HomeMy WebLinkAbout2022-06-07; City Council; Resolution 2022-122RESOLUTION NO. 2022-122
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT ANNUAL REPORT, DECLARING AN INTENTION TO
LEVY AND COLLECT AN ANNUAL ASSESSMENT AND SETTING A PUBLIC
HEARING FOR 5 P.M. ON JUNE 21, 2022
EXHIBIT 1
WHEREAS, the Carlsbad Tourism Business Improvement District (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 of the 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 2022-23; 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 2022-23; 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 assessments and a full and detailed description of the
activities to be conducted and funded in fiscal year 2022-23 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 2022-23, the City Council intends to levy and collect an assessment
of 2% of gross short-term room revenue for each transient occupancy in the city.
June 7, 2022 Item #1 Page 3 of 7
' 4.Notice is hereby given that a public hearing is scheduled for 5 p.m. at the City Council
Chambers located at 1200 Carlsbad Village Drive in Carlsbad, California on the following
date:
Tuesday, June 21, 2022
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's
Office 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. Following the public hearing, if 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.
6.That the City Clerk's Office 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 Regular Meeting of the City Council of the City of
Carlsbad on the 7th day of June, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
MA�
FAVIOLA �rk sei::: Manager
(SEAL)
June 7, 2022 Item #1 Page 4 of 7
ATTACHMENT A
Carlsbad Tourism and Business Improvement District (CTBID)
2022-2023 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.
2021-22 Work Plan: Last fiscal year, the CTBID assessment generated approximately
$5,600,000 in revenue. The CTBID contracted with Carlsbad Convention and Visitors
Bureau (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. In
addition, $80,000 in grants were awarded to fund events to increase the overnight stays
in Carlsbad hotels.
The CTBID 2022-23 budget includes a funding level of $5,114,000 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 as well as a post pandemic rebound in the tourism economy. The
services provided by Visit Carlsbad will focus on marketing efforts. The majority of this
will be done by through promotional programs and group sales. Visit Carlsbad also has
plans to hire a Finance and Administration Manager, Business Development
Coordinator, Marketing/ Communications Coordinator, and an administrative assistant
during Fiscal Year 2022-23. 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 $1,500,000 allocated this year, and make the funding
recommendations to the CTBID Board.
Detail of the 2022-23 budget is shown on the following page.
June 7, 2022 Item #1 Page 5 of 7
2022-23 Recommended CTBID Budget
2019-20 2020-21 2021-22 2021-22 Actuals Projected Recommended
Program Areas Description Actual Actual Budget as of 2/28/22 2021-22 Actuals 2022-23 Budget
Carryover Fund Balance Fund Balance $640,318 $617,139 $1,840,227 1,840,227 1,840,227 4,173,227
Revenues:
CTBID Assessment 2% of Room Revenue (was $1 per room night prior to 11/1/20)1,088,860 1,867,248 3,600,000 3,938,526 5,600,000 5,700,000
Interest Earnings 21,384 17,327
Total Estimated Revenues 1,110,244 1,884,575 3,600,000 3,938,526 5,600,000 5,700,000
Expenditures:
2% Admin. Fee - City
2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID 21,045 37,344 72,000 72,401 112,000 114,000
CCVB Payment To operate visitor center, market and promote Carlsbad 1,040,326 576,425 3,000,000 1,222,080 3,000,000 5,114,170
Staff support Staff support to the CTBID 20,438 17,718 50,000 10,996 25,000 50,000
Professional Services Civitas Contract 32,960 50,000 50,000
CTBID Grants Grant program established by CTBID Board 18,654 30,000 100,000 80,000 1,500,000
Total Expenses 1,133,423 661,487 3,272,000 1,305,477 3,267,000 6,778,170
Ending Fund Balance Contingency for Revenue shortfall $617,139 $1,840,227 $2,168,227 $4,473,276 4,173,227 3,095,057June 7, 2022Item #1 Page 6 of 7
Visit Carlsbad Expenses
2016-17
Actuals
2017-18
Actuals
2018-19
Budget
2019-20
Request
Labor 348,088 406,478 422,051 434,324 Advertising Campaign 7,095 7,923 156,000 156,000
Digital MKtg 247,764 235,610 250,000 250,000
Group 184,259 198,967 301,100 194,500 PR Contract 95,099 224,353 185,000 190,000
G&A 27,911 29,323 35,649 30,676
Other promotion 35,725 39,929 41,800 42,500
945,941 1,142,583 1,391,600 1,298,000 37%
Reserves 722332
June 7, 2022 Item #1 Page 7 of 7