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ADOPT A RESOLUTION TO APPROVE THE STOCKTON TOURISM BUSINESS IMPROVEMENT DISTRICT 2025 ANNUAL REPORT AND PROPOSED 2026 OPERATING BUDGET AND SERVICE PLAN
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RECOMMENDATION
It is recommended that the Stockton City Council adopt a resolution:
1. Approving the 2025 Annual Report for the Stockton Tourism Business Improvement District;
2. Approving the 2026 Proposed Operating Budget and Service Plan, and Assessments for the Stockton Tourism Business Improvement District; and
3. Authorizing the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose of this resolution.
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Summary
The City of Stockton contracts with the Stockton Convention & Visitors Bureau (Visit Stockton) to manage assessed funds collected from the Stockton Tourism Business Improvement District (STBID) and provide tourism-supporting services as described in the approved Management District Plan. The contract requires Visit Stockton to submit an Annual Report for the previous year, and an Annual Budget and Service Plan for the upcoming year. The 2026 Annual Service Plan consists of the proposed operating budget, anticipated assessment, and proposed goals for this calendar year.
It is recommended that City Council approve the 2025 Annual Report and the 2026 Proposed Operating Budget for Visit Stockton (Exhibits 1 and 2 to the Resolution).
DISCUSSION
Background
The STBID was established in December 2010 for a five-year term (Attachment A - Resolution No. 10-0406). Prior to its expiration in 2015, it was renewed and extended for an additional ten (10) years, set to expire on December 31, 2025 (Attachment B - Resolution No. 2014-11-04-1601-01). On November 19, 2024, City Council approved the renewal of the STBID and an extension to the agreement with Visit Stockton through 2035 pursuant to Streets and Highways Code section 36660 (Attachment C - Resolution No. 2024-11-19-1601-02).
The STBID includes all lodging businesses, existing and future, available for public occupancy within the boundaries of the City of Stockton. The formation of the STBID was made possible under the California Property and Business Improvement District Law of 1994 to act as a funding mechanism to promote tourism. These businesses are assessed at 5% rate of gross revenue for short-term stays that are less than 31 days. Tourism Business Improvements Districts (TBIDs) allow lodging and tourism-related business owners to use the assessed funds for marketing, promotion, and tourism-related activities. The City of Stockton contracts with Visit Stockton to manage the funds and report annually on services and marketing activities. Its mission statement is “…to enhance the region’s quality of life by collaboratively leading the promotion of Stockton’s richly diverse community and advocating for initiatives that will enhance the City’s quality of place.”
Present Situation
The Visit Stockton 2025 Annual Report summarizes the activities and services administered by Visit Stockton. In 2025, Visit Stockton focused on initiatives that strengthened visitation, supported local partners, and reinforced Stockton’s identity as a vibrant and welcoming destination.
A few of those accomplishments are listed below:
• Held annual events, including the 15th Annual Stockton Restaurant Week, with 29 participating local restaurants; and 6th Annual Feast at the Fox, the farm to table dining experience benefitting the San Joaquin Delta College Culinary Arts.
• Collaborated with the University of the Pacific (UOP) throughout 2025 to support campus and athletics events, engage students and families, and introduce new visitors to activities and businesses in Stockton.
• Partnered with UOP’s Eberhardt School of Business to launch the 3rd installment of the Stockton Resident Survey.
• Supported various sports tournaments, cultural events, and conferences.
• Assisted in coordination of filming a professional show that took place at UOP.
• Continued prioritizing strong relationships with hotel partners and hosted a hotel partner mixer to strengthen communication and collaboration.
• Produced a hotel highlight video program to help showcase local properties to meeting planners and event organizers.
• Entered into a strategic partnership with Airstream Ventures, who specializes in connecting destinations with tournament organizers and national governing bodies, to expand Stockton’s presence in the sports tourism market. As a result, eight events have been confirmed so far for 2026, ranging from wrestling, tennis, golf, and disc golf.
• Visit Stockton’s marketing efforts focused on visibility, relevance, and performance across digital platforms, social media, and owned channels.
The primary goal of Visit Stockton is to increase hotel occupancy through marketing, specialized campaigns, support of sporting events, and festivals. Though it has been six years since the beginning of the pandemic, the local tourism economy is slowly recovering. Visit Stockton remains vigilant in bolstering the City’s lodging and hospitality sector.
Benchmark statistics are as follows:
• Overall hotel demand increased by 2.5%
• Average Daily Rate (ADR) for Stockton hotels was $108.70 per night, down 4.7% from 2024 ADR of $114.02
• Hotel revenue generated $51,533,999 from overnight stays, down 2% from 2025’s total of $52,761,254
The anticipated budget for 2026 is $2,050,530.
Revenue
TBID Assessments $1,900,000
Events/Contracts/Misc. Income $ 10,350
Carryover from Previous Year $ 649,000
Total Revenue $2,559,350
Expenses
Administration & Operations $ 308,030
Sales & Marketing $1,647,500
TBID Contingency & Renewal - 5% $ 95,000
Total Expenses $2,050,530
The above category allocations are consistent with the STBID Management District Plan that was adopted by the City Council on November 19, 2024, and with the intent of the Tourism Business Improvement District Assessment. (Attachment C - Resolution No. 2025-04-29-1204).
The 2026 Service Plan includes strategies and objectives of Visit Stockton for the year ending December 31, 2026. Below are some of Visit Stockton’s goals for 2026:
• Support hotel performance and overnight visitation by marketing and doing targeted sales efforts to highlight Stockton’s meeting spaces, sporting venues, and visitor experiences to position the city as a competitive destination for meetings, events, and leisure travel.
• Strengthen organizational capacity by improving internal operational efficiency and prioritizing training, collaboration, and alignment with Visit Stockton’s strategic priorities.
• Launch a new Visit Stockton Ambassador Program to educate residents and local employees about the importance of tourism to Stockton’s economy to welcome visitors, support local events and businesses, and help champion opportunities that attract activity and investment in Stockton.
• Provide digital marketing education for local partners and nonprofit organizations to strengthen their ability to promote their own activities and contribute content that supports broader destination marketing efforts.
• Expand sports tourism opportunities to identify, recruit, and support sporting events that will generate overnight stays and economic impact for the community.
FINANCIAL SUMMARY
Visit Stockton’s proposed operating budget consists of the assessments and other sources. The estimated income from the assessments to be paid to Visit Stockton in 2026 is approximately $1,900,000, split into quarterly payments.
The City will retain 3% of the collected STBID assessment revenue amount (estimated to be approximately $57,000) to offset the ongoing cost of processing and collecting the assessment. These funds are received by the Maintenance District Fund, Business Development Division, STBID Program, and the corresponding administration cost is budgeted through the annual budget process.
There is no negative financial impact to the City’s General Fund as a result of this action.
Attachment A - Resolution No. 10-0406
Attachment B - Resolution No. 2014-11-04-1601-01
Attachment C - Resolution No. 2024-11-19-1601-02