CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 5 of 10 2025 Annual Report The report illustrates the PDA’s continued commitment to promoting downtown Pleasanton with distinct marketing objectives, engaging events, and renewed member engagement. The PDA – which in 2025, employed one Executive Director and one Events Manager – focused its time and resources to support downtown businesses through communication, marketing, and community engagement. New programming was introduced that welcomed a significant number of visitors to Pleasanton. With the hiring of its new Executive Director and staff, the PDA Board of Directors are committed to rebuilding and strengthening the organization despite economic challenges and prior changes in leadership. The PDA’s new two-year Strategic Plan consists of a three- pronged approach to fiscal stability and capacity to provide additional services and resources for the benefit of the Downtown. The three areas are described in the annual report. One area in which the PDA is proposing to help increase capacity for the organization is a restructuring of the BID assessment. PDA Recommendations for BID Restructure City staff developed and provided options to the Advisory Board for a potential BID restructure, based on an analysis via business license data. The current assessment formula is based on each business’s annual City business license payment, which is calculated as shown in Table 1 below: Table 1: Business License Tax Schedule Range of Gross Receipts Business License Payment $0 - $24,999 $25 $25,000 - $99,999 $50 $100,000 - $249,999 $75 $250,000 and above $0.30 per $1,000 The BID payment is then calculated using the multipliers provided in the background section, above. As noted, the BID structure and rates have not changed since 1996; the structure excludes any type of adjustment for inflation, meaning that total amounts collected have only varied or increased based on gross business receipts. As a starting point, therefore, staff conducted an analysis with actual Consumer Price Index (CPI) applied to the minimum payment of $50, maximum payment of $350, and annual fee of $200, since 1996 and assumed a 2.5 percent annual inflation adjustment from 2025 to 2030, to estimate the growth in assessments as illustrated in Figure 1. As shown, had the minimum and maximum assessments been adjusted annually, the minimum today would stand at approximately $100, and maximum at just over $700. Figure 1: Inflation Adjustment of $50, $200, and $350 in 1996 Dollars (to 2030) Page 146 of 264