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HomeMy WebLinkAboutReso 25-18 TBID Intent to Levy• • • s rkabIVIL11 1 11211• • • THE CITY OF ORRO BAY, CALIFORNIA, ECLARING THE INTENTIONTO CONTINUE THE PROGRAMAND L ty of Morro Bay, California WHEREAS, the Parking and Business Improvement Area Law of 1989, Sections 36500 et seq., of the California Streets and Highway Code, authorizes cities to establish and review business improvement areas for the purpose of promoting tourism; and WHEREAS, on April 13, 2009, City Council held a public hearing for the introduction and first reading of Ordinance 546 amending the Morro Bay Municipal Code (MBMC) to add a new Chapter 3.60 to establish the Morro Bay Tourism Business Improvement District ("MBTBID"), and adopted Ordinance 546 at its April 27, 2009 meeting, which set the MBTBID assessments at 3% from June 1, 2009 to May 31, 2010, and 2% from June 1, 2010 and thereafter; and WHEREAS, on June 1, 2010, the MBTBID assessments returned to the 2% level, as established by Ordinance 546; and WHEREAS, on September 13, 2010, the City Council held a public hearing and first reading of Ordinance 562 to amend MBMC section 3.60.050, changing the assessment percentage to 3%, and adopted Ordinance 562 at its September 27, 2010, meeting; and WHEREAS, on April 19; 2018, at a duly noticed public meeting, the advisory board, formed pursuant to MBMC, section 3.60.100, recommended the renewal of the TBID for Fiscal Year (FY) 2018-19 to continue its activities, and the City Council has approved that renewal for the past eight years; and WHEREAS, all other findings of Ordinances 546 and 562 remain unchanged; and WHEREAS, on May 8, 2018, City Council conducted a public meeting where staff presented the annual assessment report, which provides a full and detailed description of the activities to be provided during the FY 2018-19, as provided in the proposed budget for that Fiscal Year, which are attached to this Resolution as Exhibit A and available for review in the City Clerk's office; and WHEREAS, the budget generally describes the funded activities to be marketed, which attract and extend overnight stays in Morro Bay hotels, and are consistent with the authorized uses for the assessment revenue set forth in MBMC, section 3.60,030; and WHEREAS, it is the intention of the City Council to levy and collect 3% assessments from the hoteliers within the TBID for the FY 2018-19; and WHEREAS, at the public meeting held on May 8, 2018, City Council additionally set the public hearing, for the intent to levy the TBID assessment for Fiscal Year 2018/19, to be held at the Morro Bay Veterans Memorial Hall located at 209 Surf Street, Morro Bay, California, in accordance with the California Streets and Highway Code, sections 36534 and 36535. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay as follows: 1. The above recitations are true and correct, and incorporated herein by reference. 2. The City Council approves the attached Annual Assessment Report and declares its intention to renew the Morro Bay Tourism Business Improvement District for the 2018/19 Fiscal Year, and to levy and collect 3% assessments from hoteliers calculated in the manner set forth in MBMC, section 3.60.050. 3. The City Council sets the date of the public hearing to adopt a Resolution to reaffirm the MBTBID, and levy and collect the 3% assessments from hoteliers as Tuesday, June 12, 2018. Before or at this public hearing written protests to the continuation of the MBTBID and the levy of the assessment may be made, consistent with the requirements of Streets & Highways Code, sections 36524 and 36525 and MBMC, section 3,60,060, PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 8th day of May 2018, by the following vote: AYES: Irons, Davis, Headding, Makowetski, McPherson NOES: None ABSENT: None ABSTAIN: None w JAMI L. IRONS, Mayor SWANSON, City Clerk •o' • Bay Business ImprovementDistri 1 AnnualReport for FY '. , •. Presented to the Morro Bay City Council by the Morro Bay Tourism Business Improvement District Advisory Board The City of Morro Bay's Tourism Business Improvement District at its regularly scheduled meeting on April 19, 2018, completed its review of the Annual Report as required by Section 3.60.060 of the Morro Bay Municipal Code (MBMC). The six requirements for the Annual Report, as stated in Section 36533 of the California Streets and Highways Code, are addressed as follows: 1. The Morro Bay Tourism Business Improvement District (MBTBID) Advisory Board did not propose any changes in the Boundaries of the TBID, which were established in MBMC Section 3.60.040 to be the boundaries of the City of Morro Bay. 2. The improvements and activities to be provided for in Fiscal Year FY 2018-19 are those services and activities permitted under Section 3.60.030 of the Morro Bay Municipal Code, which include: A. The general promotion of tourism within the district to include costs as specified in the business plant to be adopted annually; B. The marketing of conference, group, and film business that benefits local tourism and the local hotel industry in the district; and C. The marketing of the district to the travel industry in order to benefit local tourism and the local hotel industry in the