Agmt20 Redwood City Improvement Association-CBID Operating Agreement

Browse Search

Section 4 Assessment Methodology The Downtown Redwood City CBID is a property -based benefit assessment district being established pursuant to the Redwood City Business Improvement Management District Ordinance Adding Chapter 31 to the Municipal Code. Due to the special benefit assessment nature of assessments levied within a CBID, program costs are to be distributed amongst all identified specially benefiting properties based on the proportional amount of special program benefit each property is expected to derive from the assessments collected. The Ordinance refers to the concept of relative "benefit" received from CBID funded programs and activities versus amount of assessment paid. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be received. The method used to determine special benefits derived by each identified property within a CBID begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the Downtown Redwood City CBID, the benefit unit may be measured in terms of in linear feet of primary street frontage or parcel size in square feet or building size in square feet or number of building floors or proximity to major corridors in average linear feet, or any combination of these factors. Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite basic benefit unit factor or factors. Within the assessment formula, different factors may be assigned different "weights" or percentage of values based on their relationship to programs/services to be funded. Next, all program and activity costs, including incidental costs, District administration and other program costs, and benefit zones are estimated. There are two benefit zones in the proposed Downtown Redwood City CBID. Proposition 218 requires that indirect or general benefits not be incorporated into the assessment formula and levied on the District properties in property based assessment Districts; only direct or "special' benefits and costs may be considered. Indirect or general benefit costs, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a "net" cost figure. Based on the foregoing, the value of a basic benefit unit or "basic net unit cost" can be computed by dividing the total amount of estimated net program costs by the total number of benefit units. Then the amount of assessment for each parcel can be computed by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known as "spreading the assessment" or the "assessment spread" in that all costs are allocated proportionally or "spread" amongst all properties within the CBID. 21