City Council unanimously approves FY27 business improvement district budgets

San Diego City Council on May 11 approved the fiscal year 2027 business improvement district (BID) budgets, a package staff said will fund programs that support roughly 12,000 businesses across 18 districts.

Economic Development Department representatives told the council the city expects to collect about $1.5 million in assessments next fiscal year to underwrite BID services, such as technical assistance, marketing and placemaking. Sean Plaistead, a small-business engagement specialist, said the program is authorized under the Parking and Business Improvement Area Law and is designed to boost local commercial corridors.

Multiple BID leaders called the funding essential. “Programs like SBEP and arts and culture funding are not extras for our BIDs — they’re part of how we drive business into our districts,” Sunny Lee, president of the San Diego BID Alliance and executive director for Discover Pacific Beach, said in support. “When our districts are working, businesses see more customers, more activity, and that also translates into revenue for the city.”

Ben Nichols, executive director of the Hillcrest Business Association, said the BID program leverages private investment, estimating that for every dollar invested by the city BIDs raise an additional $19 in local spending. Jody Rudick, executive director of the La Jolla BID, warned that assessment fees are fixed even as event and operating costs rise, and urged continued support for the Small Business Enhancement Program.

Councilmember Raul Campillo moved to approve the staff recommendation; Councilmember Whitburn seconded. The council voted to adopt the budgets; the clerk announced the motion passed and noted two members were absent for the vote.

The action authorizes the city’s chief financial officer to appropriate and transfer assessment revenues, extends BID management agreements for another year with contractual amendment authority, and allows the mayor to execute the amended contracts. Staff said BIDs are required to post annual performance reports and must meet accountability provisions, including nondiscrimination and anti-harassment policies for board members.

Council members thanked BID staff and leaders for outreach and program performance and said the budgets will help small businesses facing rising operating costs.