ORDINANCE NO.
Adopted by the Sacramento City Council
Ordinance Renewing River District Property and Business Improvement District No. 2024-02
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1. The River District Property and Business Improvement District No. 2024-02 (District) was initially established in 1999 under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code section 36600 et seq.) (referred to as the “PBID Law”) by City Council as the Capitol Station Property and Business Improvement District. The District was renamed and renewed for a ten- year term in 2014, which will expire on December 31, 2024.
SECTION 2. The property owners within the boundaries of the District have submitted petitions to the City to renew the District for a ten-year term running from January 1, 2025 through December 31, 2034. Included with the petitions was a summary of the Management District Plan (MDP) that describes the proposed assessment to be levied on properties within the District to pay for the improvements and activities specified in the MDP. Accordingly, renewal of the District by the City Council is sought in accordance with Streets and Highways Code sections 36630 and 36660.
SECTION 3. During the public hearing on April 2, 2024, Council: (1) heard all protests against the proposed assessment from property owners within the District; and (2) accepted testimony from all interested persons, whether or not they own property within the District.
SECTION 4. The proposed improvements and activities for the District, which constitute a special benefit, include the following: (1) daily private security patrols, (2) litter abatement, (3) on-call graffiti removal, (4) public right-of-way weed abatement, (5) advocacy for public improvement projects, and (6) banners, lighting, and other entryway enhancements. The proposed improvements and activities are intended to make the District safer, cleaner, and aid in the attraction of new jobs, businesses, and development projects for properties in the District. All improvements and activities are defined within the MDP. The MDP is attached hereto as Exhibit A and is on file with the Infrastructure Finance Division of the Department of Finance, designated by the City Clerk to be repository of documents associated with special districts.
SECTION 5. The total amount of the proposed assessments for the first year of the District’s renewal term is approximately $751,570. Future assessment rates will be subject to an increase of up to 5% annually and no more than the actual annual increase in costs. Exhibit B, attached hereto and incorporated herein, includes a breakdown of the assessment per parcel.
SECTION 6. The assessments for the renewed District will be levied on property within the District.
SECTION 7. Bonds will not be issued for the District.
SECTION 8. A description of the exterior boundaries of the proposed District is contained in the MDP, attached hereto and incorporated herein.
SECTION 9. The property owners who signed the petitions collectively will pay more than 50% of the proposed assessments. Accordingly, on February 13, 2024, City Council adopted Resolution No. 2024-0044 entitled “Resolution of Intention to Renew the River District Property and Business Improvement District No. 2024-02” (Resolution of Intention).
SECTION 10. On February 15, 2024, the City Clerk mailed to each property owner of record of each parcel within the District’s boundaries a notice concerning the public hearing on the renewal of the District and the proposed assessments, pursuant to Streets and Highways Code section 36623, Government Code section 53753, and City Code Chapter 3.44. Each notice included the information about the assessment and the ballot procedure. A public hearing on renewal of the District was held on April 2, 2024 at 5:00 pm in the City Council chambers, New City Hall, 915 “I” Street (first floor), Sacramento, California.
SECTION 11. During the public hearing on April 2, 2024, the City Council heard and received all objections and protests to the renewal of the District and the proposed assessment. The City Clerk has received, been given custody of, and tabulated the assessment ballots returned and not withdrawn by the owners of property located within the District. The Clerk’s Certificate of Ballot Procedure Results for the Mailed-Ballot, Property Owner Majority Protest Proceeding indicates that, of the assessment ballots signed and returned to the City Clerk, and not withdrawn, prior to the close of the public hearing on April 2, 2024, and weighting the ballots for each property according to the proportional assessment obligation of each property, 92.9% of the assessment ballots were in favor of the renewal of the District and levy of the assessments proposed, and 7.01% were opposed. Thus, the number of assessment ballots submitted and not withdrawn in opposition to the proposed assessment did not exceed the number of ballots submitted
and not withdrawn in favor of the proposed assessment. Therefore, a majority protest against the proposed assessment does not exist.
SECTION 12. Properties within the District will be subject to any amendments to the PBID Law.
SECTION 13. The improvements and activities to be conferred on properties in the District will be funded by the levy of the assessments. The revenue from the levy of assessments shall not be used: to provide activities that directly benefit properties outside the District; to provide improvements or activities outside the District; or for any purpose other than the purposes specified in this ordinance, the Resolution of Intention, the Resolution of Renewal, and the MDP. Notwithstanding the foregoing, improvements and activities that must be provided outside the District boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the District.
SECTION 14. The properties within the boundaries of the District will be benefited by the improvements and activities to be funded by the proposed assessments and property within the District will receive a special benefit.
SECTION 15. The MDP for the District quantifies the amount of special benefit conferred on the properties within the District as 97.64% of the improvements and activities provided in the District, with 2.7% of the improvements and activities constituting a general benefit to those outside of the District. The total amount of all special benefits to be conferred on the properties in the District for Fiscal Year 2024/25 is $751,570.
SECTION 16. The Resolution of Intention stated the City Council’s finding that the MDP satisfied all requirements of Streets and Highways Code section 36622. The City Council hereby approves the MDP (which includes the Engineer’s Report) on the proposal to levy an annual assessment on properties within the District.
SECTION 17. The City Council hereby renews the District for a ten-year term beginning January 1, 2025, with an expiration date of December 31, 2034, for the area generally shown in the attached MDP in Exhibit A.
SECTION 18. The City Council hereby confirms the assessment diagram and assessment roll to be recorded along with a notice in the Sacramento County Recorder’s Office pursuant to Streets and Highways Code section 36627 following adoption of the resolution of renewal, and the City Council levies the assessments detailed in the MDP on the properties within the District to fund the improvements and activities described in the MDP. In accordance with Streets and Highways Code section 36631 and the MDP, the assessments to fund the
improvements and activities for the District will be collected at the same time and in the same manner as ad valorem property taxes and will have the same lien priorities and penalties for delinquent payment.
SECTION 19. The City Council hereby approves the Fiscal Year 2024/25 annual budget and parcel assessments for the District as set forth in Exhibit B attached hereto and incorporated herein.
SECTION 20. The City Manager or City Manager’s designee is hereby directed to take all necessary actions to complete the renewal of the District and levy the assessments.
SECTION 21. The City Clerk is directed to record, in the Sacramento County Recorder’s Office, a notice and assessment diagram as required by Streets and Highways Code section 36627.
SECTION 22. Upon any inconsistency between this Ordinance and the Resolution of Renewal, the Resolution of Renewal shall govern.
Table of Contents:
Exhibit A: Management District Plan
Exhibit B: District Budget and Parcel Assessment