TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Matt Loesch
SUBJECT: See Below DATE: May 11, 2026
Approved
Date:
5/18/26
COUNCIL DISTRICT: 6
SUBJECT: Actions Related to The Alameda Community Benefit Improvement District Budget and Assessments for Fiscal Year 2026-2027
RECOMMENDATION
Adopt a resolution:
(a) Approving The Alameda Community Benefit Improvement District for Fiscal Year 2026-2027 budget; and to confirm and levy the individual assessments; and
(b) Directing the Director of Public Works or his designee to deliver the assessment roll to the County of Santa Clara for collection with the property taxes.
SUMMARY AND OUTCOME
The Alameda Community Benefit Improvement District (CBID) was formed in June 2025. For Fiscal Year (FY) 2026-2027, the CBID’s property owners’ association is not required to submit an annual budget report per state code because the district is currently in its first year of providing services. City staff recommend utilizing the approved budget and approved assessment rate established last fiscal year when the CBID was formed. City Council’s approval of utilizing the same budget and assessments as FY 2025-2026 ensures that there is no disruption of CBID services and allows the Department of Public Works to authorize the County of Santa Clara to continue the collection of district assessments on the County property tax rolls.
COUNCIL AGENDA: 6/2/26
FILE: 26-647
ITEM: 2.15
HONORABLE MAYOR AND CITY COUNCIL
May 11, 2026
Subject: Actions Related to The Alameda Community Benefit Improvement District Budget and Assessments for Fiscal Year 2026-2027
BACKGROUND
The City of San José (City) established the Alameda CBID on June 17, 2025, pursuant to Chapter 14.31 Community Benefit and Improvement District Procedure of the San José Municipal Code. This chapter incorporates and modifies the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq.) to fund specific enhanced services and improvements above those provided by the City from generally available funds. Since the enhanced services directly benefit individual parcels within the district, rather than the City as a whole, the costs are assessed to these benefiting parcels. The current voter-approved assessment formula provides an annual rate increase not to exceed 7%. The district has a term of 15 years, after which it would sunset and need to be renewed to continue beyond 2040.
ANALYSIS
The agreement between the City and The Alameda Business Association, together with applicable state law, requires the business association to submit an annual budget report each fiscal year after its first year of operation to the City Council. The annual budget report is not required for FY 2026-2027 because the district is currently still in its first year of providing services. Absent an annual budget report for FY 2026-2027, City staff recommend utilizing the approved budget and assessment rates, as shown below in Table 1 and Table 2, respectively, from when the CBID was formed last fiscal year.
Table 1 – Approved Budget from FY 2025-2026 Formation
EXPENDITURES TOTAL BUDGET % OF BUDGET
Clean and Safe $266,002 78.0%
Beautification and Image Enhancement $30,851 9.0%
Administration and Advocacy $34,121 10.0%
Contingency/Reserve $10,236 3.0%
Total Expenditures $341,210 100.0%
REVENUES TOTAL BUDGET % OF BUDGET
Assessment Revenues $327,977 96.1%
Other Revenues (general benefit*) $13,233 3.9%
Total Revenues $341,210 100.0%
* General public benefit includes contributions from The Alameda Business Association sources.
HONORABLE MAYOR AND CITY COUNCIL
May 11, 2026
Subject: Actions Related to The Alameda Community Benefit Improvement District Budget and Assessments for Fiscal Year 2026-2027
Table 2 – Assessment Rates
Parcel Type Parcel
Assessment
Rate
($/lot sq. ft.)
Building
Assessment Rate
($/building sq. ft.)
Frontage
Assessment
Rate**
($/parcel linear ft.)
Zone 1 Commercial $0.0500 $0.0500 $11.00
Zone 1 Residential*,
Nonprofit, Government
(Non-Enterprise)
$0.0375 $0.0375 $8.25
Zone 2* $0.0250 $0.0250 $5.50
* Properties zoned solely for residential use are not subject to the assessment ** Frontage assessment is related to properties fronting The Alameda, Race Street, and Stockton Avenue
Shortly after district formation, several properties in the district were rezoned to residential to align and match zoning and General Plan land use designations pursuant to Senate Bill 1333. Property zoned solely for residential use are presumed not to benefit from the improvements according to state law, therefore several properties are now exempt from the assessment.
If approved, the total maximum aggregate assessment for FY 2026-2027 will be $320,403. The proposed assessment on each property will be equivalent to FY 2025- 2026. The cost of CBID services and activities may vary in any given year depending on market conditions and the cost of providing those services. As a property owner within the CBID, the City’s assessment will be $8,450. The three City-owned properties are the Cahill Park, The Beautiful Way Park, and the Arena Hotel Transitional Housing Project.
Sufficient funds to pay the City’s assessment are included in the City’s 2026-2027 Proposed Operating Budget in Fund 342. City staff is also in the process of transferring ownership of the Billy DeFrank LGBTQ+ Community Center located at 938 The Alameda from the Successor Agency to the San José Redevelopment Agency to the City. After such transfer, the City’s assessment will increase by $3,453 and would require the City to make a further budget adjustment.
The FY 2026-2027 boundary map (Attachment – District Map) that will be recorded with the County of Santa Clara and assessment roll will be on file with the City Clerk’s Office approximately two weeks prior to the City Council meeting for public review.
EVALUATION AND FOLLOW-UP
The current agreement between the City and The Alameda Business Association requires the business association to submit an Annual Financial Report, containing an independent Certified Public Accountant Report in October of each year. This report will
HONORABLE MAYOR AND CITY COUNCIL
May 11, 2026
Subject: Actions Related to The Alameda Community Benefit Improvement District Budget and Assessments for Fiscal Year 2026-2027
be submitted to City Council for acceptance once received starting in the second fiscal year of services rendered.
FISCAL IMPACTS
Estimated assessments for FY 2026-2027 will total $320,403. The City’s assessment is calculated to be about $8,450. The FY 2026-2027 Proposed Operating Budget for Fund 342, subject to City Council approval, includes a transfer from the General Fund for the City’s assessment of $8,450. If the community center is transferred in FY 2026-2027, the City’s General Fund transfer will be updated through a future budget action.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, City Manager’s Budget Office, and the Planning, Building and Code Enforcement Department.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the June 2, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee 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 11, 2026
Subject: Actions Related to The Alameda Community Benefit Improvement District Budget and Assessments for Fiscal Year 2026-2027
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.
/s/
MATT LOESCH
Director of Public Works
For questions, please contact J. Guevara, Deputy Director of Public Works, Public Works Department at [email protected] or (408) 535-8300.
ATTACHMENT:
District Map
c
ATTACHMENT - District Map