The Petaluma City Council on Monday will revisit its annual downtown business assessment district, usually a routine matter that became unexpectedly controversial last year.
The tax was enacted in 2000 when downtown business owners sought a way to raise funds for their specific interests - security, beautification and marketing - and persuaded the council to approve the self-imposed "business improvement district."
The Petaluma Downtown Association administers the annual tax proceeds of about $50,000 from 600 businesses. Revenues from the tax are administered with no City Council intervention other than approval of a budget the downtown association submits.
But late last year as the council was preparing to approve the association's budget, several downtown business operators asked the council to consider ending the tax district or taking over its administration.
They said they were concerned that the tax was being spent inefficiently and without input of those affected.
Several downtown retailers complained that their taxes, between $41 to $500 a year depending on size and type of business, weren't helping keep their streets and sidewalks clean, nor providing the additional security they wanted. Bar operators, whose patrons sometimes vomit or urinate in or near other businesses on weekend nights, drew much of the ire.
Since the merchants went public with their concerns in December, representatives from the downtown association and merchants have met several times to try to resolve problems.
The city has also agreed to use extra hotel-tax funds to take over additional street - and sidewalk - cleaning duties that the downtown tax used to fund.
New Petaluma Downtown Association president Chris Aluia, who operates Lions & Tigers & Hair on Kentucky Street, said the meetings have resulted in better communication and increased participation by some of the concerned business owners.
"We're all on board," she said. "All of the meetings have been very positive. We're working together now."
On Monday, the council will hear public comments on the levy and determine whether the budget should be approved. The submitted budget can only be changed by a written protest of businesses that pay more than 50 percent of the total assessments.
The meeting begins at 7 p.m. at City Hall, 11 English. St.
(You can reach Staff Writer Lori A. Carter at 762-7297 or lori.carter@pressdemocrat.com.)
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