjusted" sales tax receipts, meaning raw qua rterly totals that have not been corrected for one -time payments, late filings, or other timing anomalies that can distort year -over-year comparisons.
Sales tax results can be affected by a wide range of external economic factors, including but not limited to:
Macroeconomic Conditions – Such as inflation, interest rates, and consumer confidence, can impact spending patterns, particularly for discretionary purchases.
Industry-Specific Trends – Fluctuations in gas prices, auto financing costs, remote work adoption, and tourism activity can directly impact business performance. 7 Meeting Date: May 5, 2026
Shifts in Consumer Behavior – Increased e-commerce adoptions, food delivery services (e.g., DoorDash, Uber Eats) , and price sensitivity continue to change where and how people shop and dine.
One-Time or Seasonal Impact s – Late or m issed tax payments, business openings/closures, extreme weather events, and construction staging can cause temporary sales fluctuations.
Local Workforce Dynamics – The rise of remote and hybrid work among major Old Town employers may reduce daytime foot traffic, gas station visits, and purchases at nearby businesses.
Because multiple factors influence sales tax revenue, this analysis does not attempt to isolate the specific impact of any single local infra structure project. Instead, it provides a broad view of economic trends in Old Town compared to citywide, county, and statewide patterns.
To comply with confidentiality requirements, results are reported by major industry groups rather than by individual businesses. Performance can vary within each industry group, meaning not all businesses experience changes consistent with the broader group trends.
Old Town Goleta is the City's historic, cultural, and economic center, situated along Hollister Avenue be tween Fairview Avenue and State Route 217. It is a focal point for local businesses, residential communities, and redevelopment efforts. Originally a center for agriculture and light industry, the area has evolved into a mixed -use district with a strong emphasis on small businesses, hospitality, and service industries. On average, Old Town generates 23% of the City's total sales tax revenue. Within Old Town, the autos and transportation sector alone typically accounts for half of the sales tax generated there.
To assess performance, Figure 1 below summarizes the total unadjusted Old Town sales tax performance for Quarter 3, July to September (Q3) in 2023, 2024, and 2025, broken down by major industry group. Figure 2 shows two separate year-over-year percentage changes ( Q3 2023 to Q3 2024, and Q3 2024 to Q3 2025) compared across five geographies: Old Town, Citywide, Citywide Core, Countywide, and Statewide. Citywide Core excludes Old Town, allowing a comparison between It and the rest of the city. Key observations are summarized below.
8 Meeting Date: May 5, 2026
Figure 1. Old Town Sales Tax Performance Q3 (July- September) 2023-2025 (Unadjusted)
Figure 2. Q3 2023 to 2025 % Change (Unadjusted)
Summary of key observations for Q3 from 2023-2025 (July – September):
Old Town’s overall Q3 sales tax revenue rose from $564,051 in Q3 2024 to $604,130 in Q3 2025 , a 7.1% increase that nearly matched the 2023 level of $616,632.
Two industry groups that had declined in Q3 2024 rebounded notably in Q3 2025:
Autos and Transportation (driven primarily by new motor vehicle dealers , which surpassed their 2023 performance) and Fuel and Service Stations (largely due to the reopening of a gas station after a temporary closure). Autos and Transportation alone account for roughl y half of Old Town’s Q3 sales tax revenues, consistent with its long-term role as Old Town’s largest industry group. $616,631.54
$564,051.44 $604,129.56
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
Q3 - 2023 Q3 - 2024 Q3 - 2025
Restaurants and Hotels
General Consumer Goods
Fuel and Service Stations
Food and Drugs
Business and Industry
Building and Construction
Autos and Transportation
-8.5%
-3.6%
-2.1% -2.4% -3.3%
7.1%
-4.4%
-7.7%
2.3%
-0.1%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Old Town Citywide Citywide CORE County State
Q3 2023 to 2024 % Change Q3 2024 to 2025 % Change
9 Meeting Date: May 5, 2026
Food and Drugs sales tax revenue in Old Town rose approximately $7,000 or nearly 30%, year-over-year, driven largely by cannabis-related businesses. Restaurants and Hotels declined approximately $4,000 or 6% in Old Town in Q3 2025. Citywide, while overall slightly up, the decline was concentrated in fast- casual and quick-service restaurants. In Old Town, the decrease was concentrated in fast-casual dining . These trends likely reflect shifts in consumer behavior , including adjusted preferences, sensitivity to higher menu prices, and tip fatigue.
