TITLE
Recommendation to adopt resolution approving the Annual Report for October 1, 2018 to September 30, 2019, for the Belmont Shore Parking and Business Improvement Area, declaring its intention to levy the annual assessment, and setting the date of hearing for Tuesday, September 11, 2018. (District 3)
DISCUSSION
The Belmont Shore Business Association (BSBA) promotes and markets the commercial area along Second Street using funds generated through the assessment of businesses located in the Belmont Shore Parking and Business Improvement Area (BSPBIA). 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 May 18, 2018, the BSPBIA Advisory Board voted to recommend to the City Council approval of the BSPBIA Annual Report (Exhibit A to the 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 significant change to the District boundaries, the method of levying the assessment, or to the proposed activities.
The Fiscal Year 2019 (FY 19) Annual Report, transmitting the recommendations of the Advisory Board, proposes the following assessment rates:
Method of Assessment
The estimated FY 19 revenue from business assessments is $140,000. Assessments are calculated by category of business and incorporate a base rate plus a per employee rate. Business categories and rates are as follows:
CATEGORIES BASE RATE EMPLOYEE RATE
|
Financial Institution |
$ 1,646.22 |
$ 16.50 |
|
Service Real Estate Office |
$ 638.70 |
$ 22.00 |
CATEGORIES BASE RATE EMPLOYEE RATE
|
Retail - Restaurant w/alcohol & RTE |
$ 640.19 |
$ 9.63 |
|
Retail - Other |
$ 548.73 |
$ 8.25 |
|
Consulting |
$ 425.80 |
$ 22.00 |
|
Construction Contractor |
$ 425.80 |
$ 22.00 |
|
Insurance Agent Professional |
$ 425.80 |
$ 22.00 |
|
Professional |
$ 425.80 |
$ 22.00 |
|
Service - Other (Misc. Rec/Ent, Vending, Manufacturing) |
$ 319.35 |
$ 16.50 |
|
Unique & Wholesale |
$ 319.35 |
$ 16.50 |
|
39 percent Reduced Rate for Service-related Independent Contractors |
$ 194.80 |
$ 16.50 |
|
Non-profits |
$ 0.00 |
$ 0.00 |
The City enters into agreements with business and/or property owner associations (associations), which utilize assessment revenues to provide services and improvements in Business Improvement District (BID) areas, that set forth the parameters and requirements of the relationship between the associations and the City. These agreements include requirements such as annual reporting requirements, deadlines, and payment schedules. These agreements perpetuate annually based on the City Council’s approvals of annual reports. Per the City Auditor’s recommendation in the BID Oversight Audit, the City will re-execute the agreement with BSBA to reflect current procedures and other changes deemed necessary. The agreement will be periodically revisited as processes and requirements change to ensure it stays current and relevant.
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 September 11, 2018.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 30, 2018 and by Budget Analysis Officer Julissa José-Murray on July 31, 2018.
TIMING CONSIDERATIONS
City Council action is requested on August 21, 2018, to set the date of the public hearing for September 11, 2018. The new contract year begins on October 1, 2018.
FISCAL IMPACT
It is estimated that the BSPBIA will generate $140,000 in FY 19 through the proposed continuation of the assessment. Assessment funds are collected by the City on behalf of the BSPBIA through additional fees attached to BSPBIA business licenses and passed directly through to the BSBA for implementation of annual programs. 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:
PATRICK H. WEST
CITY MANAGER