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City of Anaheim

California State Auditor · 2023-133 · 2024-01-30

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CALIFORNIA STATE AUDITOR Report 2023-133 | January 2024 Table 1 Contracts Among the City of Anaheim, Visit Anaheim, and the Chamber Fiscal Years 2012–13 Through 2021–22 CONTRACT TERM SOURCE AMOUNT CONTRACT CONTRACT DESCRIPTION (Calendar Year) OF FUNDS DISBURSED Anaheim tourism district assessment contract Entered into in 2010 City pays 75 percent of the tourism district and currently extends Tourism assessment funds (less the city’s administrative costs) $111,220,000 automatically each district assessment to Visit Anaheim for providing convention services year, unless terminated and promoting tourism, among other activities. Contracts the Economic recovery services contract City convention, city of Anaheim City contracted with Visit Anaheim to expedite sports, and entered into with the city’s economic recovery, including restoration 2020–indefinite 6,500,000 entertainment Visit Anaheim of hotel occupancy rates and convention center venue fund bookings back to pre-COVID-19 pandemic levels. Volleyball retention contract City contracted with Visit Anaheim to secure Anaheim City 2017–2020 980,000 as the host city for various volleyball events and to general fund recognize Anaheim as a sponsor of USA Volleyball. Other 190,000 VISIT ANAHEIM TOTAL RECEIVED $118,890,000 Anaheim tourism district assessment subcontract Visit Anaheim transfers 3.5 percent of the tourism Subcontract that district assessment funds it receives from the city Visit Anaheim Tourism district to the Chamber. The Chamber is to fund programs, 2010–2023* $4,430,000† entered into with assessment funds activities, and services benefitting the assessed the Chamber hotels and resorts in Anaheim as well as the tourism and convention industry. Sponsorship agreements City economic City sponsorships of various Chamber events 2015–2016, reinvestment fund 650,000 including job fairs, economic conferences, and a 2019–2020 and economic golf tournament. development fund Shop-and-dine-local contract Contracts the City Implementation of an online platform to promote 2020–2021 500,000 city of Anaheim general fund local businesses during the pandemic. entered into with the Chamber Anaheim Enterprise Zone City funds paid to the Chamber to perform certain City 2012–2013 550,000 services related to the administration of the Anaheim general fund Enterprise Zone Program Other 90,000 CHAMBER OF COMMERCE TOTAL RECEIVED $6,220,000 Source: Auditor analyses of city contracts, a related subcontract, and financial records from the city and Visit Anaheim. * Visit Anaheim canceled the contract with the Chamber, effective September 2023. † Amount includes funds Visit Anaheim disbursed to the Chamber under the tourism district assessment subcontract from calendar years 2012 through 2022. Because Visit Anaheim’s 2022 audited financial statements were not available, the expenditure of $660,000 for that fiscal year is unaudited.