TITLE
Recommendation to adopt resolution approving the Annual Report for October 1, 2017 to September 30, 2018, for the Bixby Knolls Parking and Business Improvement Area, declaring its intention to levy the annual assessment, and setting the date of hearing for October 3, 2017. (District 7,8)
DISCUSSION
The Bixby Knolls Business Improvement Association (BKBIA) promotes and markets the commercial area along Atlantic Avenue and Long Beach Boulevard using funds generated through the assessment of businesses located in the Bixby Knolls Parking and Business Improvement Area (BKPBIA). State law governing Parking and Business Improvement Areas requires that an Annual Report be submitted to the City Council by the Advisory Board designated for this Assessment District.
On August 8, 2017, the BKBIA Advisory Board voted to recommend to the City Council approval of the BKPBIA Annual Report (Exhibit A to Resolution). The Annual Report describes boundaries, proposed activities and budgetary information, as well as the method and basis for continuation of the assessment. The Annual Report proposes no change in the method of levying the assessment, and no change to the proposed activities.
The Fiscal Year 2018 Annual Report, transmitting the recommendations of the BKPBIA Advisory Board, proposes the following assessment rates:
ASSESSMENT FORMULA
After 20 years at a stagnant rate the annual assessment was set to increase to include a CPI and an additional $20. An annual increase of $20 to the assessment was to be included in the rate over a five-year period to make up the shortfall in funding anticipated in 2020, the contract with the Long Beach Redevelopment Agency expires. The first year of the additional $20 annual increase was to begin on October 1, 2016. However, the BKBIA board requested an implementation delay for the additional $20 assessment to enable adequate stakeholder outreach. As a result of this delay, the only change in the assessment that was implemented was a CPI change in July 2016. In July 2017, the BKBIA assessment rates were increased to include CPI and the additional $20 assessment approved in 2016. An additional $20 assessment will be applied annually to the rate through 2023, five years from implementation. The BKPBIA assessment will be implemented on a July 1 to June 30 fiscal year, rate adjustments will take effect each July.
|
|
BUSINESS BASE RATE |
NON-PROFIT BASE RATE |
|
Prior to July 1, 2016 |
$250 |
$150 |
|
July 1, 2016 - June 30, 2017 |
$252.27 |
$151.36 |
|
July 1, 2017 - June 30, 2018 |
$272.27 + CPI + $20 |
$171.36 + CPI ADJ + $20 |
|
July 1, 2018 - June 30, 2019 |
Prior Year Rate + CPI + $20 |
Prior Year Rate + CPI + $20 |
The recommended Resolution grants approval of the Annual Report, declares the intention of the City Council to levy the assessment for proposed activities, and sets the date of the public hearing for October 3, 2017.
This matter was reviewed by Deputy City Attorney Amy R. Webber on August 21, 2017 and by Budget Analysis Officer Julissa José-Murray on August 25, 2017.
TIMING CONSIDERATIONS
City Council action is requested on September 12, 2017, to set the date of the public hearing for October 3, 2017. The new contract year begins on October 1, 2017.
FISCAL IMPACT
It is estimated that the BKPBIA will generate $250,000 in FY 18 through the proposed continuation of the assessment. Assessment funds are collected through additional fees attached to BKPBIA business licenses. All revenues are passed directly through to the BKBIA for implementation of annual programs. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE ANNUAL ASSESSMENT REPORT FOR OCTOBER 1, 2017 TO SEPTEMBER 30, 2018 FOR THE BIXBY KNOLLS PARKING AND BUSINESS IMPROVEMENT AREA ("PBIA") AND DECLARING ITS INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THAT FISCAL YEAR
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC
AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER