Agenda Item Wording:
title
Visalia Tourism Marketing District Annual Report - Receive the 2025 Annual Report.
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Agenda Date: 10/19/2026
Prepared by:
John Lollis, Assistant City Manager, (559)713-4323, John.Lollis@visalia.gov
Department Recommendation:
Staff recommends that the City Council receive the Annual Report for the Visalia Tourism Marketing District, providing comment as appropriate.
Summary:
The Visalia Tourism Marketing District has filed its 2025 Annual Report pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
Background Discussion:
Developed by the Visalia Tourism Marketing District Corporation (VTMDC) and local hoteliers, the Visalia Tourism Marketing District (VTMD) was initially formed in 2018 for a five (5) year term and was renewed for a ten (10) year term in 2022, effective January 1, 2023 through December 31, 2032. The VTMD is an assessment district formed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing and sales promotions and destination development programs increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales. The VTMDC serves as the VTMD’s Owner’s Association, charged with managing funds and implementing programs in accordance with the adopted Management District Plan, and must provide annual reports to the City Council.
The VTMD includes all lodging businesses with twenty (20) sleeping rooms or more located within the designated boundaries of the City of Visalia, which currently includes fifteen (15) lodging businesses and 1,388 sleeping rooms. The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments are not collected on stays of more than thirty (30) consecutive days or stays by employees or representatives of a State or Federal government agency in the performance of their official duties as an employee or representative of the government agency paid for by the government agency.
The City is responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the VTMD and charges a one percent (1%) assessment collection fee.
The VTMD projected 2025 assessment receipts of $872,727.27 with actual assessment revenue totaling $862,421, which represents a 0.75% increase ($6,402) over 2024 assessment revenue of $856,019.
Given retained earnings of $572,429 from 2024, VTMD expenditures for 2025 were $1,224,019, providing an ending balance of $115,831.
The VTMD expended $262,754 of the 2024 retained earnings on several special marketing projects, including Live Visalian series production, Brand USA digital global inspiration program, photo and video asset development, Bandwango digital platform for self-guided tours, and Carvertise outdoor advertising in Southern California.
The VTMD also provided a loan of $95,000 to Visalia Heritage, a 501(c)3 Nonprofit Corporation, to secure a professional campaign consulting company to lead its capital campaign for the purpose of purchasing and renovating the historic Depot into a cultural center and museum.
Due to current volatility in the tourism industry, the VTMD projects 2026 assessment receipts of $800,000, representing more than a seven percent (7%) decrease from 2025. The VTMD is closely monitoring hotel occupancy and revenue per available room for budget management purposes.
Fiscal Impact including annual maintenance and operating costs:
The City retains one percent (1%) of the assessments collected as an administrative fee, as well as financially supports local tourism marketing activities through its contractual agreement with the Visalia Convention and Visitors Bureau.
Prior Council Action:
July 18, 2022: Conduct a Public Hearing to renew the Visalia Tourism Marketing District
December 4, 2017: Conduct a public hearing on the formation of the Visalia Tourism
Marketing District and consider the adoption of Resolution 2017-80 to establish
said District.
November 6, 2017: Receive public comments regarding the establishment of a Tourism
Marketing District in Visalia
Alternatives: None Recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to accept the 2025 Annual Report for the Visalia Tourism Marketing District.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: N/A
Attachments:
1. Visalia Tourism Marketing District - 2025 Annual Report
2. Visalia Tourism Marketing District - Management District Plan (2023-2032)
3. Resolution No. 2017-80
4. City Council Agenda Report: July 18, 2022 (22-0290)
5. Visalia Tourism Marketing District - 2025 Annual Report Presentation
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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