Notably, Old Town casual dining was up in Q3 2024 before reversing in Q3 2025, suggesting a recent shift rather than a long-term trend. General Consumer Goods saw a decrease in Citywide CORE, largely attributed to missing payments in Q3 -2025 from discount department and specialty stores , which are not located in Old Town, totaling approximately $ 150,000, which accounts for the majority of the 7.7% decrease for Citywide CORE. Building and Construction was down statewide, with building material suppliers continuing a multi-quarter slump tied to reduced summer activity. Citywide followed the same downw ard trend, while Old Town and County figures were essentially flat.
This sales tax analysis underscores that multiple economic, behavioral, and industry - specific factors contributed to Old Town's performance. While certain industry-level trends mirrored regional and statewide patterns, Old Town's overall Q3 2025 sales tax performance outperformed citywide, countywide, and statewide results. For more detailed information—including the full Q3 data table, eight -year historical trends, and expanded industry-level breakdowns—see Attachment 2.
Next Steps
Analysis of data collected over the nearly 18 months since the Project was completed shows promising trends in traffic speed, collisions, and bike and pedestrian activity.
However, it is still too early to draw definitive conclusions even without external factors, such as the construction of the City’s largest infrastructure project in its history.
Public Works staff recommend continuing yearly data collection and analysis through the completion of Project Connect. This period (annual) is recommended to establish trends more confidently and evaluate the Project's effectiveness. Public Works is available to meet with any community member or group to discuss potential changes and address concerns while remaining true to the original Project goals.
FISCAL IMPACTS:
There is no fiscal impact associated with this item.
ALTERNATIVES:
No alternatives at this time.
LEGAL REVIEW BY: Isaac Rosen, City Attorney
10 Meeting Date: May 5, 2026
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:
1. Staff Presentation
2. Additional Economic Information
11 ATTACHMENT 1
Staff Presentation
12 Hollister Avenue Old
Town Interim
Striping Project
Update
May 5, 2026
City Council Meeting
13 2
Outline
• Background
• I
mprovements
• Public Outreach
• Project Approach
• Project Goals
• Evaluation of Results
• Old Town Business Environment
• Next Steps
May 5, 2026 City Council Meeting
14 Project Background
2018 - C omplete Street Corridor Project
18- months public outreach
Public surveys and meetings/workshops
Walking and Biking Tour
Developed street concepts
January 2021 - H ollister Avenue Old Town Interim
Striping Project Initiated
Project Implemented July 2024
May 5, 2026 City Council Meeting 3
15 Public Outreach
100+ in-p erson visits to Old Town businesses
Over 2,000 postcard notifications were mailed
Monarch Press a rticles
Media Releases
Personalized outreach to SBMTD, GUSD, Go leta Community Center, Santa Barbara South Coast Chamber of Commerce, Greater Santa Barbara Hispanic Chamber of Commerce
Project Connect webpage updates
Dedicated project phone number and email
May 5, 2026 City Council Meeting 4
16 Public Outreach (cont.)
May 5, 2026 City Council Meeting 5
Public Outreach Information Line
121 inquiries between May and November 2024.
• Approximately 75 complaints, 10 compliments,
others were general inquiries.
• July was the peak inquiry month, averaging 19
inquiries per week.
• Only 7 inquiries were received between November
2024 – February 2025.
10 inquiries between March 2025 – March 2026
17 Project Area
May 5, 2026 City Council Meeting 6
18 7
Project Goals
Increase Parking Spaces and Availability
R
educe Traffic Speeds
Reduce Collisions
Improve Conditions for Bikes and Pedestrians
Maintain Traffic Flow
May 5, 2026 City Council Meeting
19 8
Daily Traffic Volume Comparison
Hollister Avenue (Average Volumes)
18,442
16,548 16,280
12000
13000
14000
15000
16000
17000
18000
19000
20000
2022 2024/2025 2025/2026
May 5, 2026 City Council Meeting
20 9
Daily Traffic Volume Comparison
Old Town Neighborhood Streets
0 200
400
600
800
1000
1200
1400
1600
Armitos Gato Gaviota Mandarin
729 819
571
1308
920
753 818
1524
917 915
763
1430
Pre-Project Post-Project (24/25) Post-Project (25/26)
May 5, 2026 City Council Meeting
21 On-Street Parking Comparison
Parking Spaces
May 5, 2026 City Council Meeting 10
22 On-Street Parking Comparison
Parking Occupancy
Changes since 2012
90 min parking
3 Public Lots: +70 spaces
+19 spaces on Hollister
New businesses
Wayfinding signage
May 5, 2026 City Council Meeting 11
23 On-Street Parking Comparison
Parking Occupancy – 2026 Parking
May 5, 2026 City Council Meeting 12
24 13
Traffic Speeds
Hollister Avenue
0 1000
2000
3000
4000
5000
6000
7000
2022
Speed Profile
2024-25
Speed Profile
85th %ile = 28 mph
85th %ile = 31.4 mph
May 5, 2026 City Council Meeting
25 14
Traffic Speeds
Hollister Avenue
2024-25
Speed Profile
85th %ile = 28 mph
85th %ile = 27 mph
2026
Speed Profile
May 5, 2026 City Council Meeting
26 May 5, 2026 City Council Meeting 15
Collision Comparison
0 2
4 6
8 10
12 Fatal Injury Ped Bike Total
0 6
0 2
12 1
2 1
0 7
0 3
0 2
4 Pre-Project Post-Project (24/25) Post Project (25/26) 27 May 5, 2026 City Council Meeting 16
Bicycle Volume Comparison
0 10
20 30
40 50
60 70
80 90
AM PM
25 65
36 70
71 85
Pre-Project Post-Project (24/25) Post-Project (25/26)
28 May 5, 2026 City Council Meeting 17
Pedestrian Volume Comparison
0 50
100
150
200
250
300
350
AM PM
80 10389
172
149
320
Pre-Project Post-Project (24/25) Post-Project (25/26)
29 May 5, 2026 City Council Meeting 18
Hollister Avenue / Pine-Nectarine LOS
2022
2024/25
30 May 5, 2026 City Council Meeting 19
Hollister Avenue / Pine-Nectarine LOS –
cont.
