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<br />18 <br /> <br />Section 4 <br />Assessment Methodology <br /> <br />The Downtown San Leandro CBD is a property-based benefit assessment district being <br />established pursuant to the San Leandro Community Benefit District Ordinance Title 2, <br />Chapter 2 - 20, (“the Ordinance”) adopted unanimously by the San Leandro City Council on <br />November 19, 2012. Due to the special benefit assessment nature of assessments levied <br />within a CBD, program costs are to be distributed amongst all identified specially benefiting <br />properties based on the proportional amount of special program benefit each property is <br />expected to derive from the assessments collected. The Ordinance refers to the concept of <br />relative “benefit” received from CBD funded programs and activities versus amount of <br />assessment paid. Only those properties expected to derive special benefits from CBD <br />funded programs and activities may be assessed and only in an amount proportional to the <br />relative special benefits expected to be received. <br /> <br />The method used to determine special benefits derived by each identified property within a <br />CBD begins with the selection of a suitable and tangible basic benefit unit. For property <br />related services, such as those proposed in the Downtown San Leandro CBD, the benefit <br />unit may be measured in terms of in linear feet of primary street frontage or parcel size in <br />square feet or building size in square feet or number of building floors or proximity to major <br />corridors in average linear feet, or any combination of these factors. <br /> <br />Based on the factors described above such as geography and nature of programs and <br />activities proposed, an assessment formula is developed which is derived from a singular or <br />composite basic benefit unit factor or factors. Within the assessment formula, different <br />factors may be assigned different “weights” or percentage of values based on their <br />relationship to programs/services to be funded. <br /> <br />Next, all program and activity costs, including incidental costs, District administration and <br />other program costs, and benefit zones are estimated. There are two benefit zones in the <br />proposed Downtown San Leandro CBD. Proposition 218 requires that indirect or general <br />benefits not be incorporated into the assessment formula and levied on the District <br />properties in property based assessment Districts; only direct or “special” benefits and costs <br />may be considered. Indirect or general benefit costs, if any, must be identified and, if <br />quantifiable, calculated and factored out of the assessment cost basis to produce a “net” <br />cost figure. <br /> <br />In addition, tax exempt, non-profit and other public or government owned properties are <br />not exempt from being assessed and if special benefit is determined to be conferred upon <br />government owned properties, then those properties must be assessed in proportion to the <br />special benefits conferred in a manner similar to privately owned property assessments. <br />