Pismo Beach Lodging Business Improvement District
Annual Report and Business Plan for FY 2023-2024
Presented to the Pismo Beach City Council By the City Conference & Visitors Bureau / Lodging Business Improvement District Advisory Board
The City of Pismo Beach’s Conference & Visitors Bureau (CVB) Board at its meeting on March 15, 2023, completed its Pismo Beach Lodging Business Improvement District Updated Annual Report and Business Plan as required by Section 3.26.060 of the Pismo Beach Municipal Code.
Regarding the requirements for the Annual Report, as stated in Section 36533 of the California Streets and Highways Code:
1. The Pismo Beach Lodging Business Improvement District (LBID) Advisory Board did not propose any changes in the Boundaries of the LBID, which were established in Section
3.26.040 to be the boundaries of the City of Pismo Beach.
2. With the renewal of the LBID following adoption of Proposition 26, the purposes for which LBID assessments could be expended were more limited than when the LBID was initially established. As such, the improvements and activities to be provided for in Fiscal Year (FY) 2024 are those services and activities permitted under Section 3.26.030 of the Pismo Beach Municipal Code, which include:
A. The general promotion of lodging operations within the LBID shall include costs of programs and physical improvements as specified in the business plan to be adopted annually;
B. The marketing of conference, group, and vacation business that benefits the local lodging industry in the district;
C. The marketing of the LBID to the travel industry in order to benefit the local lodging industry in the district;
D. Administration of the LBID, including collection and enforcement of assessments.
The continuing initiatives proposed for the original 1% LBID Assessment for FY 2024 include the following: Following the Strategic Plan including smart tourism growth, collaborative partnerships, expanding the brand of Classic California, Wine and Waves and current campaigns that feature stewardship, equity, diversity and inclusivity as well as ExperiencePismoBeach.com.
This will be accomplished by following the 2023-2025 Marketing Plan with ongoing reviews at the CVB/LBID Advisory Board Meetings. Specific initiatives include emphasis on lodging packages, targeted advertising of the four-to-five-hour drive markets of both Southern and Northern California, Fresno, Bakersfield, Ventura County, and Santa Barbara County, as well as San Luis Obispo flight routes from Los Angeles, San Diego, Phoenix, Denver, Seattle, Dallas and San
2 Francisco. Continue cooperative advertising with the County Tourism Marketing District and other tourism partners, such as Central Coast Tourism Council and Visit California. There will be a continuing effort to promote off-season events that benefit the lodging industry in Pismo Beach and other marketing efforts with emphasis on all social media platforms. These efforts are designed to improve lodging occupancies, RevPAR and TOT taxes which benefit all the residents of Pismo Beach.
The physical improvements proposed for the additional 1% LBID Assessment for FY 2024 include the Addie Street restroom improvements project, consistent with the original intent of the additional 1% for physical improvements. These efforts are designed to improve lodging occupancies, RevPAR and TOT taxes which benefit all the residents of Pismo Beach.
3. Estimated Costs for FY 2023 and FY 2024
FY 2023 Projected Actuals for Original 1% Assessment
• Sources: The FY 2023 projected actual total sources of $2,271,410, made up of $848,743 from fund balance carried over from the prior fiscal year, an estimated $1,421,117 from LBID assessment revenues, and a projected $1,550 in interest earnings and fees. • Uses: The FY 2023 projected actual expenditures are $1,712,684. This total includes $137,272 for administrative costs and $1,575,412 for direct costs.
The following table shows: the FY 2023 projected actuals for the original 1% assessment, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
3 The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
FY 2023
Original 1%
Beginning Fund Balance 848,743$
Revenues
LBID Assessment Revenues 1,421,117
Interest Earnings 1,550
Total Revenues 1,422,667$
Total Sources 2,271,410$
Expenditures
Salaries & Wages 34,116
Benefits 4,264
Purchase Professional Services 118,550
Purchase Professional Services -
Contract Services 1,124,170
Operations & Maintenance 2,300
Other Expenses 83,884
Contributions 345,400
Total Expenditures 1,712,684$
Net Revs - Exp (290,017)
Carryforward 16,000
Ending Fund Balance 558,726$
4 FY 2023 Projected Actuals for 1% Assessment for Physical Improvements • Sources: The FY 2023 projected actual total sources of $1,422,667, made up of $(568,864) from fund balance carried over from the prior fiscal year based on an interfund loan payable to the City’s Motor Vehicle Replacement Fund, an estimated $1,421,117 from LBID assessment revenues, and a projected $1,550 in interest earnings and fees. • Uses: The FY 2023 projected actual expenditures are $346,664. This total includes: $300,000 for the pedestrian connections under US interstate 101 at Spyglass; $36,000 to replace the beach playground equipment at Main Street and Addie Street, consistent with the original intent of the additional 1% for physical improvements; and $10,664 for the third and final interest payment on the interfund loan agreement. In addition, the principal on the interfund loan of $1,077,042 will be made this fiscal year.
