RESOLUTION NO. R-2024-025
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 2025:
JULY 1, 2024 THROUGH JUNE 30, 2025
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. O-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) 2025 (attached as Exhibit A), which was accepted by the City Council on April 2, 2024; and
WHEREAS, on April 16, 2024, 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 2025, 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 2025. 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.
PAGE 1 OF 9
R-2024-025
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0
UPON MOTION OF Council Member Inman, seconded by Council Member Guthrie, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 16th day of April 2024, by the following vote:
AYES: 5 Inman, Guthrie, Newton, Reiss, Waage
NOES: 0
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
PAGE 2 OF 9
R-2024-025
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0 4/18/2024
Pismo Beach Lodging Business Improvement District
Annual Report and Business Plan for Fiscal Year 2024-2025 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 21, 2024, 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) 2025 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 2025 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 9
R-2024-025
Exhibit A
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0
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. All advertising and marketing efforts will drive customers to the ExperiencePismoBeach.com website to select their lodging preference. 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 2025 include the Addie Street restroom improvements project continued from FY 2024 and a Downtown Boardwalk Extension Feasibility Study between Main Street and Wadsworth. 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 2024 and FY 2025
FY 2024 Projected Actuals for Original 1% Assessment
•Sources: The FY 2024 projected actual total sources of $2,076,916, made up of $719,530 from fund balance carried over from the prior fiscal year, an estimated $1,348,891 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. •Uses: The FY 2024 projected actual expenditures are $1,506,471. This total includes $135,233 for administrative costs and $1,371,238 for direct costs.
The following table shows: the FY 2024 projected actuals for the original 1% assessment, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
PAGE 4 OF 9
R-2024-025
Exhibit A
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0
The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
FY 2024
Original 1%
Beginning Fund Balance 719,530$
Revenues
LBID Assessment Revenues 1,348,891
Interest Earnings 8,496
Total Revenues 1,357,386$
Total Sources 2,076,916$
Expenditures
SALARIES & WAGES 34,203
BENEFITS 7,580
PURCHASE PROFESSIONAL SVCS 122,236
OTHER PURCHASED SERVICES 1,177,002
OPERATIONS & MAINTENANCE 2,300
OTHER EXPENSES 91,149
Sponsorships for Events 52,000
CA Welcome Center Funding 20,000
Total Expenditures 1,506,471$
Net Revs - Exp (149,084)
Carryforward 16,000
Ending Fund Balance 570,446$
FY 2024
Original 1%
Administrative/Overhead 135,233
Direct Costs 1,371,238$
Direct Costs
TJA Agreement 1,283,100
Miscellaneous direct costs 16,138
Contributions/Sponsorships
WSL SLO CAL Open at Pismo Beach 40,000
Pismo Chamber 12,000
California Welcome Center 20,000
Subtotal Contributions 72,000
Total Direct Costs 1,371,238$
PAGE 5 OF 9
R-2024-025
Exhibit A
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0
FY 2024 Projected Actuals for 1% Assessment for Physical Improvements •Sources: The FY 2024 projected actual total sources of $1,852,518, made up of $495,132 from fund balance carried over from the prior fiscal year, an estimated $1,348,891 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. •Uses: The FY 2024 projected actual expenditures are $15,083. This total includes: $7,084 to replace the beach playground equipment at Main Street and Addie Street and $7,999 for beach wheelchairs. The Addie Street Restroom Improvements project is carried forward to FY 2025.
The following table shows: the FY 2024 projected actuals for the 1% assessment for physical improvements.
FY 2025 Proposed Budget for Original 1% Assessment
•Sources: The FY 2025 proposed budget total sources of $1,954,810, made up of $570,446 from fund balance carried over from the prior fiscal year, an estimated $1,375,869 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. •Uses: The FY 2025 proposed budget expenditures are $1,646,703. This total includes $145,310 for administrative costs and $1,501,393 for direct costs.
