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BACKGROUND <br /> The Parking and Business Improvement Area Law of 1989 (Streets & Highways Code <br /> 36500, et seq.) requires the City Council to use a three-step process to levy the annual <br /> assessment for the PDA Business Improvement District (District). The three steps are <br /> as follows: <br /> • Ratify an advisory board to prepare the annual PDA report and budget (completed <br /> on November 15, 2011). <br /> • Accept the report and budget and set a public hearing to levy the assessments <br /> (completed on November 15, 2011). <br /> • Open and close the public hearing and adopt by resolution the assessments (to <br /> be completed on December 6, 2011). <br /> On November 15, 2011 the City Council ratified the advisory board and approved the <br /> PDA report and budget for 2012. A copy of the adopted report and budget is attached <br /> (Attachments 2, 3 and 4). <br /> DISCUSSION <br /> The PDA annual assessment revenue is budgeted at $66,500, which is similar to the <br /> revenue generated in 2011. The assessment formula is based on a business' annual <br /> business license tax and is calculated as follows: <br /> • businesses located curbside and downstairs on Main Street are assessed at two <br /> times (2X) their business license tax; <br /> • businesses with a Main Street address located upstairs, or not curbside, are <br /> assessed at a rate of one and a half times (1'%X) their business license tax; <br /> • all other businesses (those located off Main Street) pay an amount equal to one <br /> times (1X) their business license tax. <br /> The minimum assessment is $50 and the maximum is $350. Non-profit businesses <br /> located within the Downtown area are not assessed. <br /> The PDA budget includes a full-time Executive Director, and a part-time Office <br /> Manager. The Events Coordinator is a full-time position and is responsible for the First <br /> Wednesday Street Parties and all other events planned throughout the year. <br /> At the November 3, 2009 City Council meeting, the City and the PDA renewed a five- <br /> year funding contract whereby the City contributes funds to match the annual <br /> assessment revenue. This $133,000 consisting of the District's assessment revenue <br /> and the City's matching funds are projected to account for approximately 33% of the <br /> total 2012 funding sources. Associate memberships and corporate sponsorships <br /> account for 11% of the total 2012 funding sources. <br /> Page 2 of 3 <br />