HomeMy WebLinkAbout2015-05-21; Carlsbad Tourism Business Improvement District; 05-15-112; Approve the Annual ReportAB# 05-15-112
MTG. 5-21-15
CARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
Approve the Annual Report of the
Carlsbad Tourism Business CTBID STAFF
Improvement District GENERAL '· COUNSEL
RECOMMENDED ACTION:
~
Adopt Resolution No. 2015-2 approving the Annual Report of the Carlsbad Tourism Business
Improvement District (CTBID) and submit the report to the City Council for approval at a June
2015 meeting.
ITEM EXPLANATION:
In accordance with Section 36533 of the California Streets and Highways Code, the CTBID
Advisory Board is required to present an annual report for City Council's review and approval for
each fiscal year for which assessments are to be levied and collected to pay the costs for the
improvements and activities described in the report. This report is to contain:
• Any proposed changes to the boundaries of the CTBID.
• The activities to be provided for that fiscal year.
• Estimate of the cost of providing those activities (ie budget)
• The method and basis of levying the assessment.
• The amount of any surplus or deficiency revenues to be carried over from the previous
year.
• The amount of any other contributions
Staff has prepared the attached report (included as an attachment to Exhibit 1) which is includes
the above items.
Staff recommends that the Board approve the attached report for presentation to the City Council.
FISCAL IMPACT:
None.
ENVIRONMENTAL IMPACT:
This action does not qualify as a project under the California Environment Quality Act ("CEQA")
and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b).
EXHIBITS:
1. Resolution No. 2015-2, Approve Annual Report
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, chervl.gerhardt @carlsbadca.gov
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EXHIBIT 1
RESOLUTION NO. 2015-2
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 2015-16 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.
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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
2015 meeting.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of
AYES:
NOES:
ABSENT:
ATTEST:
[Jd~E~ BRBARA ENGLESdJ -
Pro Tern Clerk of the
Carlsbad Tourism Business Improvement District
Ill
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EXHIBIT A
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2015-2016
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.
2015-16 Work Plan: Last fiscal year, the CTBID contracted with Carlsbad
Convention and Visitors Bureau (dba VisitCarlsbad) to provide tourism marketing
services for Carlsbad. In addition, $50,000 in grants were awarded to fund projects
and events to increase the overnight stays in Carlsbad hotels.
The CTBID 2015-16 budget includes $590,000 in funding for VisitCarlsbad. 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. VisitCarlsbad will also contract with a public relations firm to continue
branding Carlsbad. Funding also includes managing the visitor center and
publications. The VisitCarlsbad Board will review the CTBID grant applicants and
make the funding recommendations, for which there is $150,000 allocated this
year, to the CTBID Board. In addition, $300,000 has been budgeted for group and
off peak strategy and $200,000 has been set aside in the budget to fund long term
planning ideas.
Detail of the 2015-16 budget is shown on the following page.
2015-16 CTBID Budget
2012-13 2013-14 2014-15 2014-15 Actuals
Program Areas Description Actuals Actuals Budget as of 4/30/15
Carryover Fund Balance $113,074 $140,276 $280,435 280,435
Revenues:
CTBID Assessment $1 per room night 909,865 1,019,349 960,000 911,619
Interest Earnings 170 2,700 2,340
Prior Year refunds
Total Estimated Revenues 910,035 1,022,049 960,000 913,959
Expenditures:
2% Admin. Fee -City For collection of CTBID assessment and accounting for
CTBID -2% of CTBID assessment revenue 18,204 20,386 19,200 16,210
VisitCarlsbad* To operate visitor center, market and promote Carlsbad 800,000 750,000 766,538 640,618
Staff support Staff support to the CTBID -2% of asessment revenue 16,148 18,379 18,000 18,864
CTBID Grants Grant program established by CTBID Board 48,480 50,000 50,000 25,000
Tourism Study CTBID sharing cost 50150 with City 0 43,125 0
Contingency Group and off Peak Strategy
Contingency Long Term Planning ideas 0 0 138,982 0
Total Expenses 882,832 881,890 992,720 700,692
Ending Fund Balance Contingency for Revenue shortfall $140,276 $280,435 $247,715 $493,702
• The Carlsbad Convention and Visitors Bureau is the corporate entity. The Bylaws have been changed during 2009 to an organization
that now has seven Board members and the dba "Visit Carlsbad".
