City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 20, 2026 FROM: FINANCE DEPARTMENT WARDS: 5 AND 6
SUBJECT: PUBLIC HEARING – RESOLUTION CONFIRMING ANNUAL REPORT OF ARLINGTON BUSINESS PARTNERSHIP ACTING AS ADVISORY BOARD TO ARLINGTON BUSINESS IMPROVEMENT DISTRICT AND LEVYING ASSESSMENTS FOR FISCAL YEAR 2026/27 ISSUE:
Conduct a Public Hearing to hear and rule on any protests to the annual assessment proposed for the Arlington Business Improvement District for Fiscal Year 2026/27 and adopt a Resolution confirming the Annual Report of the Arlington Business Partnership, acting as the advisory board to the Arlington Business Improvement District, and levying assessments for Fiscal Year 2026/27.
RECOMMENDATIONS:
That the City Council:
Conduct a Public Hearing to hear and rule on any protests to the annual assessment proposed for the Arlington Business Improvement District for Fiscal Year 2026/27; and Adopt a Resolution confirming the Annual Report of the Arlington Business Partnership, acting as the advisory board to the Arlington Business Improvement District, and levying assessments for FY 2026/27.
BACKGROUND:
The City of Riverside established the Arlington Business Improvement District (Arlington BID) to represent and promote local businesses and community engagement events, initiate improvement projects, and foster a sense of pride within the Arlington business area. The City Council approved the BID’s formation on September 24, 2002, with the first BID assessments beginning on November 1, 2002 and was codified in Chapter 3.48 of Riverside Municipal Code. The Arlington Business Partnership (ABP) was designated as the advisory board to manage the Arlington BID.
The District is located in the Arlington business area of the City of Riverside and is generally described as being located on Van Buren Boulevard from Arlington Avenue to Lincoln Avenue and on Magnolia Avenue between Tyler Street to Jackson Street. The district is more fully shown on the Boundary Map, noted as Attachment 2 on this report. The annual Arlington BID assessment is currently set at $400 per business.
Business tax rates in the City, including any associated charges, are adjusted annually on November 1, and are based upon the most recent annual change in the consumer price index for the Riverside-San Bernardino-Ontario metropolitan area, or by a maximum of 5%, whichever is lower.
The Arlington BID was formed under Section 36500 of the California Streets & Highways Code. The Code mandates that the advisory board prepare an Annual Report detailing the assessments and activities funded by the BID. The City Council may approve the report as filed or request modifications. During the annual levy process for FY 2023/2024, the City Council determined that in order to enhance transparency within all Business Improvement Districts, additional detailed information would need to be provided from the advisory boards. Resolution No. 24095 was approved by City Council on March 19, 2024, and details the scope of the new reporting requirements for the Arlington BID.
During the FY 2025/26 annual levy process, the Arlington Business Partnership recommended changes to both the District boundary and the assessment methodology. The boundary was amended to include additional businesses, including an extension along Magnolia Avenue and the assessment methodology was changed from 90% of each business’s annual business tax, subject to a $400 maximum to a flat rate of $400 per business. Following the mailed notice and Public Hearing on September 16, 2025, the City Council determined that a majority protest had not been received and adopted Resolution No. 24309 approving the FY 2025/26 levy and adopted Ordinance No. 7734 amending Sections 3.48.050 and 3.48.070 of the Riverside Municipal Code to establish the revised boundary and flat-rate assessment.
DISCUSSION:
The Streets & Highways Code mandates reporting requirements that the Advisory Board must follow. These reports are presented to the City Council each year and include items such as: any proposed changes to the boundaries or assessment amounts in the district, the method and basis of assessments, and improvements and activities for the coming year.
The City Council adopted a resolution on October 6, 2026, declaring the intention to impose an assessment for the Arlington BID for FY 2026/27, effective November 1, 2026, and setting a Public Hearing for October 20, 2026.
According to the FY 2026/2027 Arlington BID Annual Report, there are no proposed changes to the district boundaries or the assessment amounts. Businesses within the district will continue to pay a flat rate of $400 per business.
The report provides a detailed method and basis of calculating the assessments enabling each business owner to estimate their annual charges. Upcoming activities include programs to enhance the physical environment, clean up vandalism, beautify, and prepare for the various community events such as the annual chili cook-off and Winter Wonderland.
To levy the Arlington BID assessments for FY 2026/2027, the City Council must adopt a Resolution confirming the Annual Report and approve the levying assessments for FY 2026/27. The Resolution of Intention has been published in a general distribution newspaper seven (7) days prior to the Public Hearing. Additionally, a notice has been mailed to business license tax certificate holders within the Arlington BID.
Upon conclusion of this Public Hearing, the City Council may confirm the Annual Report as originally filed or Council can order changes to any portion of the Annual Report and confirm the Report as modified. To levy assessments for Fiscal Year 2026/27, Council must approve the Resolution as recommended above.
FISCAL IMPACT:
This action has no fiscal impact to the City. Upon adoption of the Resolution at the set Public Hearing, the assessment is expected to generate approximately $375,200 for FY 2026/2027, which the City will collect through the annual business tax process and transfer directly to the Arlington Business Partnership.
Prepared by: Meline Carranza, Debt and Treasury Manager Approved by: Sergio Aguilar, Deputy Finance Director
Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/City Treasurer
Approved as to form: James Johnson, City Attorney
Attachments:
Annual Report of the Arlington BID
Resolution Confirming the Annual Report and Levy
Boundary Map of the Arlington BID
Presentation—City
Presentation—Arlington Advisory Board
Notice of Public Hearing
Arlington Business Improvement District ● Page 2