DATE:
July 18, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Lawrence Chiu, Finance Director
SUBJECT:Resolution Of The City Council Of The City Of Emeryville Establishing The Fiscal Year 2024 Property And Business Improvement District (PBID) Annual Assessment Levy For The Respective Parcels Within The Improvement District With A 3% Rate Increase On All Parcels, And Approving The Preliminary Budget Submitted By The Emeryville Transportation Management Association (ETMA) For Service Year 2024RECOMMENDATION Staff recommends that the City Council of the City of Emeryville conduct a public hearing and thereafter approve the above-entitled resolution addressing:
The PBID Annual Assessment for Fiscal Year (FY) 2024 with a 3% rate increase on all parcels; and The ETMA preliminary budget for Service Year 2024.
BACKGROUND
On July 31, 2001, the City Council established the Citywide Property and Business Improvement District (PBID) to fund the Emery Go-Round shuttle service and other alternative transportation programs in accordance with the Property and Business Improvement District Law of 1994 (Section 36600 et. seq. of the California Streets and Highways Code).
On July 18, 2006, the City Council adopted Resolution No 06-141 extending the PBID for another ten years through FY 2016 (service/calendar year 2016).
On August 4, 2015, both the Property Management Plan (Plan) and the assessment formulas were ratified pursuant to a property assessment ballot proceeding conducted in accordance with state law (Proposition 218), and based upon a count of the ballots cast, it was determined that City property owners had ratified the PBID and the Plan. As a result, both the PBID and the Plan were approved by the City Council after a public hearing for 15 additional years through FY 2030 (service/calendar year 2030) (Resolution No. 15-103). The Plan approved in 2015 allows for increases in the assessment up to 5% greater than the prior year’s assessment. Each year, the City Council is required to approve the annual assessment levy, as well as the ETMA’s annual report and budget.
DISCUSSION
PBID Assessment and ETMA Preliminary Budget
The City of Emeryville contracts with the ETMA to administer and operate the Emery Go-Round. According to PBID requirements, the City is obligated to contract with ETMA as the agency representing the property owners that pay for PBID-related services. Each year the ETMA develops a preliminary operating budget to determine the funding needs for the next year and then recommends a corresponding assessment levy to the City Council for adoption.
On June 28, 2023, the ETMA Board of Directors was presented with the 2024 preliminary budget and a recommendation for a 3% increase in the PBID assessment levy. The ETMA Board voted on a 3% levy assessment recommendation to the City Council given the current state of the economy, impacts to businesses and residents, and unknown service demands for the Emery Go-Round. The ETMA’s final 2024 budget will be brought to City Council for approval in the fall. ETMA’s costs to meet the demands for service over the past 12 years have increased by an average of above 5% annually for operating costs.
FISCAL IMPACT
PBID funds may only be used for the services outlined in the Plan and are held in a special City Fund (Fund 805). The Plan provides that PBID annual assessments be established by the City Council based upon the budget submitted by the ETMA acting as the owner’s association as set forth under state law. Under the City/ETMA contract, if operating revenues are less than projected and/or if there is a need to cover unforeseen expenses, such as rising fuel costs, the ETMA Board is mandated to adjust the ETMA’s operating budget accordingly to maintain a balanced budget.
The City’s FY 2024 General Fund budget includes $642,757 in General Benefit Contribution to ETMA, an increase of $54,177 (9%) over the budgeted FY 2023 contribution of $588,580. The preliminary ETMA budget shows a City contribution of $639,891 in FY 2024, which would be an increase of $51,311 (9%) over the budgeted FY 2023 General Fund contribution of $588,580.
Included in the ETMA preliminary budget is a contingency in the amount of $135,000, which may or may not be needed, therefore no additional authorization for additional appropriations is sought from the General Fund at this time. If the City Council approves EMTA’s preliminary budget for service year 2024, the City Council should authorize a corresponding increase in the PBID annual assessments by 3% for FY 2024 on all parcels.
ADVISORY BODY REVIEW
There has been no communication with the budget committees regarding the proposed changes.
STAFF COMMUNICATION WITH THE PUBLIC
The ETMA Board conducted a noticed public meeting on June 28, 2023, to discuss this item. No additional public outreach was conducted for this hearing.
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Paul Buddenhagen, City Manager
ATTACHMENTS
ETMA 2024 Preliminary Budget
ETMA 2022 Annual Report
ETMA 2014-2023 Ridership Report
Fiscal Year 2024 Preliminary Assessment Levy 3% Increase Draft Resolution Approving Annual Levy and PBID Preliminary Budget PBID Assessment Levy and ETMA Budget
City Council Meeting | July 18, 2023
Page PAGE 4 of NUMPAGES 5
City of Emeryville
CALIFORNIA
MEMORANDUM