City council receives TBID annual report; approves intention to continue 2% assessment and schedules Oct. 21 hearing
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Summary
The City Council received the TBID—9s fiscal 2024—625 annual report and voted 5—60 to advance staff recommendations: adopt a resolution of intention to levy the TBID assessment at 2% and schedule a public hearing for Oct. 21.
The San Luis Obispo City Council on Tuesday received the TBID—9s fiscal year 2024–25 annual report and voted 5—60 to move staff recommendations forward: approve the annual report and adopt a resolution of intention to levy and collect the TBID assessment at the same 2% rate, with a public hearing scheduled for the council—9s Oct. 21 meeting.
The TBID presentation summarized marketing and financial results, occupancy and revenue performance, and the district—9s plan for 2025—626. Economic Development staff and TBID board member Prashant Patel presented the report.
Why it matters TBID funds destination marketing paid by lodging operators (a self-assessment of 2% of gross lodging receipts). Staff said the city collected a record $11.4 million in transient-occupancy-tax (TOT) revenue in 2024 and that total direct visitor spending for the city in 2024 was about $455 million. TBID leaders said the district represents 42 traditional lodging properties plus more than 100 permitted home-stays and that a dual-branded Marriott (Residence Inn/SpringHill Suites) added roughly 8% more room inventory this year.
Report highlights and staff recommendation - Visitors: staff reported about 1.5 million visitors to the city in 2024, with roughly 1.0 million staying overnight. - Spending: direct visitor spending in 2024 was reported at approximately $455 million (31% lodging, 21% food & beverage, 16% retail, 16% recreation, 15% transportation). - TOT/TBID performance: TOT collections in 2024 reached $11.4 million, a 3.2% increase over the prior year. Occupancy and revenue-per-available-room trends were modestly higher; average-daily-rate was stable. - Budget and governance: TBID income is forecast based on TOT trends; the advisory board (seven members appointed by council) recommends continuing the assessment at 2%. Staff asked council to receive the annual report and adopt a resolution of intention to levy the assessment for FY 25—626; if council approves the resolution of intention, the public hearing is scheduled for Oct. 21.
Council discussion and action Councilmembers praised the TBID—9s new brand campaign and marketing tools (staff rolled a short video). Vice Mayor Shoresman and multiple councilmembers thanked hoteliers and TBID volunteers for many hours of support. Councilmember Marx moved the staff recommendations; Vice Mayor Shoresman seconded. The council approved the motion by roll call, 5—60.
What comes next If the council proceeds after the Oct. 21 public hearing, the city would adopt the resolution to levy the 2% assessment for the year and collect the TBID assessment from lodging businesses in the district. Staff said actual TBID program expenditures and audited financials will be reported in future budget and year-end materials.
Ending Council received the TBID report and scheduled the required public hearing to confirm continuation of the 2% lodging self-assessment. TBID leaders and city staff said they will continue marketing, visitor services and partnership work to support hotels, the visitor economy, and city general-fund revenues funded by visitor spending.
