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APPROVE DOWNTOWN STOCKTON ALLIANCE PROPOSED 2019 ANNUAL OPERATING BUDGET, ASSESSMENT, AND 2018 ANNUAL REPORT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the 2019 Operating Budget and Assessment for the Property and Business Improvement District known as Downtown Stockton Alliance, a non-profit corporation, which operates the Downtown Stockton Management District;
2. Approve the 2018 Annual Report; 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 Downtown Stockton Alliance (“the Alliance”) is one of the oldest Property-Based Improvement Districts (PBID) in California and has promoted and maintained the Downtown Stockton Business District since 1996. The City executed a contractual agreement with the Alliance to manage and operate the Downtown Stockton PBID for a ten-year period beginning January 1, 2018, this includes developing the workplan and goals for each year and preparing and managing the District’s budget. Each year the Alliance is required by contract to provide the City Council with its operating budget, annual assessment, and annual report of accomplishments for approval. The 2019 Operating Budget, Assessment, and 2018 Annual Report for the Alliance are Exhibits 1, 2, and 3 to the Resolution, respectively.
DISCUSSION
Background
The Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., authorizes cities and counties to establish property and business improvement districts for the purposes of promoting economic revitalization and physical maintenance. A Property-Based Improvement District is a flexible financing tool for creating private-sector, self-governed management districts. These districts provide the means for enhanced maintenance, safety, marketing, management, and advocacy services.
The Alliance was incorporated in 1996 as a 501(c)(6) corporation for the purpose of promoting and maintaining Downtown Stockton. Operations began in January 1998, with the commencement of an annual assessment to property owners. It was most recently renewed for ten years effective January 1, 2018, and will expire December 31, 2027.
The Alliance’s 2019 budget is $1,152,919. The Alliance dedicates a significant amount of its budget to Clean & Safe projects, Advertising/Marketing, and Special Events within the Management District. Clean & Safe activities will include contracted services with City Wide Property Services for power washing of public spaces, expanded private security night patrol to observe and report criminal and problematic activities, and expanded maintenance services with a second shift of porters to maintain trash and debris after hours and on weekends. In addition, 2018 saw the completion of the Budd Alley trash compactor and enclosure project resulting in a reduction of garbage containers in this area and overall aesthetic improvements making the area much more visually appealing.
The Alliance has sustained its marketing presence with the continuance of popular downtown events such as National Night Out 2018, Full Moon Riders Downtown monthly bike rides, Amgen Tour and concert/street entertainment. The Alliance routinely works with local organizations to host business workshops and classes at its downtown office location to support small business growth. The Alliance continues to increase social media presence each year; in 2018, website visits increased by 68.36% and DSA had a record number of social media followers.
The Alliance spends the balance of its budget on economic development activities, advocacy, and administration. It also engages in business recruitment, event sponsorship, and advocates for policies to improve access to affordable parking. 2018 was the first full year of the #PropertyMondays campaign to promote investment in Downtown Stockton by spotlighting available properties for lease. This campaign featured 25 different properties for sale or lease and translated into 12,532 views. DSA also re-vamped its business directory on the website and added a new Live/Work PowerPoint to provide a single point of access to vital information on the development and permitting process.
Present Situation
In accordance with Property and Business District Law of 1994, the Alliance’s agreement with the City requires it to administer funds consistent with the adopted Downtown Stockton Management Plan. The Management Plan provides that the Alliance submit its budget and annual report to the City by February 1 of each year. The budget is subject to Council approval.
To leverage its resources, the Alliance and the City are working closely together to achieve common goals. The financial connection between the City and the Alliance supports the idea that the two organizations continue to develop integrated ways of working together to capably address existing needs and pursue new opportunities.
The City makes an annual contribution to the DSPBID based on the number, size, and location of City-owned properties within the DSPBID and the annual assessment rates. The City’s contribution for the first year of operation is estimated to be $325,653, which includes Parking Authority and Successor Agency properties.
To foster a more cohesive relationship, the City maintains a voting seat on the Alliance’s Board of Directors, Economic Development Committee, and Administrative Committee. Participation on the Board and Committees allows the City to be a part of strategic decisions including policy, personnel, and budget. It also gives the City a voice on how the resources of the Alliance are deployed, ensuring that a focus on objectives common to the Alliance and the City is maintained.
Below are a few goals included in the 2019 Work Plan:
• Make Weber Point a key focal point of Downtown Stockton
• Launch the audio tour of Downtown Stockton and publish it on DSA website
• Launch Talk to Stockton, a webinar series allowing Q&A with city officials
• Full Moon Riders to increase in participants and partners
• Continuation of National Night Out
• Pursue more beautification projects, including reducing trash and securing more enclosed garbage bins
• Collaborate with partners to host California Hispanic Chamber of Commerce 2019 Annual Convention in Downtown Stockton
• Increase social media growth by an additional 20%
• Create a greater extension of the Downtown Stockton brand
Staff recommends adoption of the attached resolution which approves the proposed 2019 Annual Operating Budget (Exhibit 1 to the Resolution), Assessment (Exhibit 2 to the Resolution), and 2018 Annual Report (Exhibit 3 to the Resolution) for the Downtown Stockton Management District.
FINANCIAL SUMMARY
The Downtown Stockton Management District assessments are paid directly to the County by property owners as part of their tax bill. The total amount of the assessment paid during 2019 by property owners directly to the County will be $1,071,147. The Assessment, Exhibit 2 to the Resolution, reflects assessments in the amount of $1,076,977. Historically DSA has not received the full amount and therefore adjusts its Operating Budget to reflect the accurate figure actually received. As in the past, the Alliance will administer these funds on behalf of the Downtown Stockton Management District and the funds collected by the County will be transferred directly to the Alliance.
The City of Stockton, Parking Authority and Stockton Redevelopment Agency pay an assessment on property owned within the Downtown Stockton Management District. With the dissolution of the Stockton Redevelopment Agency under Assembly Bill 1x 26, the assessments on the Agency-owned property were transferred to the Stockton Successor Agency to the Redevelopment Agency.
The annual assessment total for the City-owned property within the district is $325,653, and is broken down as follows:
|
Entity |
Assessment |
Account Number |
Fund |
|
City of Stockton |
$237,003 |
010-0131-510 |
General Fund |
|
Parking Authority |
$87,977 |
418-4010-572 |
Parking |
|
Successor Agency |
$673 |
633-7310-510 |
Successor Agency |
For the calendar year 2019, the projected annual expenditure budget for the Downtown Stockton Management District is $1,142,571. In addition to the $1,071,147. assessment, an additional $81,772 in marketing/special events, advertising and miscellaneous revenues are projected for total revenues in the amount of $1,152,919.