Downtown board backs 2.6% assessment increase, shifts beautification costs to parking fund amid trolley funding questions

The Downtown Management Board negotiated several budget changes and direction on downtown programming on Thursday, approving a 2.6% assessment increase and agreeing to move downtown beautification costs from the programs-and-services budget into the city parking fund.

The board’s discussion focused on how sponsorships and parking revenues should be allocated and on the long-term health of the programs-and-services fund. Amy (staff member) told the board that “we're projecting or hoping to get $14,000 in revenues to support the programs and services budget,” a sponsorship figure that prompted questions about where trolley-related sponsorship money is recorded.

Amy said the marketing and programs budget will include event line items such as winter activities, concerts and steady marketing work: “The image campaign…we are proposing to put at $32,000,” she said, describing the campaign as funding digital billboards, website software and broader downtown promotion rather than single events.

Nut graf: The board approved a modest assessment increase to sustain downtown programs while shifting some recurring placemaking costs to the parking fund to reduce pressure on the events budget. Members said they want clearer accounting for sponsorships tied to the trolley and a multi-year plan to avoid depleting fund reserves.

Board members pressed staff for clearer revenue and expenditure flows related to the trolley. April (parking staff) reported that, as of Aug. 10, trolley ridership totaled 2,044 riders, averaging about 59 riders a day. She also estimated the trolley’s cost per rider at roughly $11.90 based on 2025 expenses. Board members noted that sponsorship revenue of $14,000 for the trolley appears in the programs-and-services revenues while the trolley’s operating costs are recorded in the parking fund, creating a bookkeeping disconnect that staff said stemmed from earlier decisions to use sponsorships for downtown marketing.

Board discussion and staff responses

• Beautification and fund balance: Amy described the proposed reallocation of flowers, fall decorations and holiday lights to the parking fund as a shift of placemaking costs to user fees tied to parking. The move reduces the programs-and-services expenditures by approximately $27,000, she said. Board members warned the reallocation does not eliminate the need for a long-term plan and urged a multi-year capital plan for parking assets to avoid future large deficits.

• Assessment, sponsorships and reserves: The board signaled support for a 2.6% assessment increase to align with cost-of-living adjustments. Several members expressed concern about continuously drawing down fund balance and advised either raising revenues or cutting expenditures to avoid future service reductions. Amy said programs-and-services may draw about $35,000 from fund balance in the next budget cycle but projected the fund balance would remain roughly $150,000 in 2026.

• Events and marketing: Staff reported the downtown offers a portfolio of events and programs. Missy (marketing staff) said summer events such as “Sounds of Summer” drew between about 100 and more than 250 people per concert, and the movie series this year used credits rolled over from prior rainouts. Event budgets discussed included a $12,500 estimate for Sounds of Summer Bliss Fest and a $1,000 cash contribution to the farmers market (plus in-kind meter bags and parking space use). The holiday parade budget was shown as $5,000, with the downtown providing $3,000 to Rotary to run the parade and aspiring to raise additional sponsorship funds to cover marketing.

Why it matters: Board members said the programs-and-services fund supports marketing and events that drive downtown activity. But members repeated that without clearer accounting, long-term planning and reliable sponsorship growth, the board could face the need to cut programs or raise assessments more sharply in future years.

Votes at a glance

• Assessment increase: The board indicated consensus to propose a 2.6% assessment increase for the coming year (voice consensus; no roll-call vote recorded in the transcript).

• Budget direction: The board directed staff to prepare a revised budget incorporating the discussed reallocation of beautification costs to the parking fund and to return with a revised budget at the September meeting.

What’s next: Staff said it will return with a revised programs-and-services budget at the board’s September meeting, provide more detailed trolley operating costs in the parking fund materials and continue outreach to secure additional event sponsorships and clarify fund flows.

Ending: Board members also urged that the downtown and parking funds be treated as parallel but explicitly coordinated budgets, recommending creation of multi-year projections for parking capital needs so funds are preserved for future lot repairs and large-ticket projects rather than spent on ongoing programming.