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V. SERVICE PLAN AND BUDGET A. Assessment The Tourism Business Improvement District annual assessment rates are a flat $2.00 per occupied room per night on short term (stays less than 31 days) stays in qualifying lodging businesses. This assessment shall not increase in years one through three. In years four and five, the assessment may be increased up to an additional ten cents ($0.10) per occupied room per night. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days, nor on government employees on government business. Assessments pursuant to the TVTBID shall not include room rental revenue resulting from stays pursuant to contracts executed prior to adoption of the Resolution of Formation renewing the TVTBID. The term "gross revenue" as used herein includes the following: (1) Any charge for a room, whether the guest uses the room or not; (2) Any charge for additional guests in a room; and (3) Any fee for guaranteeing the availability of a room, whether or not that room is occupied. Gross revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes. Any other charges shall be considered gross revenue only in accordance with the local transient occupancy tax. Bonds may not be issued. The amount of assessment, if passed on to each transient, shall be separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. B. Determination of Special Benefit State law provides that the expenses of the district shall be apportioned in proportion to the benefit received by assessed businesses. A special benefit is defined as a particular and distinct benefit over and above general benefits conferred on the public at large. Conversely, a general benefit is a benefit to businesses in the surrounding community or a benefit to the public in general resulting from the improvement, activity or service to be provided by the assessment levied. Many general benefits to the public at large are conveyed by municipal services, such as fire protection, police services and public transit services. 'These services are targeted to serve the public at large and do not confer special benefits on particular businesses. The services in this Management District Plan are designed to provide targeted services to lodging businesses. These services are tailored not to serve the general public, but rather to serve the specific lodging businesses within the District, e.g., the proposed activities are specifically targeted to increase room nights for assessed lodging businesses within the boundaries of the District, and are narrowly tailored. TV 1 BID funds will be used exclusively to benefit the assessees. The activities paid for from assessment revenues are lodging business services creating special benefit to those businesses. In addition, these activities are not for the benefit of the general public and do not provide general benefit as defined above. All general benefits (if any) to the surrounding community Tri- Valley Tourism Business Improvement District Management District Plan Page 6