City Council
Report
City Council Meeting: July 8, 2025
Agenda Item: 4.J
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To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Approval of the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan
Recommended Action
Staff recommends that the City Council:
1. Approve the Santa Monica Tourism Marketing District Fiscal Year 2025-26 Budget and Work Plan; and,
2. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines.
Summary
In 2012, in partnership with local hotels, Santa Monica Travel and Tourism (SMTT) established the Santa Monica Tourism and Marketing District (SMTMD) to fund targeted marketing and promotions to increase overnight room sales. Funding for the marketing programs and activities is derived from assessments and revenues collected from the hotels operating within the boundaries of the SMTMD. The attached SMTMD Annual Report (Annual Report) summarizes the proposed programs and activities for the upcoming Fiscal Year 2025-26, including the SMTMD budget, hotel report, and marketing plan. Staff recommends that Council review and approve the Annual Report in accordance with the State laws governing tourism marketing districts.
Discussion
Under Streets and Highway Code Section 36650, the Santa Monica Tourism and Marketing District (SMTMD) is required to prepare Annual Reports providing the 2 of 5
following information:
• Any proposed changes to the boundaries of the tourism marketing district or to any benefit zones or classification within the district, • The improvements, maintenance, and activities for that fiscal year, • An estimate of the cost of providing improvements, maintenance, and activities for that fiscal year,
• The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year,
• The estimated amount of any surplus or deficit in revenues to be carried over from a previous fiscal year,
• The estimated amount of contributions to be made from sources otherthan assessments levied pursuant to this part.
In accordance with Section 36650, the SMTMD has submitted its 2025-2026 Annual Report (Attachment D), including the work plan and budget for Council approval. The following overview summarizes the proposed expenditures to be funded with SMTMD assessments in the upcoming fiscal year.
SMTMD Reporting Year FY 2025-26
Revenues
Estimated SMTMD Assessments 7,105,554
Bank Interest 1,800
Total Revenues* $7,107,354
Expenditures
Cost of Programs
Travel Industry Sales 1,350,000
Marketing 1,604,608
Meetings, Incentives, Conferences,
and Exhibitions
300,000
Client Services
Public Relations
25,000
372,413
General and Administrative Services 705,000
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Salaries & Benefits 2,333,870
Contingency Fund 355,278
Fixed Asset 61,185
Total Expenses $7,107,354
Estimated Carry-over from Previous Fiscal Year $0
Estimated In-Kind Contributions $265,000
* This does not include $2,994,004 in City funding included in the FY 2025-26 Proposed Budget for a services agreement with SMTT that the City provides SMTT annually to continue SMTT’s tourism and marketing programs, operate Visitors Centers, produce collateral materials, create brand awareness, and promote Santa Monica through print and social media.
The SMTMD expenditures and services for FY 2025-26 are budgeted at $7,107,354 to fund programs and services that focus on five strategic areas:
1. Drive Balanced Demand for the Destination
2. Enhance the Brand and Steward the Destination Experience
3. Champion the Value of Tourism
4. Strengthen Strategic Partnerships and Relationships
5. Ensure Operational Excellence
The FY 2025-26 workplan continues to leverage Visit California and Los Angeles Tourism & Convention Board’s efforts with core goals centered on strengthening and enhancing Santa Monica as a brand, marketing and promoting Santa Monica as a tourism destination, increasing occupancy, establishing partnerships within the tourism community, private sector, and government entities to position Santa Monica as a filming destination, and expanding a presence in emerging markets.
The proposed FY 2025-26 budget was approved by the Tourism Marketing District Committee and the Santa Monica Travel and Tourism (SMTT) Board of Directors at a joint meeting on June 4, 2025. It reflects a consumer price increase of 2%. Council may approve the annual report or may modify any section contained in the annual report and approve it as modified. As the assessment formulas in the SMTMD remain as approved in 2017, staff recommend Council approve the attached Annual Report.
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Environmental Review
The SMTMD’s FY 2025-26 workplan is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The annual report provides a summary update of the activities and funding of the SMTMD. Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Past Council Actions
Meeting Date Description
Attachment A - 7/9/2024 Council approved the Annual Report for FY 2024-25 (Calendar Year 2024) representing the seventh report
for the SMTMD renewal term.
Attachment B - 11/1/2016 Council adopted Resolution 11005 (CCS) extending the SMTMD by nine and one-half years beginning on
January 1, 2018 through June 30, 2027.
Attachment C - 12/11/2012 Council adopted Resolution No. 10722 (CCS) establishing the Santa Monica Tourism Marketing
District (SMTMD).
Attachment D FY 2025-26 Annual Report
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action.
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Prepared By: Nia Tang, Economic Development Administrator Approved Forwarded to Council
Attachments:
A. Attachment A - 7/9/2024 Staff Report (Web Link)
B. Attachment B - 11/1/2016 Staff Report (Web Link)
C. Attachment C - 12/11/2012 Staff Report (Web Link)
D. Attachment D - FY 2025 - 26 Annual Report
E. Oaks 2025
F. Levine 2025