STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
9 SUBJECT: RECEIVE AND FILE LAGUNA BEACH TOURISM AND MARKETING
DISTRICT ANNUAL REPORT
RECOMMENDATION: It is recommended that the City Council:
1. Receive and file the Laguna Beach Tourism Marketing District Fiscal Year 2024/25 Annual Report submitted pursuant to California Streets and Highways Code Section 36650 and summarizing district accomplishments and activities;
2. Receive and file the Laguna Beach Tourism Marketing District Fiscal Year 2026/27 Annual Report submitted pursuant to California Streets and Highways Code Section 36650; and
3. Find that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because the action consists solely of receiving informational reports and does not authorize any physical change to the environment.
SUMMARY OF THE MATTER
This report recommends that the City Council receive and file the Laguna Beach Tourism Marketing District (LBTMD) Fiscal Year 2024/25 Annual Report and the Fiscal Year 2026/27 Annual Report submitted pursuant to California Streets and Highways Code Section 36650.
On June 10, 2025, the City Council approved the renewed Laguna Beach Tourism Marketing District Management District Plan. The Management District Plan included the information required under California Streets and Highways Code Section 36650 for Fiscal Year 2025/26, including the proposed improvements, activities, budget, and assessment methodology for the first year of the renewed district term. As a result, a separate Fiscal Year 2025/26 Annual Report was not presented to the City Council.
The Fiscal Year 2024/25 Annual Report summarizes district accomplishments and activities completed during the reporting period, while the Fiscal Year 2026/27 Annual Report outlines the proposed programs, assessment revenues, budget allocations, and district activities for the upcoming fiscal year. The recommended action does not approve any changes to district boundaries, assessment methodology, or City funding. Receipt and filing of the reports provides transparency regarding the use of district assessment revenues and the programs funded through the LBTMD.
DISCUSSION
Background
The Laguna Beach Tourism Marketing District (LBTMD) was established to fund programs and activities that promote overnight visitation, support assessed lodging businesses, and enhance Laguna Beach's position as a premier visitor destination. The district is funded through assessments collected from lodging businesses located within the City and is administered by Visit Laguna Beach, which serves as the Owners' Association.
RECEIVE AND FILE LAGUNA BEACH TOURISM AND MARKETING DISTRICT ANNUAL REPORT
June 23, 2026
Pursuant to California Streets and Highways Code Section 36650, the Owners' Association is required to prepare and submit annual reports describing the district's activities, improvements, budget, and assessment methodology. The reports submitted for City Council consideration include the Fiscal Year 2024/25 Annual Report and the Fiscal Year 2026/27 Annual Report.
2024/25 Accomplishments
The 2024/25 Annual Report summarizes activities undertaken by Visit Laguna Beach and its partners to promote overnight visitation, support local lodging businesses, and enhance the visitor experience. Major accomplishments during the reporting period included destination stewardship initiatives, marketing programs, tourism research, community partnerships, and visitor-serving programs. The report also confirms that no changes are proposed to the district boundaries and that the district continues to encompass all lodging businesses within the City of Laguna Beach.
Program Area Key Accomplishments
Stewardship and Sustainability
Continued implementation of the Leave No Trace initiative, visitor education campaigns, sustainability messaging, and partnerships supporting beach cleanups and environmental stewardship efforts
Community and Partner Relations
Produced and distributed the Economic Dashboard,
conducted destination training programs, developed a
community newsletter, partnered with the City on a unified visitor map, and collaborated with local nonprofit and arts organizations.
Visitor Services
Continued operation of the Visitor Center and expanded
partnerships with community organizations, including
support for the Pacific Marine Mammal Center during facility renovations.
Destination Marketing
Advanced destination marketing efforts through digital
advertising, social media, search engine optimization, paid media campaigns, and website enhancements.
Storytelling and Brand Development
Continued promotion of the "From Radical Origins"
campaign highlighting Laguna Beach's unique history,
culture, and community character through podcast and
documentary storytelling.
RECEIVE AND FILE LAGUNA BEACH TOURISM AND MARKETING DISTRICT ANNUAL REPORT
June 23, 2026
Program Area Key Accomplishments
Meetings and Travel Trade
Expanded outreach to meeting planners, travel advisors, and industry partners through sales missions, conferences, and familiarization tours.
Research and Analytics
Continued investment in tourism research and data analytics tools to measure visitor trends, support strategic decisionmaking, and evaluate marketing performance.
Industry Recognition
Received numerous regional, national, and international awards recognizing excellence in tourism marketing, digital content, sustainability, and destination promotion.
2026/27 Annual Report
The report outlines the programs, services, and activities proposed for the upcoming fiscal year and confirms that no changes are proposed to the district boundaries or assessment methodology. The district will continue to include all lodging businesses located within the City of Laguna Beach.
