SUBJECT: PRELIMINARY APPROVAL OF 2001-2002 BUDGET REPORT,

ADOPTION OF RESOLUTION OF INTENTION TO LEVY 2001-2002

ASSESSMENTS IN THE WILLOW GLEN BUSINESS IMPROVEMENT

DISTRICT, AND SETTING OF A DATE AND TIME FOR THE PUBLIC

HEARING ON THE LEVY OF ASSESSMENTS

RECOMMENDATION

Preliminary approval of the report as filed by the Willow Glen Business Improvement District Advisory Board, or as modified by Council; and adoption of a resolution of intention to levy the annual assessment for 2001-2002, and set June 5, 2001 at the 1:30 p.m. meeting as the date and time for the public hearing on the levy of the proposed assessments.

BACKGROUND

The Willow Glen Business Improvement District ("The BID") was established by the Council in 1983 pursuant to the California Parking and Business Improvement Area Law ("BID Law") to promote the economic revitalization and physical maintenance of the Willow Glen business district. In 1984, the Council appointed the Willow Glen Business and Professional Association as the Advisory Board ("Advisory Board") for the BID, to advise the Council on the levy of assessments in the BID and the expenditure of revenues derived from the assessments.

Pursuant to BID Law, the Advisory Board must come before the Council on an annual basis to present a report to the Council that, among other things, proposes a budget for the upcoming fiscal year for the BID. The Council must then: 1) review the report and preliminarily approve it as proposed or as changed by the Council; 2) adopt a resolution of intention to levy the assessments for the upcoming fiscal year; and 3) set a date and time for the public hearing on the levy of assessments in the BID. Absent a majority protest at the public hearing, at the conclusion of the public hearing the Council may adopt a resolution approving the budget for Fiscal Year 2001-2002 as filed or as modified by the Council. The adoption of the resolution constitutes the levying of the Willow Glen BID assessments for Fiscal Year 2001-2002.

ANALYSIS

The Advisory Board has prepared a budget report (the "report"), attached as Exhibit 1, for the Council's consideration as the budget for the Willow Glen BID for Fiscal Year 2001-2002. As required by BID Law, the report has been filed with the City Clerk and contains, among other things, a list of the improvements and activities proposed to be provided in the BID in Fiscal Year 2001-2002 and an estimate of the cost of providing the improvements and activities. The Advisory Board has recommended no change in the BID boundaries or the method and basis for levying assessments. (A map of the Willow Glen BID is attached hereto as Exhibit 2.) Therefore, the proposed assessments in the BID for Fiscal Year 2001-2002, described in the report, are the same as the assessments in Fiscal Year 2000-2001.

The Council may approve the report as filed or modify the report and approve it as modified. After the approval of the report, the Council must adopt a resolution of intention to levy the annual assessment for the 2001-2002 fiscal year and fix a time and place for a public hearing to be held on the levy of the proposed assessment.

PUBLIC OUTREACH

The budget for Fiscal Year 2001-2002 was reviewed and approved by the Advisory Board on March 8, 2001.

COORDINATION

This memorandum has been coordinated with the Redevelopment Agency General Counsel's Office, Finance-Treasury, Willow Glen Business & Professional Association and the City Clerk's Office.

COST IMPLICATIONS

Adoption of the proposed BID budget does not impact City revenue. Bid assessments are restricted for use exclusively by the BID. It is anticipated that a healthy Business Improvement District will encourage growth of the retail community and consequently result in additional business tax and sales tax revenue for the City.

DARRELL DEARBORN

Sr. Deputy City Manager