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Home My WebLink AboutR 2026-022RESOLUTION NO. 2026-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CONFIRMING THE ANNUAL REPORT AND ASSESSMENT TO BE LEVIED WITHIN THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR 2026-27 WHEREAS, on April 14, 2026, the City of Arroyo Grande (the “City”) City Council (the “City Council”) adopted Resolution 2026-016 initiating proceedings for the continued collection of assessments for Fiscal Year 2026-2027 for the Arroyo Grande Tourism Business Improvement District (the “District”) pursuant to the Parking and Business Improvement Area Law of 1989 (“PBIAL”), commencing with section 36500 et seq. of the Streets and Highway Code; and WHEREAS, the District was established in May 2013 and incorporated into the Arroyo Grande Municipal Code (“AGMC”) under Chapter 3.46; and WHEREAS, the AGMC and the PBIAL require the Advisory Board to prepare and submit an annual report (“Annual Report”) stating improvements, activities, and assessments for the fiscal year; and WHEREAS, on March 25, 2026, the Advisory Board approved the Annual Report; and WHEREAS, the Annual Report, attached hereto as Exhibit “A” was posted online and received by the Arroyo Grande City Council on March 27, 2026; and WHEREAS, this Resolution is not subject to the California Environmental Quality Act (CEQA) because it will not result in a direct, or reasonably foreseeable indirect, physical change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378). NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1.All recitals set forth above, are true, correct and incorporated herein. 2.Following notice duly given by publication, the City Council has held a public hearing regarding the approval of the Annual Report and levy of the proposed assessment within the District for the fiscal year commencing July 1, 2026, and ending June 30, 2027, to pay for the costs and expenses of activities and programs promoting lodging businesses in the District through the promotion of scenic, recreational, cultural, and other attractions in the District as a tourist destination, and as further set forth in ACMG Section 3.46.030 (the “Activities”). All interested persons were afforded the opportunity to hear and be heard regarding protests, and objections have been considered by the City Council. RESOLUTION NO. 2026-022 PAGE 2 3.The City Council hereby confirms the Annual Report and assessment for Fiscal Year 2026-27 and orders the continued provision of the Activities within the District. 4.The assessment is proposed to be levied on all “lodging” businesses in the District, as that term is defined in AGMC section 3.46.020, and allocated by the City. 5.The assessment shall be based upon two percent (2%) of the rent charged by the operator per occupied room per night for all transient occupancies and shall be collected quarterly and is hereby approved. 6.The adoption of this Resolution constitutes the levy of the assessment for fiscal year 2026-27. 7.This Resolution shall become effective immediately upon its adoption. On a motion by Council Member Loe, seconded by Council Member Secrest, and by the following roll call vote to wit: AYES: Council Members Loe, Secrest, Guthrie, and Maraviglia NOES: None ABSENT: Mayor Ray Russom the foregoing Resolution was adopted this 28th day of April 2026. 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 RESOLUTION NO. 2026-022 PAGE 3 RESOLUTION NO. 2026-022 PAGE 4 EXHIBIT A CITY OF ARROYO GRANDE FISCAL YEAR 2026-27 ANNUAL ASSESSMENT REPORT FOR ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT This report is prepared in compliance with California Streets and Highways Code section 36533 for the Arroyo Grande Tourism Business Improvement District (the “District”) for Fiscal Year 2026-27. Section 1. Changes. There are no proposed changes to the boundaries of the District. Section 2. Authorized Uses. The improvements and activities (the “Authorized Uses”) to be provided in Fiscal Year 2026-27 include: •Improvements, including the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: o Parking facilities, benches, trash receptacle, street lighting, decorations including public art and cultural enhancements and decorations, parks, and fountains; and o Activities which benefit businesses located and operating within the District. •Promotion and furnishing of, but not limited to, the following activities: o Promotion of public events which benefit businesses within the District and which take place on or in public spaces within the District; and o Furnishing of music in any public place within the District; and o Promotion of tourism within the District. Section 3. Budget. The estimated costs of providing the Authorized Uses for Fiscal Year 2026-27 is included in the budget attached as Exhibit “A” hereto and incorporated herein by this reference. Section 4. Method and Basis of the Assessment. The assessment is two percent (2%) of the rent charged by the operator per occupied room per night for all transient occupancies. Assessments are collected quarterly. Section 5. Surplus/Deficit Revenues. The amounts or any surplus or deficit revenues to be carried over from the previous fiscal year are included in Exhibit “A” attached hereto. Section 6. Contributions. There are no contributions from any other sources to be made other than the assessments of the District. EXHIBIT “A” FISCAL YEAR 2026-27 BUDGET Beginning Fund Balance $ 436,489 $ 438,184 $ 383,013 $ 383,013 $ 241,813 Revenue FY 2023-24 Actuals FY 2024-25 Actuals FY 2025-26 Budget FY 2025-26 Expected to Complete FY 2026-27 Proposed Budget TBID Assessments $ 281,764 $ 288,366 $ 327,848 $ 288,400 $ 298,700 Interest 17,990 19,366 750 750 750 Total Revenue $ 299,754 $ 307,731 $ 328,598 $ 289,150 $ 299,450 Expenditures FY 2023-24 Actuals FY 2024-25 Adopted Budget FY 2025-26 Proposed Budget FY 2025-26 Expected to Complete FY 2026-27 Proposed Budget Advertising Marketing Services $ 218,340 $ 248,056 $ 250,000 $ 250,000 $ 222,500 Photo/Video Assets 1,890 7,750 25,000 25,000 25,000 Promotional Product 600 - 5,000 5,000 2,500 Website - - - - - Travel and Trade Shows - 2,469 7,500 7,500 10,000 Coop Advertising 14,400 33,000 50,000 50,000 50,000 Sub-total Advertising $ 235,230 $ 291,275 $ 337,500 $ 337,500 $ 310,000 Contractual Services Short-term compliance $ 11,350 $ 11,350 $ 11,350 $ 11,350 $ 11,350 Chamber - Contract admin. - - - - - Sub-total Contractual Services $ 11,350 $ 11,350 $ 11,350 $ 11,350 $ 11,350 Membership & Subscriptions CCTC $ 475 $ 475 $ 500 $ 500 $ 500 Sub-total Membership & Subs. $ 475 $ 475 $ 500 $ 500 $ 500 Public Relations Event Sponsorships 1,000 9,799 50,000 1,000 50,000 Influencers - - 10,000 10,000 20,000 Sub-total Public Relations $ 1,000 $ 9,799 $ 60,000 $ 11,000 $ 70,000 Services & Supplies City - administrative $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 50,000 Supplies/Domains - - 2,500 - 2,500 Vacation rental code compliance 5,004 5,004 5,000 5,000 - Sub-total Services & Supplies $ 50,004 $ 50,004 $ 52,500 $ 50,000 $ 52,500 Destination Improvements & Activities Public art and beautification $ - $ - $ 25,000 $ - $ 25,000 Infrastructure improvements - - 20,000 20,000 20,000 Special event-supporting infrastructure - - 15,000 - 15,000 Sub-total Destination Improvements & Activities $ - $ - $ 60,000 $ 20,000 $ 60,000 Total Expenditures $ 298,059 $ 362,903 $ 521,850 $ 430,350 $ 504,350 Ending Fund Balance $ 438,184 $ 383,013 $ 189,761 $ 241,813 $ 36,913 RESOLUTION NO. 2026-022 PAGE 5 OFFICIAL CERTIFICATION I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 2026-022 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 28th day of April, 2026. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 6th day of May, 2026. JESSICA MATSON, CITY CLERK