2025/26
31 May 5, 2026 City Council Meeting 20
Project Goal Compliance
Increase Parking Spaces and Availability
Reduce Traffic Speeds
Reduce Collisions
Improve Conditions for Bikes and Pedestrians
Maintain Traffic Flow
32 21
Key Economic Observations
$616,631.54
$564,051.44
$604,129.56
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
Q3 - 2023 Q3 - 2024 Q3 - 2025
Old Town Sales Tax Performance Q3 (July- September) 2023-2025 UNADJUSTED Restaurants and Hotels
General Consumer Goods
Fuel and Service Stations
Food and Drugs
Business and Industry
Building and Construction
Autos and Transportation
May 5, 2026 City Council Meeting
33 22
Key Economic Observations
-8.5%
-3.6%
-2.1% -2.4%
-3.3%
7.1%
-4.4%
-7.7%
2.3%
-0.1%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Old Town Citywide Citywide CORE County State
Q3 2023 to 2025 % Change UNADJUSTED
Q3 2023 to 2024 % Change Q3 2024 to 2025 % Change
• In 2025 Old Town sales tax
performance increased from
Q3 2024 and nearly
returned to 2023 levels
• Citywide and Core decline is
mainly due to missing
payments from discount and
specialty stores (approx.
~$150K)
• When adjusted the %
differences increase to 1%
(Citywide) and 0.1%
(Core)
May 5, 2026 City Council Meeting
34 Next Steps
M onitor traffic conditions after construction.
M eet with concerned citizens.
Consider modifications to address concerns in
al
ignment with project goals.
R eport back to City Council as requested.
May 5, 2026 City Council Meeting 23
35 Questions/Comments
May 5, 2026 City Council Meeting 24
36 ATTACHMENT 2
Additional Economic Information
37 16%
16%
17%
7%
8%
18%
18%
Citywide - Revenue Generators by Major
Industry Groups
(Q3 – 2025) Autos and
Transportation
Building and
Construction
Business and
Industry
Food and Drugs
Fuel and Service
Stations
53%
10%
8%
5%
8%
6%
10%
Old Town - Revenue Generators by Major
Industry Groups
(Q3 – 2025)Autos and
Transportation
Building and
Construction
Business and Industry
Food and Drugs
Fuel and Service
Stations
General Consumer Goods
38 Q3 Change 2023 to 2024 UNADJUSTED
July - September
Industry Group Old Town Citywide Citywide Core Countywide Statewide Key Observations Autos and
Transportation -$13,891.82 -5% -$5,734.26 -2% $8,157.56 25% $34,919.00 1% -$18,617,529.00 -5% Old Town down, Citywide down.
Auto Dealerships are down, which
accounts for majority of this
Industry Group. New autos were
down statewide, higher pricing
and financing costs. There are no
auto dealers in Citywide Core
which accounts for the increase.
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
Historical Trend of Total Sales Tax Performance 2018-2025 (Unadjusted)
Citywide Old Town Linear (Citywide) Linear (Old Town)
39 When looking at adjusted for
economic data, autos and
transportation for the supply
stores were up and the repair
shops were trending down.
Building and
Construction $3,714.49 6% -$10,502.06 -3% -$14,216.55 -4% $5,116.00 0% -$5,119,711.00 -3% Old Town up, Citywide down. The
increase in Old town can be
attributed to onetime payments
related to contractor building
materials, overall +$3k
Business and
Industry -$16,453.68 -27% -$71,327.39 -15% -$54,873.71 -14% -$93,025.00 -3% $45,100,517.00 11% Old Town down, Citywide down.
