The council unanimously backed the 2005-06 budget and fee increase at its June 28 meeting. This is the first time in 15 years that the association has raised the mandatory fees used to maintain the neighborhood business district.

"We are faced with a shrinking budget and we need to expand our services to benefit our constituents," said Marvin Bamburg, association treasurer and owner of MBA Architects Inc.

The budget outlines a fee increase from $55,000 to $110,000 that includes $11,500 for association member service programs, such as membership mixers, website maintenance and a new business directory. The additional revenue will also provide $20,400 for beautification, including sidewalk washing and holiday decorations. The largest portion of the fees, $78,100, will be used to promote downtown Willow Glen through marketing and advertising.

"The percentage we're increasing sounds high, but the actual dollar amount is not," Bamburg told the council.

As a business and property owner, Bamburg pays two fees, totaling $240 annually. The increase would bring his fees to $350 annually.

Association vice president Tom Trudell, who owns the Bergman Building, also told the council he supported the fee increase.

"I think we've got a rosy future ahead of us," said Trudell, who sees the fee hike as a shot in the arm for the business association and its ability to meet its long-term strategic goals.

However, not everyone was pleased. Lincoln Avenue businesses between Coe Avenue and Willow Street submitted a petition calling the fee increase inequitable.

"We acknowledge that by no fault of the association, the businesses between Willow and Minnesota benefit more than the businesses between Coe and Willow," Water Rituals Salon & Gallery owner Susan Herrold told council members.

The majority of foot traffic on Lincoln Avenue is concentrated between Willow Street and Minnesota Avenue, she said. The petition requested a moratorium to find a more equitable fee increase for businesses between Coe Avenue and Willow Street, she said. Ninety-eight percent of businesses in the area along the northern section of Lincoln Avenue signed the petition.

San Jose District 6 Councilman Ken Yeager, a supporter of the proposed fee increase from the start, said, "I think it's going to be the best thing for the avenue."

However, he requested that business association board member Michael Mulcahy and executive director Norma Ruiz address the concerns of the businesses between Coe Avenue and Willow Street.

Nearly 400 businesses in downtown Willow Glen between Coe and Minnesota avenues are mandatory members of the association. For the increase to have failed, more than 50 percent of businesses had to protest the increase to the city in writing; however, the city also applies a weighted value to each business based on its size. Only 33 percent protested the increase, including the petitioners.