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5 CITY OF SAN MATEO
RESOLUTION NO. (2026)
ACCEPTING THE 2025-2026 DOWNTOWN BUSINESS IMPROVEMENT AREA (DBIA) ANNUAL REPORT, ADOPTING A RESOLUTION OF INTENTION TO LEVY THE ANNUAL DBIA ASSESSMENT FOR 2026-2027,
AND SETTING THE PUBLIC HEARING
WHEREAS, Streets and Highways Code Section 36533 (Parking and Business Improvement Area Law of 1989) requires the City Council to approve an annual report specifying: (1) the improvements and activities to be provided for that fiscal year; (2) an estimate of the cost of providing the improvements and the activities for that fiscal year; and other information required by Section 36533; and WHEREAS, pursuant to Section 36534 of the Streets and Highways Code, after approving the annual report, the City Council is authorized to issue a resolution of intention to levy an assessment for the 2026- 2027 fiscal year; and
WHEREAS, the City Council has received and reviewed the annual report submitted by the Downtown San Mateo Association and hereby confirms said Association as the advisory board for the DBIA.
NOW, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY DETERMINES AND RESOLVES that:
1. Accepting the DBIA Annual Report and adopting a Resolution of Intent to Levy the Annual DBIA Assessment is exempt from California Environmental Quality Act (CEQA) requirements because it is an administrative activity that will not have a significant effect on the environment per CEQA Guidelines section 15378(b)(5)).
2. The Downtown San Mateo Association Fiscal Year 2025-26 Annual Report filed by the Downtown San Mateo Association with the City Clerk that declares its intention to levy and collect assessments for the Downtown Business Improvement Area for the Fiscal Year 2026-2027 set forth in Exhibit A attached to this Resolution is approved.
3. The proposed improvements and activities are generally characterized as those activities set forth in Streets and Highways Code Section 36513, including but not limited to: street cleaning, promotion of public events, marketing activities which benefit businesses, decorations, and administrative expenses, including salary, rent, and similar expenditures. The annual report on file with the City Clerk provides a full and detailed description of proposed expenditures and activities, provides the boundaries and zones of benefit of the DBIA, and designates the proposed assessments. A map of the business district boundaries is set forth in Exhibit B attached to this Resolution.
4. A public hearing is hereby scheduled for Monday, May 18, 2026, at City Hall, 330 West 20 th Avenue, San Mateo at 7:00 p.m. or as soon thereafter as the matter may be heard. In accordance with Streets and Highways Code section 36534, the City Clerk is directed to publish such notice once in a newspaper of general circulation in the City not less than seven days before the public hearing. Oral and written protests in compliance with Sections 36524 and 36525 of the Streets and Highways Code may be made at the public hearing.
Resolution No. (2026)
DBIA Intent to Levy Annual Renewal
Exhibit A
Proposed Annual Assessment Schedule FY 2026-2027
Retail (Based on Annual Gross Receipts)
Annual Gross Revenue Proposed 2026-27 Previous 2025-26
Zone 1 Zone 2 Zone 1 Zone 2$0 - $150,000
$200 $100 $200 $100
$150,001 - $400,000 $400 $200 $400 $200
$400,001-$600,000 $800 $400 $800 $400
$600,001-$1,000,000 $1,150 $575 $1,150 $575
$1,000,000+ $1,500 $750 $1,500 $750
Professional (based on number of employees)
Category Proposed 2026-27 Previous 2025-26
Number Of Employees Zone 1 Zone 2 Zone 1 Zone 2
Sole Proprietor,
No employees
$200 $100 $200 $100
1 to 5 Employees $550 $275 $550 $275
6-15 Employees $1,000 $500 $1,000 $500
16-35 Employees $2,300 $1,150 $2,300 $1,150
36-75 Employees $3,050 $1,525 $3,050 $1,525
76+ Employees 1, 2 $3,050 $1,525 $3,050 $1,525
Service (based on number of employees)
Category Proposed 2026-27 Previous 2025-26
Number Of Employees Zone 1 Zone 2 Zone 1 Zone 2
Sole Proprietor,
No employees
$200 $100 $200 $100
1 to 5 Employees $400 $200 $400 $200
6-15 Employees $800 $400 $800 $400
16-35 Employees $1,700 850 $1,700 $850
36-75 Employees $2,300 $1,150 $2,300 $1,150
76+ Employees 3, 4 $2,300 $1,150 $2,300 $1,150
Financial (flat rate)
Category Proposed 2026-27 Previous 2025-26
Zone 1 Zone 2 Zone 1 Zone 2Financial $1,500 $775 $1,500 $775 See footnote for 1,2,3,4
Resolution No. (2026)
DBIA Intent to Levy Annual Renewal
Resolution No. (2026)
DBIA Intent to Levy Annual Renewal
Proposed Annual Assessment Schedule FY 2026-2027 (Continued) Retail businesses include but is not limited to businesses that have goods and foods for sale including automotive vehicles and parts dealers, home furnishing stores, jewelers, electronics and appliance stores, building material and garden equipment and supplies dealers, food and beverage stores, full- serve restaurants, limited services restaurants, fast food restaurants, cafeterias, dessert and snack establishments, bars, gasoline stations, clothing and clothing accessories, sporting goods, hobby stores, music instruments, book stores, general merchandise store, wireless phone stores and similar.
Professional businesses include but is not limited to businesses that offer services that are highly specialized and typically require licensing and regulations. Professional service providers and information-based businesses such as software publishers, data processing, network hosting and related services, internet publishing and broadcasting and web search portals, venture capital, insurance agencies and brokerage, real estate agents and brokers, offices of lawyers, accounting, architectural, engineering advertising, translation and interpretation services, veterinary services, offices of physicians, offices of dentists, other health practitioners, and similar.
All businesses classified as Professional shall pay an annual assessment based on the number of full- time equivalency employees.
Sole Proprietor is defined as a self-employed individual who works for themselves without hiring any employees.
Service businesses include but is not limited to providers of personal and business services such as hair salons, nail salons, lock smiths, dry cleaners, auto service and maintenance shops, gyms, vacuum repair shops, educational, childcare, electronic equipment repair, personal care services, and similar.
All businesses classified as Service shall pay an annual assessment based on the number of full-time equivalency employees.
Financial businesses include but not limited to businesses in the financial industry such as money management, payments, digital banking, banks, savings and loan companies, credit unions, finance companies, and similar.
All businesses classified as Financial shall pay a flat annual assessment.
For Professional and Service businesses, the number of employees shall be determined based on Full Time Equivalent of 40 hours a week as reported on the initial business license application and updated thereafter during the annual business license renewal.
Footnote
1 - $3,050 + $14.00 per employee over 75 employees for Zone 1 2- $1,525 + $10.00 per employee over 75 employees for Zone 2 3- $2,300 + $10.00 per employee over 75 employees for Zone 1 4- $1,150 + $7.00 per employee over 75 employees for Zone 2 Resolution No. (2026)
DBIA Intent to Levy Annual Renewal
Resolution No. (2026)
DBIA Intent to Levy Annual Renewal
Exhibit B
DBIA Boundary Map
Zone 1 – Shaded parcels
Zone 2 --Parcels outlined in black