CITY COUNCIL STAFF REPORT
Meeting Date: October 02, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ACCEPTANCE OF THE PLEASANT HILL TOURISM IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2023/24
SYNOPSIS
The Pleasant Hill Tourism Improvement District (PHTID) is a benefit assessment district that generates revenue to help fund marketing, room sales, and guest attraction programs for Pleasant Hill’s seven hotels. PHTID activities also give a boost to the City’s businesses by bringing additional visitors to shop and eat in the city, and by marketing the City’s merchants and special events through www.StayPleasantHill.com and Stay Pleasant Hill social media. Stay Pleasant Hill serves as the Owners’ Association for the PHTID and is required in its agreement with the City to submit annual reports, which shall include a fiscal audit, to the City Council. Staff recommends that the City Council receive the presentation from Stay Pleasant Hill and accept the District’s FY 2023/24 annual report.
BACKGROUND
On March 20, 2017, the City Council adopted Resolution No. 29-17 establishing the Pleasant Hill Tourism Improvement District (PHTID) for a five-year term beginning on April 1, 2017, and continuing through March 31, 2022. The Pleasant Hill Chamber of Commerce served as the Owners’ Association for the PHTID during this initial five-year term.
On January 24, 2022, the City Council adopted Resolution No. 7-22, extending the PHTID for five additional years, and designating Stay Pleasant Hill as the PHTID Owners’ Association with a five-year term beginning on April 1, 2022. The PHTID fiscal year cycle covers April 1 through March 31 of each year of term.
Per the Council-approved PHTID Management District Plan, Stay Pleasant Hill (SPH) is required to provide an annual report to the City Council at the end of each year of operation. The SPH Owners Association Agreement with the City requires SPH to include an audited financial statement with the annual report. The auditors for the PHTID provided a clean opinion, which means that the PHTID’s financial statements were fairly stated for FY 2022/23 (see attached PHTID Audited Financial Statements).
FISCAL IMPACT
There is no financial impact as a result of accepting the annual report. Assessment revenues that are received for the PHTID are managed by Stay Pleasant Hill as the Owners’ Association. The City received two percent ($10,350.40 in FY 2022/23) of the PHTID revenue as an administration fee to cover the cost of collecting the PHTID revenue from the seven hotels and forwarding the revenue to PHTID management.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web.
RECOMMENDED CITY COUNCIL ACTION
Accept the PHTID Annual Report for FY 2023/24.
ALTERNATIVES TO RECOMMENDED ACTION
City Council could choose not to accept the PHTID Annual Report for FY 2023/24.
ATTACHMENT(S):
PHTID Annual Report FY 2023/24
PHTID Audited Financial Statements FY 2022/23
PHTID Management District Plan 2022-2027
Prepared by: Zach Seal, Economic Development Manager
Approved by: Ethan Bindernagel, City Manager