EXHIBIT A
Projected Reconunlmded
2014-15 Actuals 2015-!1~ Budget
~~;
280,435 453,637
1,019,000 1,160;000,
1,500
>~<
1,020,500 1,100,000
20,380 ~ 23,200
766,538 590,000
20,380 ?~;~oo
40,000 1.50,000
0 0
0 300,0QO
0 200;000
847,298 1,286,400 ~ ;
453,637 327;237
Financial Update
April 30, 2015
CTBID Assessment Revenue
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Hotel Timeshare$93,358$111,922$97,482$89,161$100,986$115,597$82,326$89,514$77,940$71,251$79,123$81,802$100,842Month of hotel stay Ave Occupancy 71%$70,253
CTBID Assessment Revenue
month period
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2008 2009 2010 2011 2012 2013 2014 2015
Month of hotel stay
Monthly Occupancy rate*
51 month period
76.48%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2010 2011 2012 2013 2014 2015Month of hotel stay
Ave occupancy rate 71%*Does not include comp rooms
% Change over prior year
Mar 2014 –Mar 2015
0%
5%
10%
15%
20%
25%
30%
Mar April May June July Aug Sept Oct Nov Dec Jan Feb March
CTBID TOTMonth of hotel stay
D •
Assessment Revenue Tracking
This slide shows how actual revenues are tracking compared to the budget on a
month to month basis.
Budget 2014/15 July Aug Sept October November December January February March YTD April May June Total
Budget 88,382$ 102,753$ 97,650$ 73,220$ 74,991$ 65,863$ 58,919$ 67,238$ 66,938$ 695,953$ 87,926$ 92,149$ 83,973$ 960,000$
Actual 100,987$ 115,597$ 111,922$ 89,514$ 77,940$ 71,251$ 79,122$ 81,803$ 100,842$ 828,978$
Diff over/(under)12,605$ 12,844$ 14,272$ 16,294$ 2,949$ 5,388$ 20,203$ 14,565$ 33,904$ 133,025$
2014-15 Budget to Actual
Budget Actual Difference
2014/15 4/30/2015
Revenues:
CTBID Assessment $ 960,000 $ 911,619 $ (48,381)
Interest Earnings $ - $ 2,340 $ 2,340
Total Estimated Revenues $ 960,000 $ 913,959 $ (46,041)
Expenditures:
2% Administrative Fee - $ 19,200 $ 18,227 $ (973)
CCVB Contract* $ 766,538 $ 640,618 $ (125,920)
Staff support $ 18,000 $ 18,863 $ 863
CTBID Grants $ 50,000 $ 25,000 $ (25,000)
Contingency 138,982 $ (138,982)
Total Expenses $ 992,720 $ 702,708 $ (290,012)
*Includes $11,018 for prior year expenses
FYTD 2014 vs 2015
Actual Actual $%
Revenues:4/30/2014 4/30/2015 Difference Difference
CTBID Assessment $ 832,642 $ 911,619 $ 78,977 9.5%
Interest Earnings $ 1,842 $ 2,340 $ 498 27.0%
Total Estimated Revenues $ 834,484 $ 913,959 $ 79,475 9.5%
Expenditures:
2% Admin. Fee - City $ 16,652 $ 18,227 $ 1,575 9.5%
CCVB Contract $ 625,000 $ 640,618 $ 15,618 2.5%
Staff support $ 13,634 $ 18,863 $ 5,229 38.4%
CTBID Grants $ 25,000 $ 25,000 $ - 0.0%
Tourism Study $ 43,125 $ - $ (43,125)0.0%
Total Expenses $ 723,411 $ 702,708 $ 22,422 3.1%
Financial Highlights
Mar CTBID Revenue collections $100,842
Mar TOT Revenue $1,701,028
Mar Occupancy rate 76.5%
Last 12 months CTBID rev is up 10.2% over the prior 12 month
period
Last 12 months TOT rev is up 14.8% over the prior 12 month
period
Current Reserve balance = $289,924
Ave Occupancy rate last 12 months = 71%
Total number of hotel rooms 4,061