The proposed work program continues to focus on increasing overnight visitation and supporting assessed lodging businesses through destination marketing, visitor services, stewardship initiatives, and cultural programming. Major program areas include:
Program Area Purpose
Sales, Marketing, and Communications
Destination marketing, advertising, digital media,
public relations, travel trade, and group sales efforts are designed to increase overnight visitation.
Cultural and Environmental Stewardship
Programs that support responsible tourism, visitor
experience enhancements, sustainability initiatives,
and destination stewardship efforts.
Arts Commission Programs
Public art, cultural programming, exhibitions,
performances, and temporary installations that enhance
Laguna Beach's cultural identity and visitor
experience.
Laguna Art Museum Programs
Exhibitions, educational programs, and cultural
offerings that attract visitors and support cultural
tourism.
RECEIVE AND FILE LAGUNA BEACH TOURISM AND MARKETING DISTRICT ANNUAL REPORT
June 23, 2026
Program Area Purpose
Laguna College of Art + Design Programs Arts-related programs and activities that contribute to Laguna Beach's reputation as an arts destination.
Cultural Arts Funding Grants
Financial support for nonprofit arts organizations that provide events, exhibits, and cultural programming
that enhance visitation and community engagement.
The report notes that there are no proposed changes to district boundaries and that activities remain consistent with the Management District Plan. The report further identifies continued investments in destination stewardship, visitor services, cultural programming, and tourism promotion designed to increase overnight visitation and support local lodging businesses.
Oversight and Accountability
The adopted Laguna Beach Tourism Marketing District Management District Plan includes several accountability measures designed to provide ongoing oversight of Tourism Marketing District expenditures.
The Plan requires the establishment of a Cultural and Environmental Stewardship Committee to provide feedback and recommendations regarding the use of funds within the Cultural and Environmental Stewardship category in 2026-27. The Committee may include City representatives, City Councilmembers, lodging operators, local business representatives, and individuals with expertise in cultural, environmental, and community stewardship matters.
The Management District Plan also requires a biennial performance review beginning in Fiscal Year 2026-
27. The review will be conducted by a joint committee of City staff and Visit Laguna Beach representatives and will evaluate program effectiveness, with a particular focus on Cultural and Environmental Stewardship initiatives. Findings and recommendations will be presented to both the Visit Laguna Beach Board of Directors and the City Council as part of the annual reporting process.
EVOLUTION OF THE ANNUAL REPORTING PROCESS
The City Council is receiving two annual reports that serve different purposes. The 2024/25 Annual Report primarily serves as a retrospective report, summarizing district accomplishments, marketing activities, stewardship efforts, cultural programming, and financial performance during the completed fiscal year. The report provides accountability regarding how assessment revenues were utilized and highlights outcomes achieved during the reporting period.
The 2026/27 Annual Report reflects the structure contemplated under the renewed Laguna Beach Tourism Marketing District Management District Plan and is intended to serve as a forward-looking implementation document. In addition to satisfying the annual reporting requirements of Streets and Highways Code Section 36650, the report identifies proposed programs, activities, funding allocations, and budget assumptions for the upcoming fiscal year.
RECEIVE AND FILE LAGUNA BEACH TOURISM AND MARKETING DISTRICT ANNUAL REPORT
June 23, 2026
This updated approach provides several advantages. First, it allows Visit Laguna Beach and the City to review proposed program allocations and funding priorities before implementation of the upcoming fiscal year. Second, it creates greater transparency regarding how assessment revenues are proposed to be spent.
Finally, it provides a mechanism for the Visit Laguna Beach Board of Directors and the City to consider adjustments authorized under the Management District Plan before the beginning of a fiscal year while maintaining consistency with the district's approved purposes and benefit structure. As a result, future annual reports are expected to follow the format of the 2026/27 Annual Report, focusing on upcoming programs, proposed expenditures, and implementation priorities for the following fiscal year, while continuing to provide financial reporting on prior-year activities as required by law.
FINANCIAL ANALYSIS
There is no direct fiscal impact associated with receiving and filing these reports. The activities described within the reports are funded through LBTMD assessment revenues collected from lodging businesses within the district and administered in accordance with the approved Management District Plan. Receipt of the reports does not authorize additional City expenditures or appropriations.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This item supports the City Council's Strategic Priority of Stewardship by promoting responsible tourism management, destination stewardship, cultural programming, and economic vitality. The reports also support ongoing collaboration between the City, Visit Laguna Beach, and local cultural organizations to enhance the visitor experience, improve overnight stays, while protecting community character and natural resources.
ENVIRONMENTAL ANALYSIS
The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because the action consists solely of receiving and filing informational reports and does not constitute a project that may result in a direct or reasonably foreseeable indirect physical change in the environment. The reports do not authorize construction, capital improvements, or any other activity that could result in environmental impacts.
ATTACHMENTS
1. Laguna Beach Tourism Marketing District 2024/25 Annual Report (Pgs. 6-26)
2. Laguna Beach Tourism Marketing District 2026/27 Annual Report (Pgs. 27-40) Submitted By:
. Approved: .David A Kiff
Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Gavin Curran, Assistant City Manager