08-16-2022 CC RPT 32 - Laserfiche WebLink

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Arlington Business Improvement District • Page 2 assessment. BACKGROUND: The City of Riverside established the Arlington Business Improvement District (Arlington BID) to represent and promote Arlington businesses and events, initiate local improvement projects and create a sense of pride for all who live, work or do business in the Arlington business area. The City Council approved the formation of the Arlington BID on September 24, 2002, with the first BID assessments effective November 1, 2002. The Arlington Business Partnership (ABP) was designated as the advisory board and is empowered to manage the Arlington BID. At the time of formation, the District area was generally described between Arlington Avenue on the north, along Van Buren to Lincoln on the south, and a portion along Magnolia Avenue from Tyler on the west to Jackson Street on the east. The annual Arlington BID assessment is currently set at an amount equal to ninety percent (90%) of the business tax charge or $400, whichever is less. The City's business tax rates, together with any associated charges, are adjusted annually on November 1. The rates increase or decrease based on the most recent change in the annual average of the consumer price index for the Riverside -San Bernardino -Ontario metropolitan area, or five percent, whichever is less. The Arlington BID was formed under Section 36500 of the Streets & Highways Code of the State of California. The Code requires the advisory board prepare a report for each fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report (Attachment 1). The City Council may approve the report as filed by the advisory board or may modify any portion of the report and approve it as modified. DISCUSSION: The Arlington Business Partnership is proposing changes to the boundaries and assessment amounts within the Fiscal Year 2022-2023 Annual Report. The proposed changes include expanding the district boundaries along Tyler St., Indiana Ave., Urban St., Magnolia Ave., La Sierra Ave., Diana Ave., and Hole Ave. A map of both the current and modified boundaries are shown in the Annual Report, provided by the ABP. The proposed changes to the assessment amount would increase the levy amount for each business within the District. The current method of assessment is 90% of the business tax fee, with a cap of $400 per business. The proposed modification would be 100% of the business tax fee, with no cap applied. The BID does not assess any home-based businesses. If Council approves the proposed changes by the advisory board, the ABP has determined that 72% of the current businesses would see an annual increase of an additional $45. The 72% consist of businesses that pay less than the $400 maximum. There is an undetermined impact amount for the other 28% of businesses who have a payment that is capped at the $400 maximum, as well as any new businesses within the expanded district boundaries. The Annual Report details the method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of assessment to be levied against his or her business. In 2021, City Council requested that all Business Improvement Districts address the following questions during the annual levy process: