RESOLUTION NO. R-2026-014
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA APPROVING THE ANNUAL REPORT FOR FISCAL YEAR 2027 FROM
THE PISMO BEACH CONFERENCE AND VISITORS BUREAU / LODGING
BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD, DECLARING THE CITY COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR THE LBID FOR FY 2027, AND DIRECTING THE CITY CLERK TO SCHEDULE A PUBLIC HEARING FOR APRIL 21, 2026, TO CONSIDER LEVYING THE ASSESSMENT
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 Lodging Business Improvement District (“the District” or “LBID”) by the adoption of Ordinance O-2009-008; and
WHEREAS, the Conference and Visitors Bureau / Lodging Business Improvement District Advisory Board has submitted an Annual Report to Council that outlines the activities of the District proposed for Fiscal Year (FY) 2027 as required by California Streets and Highways Code Section 36533; and
WHEREAS, the City Council finds the Annual Report to be complete, to comply with the interests of the District assessees, and to contain the information required by California Streets and Highways Code Section 36533; and
WHEREAS, California Streets and Highways Code Sections 36534 and 36535 require that in order to levy an assessment, the Council must adopt a Resolution of Intention that declares its intent to levy such assessment, and then set a date for a public hearing where interested parties may be heard on the issue.
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 2027, as submitted to the City Clerk by the CVB/LBID Advisory Board and attached as Exhibit A.
Section 2. No changes are proposed to the boundaries of the Lodging Business Improvement District.
Section 3. Pursuant to the provisions of Section 36500 et seq. of the California Streets and Highways Code, the City Council declares its intent to levy and collect an annual assessment for the Lodging Business Improvement District for FY 2027. The assessment PAGE 1 OF 10
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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 4. The authorized uses for the revenues derived from the assessment are stated in Pismo Beach Municipal Code Section 3.26.030, and no changes to these uses are proposed in the Annual Report for FY 2027. The authorized uses as stated in that section are:
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.
Section 5. An outline description of the improvements and activities to be provided in FY 2027, the boundaries of the District, and the proposed assessments to be levied upon the businesses within the area are contained within the Annual Report for FY 2027 filed with the City Clerk by the CVB/LBID Advisory Board.
Section 6. A public hearing shall be held before the City Council on April 21, 2026 in the City Council Chamber, 760 Mattie Road, Pismo Beach, California. Following the hearing, Council will consider adoption of a resolution levying the assessment as recommended by the CVB/LBID Advisory Board.
At this hearing, Council will hear all interested persons, and protests may be made orally or in writing. Written protests shall be filed with the City Clerk at or before the hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing, and shall clearly set forth the irregularity or defect to which the objection is made. Council may correct minor defects in the proceedings during the hearing.
If written protests against the assessment are received from business owners that will pay fifty percent or more of the proposed assessment, no further proceedings to levy the assessment shall be taken for one year from the date of the finding of a majority protest by Council. If the majority protest by business owners is against the furnishing of a specified improvement or activity within the District, those improvements or activities shall be eliminated. In order to be counted toward a majority protest, each written protest shall be from the business owner and contain a business description sufficient to identify the business. If the protesting person is not shown on the City’s official business license records as owner of the business, the protest shall contain written evidence that the person is the business owner.
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Section 7. The City Clerk is hereby directed to give notice of said hearing by causing the Resolution of Intention to be published once in a newspaper of general circulation in the City of Pismo Beach not less than seven days before the public hearing.
Section 8. This Resolution is effective on its adoption.
UPON MOTION OF Council Member Newton, seconded by Council Member Guthrie, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 7th day of April 2026, by the following vote:
AYES: 4 Newton, Guthrie, Reiss, Waage
NOES: 0
ABSENT: 1 Inman
ABSTAIN: 0
RECUSED: 0
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
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R-2026-014
STATEOF LIFORNIA
ITYOF OBEAC
APR. 25, 1946
INCORPORATEDATTESTED
Apr 9, 2026
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5 4/9/2026
Pismo Beach Lodging Business Improvement District
Annual Report and Business Plan for Fiscal Year 2026-2027 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 18, 2026, 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) 2027 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 2027 include the following: Following the Strategic Plan including smart tourism growth, collaborative partnerships, expand brand initiatives and awareness and visitor and resident satisfaction with Pismo Beach. This will be accomplished by following the 2025- 2028 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 PAGE 4 OF 10
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Exhibit A
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5
Los Angeles, San Diego, Phoenix, Denver, Seattle, Dallas and San 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 2027 include the Addie Street restroom improvements, visitor information center, stewardship banners, sponsorship or seed funding for events, Christmas decorations, beautification, Butterfly Grove parking crosswalk design and construction, sports courts lighting, Downtown Strategic Plan update, and Pier Promenade Transformation. 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 2026 and FY 2027
FY 2026 Projected Actuals for Original 1% Assessment
•Sources: The FY 2026 projected actual total sources of $1,402,689, made up of $594,006 from fund balance carried over from the prior fiscal year, an estimated $1,342,689 from LBID assessment revenues, and a projected $60,000 in interest earnings and fees. •Uses: The FY 2026 projected actual expenditures are $1,608,181. This total includes $182,788 for administrative costs and $1,425,393 for direct costs.
