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Business Improvement Districts Dismayed by City's Money Management

Patrick Edwards is president of San Diego’s business improvement district council, a coalition of the 17 business improvement districts throughout the city. Edwards appeared before the Public Safety and Neighborhood Services Committee on Wednesday, March 16, with complaints that the City isn’t transferring funds to each business district on time.

The districts are composed of businesses in older commercial areas. Each business pays an assessment of $50 to $500 per year to the City. That money gets funneled back to the local business-improvement district and is spent on marketing, recruiting new businesses, and beatification projects along the business corridor. The businesses in the 17 districts pay a total of $1.3 million in assessments each year.

Edwards says the districts aren’t getting their money on time and are often unaware of how much money they have in the bank. As a result, many of the districts are overdrawing their accounts. In the third quarter this fiscal year, North Park’s business improvement district spent $12,000 more than they had, and El Cajon Boulevard business improvement district overspent by $17,000.

“Any delay in reimbursement is causing the [districts] to spend money that they really don’t have,” Edwards told the committee. “Direct access to the capital is critical to the success of the [business-improvement] districts.”

After Edwards gave his comments, executive directors from many of the 17 business districts spoke to the successes in their individual business districts.

“It’s an issue that’s impacting our bids, and we do take that very seriously,” said councilmember Todd Gloria. “These are the organizations that are improving our communities.”

Committee chair Marti Emerald informed Edwards that the committee would address the concerns during their next meeting on April 13.

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Patrick Edwards is president of San Diego’s business improvement district council, a coalition of the 17 business improvement districts throughout the city. Edwards appeared before the Public Safety and Neighborhood Services Committee on Wednesday, March 16, with complaints that the City isn’t transferring funds to each business district on time.

The districts are composed of businesses in older commercial areas. Each business pays an assessment of $50 to $500 per year to the City. That money gets funneled back to the local business-improvement district and is spent on marketing, recruiting new businesses, and beatification projects along the business corridor. The businesses in the 17 districts pay a total of $1.3 million in assessments each year.

Edwards says the districts aren’t getting their money on time and are often unaware of how much money they have in the bank. As a result, many of the districts are overdrawing their accounts. In the third quarter this fiscal year, North Park’s business improvement district spent $12,000 more than they had, and El Cajon Boulevard business improvement district overspent by $17,000.

“Any delay in reimbursement is causing the [districts] to spend money that they really don’t have,” Edwards told the committee. “Direct access to the capital is critical to the success of the [business-improvement] districts.”

After Edwards gave his comments, executive directors from many of the 17 business districts spoke to the successes in their individual business districts.

“It’s an issue that’s impacting our bids, and we do take that very seriously,” said councilmember Todd Gloria. “These are the organizations that are improving our communities.”

Committee chair Marti Emerald informed Edwards that the committee would address the concerns during their next meeting on April 13.

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1

No surprise here; the city is broke and is having cash flow problems. The city is also woefully mismanaged, and that shows up in matters such as these. No surprise.

March 17, 2011

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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