The following table shows: the FY 2023 projected actuals for the 1% assessment for physical improvements.
FY 2023
Original 1%
Administrative/Overhead 137,272$
Direct Costs 1,575,412
1,712,684$
Direct Costs
TJA Agreement 1,222,000
Miscellaneous direct costs 8,012
Contributions
Title sponsorship for World Para-Surfing Championship 175,400$ Sponsorship of major events 100,000
Surfing for Hope SLO CAL Open 20,000
Basin Street Regulars / Jubilee by the Sea 10,000
Chamber of Commerce 15,000
San Luis Obispo Int'l Film Festival 5,000
CA Welcome Center Funding 20,000
Total Contributions 345,400$
Total Direct Costs 1,575,412
5 FY 2024 Proposed Budget for Original 1% Assessment
• Sources: The FY 2024 proposed budget total sources of $2,016,761, made up of $558,726 from fund balance carried over from the prior fiscal year, an estimated $1,449,539 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. • Uses: The FY 2024 proposed budget expenditures are $1,722,188. This total includes $150,588 for administrative costs and $1,571,600 for direct costs.
The following table shows: the FY 2024 proposed budget sources and uses, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
FY 2023
Physical
Improvements
Beginning Fund Balance (568,864)$
Revenues
LBID Assessment Revenues 1,421,117
Interest Earnings 1,550
Total Revenues 1,422,667$
Total Sources 853,803$
Expenditures
Physical Improvements FY23 Spyglass Sidewalk, Beach
swing replacement, FY24
Addie St Restroom
336,000
Debt service Debt Service interest 10,664
Total Expenditures 346,664$
Net Revs - Exp 1,076,003
Carryforward
Ending Fund Balance 507,139$
6 The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
FY 2024
Original 1%
Beginning Fund Balance 558,726$
Revenues
LBID Assessment Revenues 1,449,539
Interest Earnings 8,496
Total Revenues 1,458,035$
Total Sources 2,016,761$
Expenditures
Salaries & Wages 33,928
Benefits 7,573
Purchase Professional Services 124,236
Purchase Professional Services 16,000
Contract Services 1,177,002
Operations & Maintenance 2,300
Other Expenses 91,149
Contributions 270,000
Total Expenditures 1,722,188$
Net Revs - Exp (264,153)
Carryforward
Ending Fund Balance 294,573$
FY 2024
Original 1%
Administrative/Overhead 150,588$
Direct Costs 1,571,600
1,722,188$
Direct Costs
TJA Agreement 1,283,100
Miscellaneous direct costs 18,500
Proposed Contributions 270,000
Total Direct Costs 1,571,600
7 FY 2024 Proposed Budget for 1% Assessment for Physical Improvements • Sources: The FY 2024 proposed budget total sources of $1,965,174, made up of $507,139 from fund balance carried over from the prior fiscal year, an estimated $1,449,539 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. • Uses: The FY 2024 proposed budget expenditures include $1,200,000 for the Addie Street restroom and improvements project.
The following table shows: the FY 2024 proposed budget for the 1% assessment for physical improvements.
As the revenues and expenditures in this report reflect projections, it is prudent to continue to monitor these items over the course of the fiscal year.
4. No change in the LBID method or basis of levying the assessment was proposed for FY 2024.
The CVB/LBID Advisory Board approved a motion to recommend that the 2% Assessment be continued in FY 2024.
5. The FY 2023 LBID budget for the original 1% assessment is projected to include a $558,726 surplus left over for carryover into FY 2024. The FY 2023 LBID budget for the 1% assessment for physical improvements is projected to include a $507,139 surplus left over for carryover into FY 2024.
6. The FY 2024 LBID Projected Actuals includes $16,991 in projected interest earnings, which comes from investments from the 2% assessment levied on transient rentals, and fund FY 2024
Physical
Improvements
Beginning Fund Balance 507,139$
Revenues
LBID Assessment Revenues 1,449,539
Interest Earnings 8,496
Total Revenues 1,458,035$
Total Sources 1,965,174$
Expenditures
Physical Improvements FY24 Addie St Restroom 1,200,000
Total Expenditures 1,200,000$
Net Revs - Exp 258,035
Carryforward
Ending Fund Balance 765,174$
8 balance carried over from the prior fiscal year. The CVB/LBID Advisory Board did not recommend that any other contributions be budgeted for FY 2024.