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HomeMy WebLinkAbout2020-05-06; Carlsbad Tourism Business Improvement District; Resolution 2020-2DocuSign Envelope ID: 4898AD2O-F9DD-4D5A-A78A-CAE911E4E676 RESOLUTION NO. 2020-2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT APPROVING THE ANNUAL REPORT WHEREAS, the Carlsbad Tourism Business Improvement District (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 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 2020-21 fiscal year, and WHEREAS, the Board of Directors of the CTBID wishes to approve the Annual Report; and WHEREAS, the Board of Directors of the CTBID 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 CTBID. 3. That the approved Annual Report of the CTBID will be presented to the City Council for their approval at a June 2020 meeting. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District on the 6th day of May 2020, by the following vote to wit: AYES: Stripe, Canepa, Rauch, Gray, Hughes, Chapin NOES: None. ABSENT: None. DocuSign Envelope ID: 4898AD20-F9DD-4D5A-A78A-CAE911E4E676 ti*cfrirt, TIM STRIPE Chair ATTEST: BARBARA ENGLESON /1-1eG 71GC 6:ap 7 Dep o td-) c, Pro Tern Clerk of the Carlsbad Tourism Business Improvement District Attachment A Carlsbad Tourism and Business Improvement District (CTBID) 2020-2021 Report 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. 2019-20 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, $20,000 in grants were awarded to fund events to increase the overnight stays in Carlsbad hotels. The CTBID 2020-21 budget includes a reduced funding level of $800,000 for Visit Carlsbad. This reduced funding level is the result of reduction in assessment revenue due to Covid-19. The services provided will focus primarily on post Covid- 19 marketing efforts. The majority of this will be done by interactive marketing and group sales. 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. Detail of the 2020-21 budget is shown on the following page. 2020-21 Recommended CTBID Budget Program Areas Description 2017-18 Actuals 2018-19 Actual 2019-20 Budget 2019-20 Actuals as of 4/22/19 Projected 2019-20 Actuals Recommended 2020-21 Budget Carryover Fund Balance $722,331 $696,716 $640,318 640,318 529,918 IRevenues: 1 CTBID Assessment $1 per room night 1,246,944 1,333,001 1,360,000 892,642 1,020,000 800,000 Interest Earnings 2,535 26,920 19,377 20,000 Total Estimated Revenues 1,249,479 1,359,921 1,360,000 912,019 1,040,000 800,000 Expenditures: 2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of , CTBID assessment and accounting for CTBID 24,896 26,644 27,200 18,987 20,400 16,000 CCVB Payment To operate visitor center, market and promote Carlsbad 1,130,216 1,244,575 1,213,000 995,326 1,050,000 800,000 Staff support Staff support to the CTBID - 2% of revenues 16,972 15,649 27,200 13,938 20,000 16,000 Professional Services Civitas Contract 40,000 22,720 40,000 CTBID Grants Grant program established by CTBID Board 103,011 129,451 75,000 10,008 20,000 75,000 Total Expenses 1,275,095 1,416,319 1,382,400 1,060,979 1,150,400 907,000 Ending Fund Balance Contingency for Revenue shortfall $696,716 $640,318 $617,918 529,918 422,918