DISCUSSION
Annual Advisory Board Report
In accordance with Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation (GGTPC) serves as the Advisory Board. Pursuant to the Ordinance and the Law, the Advisory Board is required to submit an annual report to the City. The annual report is required to include the following:
- Any proposed changes in the boundaries of the GGTID or in any of the benefit zones;
- A description of the improvements and activities to be provided for the upcoming fiscal year;
- An estimate of the cost of providing the improvements and the activities for that fiscal year;
- The recommended method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year;
- The amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and
- The amount of any contributions to be made from sources other than the assessments levied.
The Advisory Board’s annual report serves as the basis for the levying of assessments each year.
The Advisory Board has prepared the annual report for Fiscal Year 2016-2017, which contains a proposed budget for use of the anticipated assessment revenues for the year. No changes are proposed (i) to the boundaries of the GGTID, (ii) in the GGTID improvements and activities authorized by Resolution No. 9009-10 and Ordinance No. 2782, or (iii) in the amount of the annual assessment or the method and basis for the levying the assessment.
The Advisory Board is recommending that the annual assessments for Fiscal Year 2016-2017 continue to be two and one-half percent (2.5%) of the gross rent charged by the Operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier I and (ii) one-half percent (0.5%) of the gross rent charged by the operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier II.
On February 22, 2011, the City Council approved an agreement with the Anaheim/Orange County Visitor & Convention Bureau (“VCB”), pursuant to which, approximately 80% of the GGTID assessment revenue collected is allocated to the VCB to fund collective tourism marketing efforts or retained by the City for future Harbor Boulevard median improvements and a future transit system.
The remaining (approximately 20%) of the GGTID assessment would be allocated to fund specific improvements along Harbor Boulevard and other tourism promotion activities in Garden Grove in accordance with the budget included in the annual report. These funds are administered by the GGTPC pursuant to an agreement with the GGTPC approved by the City Council on September 27, 2011.
Levying of Assessment for Fiscal Year 2016-2017
State Law requires that each year the City Council adopt a Resolution declaring its intention to levy an annual assessment for the upcoming fiscal year based on the Advisory Board’s Annual Report and scheduling a Public Hearing on the proposed assessment. The attached proposed Resolution contains the items required by State Law and sets a Public Hearing on the matter for June 28, 2016. After City Council adoption, the Resolution will be published in a local paper of general circulation at least seven (7) days before the public hearing pursuant to the Law.
At the Public Hearing scheduled for June 28, 2016, the City Council may order changes in any of the matters provided in the Advisory Board’s Annual Report, including changes in the proposed assessments, the proposed improvements and activities to be funded, and the proposed boundaries of the area. At the conclusion of the Public Hearing, the City Council may adopt a Resolution confirming the annual report as originally filed or as changed by it. The adoption of that Resolution shall constitute the levy of an assessment for the 2016-2017 Fiscal Year.
A similar Resolution must be adopted annually by the City Council in order to continue to levy the assessment in the succeeding fiscal years.