RESOLUTION NO. R-2023-029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA LEVYING AN ANNUAL ASSESSMENT FOR THE PISMO BEACH LODGING BUSINESS IMPROVEMENT DISTRICT (LBID) FOR FISCAL YEAR 2024:
JULY 1, 2023 THROUGH JUNE 30, 2024
WHEREAS, the Parking and Business Improvement Area Law of 1989 (California Streets and Highway Code Section 36500 et seq.) authorizes cities to establish parking and business improvement areas for the purpose of imposing assessments on businesses for certain purposes; and
WHEREAS, the Pismo Beach City Council established the Pismo Beach Lodging Business Improvement District ("the District', "PBLBID", or "LBID") by the adoption of Ordinance No. 0-2009-08: and
WHEREAS, as required by the California Streets and Highways Code Section 36533, the Pismo Beach Conference and Visitors Bureau/LBID Advisory Board has submitted an Annual Report to Council that outlines the activities of the District proposed for Fiscal Year (FY) 2024 (attached as Exhibit A), which was accepted by the City Council on April 4, 2023; and
WHEREAS, on April 18, 2023, the City Council conducted a public hearing to consider any protests against the levy of an annual assessment for the District, and such protests constituted less than fifty percent of the businesses to be assessed; and WHEREAS, pursuant to California Streets and Highways Code Section 36535(d), the City Council may adopt a resolution continuing the District and assessments from the current fiscal year without change.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach as follows:
Section 1. The City Council hereby approves the Annual Report for FY 2024, as submitted to the City Clerk by the CVB/LBID Advisory Board (Exhibit A).
Section 2. Pursuant to the provisions of Section 36500 et seq. of the California Streets and Highways Code, City Council levies an annual assessment for the Lodging Business Improvement District for FY 2024. The assessment shall be calculated based upon 2% of the gross lodging revenues, as that term is defined in Pismo Beach Municipal Code Section 3.26.020(D).
Section 3. This Resolution is effective on its adoption.
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R-2023-029
UPON MOTION OF Council Member Newton, seconded by Mayor Pro Tem Reiss, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 18th day of April 2023, by the following vote:
AYES:
5 Newton, Reiss, Guthrie, Inman, Waage
NOES:
0 ABSENT:
0 ABSTAIN:
0 RECUSED:
0 Approved:
E age, Mayor
Attest.
rica Inderlie , Ci y Clerk-_
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R-2023-029
Exhibit A
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 PAGE 3 OF 10
R-2023-029
Exhibit A
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 Addle 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.
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R-2023-029
Exhibit A
0 FY 2023
Original 1%
$
848,743
Beginning Fund Balance
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
The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
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R-2023-029
Exhibit A
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'I Film Festival
5,000
CA Welcome Center Funding
20,000
Total Contributions
$ 345,400
Total Direct Costs
1,575,412
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 Addle 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.
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R-2023-029
Exhibit A
Beginning Fund Balance
Revenues
LBID Assessment Revenues
Interest Earnings
Total Revenues
Total Sources
Expenditures
Physical Improvements
Debt service
Total Expenditures
Net Revs - Exp
Carryforward
Ending Fund Balance
FY23 Spyglass Sidewalk, Beach
swing replacement, FY24
Addle St Restroom
Debt Service interest
FY 2024 Proposed Budget for Original 1% Assessment
FY 2023
Physical
Improvements
$
(568,864)
1,421,117
1,550
$
1,422,667
$
853,803
336,000
10,664
$
346,664
$
1,076,003
507,139
• 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.
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R-2023-029
Exhibit A
Beginning Fund Balance
Revenues
LBID Assessment Revenues
Interest Earnings
Total Revenues
Total Sources
Expenditures
Salaries & Wages
Benefits
Purchase Professional Services
Purchase Professional Services
Contract Services
Operations & Maintenance
Other Expenses
Contributions
Total Expenditures
Net Revs - Exp
Carryforward
Ending Fund Balance
FY2024
Original 1%
$
558,726
1,449,539
8,496
$
1,458,035
$
2,016,761
33,928
7,573
124,236
16,000
1,177,002
2,300
91,149
270,000
$
1, 722,188
(264,153J
$
294,573
The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
Administrative/Overhead
Direct Costs
Direct Costs
T1A Agreement
Miscellaneous direct costs
Proposed Contributions
Total Direct Costs
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FY 2024
Original 1%
$ 150,588
1,571,600
$ 1,722,188
1,283,100
18,500
270,000
1,571,600
R-2023-029
Exhibit A
t
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.
FY2024
Physical
Improvements
$
507,139
Beginning Fund Balance
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
Asthe revenues and expenditures in this report reflect projections, it is prudentto 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 $16,991in projected interest earnings, which comes from investments from the 2% assessment levied on transient rentals, and fund PAGE 9 OF 10
R-2023-029
Exhibit A
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.
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R-2023-029