Title
2025 PBIA Planning
Report
Issue:
Discussion on PBIA Planning for 2025
Staff Contact:
Mike Reid, Economic Development Director, 360.753.8591
Presenter(s):
Mike Reid, Economic Development Director
Background and Analysis:
The last two meetings of the PBIA have included discussion around planning for the future of the PBIA, including conversations about the role of the advisory committee, functionality of the program, city administration of the program, rates and fee structures, and other related program structures.
Staff have attempted to synthesize the conversation into two potential options to be able to advance the work to a conclusion in 2025. Staff will lead the advisory committee through a discussion of the two options with a desired out that the Committee will select one of the options or develop a modified approach.
Option 1:
• Use 2025 as a program evaluation year. This would be the singular focus of the year.
o Most improvement areas, as a best practice, have a “recertification clause or sunset provision” which triggers a district wide re-certification every 5-10 years to ensure that the program is still serving the needs of the ratepayers. The Olympia PBIA was established in 2005 with a requirement that in five years City Council would need to take action to renew and extend the program (Ordinance 6375). In 2010 Council renewed the program and repealed the “sunset” provision moving forward (Ordinance 6721). 2025 will mark the 20th year of the existence of the PBIA. There has not been a re-certification effort or council discussion on renewal of the program since 2010.
o City in conjunction with the PBIA Advisory Board would hold a series of stakeholder convenings or listening sessions throughout the year to determine the following:
1. Is a PBIA still an effective model in supporting downtown needs?
2. What should the future of the PBIA look like?
• Role
• Structure
• Rates
• Fee collection
• Priorities
• Administration and Management
• Execution of projects
o Development of the specifics of the evaluation process (timeline, structure, participants, stakeholder engagement, etc) and identification of desired deliverables would start in January 2025.
1. Executing this would be the focus of City staff support to PBIA and may benefit from contracted assistance.
• Move to a temporary zero rate for 2025
o This means City staff would not be doing ratepayer identification list generation, invoicing, fee collection, or sending delinquent payments to collections. This will free up staff capacity to exclusively be able to focus the limited staff hours available to the program evaluation effort.
o City Council does have the ability to change rates through a three-step process:
1. Adoption of a Council resolution of intention of a rate change.
2. Hold a public hearing at least 15 days after the passage of the resolution to change rate.
3. At a subsequent Council meeting Council would take action on a new ordinance outlining the new rates.
• Using reserves (approximately $80-85k) for a 2025 budget:
o Limit expenses to flower baskets (ordering, watering, maintenance) and some meeting facilitation.
Option 2:
• Move forward with status quo of rate, invoicing structure, and meeting schedule.
o This would generate approximately $90k of new funding
o PBIA would need to develop a preferred budget and work plan.
o This model is potentially compromised by City’s ability to guarantee staffing capacity. Requires clarification from City.
Neighborhood/Community Interests (if known):
The conversation centers around working to find a more effective and valuable model for addressing the needs and interests of the PBIA. This includes a majority of all downtown businesses.
Options:
1. Have the advisory committee discussion.
2. Do not have the committee discussion.
Financial Impact:
There is no financial impact associated with the discussion at this time, however one contemplated scenario does include the concept of removing the fee payment by downtown businesses and utilizing reserves for program expenses.
The anticipated program reserves entering 2025 are approximately $80,000 - $85,000.
Attachments:
N/A