HomeMy WebLinkAboutCC 2025-09-09_09f TBID Budget AmendmentsItem 9.f.
MEMORANDUM
TO: City Council
FROM: Sheridan Bohlken, Director of Recreation Services
SUBJECT: Amended Tourism Business Improvement District Budget for FY 2025-
26
DATE: September 9, 2025
RECOMMENDATION:
1) Adopt a Resolution amending the Arroyo Grande Tourism Business Improvement
District (AGTBID) Budget for FY 2025-26 to reflect the changes in the authorized uses of
assessments implemented by Resolution No. 2025-057; and
2) Find that adopting a Resolution to amend the AGTBID budget is not subject to the
California Environmental Quality Act (“CEQA”) because these efforts have no potential to
result in either a direct, or reasonably foreseeable indirect, physical change in the
environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
With the recent amendments expanding the authorized uses of AGTBID funds, an
amended FY 2025-26 budget is now needed to incorporate funding for infrastructure,
public art, and special event support, in addition to traditional marketing and
administration. As a result, total proposed expenditures in FY 2025-26 are $521,850 and
are further detailed below
BACKGROUND:
The AGTBID was established in May 2013 under the Parking and Business Improvement
Law of 1989 and codified in the Arroyo Grande Municipal Code Chapter 3.46. On April
28, 20251, the City Council adopted the AGTBID budget for FY 2025-26. In August 20252,
the City Council approved amendments to expand the authorized uses of AGTBID funds
to include infrastructure, public art, and special event support in addition to marketing,
promotion, and administration. These amendments align Arroyo Grande with b est
practices in neighboring jurisdictions and provide new opportunities to enhance the visitor
experience while supporting long-term economic growth.
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14401
2 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=15514
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Item 9.f.
City Council
Amended Tourism Business Improvement District Budget for FY 2025-26
September 9, 2025
Page 2
AGTBID activities are funded through assessments, and any surplus or deficit is carried
over from the previous fiscal year. On August 21, 20253, the AGTBID Advisory Board
recommended that the City Council adopt an amended AGTBID budget for FY 2025-26,
incorporating the newly approved authorized uses.
ANALYSIS OF ISSUES:
The proposed amended AGTBID budget for FY 2025-26 (Table 1) maintains allocations
for core categories: advertising, contractual services, membership & subscriptions, public
relations, and services & supplies (administration), while also incorporating new
allocations consistent with the recently adopted ordinance amendments.
The proposed amended budget introduces $60,000 in expanded uses:
$25,000 for public art and beautification (murals, sculptures, seasonal décor);
$20,000 for infrastructure improvements (benches, wayfinding signage, ADA
access, trash receptacles); and
$15,000 for special event-supporting infrastructure (lighting, staging, and signage).
Total proposed expenditures are $521,850 as s hown in Table 1, which intentionally
exceeds projected revenues of $299,450 in order to fund the new activities and
improvements that were recently authorized, which will also draw down the existing fund
balance.
3 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=15684
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Item 9.f.
City Council
Amended Tourism Business Improvement District Budget for FY 2025-26
September 9, 2025
Page 3
Table 1: FY 2025-26 AGTBID Proposed Amended Budget
FY 2025-26 AGTBID Budget
Beginning Fund Balance 438,184$ 366,211$ 366,211$
FY 2024-25
Unaudited
Actuals
FY 2025-26
Adopted
Budget
FY 2025-26
Proposed
Amended
Budget
TBID Assessments 283,117$ 298,700$ 298,700$
Interest 7,789 750 750
Total Revenue 290,906$ 299,450$ 299,450$
Expenditures
FY 2024-25
Adopted
Budget
FY 2025-26
Proposed
Budget
FY 2025-26
Proposed
Budget
Advertising
Marketing Services 248,033$ 250,000$ 250,000$
Photo/Video Assets 7,750 25,000 25,000
Promotional Product - 5,000 5,000
Website - - -
Travel and Trade Shows 2,469 7,500 7,500
Coop Advertising 33,000 50,000 50,000
Sub-total Advertising 291,251$ 337,500$ 337,500$
Contractual Services
Short-term compliance 11,350$ 11,350$ 11,350$
Chamber - Contract admin. - - -
Sub-total Contractual Services 11,350$ 11,350$ 11,350$
Membership & Subscriptions
CCTC 475$ 500$ 500$
Sub-total Membership & Subs.475$ 500$ 500$
Public Relations
Event Sponsorships 9,799 50,000 50,000
Influencers - 10,000 10,000
Sub-total Public Relations 9,799$ 60,000$ 60,000$
Services & Supplies
Sub-total Services & Supplies 50,004$ 52,500$ 52,500$
Destination Improvements & Activities
Public art and beautification -$ -$ 25,000$
Infrastructure improvements - - 20,000
Special event-supporting infrastructure - - 15,000
Sub-total Destination Improvements & Activities -$ -$ 60,000$
Total Expenditures 362,879$ 461,850$ 521,850$
Ending Fund Balance 366,211$ 203,811$ 143,811$
Revenue
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Item 9.f.
City Council
Amended Tourism Business Improvement District Budget for FY 2025-26
September 9, 2025
Page 4
ALTERNATIVES:
The following alternatives are provided for Council’s consideration:
1. Adopt a Resolution approving the proposed Amended TBID Budget for FY 2025-
26;
2. Do not adopt a Resolution and continue with the existing TBID budget; or
3. Provide other direction to staff.
ADVANTAGES:
The proposed amended budget provides the funding needed to implement the recently
approved changes to the authorized uses which expands community benefits through
investments in infrastructure, public art, and event support providing additional benefit to
the assessed businesses.
DISADVANTAGES:
There are no foreseen disadvantages to approving an amended budget to fund the new
authorized uses of the AGTBID funds.
ENVIRONMENTAL REVIEW:
Adopting a Resolution to amend the AGTBID budget is not subject to the California
Environmental Quality Act (“CEQA”) because these efforts have no potential to result in
either a direct, or reasonably foreseeable indirect, physical change in the environment.
(State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Resolution
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ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING THE REVISED FISCAL
YEAR 2025-26 BUDGET FOR THE ARROYO GRANDE
TOURISM BUSINESS IMPROVEMENT DISTRICT
WHEREAS, on February 26, 2013, the City Council adopted Resolution No. 4516
establishing the Advisory Board ("Advisory Board") to the Arroyo Grande Tourism
Business Improvement District ("AGTBID" or "District"); and
WHEREAS, on May 14, 2013, the City Council adopted Ordinance No. 651
establishing the AGTBID; and
WHEREAS, the purpose of the Advisory Board is to consult with and advise the City
Council on those matters dealing with the method and basis of levying assessments
within the AGTBID; expenditures of revenues derived from such assessments; and
programs, services, improvements, and activities intended to promote lodging
establishments within the District; and
WHEREAS, on March 13, 2025, the Advisory Board approved the FY 2025-26
AGTBID annual report (the "Annual Report"); and
WHEREAS, on March 25, 2025, the City Council approved the Advisory Board's
Annual Report and adopted a Resolution of Intention to levy and collect
assessments for the 2025-26 fiscal year and to set a date for a public hearing for
May 13, 2025; and
WHEREAS, on May 13, 2025, the City Council adopted a Resolution confirming the
Annual Report and levying an annual assessment for the AGTBID for the 2025-26
fiscal year; and
WHEREAS, on April 28, 2025, the City Council adopted a Resolution confirming the
annual budget for the 2025-26 fiscal year; and
WHEREAS, on August 26, 2025, the City Council adopted an Ordinance to amend
the Municipal Code Chapter 3.46 to expand the authorized uses of assessments of
the AGTBID; and
WHEREAS, the budget recommendations attached hereto as Exhibit A are based
upon City revenue projections and will fund a work plan that meets the objectives,
goals, and responsibilities of the AGTBID.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Arroyo Grande, as follows:
1. The foregoing recitals are true and correct and are incorporated herein.
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RESOLUTION NO.
PAGE 4
2. The City Council hereby adopts the revised FY 2025-26 budget for the
Arroyo Grande Tourism Business Improvement District attached hereto as
Exhibit A.
On motion of Council Member , and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT
the foregoing Resolution was passed and adopted this 9th day of September, 2025.
Page 61 of 148
RESOLUTION NO.
PAGE 4
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
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RESOLUTION NO.
PAGE 4
EXHIBIT A
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