The Davis City Council will hold a public hearing Nov. 17 at 6:30 p.m. on renewing the Downtown Business Improvement District assessment for 2027-28. On Oct. 20 the council approved, as part of its consent calendar, the resolution of intention that sets the hearing; one council member abstained, citing being a business owner, and staff said the details would be discussed at the hearing. The assessment, created in 1988, is collected from businesses in two benefit zones — the Core Area Benefit Zone and the Periphery Core Benefit Zone — and passed through to the Davis Downtown Business Association. Under the city code it is to be used to promote businesses and public events in the district, furnish music, decorate public places, and acquire or maintain parking. Since 2009, the fees have risen 3% a year.
Every business in the district is a member and pays according to its business type. The amounts below are the assessments for the Core Area Benefit Zone; businesses in the Periphery Core Benefit Zone pay 75% of the amount due, as stated in the assessment schedule. Of the 487 businesses expected to receive renewal notices, the 42 holding individual business licenses would pay $71.90 in 2027. The 346 retail, service and professional businesses pay on a sliding scale based on gross receipts. The schedule does not stop at $2 million: it carries a separate bracket for receipts of $2,000,001 and above, whose fee is higher than the $1,950,001-$2,000,000 bracket below it — $2,421.58 versus $2,363.71 for a retail business in 2027. Financial institutions would pay $813.62, branch establishments $27.16, and commercial leasing businesses $175.35 for their first property plus $87.69 for each additional one. A retail business with $950,001 to $1 million in gross receipts, for example, would pay $1,200.77 in the core zone in 2027, up from $1,165.79 in 2026 — or 75% of that amount in the periphery zone. Nonprofit charitable organizations are exempt. The city’s finance department counted 549 participating businesses in 2025-26 and 486 in 2026-27.
The city estimates the assessment will raise about $215,000 in 2027, based on current billing practices. The association’s proposed 2027-28 budget, which its board approved Oct. 5, counts on $265,000 in assessment fees out of $304,300 in total income. It would spend $166,970 on marketing and promotions, $92,850 on payroll, $33,600 on general administration and $10,000 on downtown beautification. The staff report doesn’t explain the difference between the two revenue figures. Collecting the assessment costs the city’s General Fund about $5,000 a year, plus about $12,000 for the annual renewal and for administering the pass-through agreement; the report notes that the council has considered recovering those costs from the assessments in the past.
Any business that would be charged can file a written protest with the city clerk at 23 Russell Blvd. before the hearing closes, or withdraw one filed earlier. A protest must state all grounds for objecting and identify the business and its owner. At the hearing, the council will consider protests and comments, how the money has been used and the proposed budget in deciding whether to renew, and it may change the activities, improvements or assessment. The city is to mail notice of the hearing to businesses in the district.