TITLE
Recommendation to approve the proposed budget for Fiscal Year 2016 for the Downtown Long Beach Parking and Business Improvement Area; and authorize City Manager to extend the agreement with the Downtown Long Beach Associates for the period of October 1, 2015 through September 30, 2016.
(Districts 1,2)
DISCUSSION
Downtown Long Beach Associates (DLBA) has three established sources of revenue that pass through the City to the organization. These include business operator assessments, property owner assessments and downtown parking meter revenue sharing. This recommended action relates to business operator assessment funds that are used to promote and market downtown Long Beach on behalf of businesses located in the Downtown Long Beach Parking and Business Improvement Area (DLBPBIA). The City Council approves the property owner assessment separately.
The proposed agreement with DLBA requires the City to transmit all DLBPBIA assessment funds collected from downtown businesses to the DLBA every other month. The Budget Narrative describes proposed activities and budgetary information, and proposes no change in the boundaries, basis and method of levying the assessment, and no significant change in proposed activities. A copy of the Budget Narrative describing proposed activities and allocations is attached.
This City Council action estimates DLBPBIA assessment revenue of $610,046 for the contract period of October 1, 2015 through September 30, 2016. The DLBA Board voted on April 15, 2015 to raise assessment rates three percent (3.0%) per the allowed CPI adjustment. The DLBA will provide quarterly reports to the City on expenditures and submit an annual report summarizing FY 16 activities.
This matter was reviewed by Deputy City Attorney Amy Webber on October 7, 2015 and Budget Management Officer Victoria Bell on October 2, 2015.
TIMING CONSIDERATIONS
The DLBA contract year begins on October 1, 2015. City Council action is requested on October 20, 2015 to allow FY 16 assessment transfers to be made in accordance with the City’s contract with DLBA.
FISCAL IMPACT
It is estimated that the DLBPBIA will generate $610,046 through the continuation of the existing assessment. Sufficient funds are budgeted in the FY 16 Parking and Business Area Improvement Fund (SR 132) in the Department of Economic and Property Development (EP) to support these pass-through payments. The FY 16 assessment revenue will fully offset the proposed allocation. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY, DIRECTOR
DEPARTMENT OF ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER