HomeMy WebLinkAbout2019-06-11; City Council; Resolution 2019-085RESOLUTION NO. 2019-085
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE REPORT OF THE CARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT (CTBID), AND CONTINUING THE CTBID
PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2019-20
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 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, a report has been submitted to the City Council for Fiscal Year 2019-20; and
WHEREAS, Section 36535 (d) ofthe 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 report is approved as submitted by the Board of Directors for the Carlsbad
Tourism Business Improvement District. (Attachment A)
3. That the program and assessment as levied in the current fiscal year (2018-19) shall
continue without change.
June 11, 2019 Item #14 Page 3 of 13
EXHIBIT 1
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of
Carlsbad on the 11th day of June, 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None.
~ ,(t.f BARBARA ENGLESON, City Clerk
(SEAL)
June 11, 2019 Item #14 Page 4 of 13
Attachment A
Carlsbad Tourism and Business Improvement District (CTBID)
2019-2020 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.
2018-19 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 2019-20 budget includes $1,213,000 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. Visit Carlsbad will also 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 $75,000
allocated this year, to the CTBID Board.
Detail of the 2019-20 budget is shown on the following page.
June 11, 2019 Item #14 Page 5 of 13
2019-20 Recommended CTBID Budget
2016-17 2017-18 2018-19 2018-19 Actuals Projected Recommended
Program Areas Description Ac.tuals Actuals Budget as of 3/18/19 2018-19 Actuals 2019-20 Budget
Carryover Fund Balance $655,774 $722,331 $696,716 696,716 696,716 481 ,816
Revenues:
CTBID Assessment $1 per room night 1,205,851 1,246,944 1,320,000 892,642 1,320,000 1,360,000
Interest Earnings 1,658 2,535 19,377 19,500
Total Estimated Revenues 1,207,509 1,249,479 1,320,000 912,019 1,339,500 1,360,000
Exi;1enditures:
2% Admin. Fee -City 2% of CTBID assessment revenue, for collection of CTBID
assessment and accounting for CTBID 24,116 24,896 26,400 15,893 26,400 27,200
CCVB Payment To operate visitor center, market and promote Carlsbad 978,612 1,130,216 1,391,600 828,374 1,391 ,600 1,213,000
Staff support Staff support to the CTBID - 2% of revenues 19,224 16,972 26,400 9,367 26,400 27,200
CTBID Grants Grant program established by CTBID Board 119,000 103,011 200,000 15,000 110,000 75,000
Total Expenses 1,140,952 1,275,095 1,644,400 868,634 1,554,400 1,342,400
Ending Fund Balance Contingency for Revenue shortfall $722,331 $696,716 $372,316 $740,101 481 ,816 499,416
June 11, 2019 Item #14 Page 6 of 13