SEE BELOW

Date:

May 27, 2003

COUNCIL DISTRICT: 6

SUBJECT: ADOPTION OF A RESOLUTION TO APPROVE THE 2003-2004 BUDGET REPORT AND TO LEVY WILLOW GLEN BUSINESS IMPROVEMENT DISTRICT ASSESSMENTS FOR FISCAL YEAR 2003-2004

RECOMMENDATION

Adoption of a resolution to approve the Willow Glen Business Improvement District budget report for fiscal year 2003-04, as filed or as modified by the Council, and to levy the Willow Glen BID assessments for 2003-04.

BACKGROUND

The Willow Glen Business Improvement District (“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. 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, an annual public hearing is required in order to approve the annual budget report and levy the annual BID assessments. On May 27, 2003, the Council preliminarily approved the 2003-04 budget report as filed by the Advisory Board or as modified by the City Council and adopted a resolution of intention to levy the annual assessments for fiscal year 2003-04 for the BID, and set June 17, 2003 at 1:30 p.m. as the date and time for the required public hearing on the levy of the proposed 2003-04 assessments. The 2003-04 budget report submitted to the Council on May 27, 2003 is attached to this memo as Exhibit 1.

In accordance with the BID Law, the City Clerk has published the required legal notice with regard to the levy of assessments for fiscal year 2003-04.

ANALYSIS

When a hearing is held under BID Law with regard to the levy of assessments of a BID, the City Council shall hear and consider all protests against the continued authorization of the BID, the extent of the area, the assessments, or the furnishing of specified types of improvements or activities. Protests may be made orally or in writing. Written protests must be filed with the City Clerk at or before the time fixed for the public hearing. BID Law requires that the proceedings shall terminate if protests are made in writing against the continued authorization of the BID by businesses in the proposed district that will pay a majority of the charges to be assessed. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those improvements or activities shall be eliminated.

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 2003-04, described in the report, are the same as the assessments for Fiscal Year 2002-2003.

During the course or upon the conclusion of the public hearing the City Council may order changes in any of the matters provided in the Advisory Board’s report. At the conclusion of the public hearing the City Council may adopt a resolution confirming the report as originally filed or as modified by the Council. The adoption of the resolution constitutes the levy of the assessment for the fiscal year 2003-04.

PUBLIC OUTREACH

The budget for Fiscal Year 2003-2004 was reviewed and approved by the Advisory Board on March 11, 2003.

COORDINATION

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

COST IMPLICATIONS

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.

CEQA

CEQA: Exempt, PP03-05-165

PAUL KRUTKO

Director of Economic Development