CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 7 of 10 today, Table 3 illustrates the estimated BID revenues under each option. As shown, all options would increase funding from current levels, with Option 3 yielding the highest increase (and representing the highest adjustment from current minimum and maximum levels). Of note, all options would roughly align to the approximate expected fee had an annual escalator been applied since 1996. And, while each option reflects a significant increase in percentage terms, the dollar value of the increase for most businesses (a maximum of between $75 and $400 per business, per year, in Option 2) would be modest. Table 3: Current and Estimated BID Assessment Totals Current Location / Type Current BID Structure Option 1: Min $100 Max $700 (Est.) Option 2: Min $125 Max $750 (Est.) Option 3: Min $125 Max $800 (Est.) On Main Street $25,909 $47,464 $50,326 $52,626 Main St Upstairs $11,590 $17,920 $19,345 $19,745 Side Streets $30,918 $55,778 $61,702 $63,352 Annual Fee- based $1,400 $3,150 $3,150 $3,150 Other Businesses $2,870 $5,605 $6,042 $6,392 $72,687* $129,917 $140,565 $145,265 *Amount listed (based on actual Business License payments received in 2025) differs from the amount in the current year budget estimate ($80,000), since actuals to date do not consider any delinquent business license tax payments or other modifications that are typically accounted for at year-end. The Advisory Board recommends Option 2, which consists of the following modifications: • Businesses located curbside, downstairs on Main Street, are assessed at a rate of three times their business license; • Businesses with a Main Street address located upstairs, or not curbside, are assessed at a rate of two times their business license; • All other businesses (those located off Main Street) are assessed at a rate of one and a half times their business license; • The minimum assessment increased from $50 to $125, and the maximum increased from $350 to $750. The PDA recommends that the annual charge paid by any business exempt from the City’s business license tax be $450, increased from $200, including the owner of a business with independent contractors at one business address and conducting a similar business service. It is also recommended that the assessment be subject to an annual escalator, tied to the CPI. Doing so ensures that the BID Assessment can remain on par with other increasing costs for PDA over time, including staff costs, and operating and administrative expenses. The increased assessment amounts will be established annually during the BID renewal process. With the proposed BID restructuring, the estimated BID assessment collected from Page 148 of 264