The decrease in Old Town in
largely attributed to missing
payments in Q3-2024 and a large
one-time payment received only in
Q3-2023 around $12k
Food and Drugs -$6,340.70 -21% -$22,579.53 -13% -$16,238.83 -12% -$163,560.00 -11% -$12,553,065.00 -12% Old Town down, Citywide down.
The decrease due to missed
payment in Q2 that was applied to
Q3. When analyzed for adjusted
for economic data, food and drugs
were both up in Old Town at 7%
and Citywide at 3%
Fuel and
Service Stations -$21,717.94 -33% -$34,209.97 -14% -$12,492.03 -7% -$140,704.00 -6% -$36,757,264.00 -17% Old Town down, Citywide down.
Gas station performance was
down in Old town and Citywide,
primarily, due to a gas station
being temporarily closed. Gas
prices also influence performance.
General
Consumer
Goods
-$1,712.31 -5% $15,127.01 2% $16,839.32 3% -$311,883.00 -8% -$35,776,984.00 -10% Old Town down, Citywide slightly
up. Old Town primarily consists of
specialty stores, furniture, sporting
goods, and jewelry stores that
were all down.
40 Restaurants
and Hotels $3,821.86 6% $34,101.32 8% $30,279.46 9% $159,611.00 4% -$1,287,111.00 0% Old Town up, Citywide Up. For
Old Town, casual dining
restaurants were up, most likely
due to preference, consumer
behavior, and having more options
to choose from with new
businesses opening up.
Total -$52,580.10 -9% -$95,124.88 -4% -$42,544.78 -2% -$509,526.00 -2% -$65,011,147.00 -3%
Q3 Change 2024 to 2025 UNADJUSTED
July - September
Industry Group Old Town Citywide Citywide Core Countywide Statewide Key Observations Autos and
Transportation $30,678.52 11% $50,828.71 15% $20,150.20 49% -$257,598.00 -7% -$16,514,019.00 -5% Old Town up, Citywide up. New
Auto Dealerships were up
compared to both Q3 of 2023 and
2024, which accounts for the vast
majority of this Industry Group.
Used autos were down statewide,
higher pricing and financing costs.
There are no auto dealers in
Citywide Core which accounts for
the increase.
Building and
Construction -$374.37 -1% -$9,691.84 -2% -$9,317.47 -3% -$6,192.00 0% -$3,583,564.00 -2% Old Town slightly down, Citywide
down. Statewide building material
suppliers struggled during the
summer, similar pattern from the
last several quarters.
Business and
Industry $869.93 2% $16,937.91 4% $16,067.98 5% $202,245.00 7% -$36,339,034.00 -8% Old Town up, Citywide up.
Business services saw an increase
citywide, but equipment for farm
and construction saw a decrease
citywide.
41 Food and Drugs $7,018.14 29% $28,270.43 20% $21,252.29 18% $207,357.00 15% $8,584,263.00 9% Old Town up, Citywide up.
Increase is largely attributed to
cannabis related businesses in Old
Town
Fuel and
Service Stations $3,471.53 8% $244.66 0% -$3,226.87 -2% $93,290.00 4% $11,017,590.00 6% Old Town up, Citywide up. Gas
station performance was up in Old
Town primarily, due to a gas
station reopening after a
temporary closure. Citywide a
decline in revenue from fuel-
service stations—marking the 10th
out of the last 11 quarters with
negative year-over-year change.
This trend is largely tied to West
Texas Intermediate (WTI) crude oil
prices, which hit their lowest
monthly levels since 2021.
General
Consumer
Goods
$2,414.18 7% -$201,666.30 -32% -$204,080.48 -34% $99,292.00 3% $24,216,321.00 7% Old Town up, Citywide down.
Specialty stores were up in Old
Town, despite several missed
payments in this industry group.
The decrease in Citywide and Core
is largely attributed to missing
payments in Q3-2025 from
discount department and specialty
stores which are not located in Old
Town totaling ~150K.
Restaurants
and Hotels -$3,999.81 -6% $3,031.59 1% $7,031.40 2% $137,141.00 3% $11,534,682.00 4% Old Town down and Citywide up.
Fast Casual and quick services
restaurants saw a decrease
citywide. Old Town also showed a
decrease in casual dining. Likely
due to preference, consumer
behavior balancing higher menu
prices, tip fatigue, and tighter
margins. Overall, summer
performance appeared stable but
42 lacked the tourism surge many
had hoped for.
Total $40,078.12 7% -$112,044.84 -4% -$152,122.96 -8% $475,535.00 2% -$1,083,761.00 -
0.06%
43