TITLE
Recommendation to adopt resolution approving the Annual Report for October 1, 2021 to September 30, 2022, for the Bixby Knolls Parking and Business Improvement Area, declaring its intention to levy the annual assessment, and setting the date of hearing for Tuesday, November 9, 2021. (Districts 7,8)
DISCUSSION
The Bixby Knolls Parking and Business Improvement Area (BKPBIA) was established by the City Council in 1989, allowing for the levy of an annual business license assessment to be paid by businesses located in the BKPBIA. The City of Long Beach (City) contracts with the Bixby Knolls Business Improvement Association (BKBIA) to manage the BKPBIA and the BKBIA Board of Directors serves as the Advisory Board to the City Council on matters related to the BKPBIA. The BKBIA promotes and markets the BKPBIA using funds generated through the BKPBIA business license assessment.
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 26, 2021, the BKPBIA Advisory Board voted to recommend to the City Council approval of the 2021-2022 BKPBIA Annual Report (Annual Report) (Exhibit A to the Resolution), which 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 to the BKPBIA boundaries. The Annual Report proposes a $20 increase in the base rate for businesses and nonprofit organizations.
The Annual Report, transmitting the recommendations of the Advisory Board, proposes the following assessment rates:
Method of Assessment
The annual base assessment for businesses is $314.25 and $204.55 for nonprofits. These assessments represent a $20 increase compared to last year’s BKBPBIA rate.
|
Business Base Rate |
Total Rate |
Nonprofit Base Rate |
Total Rate |
|
$294.25 + $20 |
$314.25 |
$184.55 + $20 |
$204.55 |
Each year the City calculates the Consumer Price Index (CPI), an adjustment for consumer goods and services, and applies the CPI to various City fees on July 1st of each year. Parking and Business Improvement Area Advisory Boards may request a CPI adjustment for business license assessments. The BKPBIA Advisory Board has decided not to request a July 2022 CPI adjustment.
On September 7, 2021, the City Council approved $200,000 in one-time funding for the BKBIA to offset the loss of Redevelopment Agency funding that expired earlier this year. The one-time funding, which is acknowledged in the Annual Report but not included in BKBIA’s budget due to the timing conflict of the BKBIA approved Annual Report and the City’s FY 22 Adopted Budget, will be spent on studies, outreach, and implementation of new revenue sources for the BKBIA that can replace or enhance past Redevelopment Agency funding from the City. These funds are intended to provide a bridge in FY 22 to new funding sources and cover administrative costs.
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 November 9, 2021.
This matter was reviewed by Deputy City Attorney Amy R. Webber on September 9, 2021 and by Budget Management Officer Rhutu Amin Gharib on September 16, 2021.
TIMING CONSIDERATIONS
City Council action is requested on October 5, 2021, to set the date of the public hearing for November 9, 2021. The new contract year began on October 1, 2021.
FISCAL IMPACT
It is estimated that the BKPBIA will generate $204,000 in FY 22 through the proposed continuation of the assessment. Assessment funds are collected by the City on behalf of the BKBIA through additional fees and passed directly through to the BKBIA for implementation of annual programs. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER