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HomeMy WebLinkAbout7/21/2026 Item 6e, Hermann and Fiedler - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: July 21, 2026 TO: Mayor and Council FROM: Greg Hermann, Deputy City Manager Prepared By: Laura Fiedler, Economic Development and Tourism Manager VIA: Whitney McDonald, City Manager SUBJECT: ITEM #6.e - ADOPTION OF FY 2026-27 COMMUNITY PROMOTION PROGRAMS FOR TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) AND PROMOTIONAL COORDINATING COMMITTEE (PCC) Staff received the following question s regarding the FY2026-27 Community Promotion Programs budget. The questions are below with staff’s response shown in italics: 1) What are the “administrative, overhead and staffing costs” excluded from paragraph #1? What is the dollar amount for said costs? Which, if any of these costs are subsidized by the TBID budget and, if yes, by how much? Paragraph 1 is the recommendation to “a uthorize the City Manager to enter into program expenditures and various contracts for the TBID not to exceed the 2026 - 27 projected revenue of $1,952,383 (excludes administration overhead and staffing costs), based on the recommendations by the TBID Board .” As shown in Attachment A – TBID FY 2026-27 Line-Item Budget, the administration overhead is 2% of the TBID assessment and is budgeted to be $45,983. Additional staffing costs paid for by the TBID are budgeted to be $300,764 and cover 80% of the Tourism and Community Promotions Manager and 50% of the Economic Development & Tourism Manager. The remaining staffing costs are supported through the General Fund as those positions also deliver the programs and activities described in the Promotional Coordinating Committee (PCC) section of the staff report as well as economic development programs and activities. 2) Can you please help clarify the PCC funding going to the Chamber and what it’s for? The PCC’s total recommended budget for contract services with the SLO Chamber of Commerce is $194,250, comprised of the following items: • $30,000 for the Cultural Arts and Community Promotions Grant Marketing Support program; ITEM 6e - ADOPTION OF FY 26-27 COMMUNITY PROMOTION PROGRAMS FOR TBID & PCC Page 2 • $112,200 for the PCC’s share of the Guest Services contract (shared with the TBID); • $46,000 for the PCC’s share of the Public Relations contract (shared with the TBID); • $2,800 for the PCC’s share of the media monitoring service (shared with the TBID); and • $3,250 for the cost of updating the design and reprinting tear-off maps of the City distributed by the Visitor Center. Regarding the contracts with the SLO Chamber of Commerce, s pecific services related to the work of the PCC include but are not limited to utilization of the Visitor Center as a fulfillment for pick-up and delivery of Support Local promotions like ARTober and SLO Restaurant Month, information gathering and reporting on demographic data, and maintaining a ful ly trained and knowledgeable staff able to deliver excellent customer service to visitors and residents alike. Additionally, the SLO Chamber provides public relations services for Support Local promotions and City -led initiatives as well as marketing support for CACP grant-funded recipients hosting events in the city. On page 43, item 2, this is a summary of major line-items and lists the contracted services total for the Chamber as $191,000, which includes all of the items listed above with the exception of the final item of $3,250 for the updating and printing of the tear-off maps. The cost for Guest Services contains a typo in that paragraph – it should be $112,200, not $122,200. Page 53 in the agenda packet is Attachment B – PCC FY 2026-27 Line-Item Budget. The amount $164,250 includes rows 6-9 labeled Guest Services ($112,200), PR Contract ($46,000), Media Monitoring Service ($2,800), and Tear -off Maps ($3,250). Row 2, “Grant Promotional Contract”, for $30,000 is also an agreement with the SLO Chamber of Commerce and brings the total to $194,250, which is listed as the total recommended budget for SLO Chamber of Commerce contract services. 3) The Financial Considerations section of the staff report notes $387,938 general fund support for these activities. Can you please explain the general fund support in more detail? What does it cover and what is the history of general fund support for tourism activities? Is there a required general fund match? The General Fund support for $387,938 is the total annual budget for the Promotional Coordinating Committee activities and programs, inclusive of staffing costs. The Promotional Coordinating Committee works to improve the quality of life for all residents and visitors of SLO. The specific programs and activities are described in pages 43-46 of the agenda packet and include the Cultural Arts and Community Promotions grant program, ARTober, Lunar New Year, guest services, and public relations. ITEM 6e - ADOPTION OF FY 26-27 COMMUNITY PROMOTION PROGRAMS FOR TBID & PCC Page 3 The General Fund support for PCC activities is the City's direct investment in community promotion as a municipal function, separate from and not contingent on TBID assessment revenue, which is used solely for tourism marketing and promotion, as specified in the City’s Municipal Code, Section 12.42.030. The PCC has advised Council for more than 30 years on beautification projects, promotions that create awareness around events and activities in SLO, and other placemaking initiatives. As mentioned, tourism promotion and marking activities are funded through the Tourism Business Assessment District, with a budget of $2,299,130 for FY 2026 - 27, inclusive of staffing costs and administrative overhead. As noted in the staff report, the TBID and PCC share contracts with the SLO Chamber of Commerce for guest services and public relations. The demand for visitor-facing work has increased and the PCC’s budget was reduced through the City -wide budget process this year. Therefore, TBID’s share of the guest services contract this fiscal year increased from 30% to 40% and its share of the publ ic relations contract increased from 50% to 60%.