Council confirms AGTBID levy and budget; advisory board seeks to broaden uses and extends agency contract

At a May 13 public hearing the Arroyo Grande City Council confirmed the Arroyo Grande Tourism Business Improvement District (AGTBID) annual report, approved levy of the FY 2025–26 assessment and adopted the AGTBID operating budget after staff reported no written protests.

Sheridan Volkin, director of recreation services, told the council the AGTBID — established by ordinance in 2013 — applies a 2% assessment on transient lodging stays and that the district anticipates “assessment revenues just shy of $299,000” for the coming year. The proposed FY25–26 budget included $45,000 for city administrative functions, $5,000 for vacation rental outreach and a $132,955 drawdown from reserves intended to fund marketing programs that drive visitation.

Public comment: Sean Desmond, TBID chair and general manager of the Agrarian Hotel, urged continuation of the TBID and highlighted early campaign tracking from the new agency. “We are fully in support of the TBID,” he told the council, adding that the new agency’s tools are beginning to produce measurable visitation metrics.

Council action and vote: The council adopted resolutions confirming the AGTBID annual report and levying the FY25–26 assessment, and then approved the AGTBID budget. Mayor Ray Russom recused from the hearing because of a short-term rental interest; the remaining council members voted to proceed after staff reported zero protests.

Marketing services contract extension: Later in the meeting the council considered a separate item to extend the city’s marketing services agreement with Commune Communication for AGTBID for one year, not-to-exceed $250,000. Sheridan Volkin summarized metrics the firm provided (2.7 million impressions and 32,559 clicks in six months, and location-based “exposed visit” tracking). Council members expressed interest in clearer reporting that ties digital metrics to overnight stays; the council unanimously approved the one-year extension, 5–0.

Why it matters: the AGTBID funds local tourism marketing that the city and lodging partners say increases midweek stays and supports village businesses. Council members also discussed whether to broaden authorized uses of TBID assessments to include community enhancements; the council directed the advisory board to explore changes and asked staff to bring back a revised budget option that would consider spending down the current reserve if needed.

Ending: With no majority protest received, the levy and budget were approved and the marketing contract was extended; staff will return with any proposed amendments to TBID authorized uses and with clearer reporting metrics linking advertising to hotel stays.