HomeMy WebLinkAbout2020-08-14; Carlsbad Tourism Business Improvement District; Resolution 2020-4DocuSign Envelope ID: ABA33B3D-DD89-479E-BF07-3C6705C0A7AF
EXHIBIT 1
RESOLUTION NO. 2020-4
RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT (CTBID), APPROVING THE MODIFIED ANNUAL REPORT
WHEREAS, the Carlsbad Tourism Business Improvement District (CTBID) was formed in
accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and
Highway Code § 36500 et seq.) (the "Act"); and
WHEREAS, Section 36533 of the Code requires the CTBID Advisory Board to present a 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 submitted to the City Council for Fiscal Year 2020-21,
and was approved by City Council at a public hearing on June 23, 2020; and
WHEREAS, the Annual Report has been modified for the 2020-21 fiscal year; and
WHEREAS, the Board of Directors of the CTBID wishes to approve the modified 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, as follows:
1. The recitals set forth herein are true and correct.
2. The modified Annual Report (Attachment A) is approved as submitted by the CTBID
Advisory Board by the City Council, modifying the CTBID assessment rate.
3. That for Fiscal Year 2020-21, the modified assessment rate is two percent (2%) of gross
short-term room rental revenue for all transient occupancies.
4. The modified assessment rate would go into effect Nov. 1, 2020.
5. The the approved modified Annual Report of the CTBID will be presented to the City Council
for their approval at the Aug. 25, 2020 meeting.
DocuSign Envelope ID: ABA33B3D-DD89-479E-BF07-3C6705C0A7AF
EXHIBIT 1
PASSED, APPROVED AND ADOPTED at a Meeting of the Board of Directors of the Carlsbad
Tourism Business Improvement District on the 14 day of August, 2020, by the following vote, to wit:
AYES: Stripe, Gray, Hughes, Chapin
NAYS: None
ABSENT: Rauch, Canepa
Tim Stripe Stripe
Chair
ATTEST:
PeC-foi Gome27
40 BARBARA ENGLESON
Pro Tern Clerk of the
Carlsbad Tourism Business Improvement District
Attachment A
Carlsbad Tourism and Business Improvement District (CTBID)
2020-2021 Modified Annual 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 2% of gross short-term room rental revenue 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 2% of gross short-term
room rental revenue 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 previously adopted CTBID 2020-21 budget included 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 recovery efforts. The majority of this will be done by interactive
marketing and group sales. Funding also includes managing the visitor center and
publications. The increase in the assessment from $1 per room night to 2% of gross
revenue will result in an estimated budget of $1,200,000, and goes into effect November
1. This increased revenue will provide additional funding for marketing during the
recovery. Due to the uncertainty of the tourism economy at this time, the CTBID Board
will revisit the budget mid-year as well as the Visit Carlsbad contract to make adjustments
based on the needs at that time.
Detail of the modified 2020-21 budget is shown on the following page.
2020-21 CTBID Budget
Program Areas Description
2016-17
Actuals
2017-18
Actuals
2018-19
Actual
2019-20
Actual
2020-21
Adopted Budget
2020-21
Modified Budget
Carryover Fund Balance $655,774 $722,331 $696,716 $640,318 617,131 617,131
Revenues:
CTBID Assessment $1 per room night 1,205,851 1,246,944 1,333,001 1,088,859 800,000 1,200,000
Interest Earnings 1,658 2,535 26,920 21,385
Total Estimated Revenues 1,207,509 1,249,479 1,359,921 1,110,244 800,000 1,200,000
Expenditures:
2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of CTBID
assessment and accounting for CTBID 24,116 24,896 26,644 21,045 16,000 24,000
CCVB Payment To operate visitor center, market and promote Carlsbad 978,612 1,130,216 1,244,575 1,040,326 800,000 800,000
Staff support Staff support to the CTBID - 2% of revenues 19,224 16,972 15,649 20,446 16,000 24,000
Professional Services Civitas Contract 32,960 12,000
CTBID Grants Grant program established by CTBID Board 119,000 103,011 129,451 18,654 75,000 35,000
Total Expenses 1,140,952 1,275,095 1,416,319 1,133,431 907,000 895,000
Ending Fund Balance Contingency for Revenue shortfall $722,331 $696,716 $640,318 $617,131 510,131 922,131