The following table shows: the FY 2025 proposed budget sources and uses, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
FY 2024
Physical
Improvements
Beginning Fund Balance 495,132$
Revenues
LBID Assessment Revenues 1,348,891
Interest Earnings 8,496
Total Revenues 1,357,386$
Total Sources 1,852,518$
Expenditures
FY23 Beach swing replacement 7,084
FY24 Beach wheelchairs 7,999
FY24 Addie St Restroom Improvements
-
Total Expenditures 15,083$
Net Revs - Exp 1,342,304
Carryforward
Ending Fund Balance 1,837,436$
PAGE 6 OF 9
R-2024-025
Exhibit A
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0
The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
FY 2025
Original 1%
Beginning Fund Balance 570,446$
Revenues
LBID Assessment Revenues 1,375,869
Interest Earnings 8,496
Total Revenues 1,384,364$
Total Sources 1,954,810$
Expenditures
SALARIES & WAGES 34,946
BENEFITS 7,800
PURCHASE PROFESSIONAL SVCS 130,166
TOT Audit 16,000
OTHER PURCHASED SERVICES 1,235,227
OPERATIONS & MAINTENANCE 2,300
OTHER EXPENSES 100,264
Sponsorships for Events 100,000
CA Welcome Center Funding 20,000
Total Expenditures 1,646,703$
Net Revs - Exp (262,339)
Carryforward
Ending Fund Balance 308,107$
FY 2025
Original 1%
Administrative/Overhead 145,310$
Direct Costs 1,501,393
Direct Costs
TJA Agreement 1,347,255$
Miscellaneous direct costs 82,138
Contributions/Sponsorships
WSL SLO CAL Open at Pismo Beach 40,000
Pismo Chamber 12,000
California Welcome Center 20,000
Subtotal Contributions 72,000
Total Direct Costs 1,501,393$
PAGE 7 OF 9
R-2024-025
Exhibit A
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0
FY 2025 Proposed Budget for 1% Assessment for Physical Improvements •Sources: The FY 2025 proposed budget total sources of $3,221,800, made up of $1,837,436 from fund balance carried over from the prior fiscal year, an estimated $1,375,869 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. •Uses: The FY 2025 proposed budget expenditures include $1,200,000 for the Addie Street restroom improvements project carried forward from the prior fiscal year and $125,000 for a Downtown Boardwalk Extension Feasibility Study between Main Street and Wadsworth.
The following table shows: the FY 2025 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 2025.
The CVB/LBID Advisory Board approved a motion to recommend that the 2% Assessment be continued in FY 2025.
5.The FY 2024 LBID budget for the original 1% assessment is projected to include a $570,446 surplus left over for carryover into FY 2025. The FY 2024 LBID budget for the 1% assessment for physical improvements is projected to include a $1,837,436 surplus left over for carryover into FY 2025.
FY 2025
Physical
Improvements
Beginning Fund Balance 1,837,436$
Revenues
LBID Assessment Revenues 1,375,869
Interest Earnings 8,496
Total Revenues 1,384,364$
Total Sources 3,221,800$
Expenditures
FY24 Addie St Restroom Improvements 1,200,000
FY25 Downtown Boardwalk Extension
Feasibility Study between Main Street
and Wadsworth
125,000
Total Expenditures 1,325,000$
Net Revs - Exp 59,364
Carryforward
Ending Fund Balance 1,896,800$
PAGE 8 OF 9
R-2024-025
Exhibit A
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0
6. The FY 2025 LBID Projected Actuals includes $16,991 in projected interest earnings, which comes from investments from the 2% assessment levied on transient rentals, and fund balance carried over from the prior fiscal year. The CVB/LBID Advisory Board did not recommend that any other contributions be budgeted for FY 2025.
PAGE 9 OF 9
R-2024-025
Exhibit A
DocuSign Envelope ID: AE1DD2BC-D874-447E-957A-73E3E70204A0