05 - Laserfiche WebLink

BACKGROUND The Parking and Business Improvement Area Law of 1989 (Streets & Highways Code 36500, et seq ) requires the City Council to use a three-step process to levy the annual assessment for the PDA Business Improvement District The three steps are as follows ® Ratify an advisory board to prepare the PDA annual report and budget (completed on December 6, 2016) ® Accept the report and budget and set a public hearing to levy the assessments (completed on December 20, 2016) ® Open and close a public hearing and adopt by resolution the assessments (to be completed on January 17, 2017) Over the past 25 years, these steps have been conducted annually to formally levy the BID assessment DISCUSSION The PDA annual assessment revenue in 2017 is budgeted at $68,000, which is slightly more than in 2016 which reflects increased economic activity as well as elimination of the new business exemption Currently, assessments are based on proximity to Main Street, with a minimum assessment of $50 and a maximum assessment of $350 The assessment formula—which has been used since 1996—is based on the annual business license payment and is calculated as follows s businesses located curbside and downstairs on Main Street are assessed at two times (2X) their business license, ® businesses with a Main Street address located upstairs, or not curbside, are assessed at a rate of one and a half times (11/2X) their business license, ® all other businesses (those located off Main Street) pay an amount equal to one times (1X) their business license Non-profit businesses within the District are not assessed Included in the current agreement between the City and the PDA, the City contributes funds to match the annual assessment revenue This combined $136,000, consisting of the assessment revenue generated by the business in the BID and the City's matching funds is projected to account for approximately 28% of the PDA's total 2017 funding sources Events planned during the year are projected to account for approximately 53% of the PDA's total 2017 revenue, while associate memberships and corporate sponsorships account for the remaining 19% of the 2017 funding sources As the first two steps in the process have been successfully completed, the City Council is now asked to hold a public hearing to hear any protest to the levy of the Pleasanton Downtown Business Improvement District assessment for 2017 The Council is then asked to consider adoption of a resolution levying the Pleasanton Downtown Business Improvement District assessment for 2017 (Attachment 1) Page 2 of 3