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MIRACLE MILE IMPROVEMENT DISTRICT PROPOSED 2014 ANNUAL OPERATING BUDGET, ASSESSMENT, AND 2013 ANNUAL REPORT
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving the proposed 2014 Operating Budget, Assessment, and 2013 Annual Report for the Property Based Improvement District commonly known as the Miracle Mile Improvement District, a nonprofit corporation.
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Summary
The Miracle Mile Improvement District ("MMID") is a Property-based Improvement District that was originally formed by the Stockton City Council in 2007. Each year, the MMID is required by contract to provide City Council with its operating budget, annual assessment, and annual report of accomplishments for approval. The 2014 Operating Budget, Assessment, and 2013 Annual Report for the Miracle Mile Improvement District are Exhibits 1, 2, and 3 to the Resolution, respectively.
DISCUSSION
Background
The Property Based Improvement District (PBID) is a flexible financing tool for creating private-sector, self-governed management districts. The MMID was established by the City Council on July 17, 2007, with a five-year term expiring December 31, 2012. The MMID was renewed by Council Resolution No. 2012-06-26-1601 (Attachment A) for an additional five years commencing January 1, 2013, and expiring December 31, 2017. MMID is one of two existing PBIDs within the City of Stockton, the second being the Downtown Stockton Alliance, and includes 145 properties located along the Miracle Mile (Pacific Avenue) and Harding Way (Attachment B - MMID Boundary Map).
Services provided within the boundaries of the MMID include: enhanced maintenance, public security and safety, marketing and promotions, and advocacy and management. Services to be provided within the MMID are allocated within two Benefit Zones as described below:
Zone 1: Consists of parcels on Pacific Avenue south of Regent Court and all parcels along Harding Way from Lincoln Street to North El Dorado Street.
Zone 2: Consists of the remainder of the parcels along Pacific Avenue from Regent Court to Alpine Avenue.
Because the level of service differs between the two benefit zones, Zone 1 ($0.1276 per s.f.) pays a higher assessment than Zone 2 ($0.0622 per s.f.).
In December 2012, the City Council authorized an agreement with the MMID for administration of the Miracle Mile PBID, which is in effect until December 31, 2017 (Attachment C - Resolution No. 2012-12-04-1202). In accordance with the Property and Business District Law of 1994 and pursuant to the December 2012 agreement referenced above, MMID is required to administer funds consistent with the adopted Management District Plan.
Present Situation
The Management District Plan provides that the MMID submit its budget and annual report to the City by March of each year. The budget is subject to Council approval. The 2014 MMID budget shows that the City of Stockton contributes $22,299.58 for eleven parcels, consisting of several parking lots and Caldwell Park which are owned by the City (Attachment D - Map of City-owned Property). Stockton Unified School District is contributing $19,832.22 for property it owns, and the balance of $191,172.32 is paid by private property owners for a total of $231,304 in assessment income.
In addition to the assessment income, the MMID also receives a voluntary $25,000 contribution from the University of the Pacific and receives supplemental security funds from other property owners to help with private security costs. The San Joaquin Regional Transit District has recently contracted with MMID to pressure wash and maintain its bus stops.
MMID dedicates approximately 42% of its budget towards public safety and security expenses and 32% towards maintenance and beautification. The balance of their budget is spent on management, advocacy, and marketing. Some of MMIDs accomplishments during 2013 include:
· Launching a new communications campaign with merchants and property owners sending weekly e-mails with updates on activities and events taking place on the Miracle Mile.
· Redesigned the MMID logo and website.
· Negotiated a lower rate for private security services.
· Partnered with the City on re-striping nine existing crosswalks and installing safety signs along Pacific Avenue and Harding Way.
· Assisted approximately twenty (20) new businesses that opened in the district.
Staff recommends adoption of the attached resolution, which approves the MMID's proposed 2014 Annual Operating Budget (Exhibit 1 to the Resolution), Assessment (Exhibit 2 to the Resolution), and 2013 Annual Report (Exhibit 3 to the Resolution) for calendar year 2014.
FINANCIAL SUMMARY
MMID assessments are paid directly to the County by property owners as part of their tax bill. The funds collected by the County are transferred to the City and deposited in Assessments Miracle Mile PBID Account No. 689-0000-237.70-99. The funds are then transferred to the MMID as administrator of the improvement district.
The total amount of the assessment paid during 2014 by property owners will be $231,304. The annual assessment for City-owned property within the MMID is $22,299.58, and will be paid from Account No. 010-0131-510.40-22 General Fund Non-Departmental Administration.
In addition to the $231,304 assessment income for calendar year 2014, $54,034 in voluntary assessments, supplemental security, carryover funds, and service revenues is projected for total revenues in the amount of $285,338. The projected annual expenditure budget for the MMID is $285,338. The MMID anticipates a year-end budget of zero for 2014.
Attachment A - Council Resolution No. 2012-06-26-1601
Attachment B - MMID Boundary Map
Attachment C - Council Resolution No. 2012-12-04-1202
Attachment D - Map of City-owned Property