Council approves FY2027 BID budgets after appeals to codify small‑business funding

The San Diego City Council on April 6 approved staff recommendations to extend fiscal year 2027 business improvement district (BID) budgets, after a series of public comments urging the city to codify and stabilize the Small Business Enhancement Program (SBEP).

Sunny Lee, representing the San Diego Business Improvement District Alliance, told the council that SBEP needs a consistent policy framework. "We're here today to ask the city to codify and stabilize the Small Business Enhancement Program, Council Policy 900‑15, ensuring consistent predictable funding for bids and for programs aligned with small businesses," Lee said.

Economic Development Department staff presented the item and said the city’s BID program covers 18 active districts managed predominantly by nonprofit business associations and is expected to collect about $1,500,000 in assessments from roughly 12,000 businesses for FY27. Staff said BIDs deploy assessments for events, marketing and neighborhood revitalization, and that annual performance reports include metrics on revenue and expenditures.

Multiple district leaders described local uses for BID funds. Benjamin Nichols, executive director of the Hillcrest Business Association, said the program helps support events and drives local spending: "Every dollar you invest through the Business Improvement District program, we generate an additional $19 in expanded services," Nichols said. Wesley Quach of City Heights CDC described SBEP as critical to historically underserved neighborhoods and urged the council not to balance budget gaps on small communities.

Council members praised BID work and asked staff operational questions. When the council asked about assessment collection rates, EDD program manager Sean Karafin replied that overall collection is "just under 90%," with a range of about 85% on the low end to about 93% on the high end across districts.

Council Member Campillo moved to approve the staff recommendation; Council Member Whitburn seconded. The clerk recorded the motion as passing unanimously, 8‑0, with Council President Pro Tem Lee absent.

The vote authorizes the series of administrative steps required by state law to extend BID agreements for one year and to set a public hearing notice date for May 11, 2026. Staff said a second council meeting will be scheduled to confirm actions and to authorize the mayor to execute related contracts.

The council’s action preserves existing BID budgets for the coming year while leaving broader budget discussions and the formal codification of SBEP to follow in subsequent budget and policy processes.