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SUBA reports sharp fall in assessment collections; council accepts report and sets process to consider next year’s levy
Summary
Salinas United Business Association (SUBA) presented its FY24–25 annual report showing a collection rate of roughly 40% of assessments and proposed reduced activities for FY25–26. The council received the report and approved the resolutions to proceed with the levy process; members urged SUBA to pursue new revenue and cut costs.
The Salinas United Business Association (SUBA) presented its annual report for fiscal year 2024–25 and a proposed FY25–26 budget at the Aug. 12 City Council meeting. Executive Director Alejandro Chavez told council that SUBA’s assessment collections had fallen to about 40% of the billed amount in 2024–25 and that SUBA intends to reduce programming and staff hours to match lower revenues.
Key figures and operations: SUBA reported assessments billed of $100,440 for FY24–25 but collections of $40,550. The organization recorded total income (including other sources) of roughly $155,762 and an ending fund balance of approximately $14,092. For FY25–26 SUBA proposed a conservative budget (~$132,000) and scaled-back goals for marketing, member services, safety meetings and one large ambassador cleanup.
Council discussion: Council members acknowledged SUBA’s outreach and praised Director Chavez for continued work with local businesses. Several council members urged SUBA to pursue alternate funding and partnerships (including microloan and opportunity-fund connections) and to tighten cost controls; staff and SUBA discussed potential shared workspace and reduced rent options. SUBA said a prior contract partner (MCBC) would no longer provide contracted outreach services because federal funding had ended.
Action taken: The council received the FY24–25 annual report and approved a resolution of intention to levy and collect assessments for the SUBA business improvement area for FY25–26 and to set a hearing process; council also authorized staff to proceed with the schedule for public notice and a future hearing on the final levy. The council vote to receive the report and set the hearing passed unanimously among members present.
Why it matters: Lower collection rates directly limit SUBA’s capacity to provide services that business owners cited as valuable: storefront marketing, ambassador cleanups and 1-on-1 business assistance. SUBA intends to focus limited funds on primary services and to seek alternative grants and partnerships to sustain programming.
Ending: Councilmembers thanked SUBA for the presentation and urged greater outreach to improve assessment compliance. Council adopted the staff resolutions to proceed with the levy-notice process and will hear the final levy at a noticed public hearing.
