CITY COUNCIL STAFF REPORT
DATE: JUNE 10, 2026 CONSENT CALENDAR
SUBJECT: RESOLUTION OF INTENTION TO LEVY ASSESSMENTS WITHIN THE
PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT
DISTRICT AND SETTING A TIME AND PLACE FOR THE PUBLIC
HEARING; REVIEW AND APPROVAL OF REPORT OF THE TOURISM
BUSINESS IMPROVEMENT DISTRICT (TBID) ADVISORY BOARD,
FISCAL YEAR 2026-2027
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
The City Council will consider adopting a Resolution of Intention (Attachment A) to levy and collect assessments for the Palm Springs Small Hotel Tourism Business Improvement District and setting the public hearing for June 24, 2026.
RECOMMENDATION:
1) Review and approve Report of the Tourism Business Improvement District (TBID) Advisory Board, Fiscal Year 2026-2027; and
2) Adopt a Resolution entitled, “ A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO
LEVY AND COLLECT ASSESSMENTS WITHIN THE PALM SPRINGS SMALL
HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT, AND SETTING A TIME AND PLACE FOR PUBLIC HEARING”.
STAFF ANALYSIS:
On November 16, 2016, the City Council adopted Ordinance No. 1903 establishing the Palm Springs Small Hotel Tourism Business Improvement District (TBID), and on November 2, 2016, adopted Resolution No. 24127 authorizing the levy of assessments.
TBID is a special benefit assessment district that was established by the City Council, under existing State Law1, for the specific purpose of funding improvements and activities 1 Parking and Business Improvement Area Law of 1989, Cal Streets and Highways Code §36500et seq.
City Council Staff Report
June 10, 2026 -- Page 2
Small Hotel Tourism BID
to improve a specific business area and promote tourism within the area in question. The TBID assessment is not on real property, and therefore not subject to Proposition 218.
This mechanism is also in place on larger hotels with an assessment to fund the Greater Palm Springs Convention and Visitors Bureau (GPSCVB). The establishment and function of the TBID do not impact or pertain to the current GPSCVB assessment.
The TBID Advisory Board has submitted its report for Fiscal Year 2026-27 (Attachment B) and is recommending the continuation of the 1% assessment on room revenue. The boundaries of the district are citywide, but the assessments would be limited to hotels of 49 rooms or less, of which there are approximately 98 small hotels in Palm Springs.
The activities authorized by Ordinance No. 1903 include: (i) the promotion of tourism within the District; (ii) the promotion of public events that benefit hotel and motel businesses operating in the District; (iii) furnishing of music in any public place in the District; and (iv) activities that benefit hotel and motel businesses located and operating in the District. The report is on file with the City Clerk’s Office and contains a full and detailed description of: (i) the activities to be provided for the 2026/27 fiscal year; (ii) the boundaries of the District; and (iii) the proposed assessments to be levied upon the businesses within the area for that fiscal year.
In order to levy the assessments, state law requires that the City Council first approve the attached report, then adopt a resolution of intention, declaring the City Council’s intent to levy and collect the assessments. Among other things, the resolution of intention must fix a time and place for a public hearing to be held by the City Council on the levy of the proposed assessments for the fiscal year. That public hearing must be held not less than 10 days after the adoption of the resolution of intention. In addition, state law requires the City Clerk to give notice of the public hearing by causing the resolution of intention to be published in a newspaper of general circulation in the City, not less than 7 days before the public hearing.
The attached resolution of intention contains the information required by state law.
FISCAL IMPACT:
Based upon the current assessment information, the assessment will generate approximately $900,000 in FY 2026-27 of restricted funds, for the specific purpose of advancing the TBID’s interests.
The City incurred costs in establishing the TBID in FY 2017-18 and will continue to incur costs in annually sustaining the TBID. These annual costs include mailings, hearings, notifications, related staff and research time. TBID administration includes collection, distribution, and auditing of the assessment, annual report preparation, and City staff time. All administrative staff time and costs are reimbursed from the proceeds of the assessment.
City Council Staff Report
June 10, 2026 -- Page 3
Small Hotel Tourism BID
The Director of Finance estimates the cost to process monthly assessment returns and payments, collection of monthly assessment returns, annual administrative costs to prepare the notices, and conducting the public hearing to renew the TBID will be approximately $50,000 for FY 2026-27.
REVIEWED BY:
Department Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution
B. Annual TBID Report for FY 2026-27