COUNCIL DISTRICT: 6
SUBJECT: Actions Related to the Willow Glen Community Benefit Improvement District Annual Report for Fiscal Year 2026-2027
RECOMMENDATION
Adopt a resolution:
(a) Approving the Willow Glen Community Benefit Improvement District Annual Report for Fiscal Year 2026-2027 as filed or modified by City Council; and to confirm and levy the individual assessments as filed or modified by the City Council; 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 Willow Glen Community Benefit Improvement District (CBID) Annual Report describes the planned activities for the district in the upcoming fiscal year. The report also details how the assessment rate is calculated, the percentage increase in the assessment rate and justification for the increase. City staff reviewed the report and accompanying budget details, to ensure the Willow Glen CBID services and funds are being managed in compliance with the district management plan. City Council acceptance of the annual report 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 collection of district assessments on the County property tax rolls.
COUNCIL AGENDA: 6/9/26
FILE: 26-681
ITEM: 2.11
TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Matt Loesch
SUBJECT: See Below DATE: May 18, 2026
Approved
Date:
5/27/26
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Actions Related to the Willow Glen Community Benefit Improvement District Annual Report for Fiscal Year 2026-2027
BACKGROUND
The City of San José established the Willow Glen CBID in 2008, 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. On June 4, 2024, the Willow Glen CBID was expanded and renewed for a second 15-year term, which began January 1, 2025, and runs through December 31, 2039. It also combined two zones from the initial formation into one zone. The Willow Glen CBID enhanced services include sidewalk cleaning, litter pickup, more attractive streetscapes, parking management, increased promotions, and events. 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%.
ANALYSIS
As required by Chapter 14.31 of the San José Municipal Code and in accordance with the agreement between the City and Willow Glen Business Association (Association), the Association has submitted the Willow Glen CBID Annual Report for Fiscal Year (FY) 2026-2027 (Report) to the City Council (Attachment A - Willow Glen CBID Annual Report FY 2026-2027). The Report, which is the first of two reports for FY 2026-2027, will be on file in the City Clerk’s Office prior to the June 9, 2026 City Council meeting. A second report, the FY 2026-2027 Financial Report, will be submitted in November 2027 to the City Council through staff from the Association. The Report contains the following information consistent with the Management Plan and Engineer’s Report for the CBID.
1. Declaration of no material changes to the district
2. FY 2026-2027 planned improvements and activities
3. Cost estimates for improvements and activities in FY 2026-2027
4. Method and basis for levying the FY 2026-2027 assessment
5. Acknowledgment of revenue to be carried over
6. Other non-assessment revenue.
The services provided by the CBID include, as described in the Report, clean, safe, and beautiful services, economic vitality services, and management activities. Below are highlights of services that will be provided by the CBID in FY 2026-2027.
Sidewalk Maintenance and Landscaping: Ongoing sidewalk maintenance operations include removal of refuse, cleaning of decorative planters, benches and crosswalk portals, removal of unauthorized postings, attachments, and graffiti, routine power
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Actions Related to the Willow Glen Community Benefit Improvement District Annual Report for Fiscal Year 2026-2027
washing and manual scrubbing (as needed), and sidewalk cleaning. The sidewalk maintenance frequency is 12 hours per day, Monday through Friday, and eight hours per day on Saturday and Sunday. New drought-tolerant plants and bark mulch will continue to be added to planter boxes and topping off the decomposed granite around the trees where needed.
Street Lighting and Decor: American flags will continue to be installed along Lincoln Avenue in the CBID for Memorial Day in May through Independence Day in July, and for Veterans’ Day in November. Lighting and decor will be installed for the holiday season. There will be ongoing electrical repairs to support holiday lighting, with continued exploration of long-term solutions to issues with electrical sources. Two additional kiosk sign fixtures will be installed in the expansion area.
