Title
Fiscal Year 2026/27 Business Improvement District Annual Proceedings
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FileID
File ID: 2026-01498
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt: 1) a Resolution approving the Central Midtown Restaurant Business Improvement District (BID) Annual Report and confirming the annual budget and assessment for fiscal year (FY) 2026/27; 2) a Resolution approving the Sacramento Tourism Infrastructure District Annual Report and confirming the annual budget and assessment for the first half of FY2026/27; and 3) a Resolution approving the Sacramento Tourism Marketing District Annual Report and confirming the annual budget and assessment for the first half of FY2026/27.
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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-Central Midtown Restaurant BID Resolution
3-Exhibit A, Central Midtown Restaurant BID Annual Report
4-Exhibit B, District Budget and Assessment
5-Sacramento Tourism Infrastructure District Resolution
6-Exhibit A, Sacramento Tourism Infrastructure District Annual Report
7-Exhibit B, District Budget and Assessment
8-Sacramento Tourism Marketing District Resolution
9-Exhibit A, Sacramento Tourism Marketing District
10-Exhibit B, District Budget and Assessment
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Description/Analysis
IssueDetail
Issue Detail: California Streets and Highways Code section 36650 requires each BID to file an Annual Report (Report) with the City Clerk for Council approval. There are currently four BIDs in the City of Sacramento: the Central Midtown Restaurant (CMR), Handle, Sacramento Tourism Infrastructure District (STID), and the Sacramento Tourism Marketing District (STMD). The CMR and the Handle districts were formed with the intent to increase restaurant sales within the boundaries of those districts. The STID was formed to increase overnight tourism and the desirability of the Sacramento Convention Center as a tourist, meeting, and event destination. Assessments from the STID are used to pay debt service on the bonds or other obligations issued or incurred by the City for construction of the ballroom portion of the Sacramento Convention Center expansion. The STMD was formed with the intention to increase tourism and market STMD lodging businesses as tourist, meeting, and event destinations.
The Owners’ Association of each BID, with the exception of the Handle District Corporation, has prepared an Annual Report (Report) for FY2026/27 detailing the proposed budgets, assessments, and services to be provided from the assessments for its respective BID. The Annual Reports for the STID and STMD cover July through December of FY2026/2027 due to a change in the budget year of the STID and STMD. A second Annual Report covering the remainder of FY2026/27 will be brought forth to Council at a later date. The Handle BID will not be renewing when the term of the District ends on September 30, 2026. Therefore, a FY2026/27 Annual Report will not be prepared for the Handle BID.
The Reports for FY2026/27 do not propose any changes to the services provided by the BIDs, boundaries of the BIDs, basis for levying the assessments, or any other aspect of the BID Management District Plans (MDPs). Approval of the attached Resolutions will confirm the associated budget and assessment for each BID.
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PolicyConsiderations
Policy Considerations: The actions in the recommended resolution are required by the Property and Business Improvement Law of 1994 (California Streets and Highways Code section 36600 et seq.).
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: Administration of assessment districts does not constitute a project under CEQA because it involves continuing administrative or maintenance activities and organizational or administrative activities that will not result in direct or indirect physical changes in the environment. [14 Cal. Code Regs. § 15378(b)(2) & (5))].
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The goal of the BIDs is to provide services, as specified in the MDPs, that supplement services provided by the City. The MDPs are plans that provide guidance for the levy of assessments to provide improvements, maintenance, and activities that benefit businesses in that BID.
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FinancialConsiderations
Financial Considerations: Financing for the CMR is provided by the levy of assessments on businesses that benefit from the improvements and services. Financing for the STID is provided by the levy of assessments on lodging businesses within the STID that benefit from the Sacramento Convention Center expansion. Financing for the STMD is provided by the levy of assessments upon lodging businesses within the STMD boundaries that benefit from the improvements and services provided by the STMD. The CMR BID and the STMD do not plan to issue bonds. However, with regards to the STID, the City issued bonds in the amount of $50.4 million for the Convention Center ballroom project, and STID assessment revenue is used to pay debt service on the bonds or other obligations issued or incurred by the City for the ballroom. The operating budget for these three BIDs fluctuates with market conditions and retail sales and is adjusted annually to reflect Council approved assessments and expenditure plans.
Based on the collected levies from FY2025/26, the total assessment budget for FY2026/27 is estimated to be $112,895 for the CMR BID. The total STID total assessment budget for July through December of FY2026/27 is anticipated to be approximately $2,044,575. Approximately 94.3% of the STID budget will be funded from revenues collected within the City ($1,928,034.23) and 5.7% from the unincorporated area of Sacramento County ($116,540,78). The STMD total assessment budget for July through December of FY2026/27 is estimated to be $5,253,390, with approximately 94.3% ($4,903,856) of the revenue collected from businesses within the City and approximately 5.7% from the unincorporated area of Sacramento County ($297,000).
Approximately $2,631 in City administration costs are collected from the CMR BID. For the STMD, 2% of the amount of assessments collected from businesses within the City is retained to cover the costs of the City’s collection and administration for the STMD. The County is also responsible for collecting assessments from businesses within the unincorporated County area and will retain 2% of the amount of the assessments collected in the unincorporated County for FY2026/27. For the STID, the City and the County will be paid from assessment revenues not used for debt service payments to cover their costs of collection and administration. Budget details are provided in Exhibit B to the Resolution for each BID. All BIDs are self-supporting and have no impact on the General Fund.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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