The following table shows: the FY 2026 projected actuals for the original 1% assessment, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
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R-2026-014
Exhibit A
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5
The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
FY 2026
Original 1%
Beginning Fund Balance 594,006$
Revenues
LBID Assessment Revenues 1,342,689$
Interest Earnings 60,000
Total Revenues 1,402,689$
Total Sources 1,996,695$
Expenditures
SALARIES & WAGES 41,145$
BENEFITS 6,569
PURCHASE PROFESSIONAL SVCS 113,922
OTHER PURCHASED SERVICES 1,251,471
OPERATIONS & MAINTENANCE 500
OTHER EXPENSES 134,574
Sponsorships for Events 30,000
CalPoly Clam Study 30,000
Total Expenditures 1,608,181$
Net Revs - Exp (205,493)
Carryforward
Ending Fund Balance 388,513$
FY 2026
Original 1%
Administrative/Overhead 182,788$
Direct Costs 1,425,393
Direct Costs
TJA Agreement 1,347,255$
Miscellaneous direct costs 18,138
CalPoly Clam Study 30,000
Contributions/Sponsorships
2025-2026 Annual SLO Coast Wine Collective 10,000
Surfing for Hope Longboard Classic 20,000
Subtotal Contributions 30,000
Total Direct Costs 1,425,393$
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R-2026-014
Exhibit A
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5
FY 2026 Projected Actuals for 1% Assessment for Physical Improvements •Sources: The FY 2026 projected actual total sources of $4,365,445, made up of $2,962,756 from fund balance carried over from the prior fiscal year, an estimated $1,342,689 from LBID assessment revenues, and a projected $60,000 in interest earnings and fees.
•Uses: The FY 2026 projected actual expenditures are $351,000. This total includes various direct costs as listed in the following table.
The following table shows the FY 2026 projected actuals for the 1% assessment for physical improvements.
FY 2027 Proposed Budget for Original 1% Assessment
•Sources: The FY 2027 revised budget total sources of $1,824,677, made up of $388,513 from fund balance carried over from the prior fiscal year, an estimated $1,421,000 from LBID assessment revenues, and a projected $15,164 in interest earnings and fees. •Uses: The FY 2027 revised budget expenditures are $1,607,096. This total includes $191,703 for administrative costs and $1,415,393 for direct costs.
FY 2026
Physical
Improvements
Beginning Fund Balance 2,962,756$
Revenues
LBID Assessment Revenues 1,342,689$
Interest Earnings 60,000
Total Revenues 1,402,689$
Total Sources 4,365,445$
Expenditures
Stewardship Banner 20,000$
Sponsorships for Events 30,000
Christmas Decorations 41,000
Annual Beautification 50,000
Butterfly Grove Trail Signage 50,000
Beach Cleaning Equipment 100,000
Sports Courts Lighting 60,000
Total Expenditures 351,000$
Net Revs - Exp 1,051,689
Carryforward
Ending Fund Balance 4,014,445$
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R-2026-014
Exhibit A
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5
The following table shows: the FY 2027 revised 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.
The next tables summarize the total uses by administrative costs and direct costs and provides the components of the direct costs.
FY 2027
Original 1%
Beginning Fund Balance 388,513$
Revenues
LBID Assessment Revenues 1,421,000$
Interest Earnings 15,164
Total Revenues 1,436,164$
Total Sources 1,824,677$
Expenditures
SALARIES & WAGES 40,525$
BENEFITS 4,135
PURCHASE PROFESSIONAL SVCS 113,922
OTHER PURCHASED SERVICES 1,251,471
OPERATIONS & MAINTENANCE 500
OTHER EXPENSES 146,543
Sponsorships for Events 50,000
Total Expenditures 1,607,096$
Net Revs - Exp (170,932)
Carryforward
Ending Fund Balance 217,581$
FY 2027
Original 1%
Administrative/Overhead 191,703$
Direct Costs 1,415,393
Direct Costs
TJA Agreement 1,347,255$
Miscellaneous direct costs 18,138
Contributions/Sponsorships
WSL SLO CAL Open 50,000
Subtotal Contributions 50,000$
Total Direct Costs 1,415,393$
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R-2026-014
Exhibit A
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5
FY 2027 Proposed Budget for 1% Assessment for Physical Improvements • Sources: The FY 2027 revised budget total sources of $5,450,609, made up of $4,014,445 from fund balance carried over from the prior fiscal year, an estimated $1,421,000 from LBID assessment revenues, and a projected $15,164 in interest earnings and fees. • Uses: The FY 2027 revised budget expenditures total $3,307,835, including various projects carried over from the previous fiscal year that were not completed. This total includes various direct costs as listed in the following table.
The following table shows the FY 2027 revised budget for the 1% assessment for physical improvements.
As the revenues and expenditures in this report reflect projections, it is prudent to continue to monitor these items over the course of the fiscal year.
4. No change in the LBID method or basis of levying the assessment was proposed for FY 2027. The CVB/LBID Advisory Board approved a motion to recommend that the 2% Assessment be continued in FY 2027.
FY 2027
Physical
Improvements
Beginning Fund Balance 4,014,445$
Revenues
LBID Assessment Revenues 1,421,000$
Interest Earnings 15,164
Total Revenues 1,436,164$
Total Sources 5,450,609$
Expenditures
Visitor Information Center 50,000$
Stewardship Banner 20,000
Sponsorships for Events 50,000
FY24 Addie St Restroom Improvements 1,196,835
Christmas Decorations 41,000
Annual Beautification 50,000
Butterfly Grove Parking Crosswalk 600,000
Sports Courts Lighting 600,000
Downtown Strategic Plan Update 500,000
Pier Promenade Transformation 200,000
Total Expenditures 3,307,835$
Net Revs - Exp (1,871,671)
Carryforward
Ending Fund Balance 2,142,774$
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Exhibit A
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5
5.The FY 2026 LBID budget for the original 1% assessment is projected to include a $388,513 surplus left over for carryover into FY 2027. The FY 2026 LBID budget for the 1% assessment for physical improvements is projected to include a $4,014,445 surplus left over for carryover into FY 2027.
6.The FY 2027 LBID revised budget includes $30,328 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 2027.
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Exhibit A
Docusign Envelope ID: F657EA1E-84C3-8BCD-82BB-8674480D9CB5