CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 2 of 4 (1X) their business license. The minimum assessment is $50 and the maximum is $350. Non-profit businesses within the district are not assessed. For 2025, there are no proposed boundary changes or proposed changes in the method of levying the assessment. Under the current agreement between the PDA and the City, the City is required to match the annual BID assessment, estimated at an additional $80,000. The full amount of the City's matching funds will be considered based on future financial constraints. An updated agreement will be presented for the City Council's consideration in early 2025 in alignment with the Property-based Business Improvement District (PBID) feasibility study results. In the interim, the PDA provided a provisional budget which considers potential budget reductions, including the possibility of no City match of assessments, which would result in a PDA budget reduction of $80,000. This scenario would necessitate the elimination of one position, a savings of $61,000, plus additional reductions totaling $16,850. The PDA budget includes events planned during the year, which are projected to generate approximately 62 percent of the total 2025 revenue, up from 55 percent last year. Remaining income from the BID assessments, farmer’s market, corporate sponsors and miscellaneous sources generate the remaining 38 percent of the total 2025 revenue. DISCUSSION Per Chapter 3, Section 36530 of the Parking and Business Improvement Area Law of 1989, the City Council must complete the following three steps to levy the annual assessment for the Downtown Pleasanton BID: 1. Appoint an advisory board to prepare the annual budget with a report describing the programs and activities of the downtown business improvement district and the related funding sources (completed on August 20, 2024); 2. Accept the annual report and budget and set a public hearing to levy the assessments (completed on October 15, 2024); and 3. Open and close a public hearing and adopt by resolution the assessments (to be completed on November 19, 2024). As the first two steps in the process have been completed, the final step is to hold a public hearing to hear any protest to the levy of the Downtown Pleasanton Business Improvement District assessment for 2025 and to adopt a resolution levying the Downtown Pleasanton Business Improvement District assessment for 2025 (Exhibit A). Next Steps with Property-based Business Improvement District (PBID) Evaluation For numerous years, it has become apparent that the funding generated through the current annual BID assessment – approximately $80,000, which the City has historically matched – does not provide sufficient revenue to support the PDA in meeting the PDA’s and City’s shared expectations to augment the vitality and economic health of the downtown district through the implementation of contemporary activities and best practices. A restructure of the BID assessment has been a priority of the PDA and was included in the previous City Council Priorities annual work plan. Page 20 of 658