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MIRACLE MILE IMPROVEMENT DISTRICT PROPOSED 2019 ANNUAL OPERATING BUDGET AND 2018 ANNUAL REPORT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the proposed 2019 Operating Budget for the Property Based Improvement District commonly known as the Miracle Mile Improvement District;
2. Approve the 2018 Annual Report for the Miracle Mile Improvement District; and
3. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose of this resolution.
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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. The MMID Property Based Improvement District was renewed for a five-year term effective January 1, 2018, and continuing through December 21, 2022. The City Council executed an agreement with the MMID to manage and operate the Miracle Mile PBID for a five-year period beginning on January 1, 2018, this includes developing the workplan and goals for each year and preparing and managing the district’s budget. The Council is being asked to approve the 2019 Operating Budget and 2018 Annual Report for the MMID. The 2019 Operating Budget and 2018 Annual Report for the Miracle Mile Improvement District are attached as Exhibits 1 and 2 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 Miracle Mile Improvement District is one of two existing PBIDs within Stockton. The second is the Downtown Stockton Alliance. 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 for an additional five years beginning January 1, 2013, and expired December 31, 2017. The MMID Property Based Improvement District was renewed for another five-year term effective January 1, 2018 and shall continue through December 31, 2022. It includes 158 parcels located along the Miracle Mile (Pacific Avenue) and Harding Way (Attachment A - 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 three (3) Benefit Zones as described below:
Zone 1: Consists of parcels on Pacific Avenue south of Regent Court to Harding Way
Zone 2: Consists of parcels along Pacific Avenue from Regent Court to Alpine Avenue
Zone 3: Consists of parcels along Harding Way between N. Lincoln and El Dorado Street
Because the level of service differs between the three benefit zones, the assessment rate varies by zone to reflect the level of service provided. Zone 1 ($0.1276 per sf) Zone 2 ($0.0622 per sf) and Zone 3 ($0.1021 per sf).
The City Council authorized an agreement with the MMID for the administration of the Miracle Mile PBID on December 28, 2017, with an effective date of January 1, 2018, and shall remain in effect until December 31, 2022. In accordance with Property and Business District Law of 1994 and pursuant to the agreement, 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 February 1st of each year. The budget is subject to Council review and adoption. The 2019 MMID budget shows $221,380 funded through property assessments, plus $57,900 2018 assessments carry over and $9,808 in other income for a total budget of $289,088.
Due to funding cuts at the University of the Pacific, the voluntary funding contribution the University historically provided to the MMID to support security efforts has been eliminated. The San Joaquin Regional Transit District also contracts with MMID to pressure wash and maintain its bus stops.
The MMID Management District Plan dictates that funds may only be spent on improvements and activities provided in the Zone from which the funds were derived, as shown in the budget allocation chart below.
|
|
Enhanced Maintenance |
Safety & Security |
Marketing & Promotions |
Admin. & Advocacy |
Contingency/ Reserve |
Total |
|
Zone 1 |
$55,013 |
$41,470 |
$31,439 |
$57,247 |
$5,173 |
$190,342 |
|
Zone 2 |
$9,186 |
$21,272 |
$992 |
$11,064 |
$2,006 |
$44,519 |
|
Zone 3 |
$11,352 |
$26,333 |
$1,219 |
$12,841 |
$2,483 |
$54,227 |
|
Total |
$75,550 |
$89,075 |
$33,650 |
$81,152 |
$9,661 |
$289,088 |
Below are some of the MMID accomplishments in 2018:
• Partnered with Visit Stockton to promote Restaurant Week, Beer Week, and Arts Week through marketing and social media
• Hosted and promoted 2018 Wine Stroll and Car Show, net profit $10,000
• Partnered with the City of Stockton Police Department’s Strategic Enforcement Operations Team for increased patrol, sting operations for vandalism, and to create a Business Watch on Pacific Avenue and Harding Way
• Entered into a contractual agreement with Hammerhead Security to provide increased security patrols and 24-hour security dispatch services
• Contracted with a private company to improve aesthetics of the Mile, including graffiti removal, trash removal, and plant/landscape watering
During 2019, the MMID will continue to create a safe environment, protect property owner investments, and strive to raise property values, focusing on a clean, safe, and beautiful district. Some of the 2019 goals are listed below:
• Continue to build a mutually beneficial relationship with the University of the Pacific to support marketing and events hosted on the Mile
• Continue beautification projects along Tuxedo Court and Harding Way
• Partner with the City of Stockton, SUSD Police Department, RTD Police Department, and MMID Safety Patrol to reduce loitering and transient activity
• Support monthly events hosted on the Miracle Mile and create a sponsorship package to encourage businesses in the district to host future events
• Continue to market and promote the Mile through social media and website presence to increase visits and highlight MMID as a destination for shopping, dining, and events
FINANCIAL SUMMARY
The Miracle Mile Improvement District 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. The funds are then transferred to the MMID as administrator of the improvement district.
The total amount of the assessment paid during 2019 by property owners will be $221,380. The annual assessment for City-owned property within the MMID is $20,271 and is budgeted in and paid from Account No. 010-0131-510.40-22 General Fund Non-Departmental Administration.
For the calendar year 2019, the projected annual operating budget for the MMID is $289,088. The MMID anticipates $289,088 in expenditures, which include expenses for staffing, rent, utilities, office costs, insurance, professional services, marketing, security, and maintenance. Total revenues projected includes the $221,380 assessment income, $57,900 assessment carry forward from 2018, and $9,808 in other income from RTD maintenance contract, renewal savings, events, and interest.
Attachment A - MMID Boundary Map