district; GOALS &OBJECTIVES 1. Increase overall occupancy &hotel/motel revenues, especially during midweek and shoulder season 2. Midweek — be more aggressive through digital media to increase stays 3. Extend the number of average hotel/motel room nights beyond 1.5 4. Help incrementally increase the hotel/motel Average Daily Rate (ADR) 5. Bring exposure to Morro Bay as a viable domestic and international destination for individuals and groups 6. Assist with the development and growth of competitions and events that attract overnight guests 7. Create opportunities to positively impact sales tax businesses & drive economic development in the City of Morro Bay 8. Positively impact transient occupancy tax (TOT) for the City of Morro Bay 3. An estimate of the cost of providing the improvements and the activities for that fiscal year (as described below). FY 2017-18 Projected Totals Sources: The FY 2017-18 projected actual sources include total sources of $ 949,088, made up of $819,660 from TBID assessment revenues, $ 125,428 from the City's General Fund and $4,000 from advertising revenue. The beginning fund balance was $283,021. Uses: The FY 2017-18 projected actual expenditures are $ 949,087, netting no change to the fund balance. The following table (on the next page) shows FY 2017-18 revised budget, projected actuals, and the variance of the projected actuals compared to the revised budget. City of 1vlorro Bay Schedule of TBIl) JFY2017/18 Projected Year End Budget Results Operating Revenues vs. Operating Expenditures FY17/18 FY17/18 Variance Revised Projected (Projected - Budget Actuals Actuals) Beginning Cash Balance $ 283,021 $ 283,021 $ (0 Revenues Advertising -Guides and Magazines $ 4,000 $ 4,000 $ - Transient Occupancy Tax(TBID Assessment) 907,863 81%660 88,203 Interest - - Transfers In - General Fund Contribution 125A28 125.428 - Expenditures Salaries & Benefits $ 19301 $ 19301 $ General Office Supplies 3,200 3,200 - Promotion & Advertising 2455000 2451000 - Event Support Sponsorships Marketing Consulting Advertising Sponsorships Promotional Printing Promotion - Other (Visiting Journalist) Promotion Media Trade Shows - Trans Flight/Taxi Trade Shows - Space Rent or Fees Community Event Support - Grants Professional Development Other Professional Services Postage Utilities Mfleage Reimbursement Meetings &Conferences Meals & Lodging Travel Expense Association Memberships Workers Comp Insurance Unemployment Insurance Consulting Services Contractual Services Print Ads Transfer to Accumulation Fund Transfer Out 39,000 13,259 25,741 50,0 )0 43,500 6,500 25,000 18,000 7,000 93,500 93,1O1 399 2,425 1,425 1,000 %000 7,500 1,500 905000 90,000 - 1,500 1500 177000 147400 2,600 5,000 5,000 - 1,589 - L589 11500 100 1400 4,850 2,350 2,500 61000 4,500 1,500 2,619 619 27000 3,500 1,500 2,000 1,156 15156 - 790 790 - 26,500 21,500 55000 165,000 165,000 - 35,954 35,954 22.907 19.736 3171 Net Operating Revenues over Expenditures & Carryforwards $ (9,500) , $ 0 $ (9,500)I Ending Cash Balance $ 2739521 $ 2831021 $ 99501 FY 201849 Proposed Budget Sources: The FY 2018-19 proposed budgeted sources includes total sources of $997,135 made up of $ 836,135 from TBID assessment revenue, and estimated $ 157,000 General Fund contribution, and $4,000 advertising revenue. Uses: The FY 2018-19 proposed budgeted expenditures are $ 997,135 which includes $21,653 unassigned. The following table (on the next page) shows the FY 2018-19 proposed budget and summarizes the total uses. City of Morro Bay FY2018/19 TBID Proposed Budget Operating Revenues vs. Operating Expenditures Revenues FY18/19 Proposed Budget Advertising -Guides and Magazines $ 4,000 Transient Occupancy Tax(TBID Assessment) 8361135 Interest Transfers In - General Fund Contribution 1575000 Total Revenues $ 997,135 Expenditures Salaries &Benefits $ 195,814 General Office Supplies 31500 Forms Printing 200 Consulting Services 151000 Contractual Services 1651000 Promotion & Advertising 81000 Digital Media 2701000 Out of Home 135000 Digital Services 405000 Digital Assets 159000 Marketing Consulting 2%000 Community Event Support 10000 Promotion Media 181000 Promotion Other 1500 Promotion Visiting Journalist 255000 Trade Shows - Space Rent 45000 Trade Shows - Trans 11500 Advertising Sponsorships 1500 Professional Development 19500 Other Professional Services 21000 Postage 45000 Utilities - Workers Comp Insurance 1j91 Unemployment Insurance 814 Meetings and Conferences 2,500 Mileage Reimbursement 500 Meals & Lodging 41500 Travel Expense 200 Association Memberships 1,500 Total Operating Expenditures $ 955,319 Transfer to Accumulation Fund 21,653 Transfer Out 20,163 Total Operating Expenditures Including Transfers $ 997,135 Net Operating Revenues over Expenditures $ (0) 4. No change in the TBID method or basis of levying the assessment was proposed for FY 201 &19. More specifically, the Morro Bay TBID Advisory Board approved a motion to recommend to the Morro Bay City Council that the 3% Assessment be continued in FY 201 &19, 5. The TBID budget for FY 2017-18 is projected to include $ -0- surplus left over for carryover into FY 2018-19. 6. The proposed budget for FY 18/19 includes $1577000 in General Fund Contributions and estimated $4,000 in income from Visitor Guide sales.