Marketing and Promotions: Special events and promotions in downtown Willow Glen will continue in FY 2026-2027. Organizing special events is a critical function of the Association for activating the area, which brings the community together while bringing customers directly to the front doors of businesses located within the CBID. Examples of promotional events include A Night on the Avenue, Trick or Treat along the Avenue, and Mrs. Roper Romp. Special events, such as Wine Walks, are organized multiple times each year, which typically bring over 650 people per event to Lincoln Avenue to shop, dine, and enjoy the district.
The Association’s Board of Directors is recommending a total assessment increase of
2.29% (under the 7% annual maximum) in order to keep up with rising costs of providing the services within the Willow Glen CBID. City staff has reviewed the Association’s proposal and concurs with the recommendation that assessments increase 2.29% for FY 2026-2027, which is consistent with the average annual Consumer Price Index for the San Francisco-Oakland-Hayward area. The Willow Glen CBID proposed budgeted revenue of $486,674 is reflected on page 7 of Attachment A.
The total maximum aggregate assessment levy for FY 2026-2027 will be $477,166, as shown in the Willow Glen CBID assessment roll filed in the City Clerk’s Office. The remaining revenue, $9,508, will be from other sources to cover the general benefit component cost of CBID services and activities may vary in any given year depending on market conditions. The management plan anticipates that costs may fluctuate up to 20% from the original budgeted allocation for each line item to continue the same level of service. Due to increases in costs related to holiday services, ornament prices, and cable car rental fees, the Economic Vitality budget for FY 2026-2027 has increased above 20%. Clean, Safeand Beautiful, and Management budgets have been reduced accordingly with minimal impacts since the original Economic Vitality budget was less than 6% of the total budget.
As a property owner within the Willow Glen CBID, the City’s assessment will be $15,913. The two City-owned properties are the Willow Glen Branch Library, located at 1157 Minnesota Avenue, and a public parking lot, also located on Minnesota Avenue,
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Actions Related to the Willow Glen Community Benefit Improvement District Annual Report for Fiscal Year 2026-2027
approximately 200 feet east of the library. Sufficient funds to pay the City’s assessment are included in the City’s 2026-2027 Proposed Operating Budget in the Willow Glen CBID Fund. The figures presented in the Report differ from the Proposed Operating Budget, as the Proposed Operating Budget was prepared based on the assumption that the Association would propose the maximum allowable 7% adjustment.
The FY 2026-2027 boundary map shown in Attachment B will be recorded with the County of Santa Clara and the 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 attached Report by the Association sets the budget and proposed assessments for FY 2026-2027 consistent with the approved Management Plan and Engineer’s Report.
The current agreement between the City and the Association also requires the Association to submit an Annual Financial Report, containing an independent Certified Public Accountant Report, in November of each year. This report will be submitted to City Council for acceptance once received.
FISCAL IMPACTS
If the FY 2026-2027 Willow Glen CBID Annual Report is approved with the 2.29% increase, estimated assessments will total $477,166, and the City’s assessment is calculated to be about $15,913. The FY 2026-2027 Proposed Operating Budget for Fund 343, subject to City Council approval, includes a transfer from the General Fund for the City’s assessment of $15,913.
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 9, 2026 City Council meeting. The Report has been filed in the City Clerk’s Office for public review and will also be made available to the property owners within the district upon request. Additionally, the Association’s Board of Directors approved the fiscal year budget at its publicly noticed and held meeting on March 10, 2026.
HONORABLE MAYOR AND CITY COUNCIL
May 18, 2026
Subject: Actions Related to the Willow Glen Community Benefit Improvement District Annual Report for Fiscal Year 2026-2027
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.
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, Public Works Department at [email protected] or (408) 535-8300.
ATTACHMENTS:
Attachment A – Willow Glen CBID Annual Report FY 2026-2027 Attachment B – District Map
ATTACHMENT A
Willow Glen CBID Annual Report for FY 2026-2027
ATTACHMENT B
District Map
ATTACHMENT A
Willow Glen CBID Annual Report for FY 2026-2027
ATTACHMENT B
District Map