TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Lee Wilcox
SUBJECT: See Below DATE: May 12, 2025
Approved
Date:
5/20/25
COUNCIL DISTRICT: 7, 8
SUBJECT: Actions Related to the Tully Road Eastridge Business Improvement District 2025-2026 Budget Report, 2025-2026 Annual Assessments, and Setting a Public Hearing on the Levy of Assessments
RECOMMENDATION
(a) Preliminarily approve the 2025-2026 Budget Report as filed by the Tully Road Eastridge Business Improvement District Advisory Board, or as modified by City Council.
(b) Adopt a resolution of intention to levy the annual assessment for Fiscal Year 2025-2026, and set Tuesday, June 17, 2025, at 1:30 p.m., as the date and time for the public hearing on the levy of the proposed assessments.
SUMMARY AND OUTCOME
Approval of this action will result in a resolution of intention to levy assessments for the upcoming fiscal year of the Tully Road Eastridge Business Improvement District (BID) and set the time and date for the public hearing.
BACKGROUND
The Tully Road Eastridge BID was established by City Council in 2024 pursuant to the California Parking and Business Improvement Area Law of 1989 (BID Law) to promote the economic revitalization and physical maintenance of the Tully Road - Eastridge business corridor. The Tully Road Eastridge BID service area is shown in Attachment A.
City Council appointed the Tully Road Eastridge Business Association as the Advisory COUNCIL AGENDA: 6/3/25
FILE: 25-572
ITEM: 2.12
HONORABLE MAYOR AND CITY COUNCIL
May 12, 2025
Subject: Actions Related t o the Tully Road Eastridge Business Improvement District 2025- 2026 Budget Report, 2025 -2026 Annual Assessments, and Setting a Public Hearing o n the Levy of Assessments
Board for the BID, to advise City Council on the levy of assessments in the BID, and the expenditure of revenues derived from the assessments for the benefit of the BID.
Pursuant to BID Law, the Advisory Board must come before City Council on an annual basis to present a report. The report proposes a budget for the upcoming fiscal year for the BID, to advise the City Council on the levy of assessments in the BID, and identify the proposed allocation of revenues for the benefit of the BID service area. City Council must then 1) review the Budget Report and preliminarily approve it as proposed or as changed by City Council; 2) adopt a resolution of intention to levy the assessments for the upcoming fiscal year; and 3) set a date and time for the public hearing on BID- related actions. Absent a majority protest at the public hearing, at the conclusion of the public hearing, the City Council may approve the budget for Fiscal Year 2025-2026 as filed or as modified by the City Council and levy the BID assessments for Fiscal Year 2025-2026.
ANALYSIS
The Advisory Board prepared the 2025-2026 Budget Report (Attachment B) for City Council’s consideration as the proposed budget for the Tully Road Eastridge BID for Fiscal Year 2025-2026. As required by BID Law, the Budget Report has been filed with the City Clerk and contains, among other things, a list of the improvements and activities proposed to be provided in the Tully Road Eastridge BID in Fiscal Year 2025- 2026, and an estimate of the cost of providing the improvements and activities. The Advisory Board recommends no change in the method and basis for levying assessments.
City Council may approve the Budget Report as filed or modify the Budget Report and approve it as modified. After approval of the Budget Report, City Council must adopt a resolution of intention to levy the annual assessment for Fiscal Year 2025-2026 and fix a time and place for a public hearing to be held on the levy of the proposed assessment.
EVALUATION AND FOLLOW-UP
The Advisory Board will come before City Council next year to present a report that proposes a budget for Fiscal Year 2026-2027.
COST SUMMARY/IMPLICATIONS
The Tully Road Eastridge BID assessments are restricted for use exclusively by the Tully Road Eastridge service area. It is anticipated that a healthy Tully Road Eastridge
HONORABLE MAYOR AND CITY COUNCIL
May 12, 2025
Subject: Actions Related t o the Tully Road Eastridge Business Improvement District 2025- 2026 Budget Report, 2025 -2026 Annual Assessments, and Setting a Public Hearing o n the Levy of Assessments
BID will encourage business growth business in the area, which directly and indirectly generates additional business tax and sales tax revenue for the City. Estimated assessments available for Tully Road Eastridge BID for Fiscal Year 2025-2026 will total $108,000, less a one percent fee of $1,080 for the City’s administration of the collection, leaving a balance of $106,920. The Fiscal Year 2025-2026 Proposed Operating Budget, subject to City Council approval, includes projected assessment revenue of $108,000 and corresponding payments to the Tully Road Eastridge Business Association totaling $108,000, as detailed in the Source and Use Statement for the Business Improvement District Fund (351). A budget action will be brought forward as part of the regular budget process to align the budgeted amounts with the expenses to be passed through to the Tully Road Eastridge BID that are recommended in this memorandum.
COORDINATION
This memorandum has been coordinated with the City Attorney's Office, City Clerk's Office, City Manager's Budget Office, Finance Department, Planning, Building, Code Enforcement Department, and the Tully Road Eastridge Business Association.
PUBLIC OUTREACH
The budget for Fiscal Year 2025-2026 was reviewed and approved by the Advisory Board on May 9, 2025, as shown in Attachment C.
This memorandum will be posted on the City’s Council Agenda website for the June 3, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-004, Government Funding Mechanism or Fiscal Activity with no commitment to a specific project which may result in a potentially significant impact on the environment.
HONORABLE MAYOR AND CITY COUNCIL
May 12, 2025
Subject: Actions Related t o the Tully Road Eastridge Business Improvement District 2025- 2026 Budget Report, 2025 -2026 Annual Assessments, and Setting a Public Hearing o n the Levy of Assessments
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City's Open Government Resolution.
Lee Wilcox
Assistant City Manager
Acting Director, City Manager’s Office of
Economic Development and Cultural
Affairs
For questions, please contact Minh Tran, Executive Analyst I, City Manager’s Office of Economic Development and Cultural Affairs at [email protected] or 408-535- 8100.
ATTACHMENTS
A: Tully Road Eastridge
BID Boundary Map
B: Budget Report - Tully Road Eastridge BID Fiscal Year 2025-2026 C: Tully Road Eastridge Business Association Board Meeting Minutes for May 9, 2025
Attachment A: Tully Road Eastridge BID Boundary Map
Attachment B: Budget Report
Tully Road Eastridge Business Improvement District FY 2025-2026 Budget Revenue Amount
BID FY 2025-26 (Estimated) $108,000
Expenses
Clean and Safe $64,800
Business License $1,080
Administrative Staff $8,000
Moveable Feast $27,500
Board Meeting/Reserves $6,000
Total Expenses $107,380
Attachment C: Tully Road Eastridge Business Association Board Meeting Minutes for May 9, 2025
Tully Road-Eastridge Business Association
(TREBA) Tully Rd. –Eastridge Business Association
(TREBA) Special Board Meeting Friday,
May 9 2025 | 11AM Whatsapp Call
Start meeting 11am
1. Present:
a. Christina Bui, Owner of Christina Ao Dai & Designs, Board Chair b. An Ngo, Cathay Bank, Board Treasurer
c. Dilpreet Bhandal, Lion Liquors, Board Member
d. Ken Bhatti, SBA and Business Lender of Cathay Bank, Board Member e. Eric Perez, Eastridge Mall – Board Member
f. Vic Ram, AAA Auto Repair, Board Member
g. Isabel Sarellano, Xclusive Events Décor, Board Member I. Consent Action item(s):
a. Approve TREBA’s annual budget 2025-2026
Motion made by: Eric Perez
Motion Second by: An Ngo
Motion Second by: Dilpreet Bhandal
All in favor motion Passed