The Report has been completed along with the proposed assessment fee increase for City Council's consideration. Upon City Council's approval, the Report and date of the Public Hearing will be noticed to the public per the direction of the City Attorney's office.
The adoption of Resolution 2023-044 will simply approve of the Report, and set the date for the Public Hearing regarding the proposed assessment fee increase for July 25, 2023. The Resolution does not approve new assessment rates and assessments will not change until the matter is heard and adopted by the City Council at the July 25, 2023, Public Hearing.
ATTACHED:
Reedley Downtown Parking and Business Improvement Area Fund Status and Proposed Assessment Increase Report- June 2023
Resolution 2023-044
RESOLUTION NO. 2023-044
A RESOLUTION OF THE CITY COUNClL OF THE CITY OF REEDLEY
ACCEPTING THE REEDLEY DOWNTOWN PARKING AND BUSINESS
IMPROVEMENT AREA FUND ST A TUS AND PROPOSED
ASSESSMENT INCREASE REPORT DA TED JUNE, 2023, AND SETTING
A PUBLIC HEARING DATE TO CONSIDER THE PROPOSED
ASSESSMENT CHANGES
WHEREAS, ON May 23, 2023, the Reedley Downtown Parking and Business Improvement Area Committee (Streetscape Committee) recommended and approved of the creation of a Reedley Downtown Parking and Business Improvement Area Fund Status and Proposed Assessment Increase Report (Repo1t) and to propose an assessment fee increase to all businesses that are within the Area Boundary as defined in Reedley Municipal Code 7-9-2; and WHEREAS, per Reedley Municipal Code 7-9-6(c) the Streetscape Committee is an advisory committee to the City Council and the City Council must approve of the Repott and set a date for a public hearing to hear any public comment pertaining to the Report and the proposed assessment increase; and
WHEREAS, assessment proceeds have been used to pay for improvement projects within the Area Boundary, such as the procurement and maintenance of the downtown sound system (music), installation of roof top lighting, sidewalk benches, decorative trash cans, flower pots and flowers on street corners, tree trimming and replacements, tree well maintenance, downtown Christmas wreaths and decorations, American flags (placed on light poles for holidays), pressure washing of sidewalks twice per year, irrigation repairs and replacement, and more; and WHEREAS, due to the highest inflation in decades, all associated cost of maintenance and improvement projects within the Area Boundary have drastically increased and the overall fund balance has been decreasing and the Streetscape Committee now finds it necessary to recommend an increase to assessment fees.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Reedley as follows:
L The Repo1t dated June 2023 is hereby accepted.
2. A public hearing is set for Tuesday, July 25, 2023, at 7:00 p.m., or sho1tly thereafter, at which time the Repott and the proposed assessment increase will be considered.
The foregoing resolution is hereby approved this June 27, 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Anita Betancourt, Mayor
ATTEST:
Ruthie Greenwood, City Clerk
OWN'PA
D
BUSINESS IMPRO¥ ·
FUND STATUS AND
PROPOSED ASSESSMENT INCREASE REPORT
JUNE2023
Purpose:
The purpose of this report is to provide information related to the fund status of the Downtown Parking and Business Improvement Area (also known as "Streetscape Area") and propose an increase to monthly assessments to those business which are located and operate within the Area Boundary.
Background·:
In 1986, business owners within the Downtown area approached the City and proposed the creation of a Streetscape District. The City Council of the City of Reedley, adopted resolution 3744, a resolution of intention of the city council to establish a parking and business improvement area in accordance with the provisions of Streets and Highway Code sections 36500 through 36550. Business owners within this area received a formal ballot and voted to create the District.
The Streetscape Area was established for the purpose of creating a fund from assessments to businesses located in the area to support improvement and beautification projects within the area boundary in addition to maintaining the landscape and hardscape of the zone.
Area Boundary: (as defined in Reedley Municipal Code 7-9-2) ~
BOUNDARY - DOWNTOWN PARKING AND 8' ..,\NESS IMPROVEMENT ARE,t,;
BENEFIT ZONE A
( 1159 ''F" SlREET)
JTI \ I 11 11 I 1111 I I I 111 id F ST ll I l 1
_lill 11111 Fl I~ I 11 E 1111 I El 1111 l ( 11111 t
F ST
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Reedley Downtown Parking and Business Improvement Area Committee:
As defined in the City of Reedley Municipal Code, the Committee is comprised of business owners that have businesses located within the area boundary. The Committee members are appointed by the city council and each serve a three year term. The Committee oversees assessment funds, and is the recommending body pertaining to maintenance and improvement project activities within the Area Boundary as well as proposing future enhancement projects within the area.
Assessment Fees:
Each business located within the Area Boundary currently pays an assessment of $16.50 per month, or if they choose to pay annually, the assessment amount is discounted to $174 per year (or $14.50/month). The revenue is used for the care, maintenance and replacement of street trees, shrubs and ground cover planting in planters in the sidewalk area and the maintenance of the automatic irrigation system and other facilities incidental thereto for these plants and ornamental structures and facilitates and street furniture to include benches installed within the Reedley downtown streetscape project district.
These funds have also been used to pay for improvement projects within the Area Boundary, such as the procurement and maintenance of the downtown sound system (music), installation of roof top lighting, sidewalk benches, decorative trash cans, flower pots and flowers on street corners, tree trimming and replacements, tree well maintenance, downtown Christmas wreaths and decorations, American flags (placed on light poles for holidays), pressure washing of sidewalks twice per year, irrigation repairs and replacement, and more.
Cost increases:
Due to the highest inflation in nearly 40 years all associated cost of maintenance and projects have drastically increased. In March of 2013, the Committee contracted with Clean Cut Landscape to blow off sidewalks, clean benches and trash receptacles, conduct weed control, check the irrigation system and set sprinkler clocks, and fertilize planters and tree wells for a monthly rate of $914. That cost has not changed since 2013 when the agreement was put into place. Due to the increasing cost of labor and materials Clean Cut Landscape requested an increase in February of 2023 which brought the cost to $1,100 per month. Additionally, the cost of tree trimming, electricity for roof top lighting, bench repair, and trash bags for decorative cans has substantially increased. The overall fund balance has slowly been diminishing from the increased cost of improvement projects and annual maintenance expenditures. Given these cost increases the Committee now finds it necessary to increase the assessment fees. 50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
2019-20
Fund Overview
2020-21 2021-22 2022-23
- Total Revenues - Total Expenses - Fund balance
Proposed assessment fee ;increase:
The Committee has recommended and unanimously approved of proposing a fee increase that would raise the assessment fee from the current $16.50 per month to $20.00 per month beginning on July 1, 2024. Those businesses which choose to pay annually would pay an amount of $216.00 per year ($18.00/month). For Fiscal year 2023/2024 the total expenditures budgeted are $33,850, which will end the year with an expected fund balance of $12,719. For the Fiscal year 2024/2025 budget the total revenue including the proposed increased assessment is estimated to be $26,736 from all sources.
Report Approval and Public Hearing:
This Report will be presented to the Reedley City Council at a regularly scheduled meeting on June 27, 2023 for comment and approval. If the report is approved, a Public Hearing will be scheduled for July 25, 2023, to hear any public comment related to the proposed assessment increase.