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6 CITY OF SAN MATEO
RESOLUTION NO. (2026)
LEVYING THE ANNUAL ASSESSMENT (2026-2027)
FOR THE DOWNTOWN BUSINESS IMPROVEMENT AREA
WHEREAS, the City Council established the Downtown Business Improvement Area (DBIA) pursuant to Streets and Highways Code Section 36500, et seq.; and
WHEREAS, the Downtown San Mateo Association, in conjunction with City staff acts as the advisory board to the City Council for the DBIA; 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.
WHEREAS, a public hearing was held on May 18, 2026, after being duly noticed for a time and place specified in the notice of intention; and
WHEREAS, all protests, either written or otherwise to the assessments proposed in the report were heard and considered at the public hearing; and
WHEREAS, Streets and Highways Code section 36535(b) authorizes the City Council, upon the conclusion of the public hearing, to order changes in any of the matters provided in the report, including changes in the proposed assessments.
NOW, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. Levying 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 City Council confirms that a majority protest, within the meaning of Streets and Highways Code Section 36525, was not made with regard to the proposed assessments.
3. The City Council approves the assessments set forth in the “Proposed Annual Assessment Schedule 2026-2027,” attached hereto as Exhibit A, for the Downtown Business Improvement Area set forth in the “DBIA Boundary Map,” attached hereto as Exhibit B.
4. The City Council confirms the annual report submitted by the Downtown San Mateo Association, as filed and attached to the May 4, 2026 Administrative Report.
5. The City Council authorizes the levying and collection of the 2026-2027 annual DBIA assessments in the amounts shown in the “Proposed annual Assessment Schedule 2026-2027, attached hereto as Exhibit A for the Downtown Business Area set forth in the “DBIA Boundary Map”, attached hereto as Exhibit B.
Resolution No. (2026)
Annual Renewal Levy
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)
Annual Renewal Levy
Resolution No. (2026)
Annual Renewal Levy
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)
Annual Renewal Levy
Resolution No. (2026)
Annual Renewal Levy
Exhibit B
DBIA Boundary Map
Zone 1 – Shaded parcels
Zone 2 --Parcels outlined in black