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Council unanimously approves FY2026 business improvement district budgets
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Summary
City Council approved the city’s FY2026 Business Improvement District budgets 9–0 after presentations highlighting performance metrics, oversight changes, and requests for clearer accountability and district‑level KPIs.
The San Diego City Council on May 12 unanimously approved the fiscal year 2026 budgets and related actions for the city’s Business Improvement Districts (BIDs), confirming earlier procedural steps and authorizing staff to proceed with appropriations and contract execution.
Sean Plaistad and Sean Keraffin of the Economic Development Department summarized the program’s purpose and legal basis under the Parking and Business Improvement Area Law of 1989. Staff said the city currently oversees 18 active BIDs managed by nonprofit associations and estimated the city will collect about $1,500,000 in assessments from roughly 12,000 businesses for FY2026.
“Every year, council considers approving a one‑year extension to the agreement,” staff said, describing the required two‑meeting process and noting additional accountability provisions in the agreements, such as anti‑harassment and nondiscrimination policies and conflict‑of‑interest procedures.
Public comment included BID managers, business leaders and chamber representatives who urged continued support for small businesses, emphasized the need for technical assistance and marketing, and called for flexibility to address rising closures and economic pressure. One public speaker asked why short‑term vacation rentals are not assessed as businesses in BID areas.
Council members discussed variance in BID effectiveness across neighborhoods and asked for more district‑level KPIs and clearer accountability measures. Council member Whitburn made the motion to adopt the staff recommendation; Council member Campillo seconded. The motion passed 9–0.
Council members said they want follow‑up briefings and additional district data so they can explain results to constituents. Staff noted that every assessment dollar has a paper trail and that the city reviews expenditures for appropriateness; leveraged dollars from events and other sources vary by district.
Because this action confirms budgets and authorizes appropriations and contract extensions, staff will proceed with implementing the FY2026 BID budget actions approved by council.
