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Olympia keeps downtown PBIA levy at $0 for 2026 while evaluation proceeds
Summary
On Dec. 16 the Olympia City Council set the 2026 Downtown Parking Business Improvement Area assessment rate at $0, citing an ongoing program evaluation due in February 2026; the PBIA advisory board unanimously recommended the pause to allow a roadmap for future rates and administration.
Olympia — The City Council on Dec. 16 approved an ordinance on first and final reading to set the 2026 Downtown Parking Business Improvement Area (PBIA) assessment rate at $0 while the city and advisory board complete an evaluation of the district.
Jenica Machado, the city’s economic development division director, told the council the PBIA — authorized under Olympia Municipal Code 3.62 and state law (RCW 35.87A) — was formed in 2005 and today covers roughly 500 downtown businesses. The advisory board and staff recommended a $0 rate for 2026 to allow a consultant-led evaluation to assess rate structure, ratepayer tracking, administrative practices and a phased implementation roadmap. The evaluation is expected to be complete by February 2026.
“Setting the 2026 assessment at zero gives us time to complete the evaluation and craft an equitable, sustainable rate structure,” Machado said. She described typical PBIA programs — beautification, marketing and clean-and-safe work — and noted nonpayment historically runs about 5–10%.
Mayor Pro Tem Potem Nguyen moved approval on first and final reading; the motion was seconded and adopted by voice vote. The PBIA advisory board had voted unanimously to support the $0 rate. Councilmembers said the pause was designed to protect downtown businesses while staff and the advisory board complete analysis and outreach.
The council’s action amends OMC 3.62. Staff will return with recommended rate changes and an implementation plan after the February evaluation.
