Assessment Increases

When a BID decides to increase its assessment, the organization is essentially amending their original enabling legislation. The steps below outline the process necessary for a BID to increase its assessment. The process takes between 9 to 12 months and requires legislative approval from the City Council.

STEP 1: BID Board of Directors Action

In late winter or early spring of the year preceding the fiscal year in which the assessment increase will take effect, the BID Board of Directors discusses and approves an increased assessment budget and designates how additional funds will be spent in as specific terms as possible. A formal approval of the assessment increase by the BID’s Board of Directors is required.

STEP 2: Submission of Proposal to SBS

The proposed budget and assessment increase proposal is submitted to the SBS by June 30th. SBS Division Legal prepares a draft of BID legislation for the City Law Department’s review and approval.

STEP 3: Sample Notification Letter

The BID notifies all of its members of the amount of assessment increase by sending a notification letter. The notification letter should state the amount of the increase, a justification for the increase and the date, time and place for the City Council public hearing.

A sample member notification letter is available here.

STEP 4: BID Prepares Justification Documents

The BID prepares a four-part justification for the assessment increase for the City Council which should include the following:

1. Line item comparison of existing and proposed budgets showing percentage increases or decreases for each line.

2. Explanation or justification for each line item increase or decrease.

3. Historical analysis of the BID’s assessment increases since formation.

4. Estimation of the effect of proposed assessment increase on different classes of property owners.

See a sample of the four-part justification document here.

STEP 5: Submission to City Council

In the early fall, SBS sends all assessment increase requests through the Mayor’s Office of Legislative Affairs to the City Council for final action. SBS must also receive a letter of support from the BID’s City Council member(s).

A sample City Council support letter is available here.

STEP 6: Council Hearing; Property Owner Notification; and Legislative Action

Before the end of the calendar year, the City Council Finance Committee sets a date for a Public Hearing on the proposed assessment increase. At that time, the City Council requires the BID to publish, in a newspaper of general circulation in the district, not less than 10 days nor more than 30 days before the public hearing, a notice stating the time, location, and purpose of the hearing. The City Council Finance Committee then hears testimony and votes on the budget increase.

See a sample ad for public notification regarding the City Council hearing here.

STEP 7: Retroactive Billing for the Current Fiscal Year

If the City Council approves the increased assessment, in December or March, the Department of Finance will send out a bill for the additional assessment due retroactive to the beginning of the fiscal year.

STEP 8: Permanent Billing for the Following Fiscal Year Onward

Effective in June, the Department of Finance begins regular billing at the new assessment rate.