Title
Renewal of Midtown Property and Business Improvement District No. 2026-01 and Ballot Results
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FileID
File ID: 2026-00961
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Location
Location: District 4
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Recommendation
Recommendation: Adopt a Resolution renewing the Midtown Property and Business Improvement District (District) No. 2026-01 for a ten-year term, confirming and levying an assessment, and approving the District budget and assessment for Fiscal Year (FY) 2026/27.
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Contact
Contact: Susanne Tam, Development Project Manager, (916) 808-7535, stam@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Resolution to Renew District
4-Exhibit A, Management District Plan
5-Exhibit B, Map of District
6-Exhibit C, District Fund Budget & Assessment
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Description/Analysis
IssueDetail
Issue Detail: The District was initially established in 2007, formed under the California Property and Business Improvement law of 1994 found in California Streets and Highways Code section 36600 et seq. (PBID Law). The District is a benefit assessment district intended to improve the Midtown Sacramento area and Alhambra Corridor, the boundaries of which are shown in Exhibit B to the attached Resolution. The current District is set to expire on December 31, 2026, and property owners within the District have proposed to renew the District for a new ten-year term. The renewed District will provide maintenance, safety, placemaking, capital improvements, mobility, advocacy, and communication services over and above those provided by the City. Property owners representing over 50% of the affected parcels within the District submitted petitions to the City requesting renewal of the District for a ten-year term that would run through December 31, 2036.
The total District assessment budget for the first year of the renewed term would be approximately $3,024,369. The District Fund Budget & Assessment, included as Exhibit C to the attached Resolution, includes a breakdown of the budget for the first year of the renewal term. There are approximately 901 assessed properties in the District service area. The City currently owns 13 parcels within the District and will benefit from the District services, as will the other property owners in the District area. The Management District Plan (MDP), which contains an Engineer’s Report, outlines the activities and improvements to be provided by the District and the special benefits conferred on property owners in the District area that justify the stated assessment amounts. The MDP is included as Exhibit A to the attached Resolution.
On March 17, 2026, Council adopted a Resolution of Intention (Resolution No. 2026-0071) to renew the District, directing staff to mail assessment ballots and notices of public hearing to the owners of real property within the District and setting May 5, 2026, as the date for a public hearing on the proposed renewed District and assessment. Public Hearing notices were mailed to all affected property owners on March 19, 2026.
At the conclusion of the public hearing on May 5, 2026, the City Clerk tabulated the assessment ballots submitted and not withdrawn to determine whether there was a majority protest against the proposed District assessment (i.e., whether a majority of the weighted ballots submitted are opposed to the District and assessment). Based on the City Clerk’s ballot tabulation, there is not a majority protest. As such, staff recommends that the Council adopt a resolution renewing the District for a ten-year term; thereby also approving the annual District fund budget and levying the assessment as shown in Exhibit C to the attached Resolution.
The District did not prepare an Annual Report for FY2026/27 because the District was undergoing the renewal process and a new MDP was prepared and approved by City Council. The District will begin preparing Annual Reports again for FY2027/28.
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PolicyConsiderations
Policy Considerations: The renewal proceedings described in this report are in accordance with the PBID Law.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: Renewal of the District creates a funding mechanism for services and does not have a significant effect on the environment. Accordingly, renewal of the District does not in itself constitute a project under the California Environmental Quality Act (CEQA) and is therefore exempt from CEQA review pursuant to CEQA Guidelines Section 15378(b)(4).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Renewal of the District will allow District activities to continue. District services in the renewal term will provide maintenance, safety, placemaking, capital improvements, mobility, advocacy, and communication services above what the City currently provides. This includes, but is not limited to, graffiti abatement, litter removal, streetscape maintenance, safety services, event support services, placemaking, mobility projects, and advocacy to increase visitation and commerce to assessed parcels, resulting in increased economic activity and revenue.
The Midtown Association, a nonprofit entity that serves as the governing body of the District, serves as a key partner to the City’s economic development efforts. In addition, the Midtown Association has the potential to serve as a critical partner in identifying both business needs and opportunities, as it will in many instances be the first entity contacted by local businesses.
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FinancialConsiderations
Financial Considerations: Financing for the District is provided by the levy of assessments upon properties that benefit from improvements and activities. There are approximately 901 assessed parcels in the District service area. The total District assessment budget for the first year of the renewal term will be approximately $3,024,369. Approximately $3,779.59 in City and County administration fees will be deducted from the assessments paid to the District for the costs of accounting and administration work. Upon renewal of the District, the City will continue to participate as a property owner. City-owned property will have a total first year annual assessment of approximately $92,962. Future increases in the District’s assessment rates are capped at 6% annually. Assessment payments for the City-owned properties would continue to be funded by the General Fund.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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