HomeMy WebLinkAbout2020-06-02; City Council; Resolution 2020-093RESOLUTION NO. 2020-093
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, DECLARING AN
INTENTION TO LEVY AND COLLECT AN ANNUAL ASSESSMENT AND SETTING
A PUBLIC HEARING DATE
EXHIBIT 1
WHEREAS, the CTBID was formed in accordance with the Parking and Business Improvement
Area Law of 1989 (Cal. Streets and Highways Code, § 36500 et seq.); and
WHEREAS, the CTBID boundaries are the boundaries ofthe City of Carlsbad; and
WHEREAS, the CTBID Advisory Board must present an annual report to the City Council for
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, the CTBID Advisory Board submitted an annual report (Attachment A) to the City
Council for fiscal year 2020-21; and
WHEREAS, after the City Council approves the annual report, the City Council must adopt of
resolution declaring its intention to levy and collect assessments for fiscal year 2020-21; and
WHEREAS, the assessments will generally be spent 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
CTBID boundaries; and
WHEREAS, the amount of the proposed assessment and a full and detailed description of the
activities to be conducted and funded in fiscal year 2020-21 are included in Attachment A.
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 CTBID Advisory
Board.
3. That for fiscal year 2020-21, the City Council intends to levy and collect an assessment
of $1 per room-night for each transient occupancy in the city.
4. That the City Council will hold a public hearing at 3 p.m. on June 23, 2020 on the levying
of the annual assessment.
June 2, 2020 Item #3 Page 3 of 6
EXHIBIT 1
5. That at the public hearing, the City Council will consider any oral or written protests to
the levying of the assessments. Written protests must be submitted to the city clerk at
or before the time set for the public hearing. Written protests must contain sufficient
information to identify the affected business and to show the person submitting the
protest is the business owner or is speaking on behalf of the business owner. If,
following the public hearing, there are written protests from affected business owners
that will pay 50 percent or more of the proposed assessments, the City Council will not
take any further action to levy the proposed assessment for one year.
That the city clerk is directed to give notice of the public hearing by causing this resolution of
intention to be published once in a newspaper of general circulation in the city not less than seven days
before the public hearing.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of
Carlsbad on the 2nd day of June 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
(SEAL)
June 2, 2020 Item #3 Page 4 of 6
Attachment A
Carlsbad Tourism and Business Improvement District (CTBID)
2020-2021 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 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 estimated
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.
June 2, 2020 Item #3 Page 5 of 6
2020-21 Recommended CTBID Budget
2016-17 2017-18 2018-19 2019-20 2019-20 Actuals Projected Recommended
Program Areas Description Actuals Actuals Actual Budget as of 4/22/19 2019-20 Actuals 2020-21 Budget
Carryover Fund Balance $655,774 $722,331 $696,716 $640,318 640,318 529,918
Revenues:
CTBID Assessment $1 per room night 1,205,851 1,246,944 1,333,001 1,360,000 892,642 1,020,000 800,000
Interest Earnings 1,658 2,535 26,920 19,377 20,000
Total Estimated Revenues 1,207,509 1,249,479 1,359,921 1,360,000 912,019 1,040,000 800,000
Ex12enditures:
2% Admin. Fee -City 2% of CTBID assessment revenue, for collection of CTBID
assessment and accounting for CTBID 24,116 24,896 26,644 27,200 18,987 20,400 16,000
CCVB Payment To operate visitor center, market and promote Carlsbad 978,612 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 19,224 16,972 15,649 27,200 13,938 20,000 16,000
Civitas Contract 40,000 22 ,720 40,000
CTBID Grants Grant program established by CTBID Board 119,000 103,011 129,451 75,000 10,008 20,000 75,000
Total Expenses 1,140,952 1,275,095 1,416,319 1,382,400 1,060,979 1,150,400 907,000
'
Ending Fund Balance Contingency for Revenue shortfall $722,331 $696,716 $640,318 $617,918 529,918 422,918
June 2, 2020 Item #3 Page 6 of 6