TITLE
Recommendation to adopt resolution approving the Annual Assessment Report for October 1, 2007 to September 30, 2008, for the Long Beach Tourism Business Improvement Area, declaring its intention to levy the annual assessment and setting the date of hearing for Tuesday, October 9, 2007, at 5:00 p.m.; and approve an appropriations increase of $800,000 in the FY 07 Parking and Business Area Improvement Fund (SR 132) in the Department of Community Development (CD). (Districts 1,2,4,5)
DISCUSSION
The Long Beach Area Convention and Visitors Bureau (LBCVB) promotes and markets the City of Long Beach as a tourism destination using funds generated through self-assessment of hotel properties located in the Long Beach Tourism Business Improvement Area (LBTBIA). This self-assessment was established June 21, 2005. It established an assessment rate of three percent of the gross short-term room rental revenue for hotels within the LBTBIA boundary that have 31 rooms or more. This assessment is separate from all other LBCVB funding sources such as transient occupancy tax revenue sharing. Assessment revenue is received by the City and transferred to the LBCVB monthly.
State law governing Parking and Business Improvement Areas require the submission of an annual assessment report by the Advisory Commission designated for this Assessment District. On August 23, 2007, the LBCVB Board voted to recommend to City Council approval of the LBTBIA Assessment Report (Attachment A). The Assessment Report describes boundaries, proposed activities and budgetary information, as well as the method and basis for continuation of the assessment. The report proposes no change in the basis and method of levying the assessment and no significant change in proposed activities.
The recommended Resolution of Intention grants approval of the Assessment Report, declares the intention of the City Council to levy the assessment for proposed activities, and sets the date of the public hearing for October 9, 2007.
The estimated revenue for Fiscal Year 2008 (FY 08) is $3,850,000. A budget appropriation for this amount will be included in the next quarterly FY 08 Proposed Budget adjustment in the Parking and Business Area Improvement Fund (SR 132).
For Fiscal Year 2007 (FY 07), an appropriation increase of $800,000 in the Parking and Business Improvement Area Fund (SR 132) is requested. This adjustment is due to increased short-term room rental revenue within the LBTBIA and to a Fiscal Year 2006 payment of $268,789 being deducted from the FY 07 budget allocation. This budget adjustment will allow the City to transfer LBTBIA assessment revenue received in FY 07 to the LBCVB for the balance of FY 07 as required by contract. The increase in revenue generated by the LBTBIA reflects the success of the various initiatives undertaken by the LBCVB to promote and market Long Beach. It is anticipated that the benefits of the LBTBIA will continue to increase and benefit the City.
This letter was reviewed by Assistant City Attorney Heather Mahood on August 16, 2007, Budget and Performance Management Bureau Manager David Wodynski on August 28,2007 and the City Treasurer's Office on August 21,2007.
TIMING CONSIDERATIONS
City Council action is requested on September 11, 2007 to set the date for the public hearing for October 9,2007. The new contract year begins on October 1,2007.
FISCAL IMPACT
It is expected that the LBTBIA will generate $3,850,000 in Fiscal Year 2008 (FY 08) through the proposed continuation of the assessment. Annual assessment revenue of $3,850,000 will be included in the next quarterly FY 08 Proposed Budget adjustment in the Parking and Business Area Improvement Fund (SR 132) in the Department of Community Development (CD). FY 08 assessment revenue will fully offset the proposed allocation in SR 132. The Fiscal Year (FY 07) recommended contract amount should be amended to reflect the assessment revenue. The requested increase will be offset by matching revenue.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING AN ANNUAL REPORT FOR OCTOBER 1, 2007 TO SEPTEMBER 30, 2008 FOR THE LONG BEACH TOURISM BUSINESS IMPROVEMENT AREA ("LBTBIA") AND DECLARING ITS INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THAT FISCAL YEAR
Respectfully Submitted,
PATRICK H. WEST
DIRECTOR OF COMMUNITY DEVELOPMENT
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APPROVED: |
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ANTHONY W. BATTS |
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CITY MANAGER |