HomeMy WebLinkAbout2021-05-19; Carlsbad Tourism Business Improvement District; Resolution 2021-3DocuSign Envelope ID: OBC45232-671E-4D06-828D-563C499474B6
RESOLUTION NO. 2021-3
A RESOLUTION OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT
DISTRICT ADVISORY BOARD APPROVING THE ANNUAL REPORT FOR
FISCAL YEAR 2021-22
WHEREAS, the Carlsbad Tourism Business Improvement District (CTBID) was formed in
accordance with the California Government Code Parking and Business Improvement Area Law
of 1989 (California Streets and Highways Code Section 36500 et. seq. ); and
WHEREAS, California Streets and Highways Code Section 36533 requires the CTBID
Advisory Board to present an annual report to the City Council for its 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 2021-22 fiscal year, and
WHEREAS, the CTBID Advisory Board wishes to approve the Annual Report; and
WHEREAS, the CTBID Advisory Board wishes to submit the report to the City Council for
approval.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Tourism Business Improvement
District Advisory Board 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.
3.That the Annual Report will be presented to the City Council for its approval at
a June 2021 meeting.
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DocuSign Envelope ID: OBC45232-671E-4006-8280-563C499474B6
PASSED, APPROVED, AND ADOPTED at a special meeting of the Board of Directors
of the Carlsbad Tourism Business Improvement District on this 19 day of May 2021, by the
following vote to wit:
AYES: Stripe, Rauch, Gray, Canepa, Hughes, Chapin, Becerra
NOES: Oa
ABSENT: n/a
1-11%Sfr
TIM STRIPE
Chair
ATTEST:
iler,7101 6orne2/ .
Dept Ci cjetv .1urBARBARA ENGLESON
Pro Tern Clerk of the
Carlsbad Tourism Business Improvement District
Attachment A
Carlsbad Tourism and Business Improvement District (CTBID)
2021-2022 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 rate of 2% of gross
short-term room 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 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.
2020-21 Work Plan: Last fiscal year, the CTBID assessment generated
approximately $1,100,000 in revenue. The CTBID contracted with Carlsbad
Convention and Visitors Bureau (dba Visit Carlsbad) to provide tourism marketing
services for Carlsbad. In addition, $30,000 in grants were awarded to fund events
to increase the overnight stays in Carlsbad hotels.
The CTBID 2021-22 budget includes a funding level of $3,000,000 for Visit
Carlsbad. This increased funding level is the result of the increase in assessment
revenue due to the modification of the assessment rate from $1 per room night to
2% of gross short-term room revenue. This assessment increase was approved
during Fiscal Year 2020-21, and went into effect on November 1, 2020. The
services provided by Visit Carlsbad will focus on post COVID-19 marketing efforts.
The majority of this will be done by through promotional programs and group sales.
Visit Carlsbad also has plans to hire a CEO/President during Fiscal Year 2021-22.
The CEO will help develop a business plan for Visit Carlsbad's future. The Visit
Carlsbad Board will also review the CTBID grant applicants, for which there is
$100,000 allocated this year, and make the funding recommendations to the
CTBID Board.
Detail of the 2021-22 budget is shown on the following page.
2020-21 Recommended CTBID Budget
Program Areas Description
2017-18
Actuals
2018-19
Actual
2019-20
Actual
2020-21
Budget
2020-21 Actuals
as of 12/31/20
Projected
2020-21 Actuals
Recommended
2021-22 Budget,
Carryover Fund Balance
$722,331 $696,716 $640,318 $617,139
617,139 1,033,139
Revenues:
CTBID Assessment
2% of Room Revenue (was $1 per room night prior to 11/1/20) 1,246,944 1,333,001 1,088,860 800,000 535,851 1,100,000 3,600,000
Interest Earnings
2,535 26,920 21,384
-7,006
Total Estimated Revenues
1,249,479 1,359,921 1,110,244 800,000 528,845 1,100,000 3,600,000
Expenditures:
2% of CTBID assessment revenue, for collection of
2% Admin. Fee - City CTBID assessment and accounting for CTBID 24,896 26,644 21,045 16,000 6,470 22,000 72,000
CCVB Payment To operate visitor center, market and promote Carlsbad 1,130,216 1,244,575 1,040,326 800,000 266,667 600,000 3,000,000
Staff support Staff support to the CTBID 16,972 15,649 20,438 16,000 8,963 20,000 50,000
Professional Services Civitas Contract
32,960
12,000 12,000
CTBID Grants Grant program established by CTBID Board 103,011 129,451 18,654 75,000
30,000 100,000
Total Expenses
1,275,095 1,416,319 1,133,423 907,000 294,100 684,000 3,222,000
Ending Fund Balance Contingency for Revenue shortfall $696,716 $640,318 _ $617,139 $510,139
1,033,139 1,411,139