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HomeMy WebLinkAbout2018-06-26; City Council; Resolution 2018-102RESOLUTION NO. 2018-102 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, AND CONTINUING THE CTBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2018-19 EXHIBIT 1 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 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 2018-19; and WHEREAS, Section 36535 (d) of the Streets and Highways Code of the State of California, allows the City Council to " ... adopt a resolution continuing the program and assessments as levied in the then current year without change, and that resolution shall constitute the levy of an assessment for the fiscal year referred to in the report"; and WHEREAS, the City Council must adopt a new resolution each year in order to levy an assessment for that fiscal year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Annual Report (Attachment A) is approved as submitted by the Board of Directors for the Carlsbad Tourism Business Improvement District. June 26, 2018 Item #2 Page 3 of 6 3. That the program and assessment as levied in the current fiscal year (2017-18) shall continue without change. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of June, 2018, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. -&111{~ l~~ ~RBARA ENGLESON, City Clerk (SEAL) June 26, 2018 Item #2 Page 4 of 6 ATTACHMENT A Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2018-2019 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. 2017-18 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 2018-19 budget includes $1,266,600 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. For the first time, Visit Carlsbad will also be conducting a Spring integrated advertising campaign. Visit Carlsbad will 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 $200,000 allocated this year, to the CTBID Board. Detail of the 2018-19 budget is shown on the following page. June 26, 2018 Item #2 Page 5 of 6 2018-19 Recommended CTBID Budget 2014-15 2015-16 2016-17 2017-18 2017-18 Actuals Projected Recommended Program Areas Description Actuals Actuals Actuals Budget as of 4/30/18 2017-18 Actuals 2018-19 Budget Carryover Fund Balance $280,435 $537,435 $655,774 $722,331 722,331 722,331 647,676 Revenues: CTBID Assessment $1 per room night 1,104,688 1,167,716 1,205,851 1,200,000 838,274 1,228,000 1,320,000 Interest Earnings 3,778 10,442 1,658 9,012 9,000 Total Estimated Revenues 1,108,466 1,178,158 1,207,509 1,200,000 847,286 1,237,000 1,320,000 Ex12enditures: 2% Admin. Fee -City 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID 22,093 23,336 24,116 24,000 16,479 24,560 26,400 CCVB Payment To operate visitor center, market and promote Carlsbad 766,538 893,463 978,612 1,152,535 830,077 1,152,535 1,266,600 Staff support Staff support to the CTBID -2% of revenues 22,835 33,523 19,224 24,000 17,318 24,560 26,400 CTBID Grants Grant program established by CTBID Board 40,000 109,497 119,000 150,000 33,011 110,000 200,000 Total Expenses 851,466 1,059,819 1,140,952 1,350,535 896,885 1,311,655 1,519,400 Ending Fund Balance Contingency for Revenue shortfall $537,435 $655,774 $722,331 $571,796 $672,732 647,676 448,276 June 26, 2018 Item #2 Page 6 of 6