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HomeMy WebLinkAbout2019-05-08; Carlsbad Tourism Business Improvement District; Resolution 2019-41 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 1 RESOLUTION NO. 2019-4 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADVISORY BOARD OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) OF THE CITY OF CARLSBAD, CALIFORNIA, TO APPROVE THE ANNUAL REPORT WHEREAS, the CTBID was formed in accordance with the California Government Code Parking and Business Improvement Area Law of 1989 (Sections 36500, et. Seq. of the Streets and Highways Code), and WHEREAS, Section 36533 of the Code requires the CTBID Advisory Board to present an annual report to the City Council's for their review and approval for each fiscal year for which assessments are to be levied and collected to pay the cost for the improvements and activities described in the report; and WHEREAS, an Annual Report has been prepared for the 2019-20 fiscal year, and WHEREAS, the Board of Directors of the Carlsbad Tourism Business Improvement District wishes to approve the Annual Report; and WHEREAS, the Board of Directors of the Carlsbad Tourism Business Improvement District wishes to submit the report to the City Council for approval; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Tourism Business Improvement District of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Annual Report shown at Exhibit A is approved in its entirety by the Board of Directors of the Carlsbad Tourism Business Improvement District. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. That the approved Annual Report of the Carlsbad Tourism Business Improvement District will be presented to the City Council for their approval at a June 2019 meeting. PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District of the City of Carlsbad held on the -~'----day of ~M=a=)¥-' _________ , 2019 by the following vote, to wit: AYES:Stripe, Canepa, Idris, Rauch, Hughes, Gray, Chapin NOES: n/a ABSENT: n/a ATTEST: ~Lc;~-(_jO. Pro T em Clerk of the Carlsbad Tourism Business Improvement District /II -2- EXHIBIT A Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2019-2020 Method of Assessment: The CTBID includes all hotel businesses located within the CTBID boundaries. The assessment shall be levied on all hotel businesses, existing and future, within the City of Carlsbad based upon a flat fee of $1.00 per occupied room per night for all transient occupancies as defined in section 3.12.020(7) of the Carlsbad Municipal Code. The amount of assessment shall be separately stated from the amount of the rent and other taxes charged, and each transient shall receive a receipt for payment from the operator. The assessment will be remitted monthly, based on $1.00 per occupied room per night in revenues for the previous month. Assessment Funding Purpose: To administer marketing and visitor programs to promote the City of Carlsbad as a tourism visitor destination and to fund projects, programs, and activities, including appropriate administrative charges.that benefit hotels within the boundaries of the District. 2018-19 Work Plan: Last fiscal year, the CTBID contracted with Carlsbad Convention and Visitors Bureau (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. In addition, $110,000 in grants were awarded to fund projects and events to increase the overnight stays in Carlsbad hotels. The CTBID 2019-20 budget includes $1,213,000 in funding for Visit Carlsbad. The services provided will focus primarily on driving demand in the leisure market during the off peak season. The majority of this will be done by interactive marketing and group sales. Visit Carlsbad will also contract with a public relations firm to continue branding Carlsbad. Funding also includes managing the visitor center and publications. The Visit Carlsbad Board will review the CTBID grant applicants and make the funding recommendations, for which there is $75,000 allocated this year, to the CTBID Board. The CTBID Board has also included $30,000 in its budget to engage a consultant to assist them in exploring an increase in the assessment. Detail of the 2019-20 budget is shown on the following page. EXHIBIT A 2019-20 Recommended CTBID Budget 2016-17 2017-18 2018-19 2018-19 Actuals Projected Recommended Program Areas Description Actuals Actuals Budget as of 3/18/19 2018-19 Actuals 2019-20 Budget Carryover Fund Balance $655,774 $722,331 $696,716 696,716 696,716 481 ,316 Revenues: CTBID Assessment $1 per room night 1,205,851 1,246,944 1,320,000 892,642 1,320,000 1,360,000 Interest Earnings 1,658 2,535 19,377 19,000 Total Estimated Revenues 1,207,509 1,249,479 1,320,000 912,019 1,339,000 1,360,000 Exgenditures: 2% Admin. Fee -City 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID 24,116 24,896 26,400 15,893 26,400 27,200 CCVB Payment To operate visitor center, market and promote Carlsbad 978,612 1,130,216 1,391 ,600 828,374 1,391,600 1,213,000 Staff support Staff support to the CTBID -2% of revenues 19,224 16,972 26,400 9,367 26,400 27,200 CTBID Grants Grant program established by CTBID Board 119,000 103,011 200,000 15,000 110,000 75,000 Professional Services Engage consultant to explore assessment increase 0 0 0 0 0 30,000 Total Expenses 1,140,952 1,275,095 1,644,400 868,634 1,554,400 1,372,400 Ending Fund Balance Contingency for Revenue shortfall $722,331 $696,716 $372,316 $740,101 481,316 468,916