Title
2027 Downtown Enhanced Municipal Services District Budget, Assessments and Public Hearing Date (Resolution 22399) - Districts 7 and 8
Description
Request City Council approval of the 2027 Downtown Enhanced Municipal Services District (Downtown EMSD) proposed budget, assessments on the Downtown EMSD, and setting of the date of November 18, 2026, for the Public Hearing on the estimated assessments, pursuant to Arizona Revised Statutes Section 48-575. The General Fund estimated annual expenditure for this program is $456,977.
Report
Summary
The City Council authorized the formation of the Downtown EMSD in 1990 to provide enhanced public services above and beyond the level of services provided in the remainder of the City. Costs for the Downtown EMSD’s services are paid through assessments on property owners within the Downtown EMSD boundaries. The City contracts directly with Downtown Phoenix, Inc. (DPI) to implement the work program, as described in Attachment A, of the Downtown EMSD. The Downtown EMSD is generally bounded by Garfield Street, 7th Street, 3rd Avenue, and the railroad tracks south of Jackson Street.
2027 Downtown EMSD Proposed Budget
The work plan and budget for calendar year (CY) 2027 provide a variety of enhanced services in the Downtown core, including business improvement services and overall business development.
In June 2026, the Downtown EMSD Board of Directors, which includes representatives of the City and other Downtown EMSD property owners, approved the proposed CY 2027 Downtown EMSD budget of $5,115,863. Attachment B includes a breakdown of the expense categories. Included in the proposed budget is $183,915 for streetscape maintenance expenses, which are paid only by property owners and tenants adjacent to the Streetscape Improvement District. The Streetscape Improvement District includes certain portions of Monroe Street from 3rd Avenue to 7th Street; Adams Street from 2nd Avenue to 2nd Street; 2nd Street from Jefferson to Van Buren streets; and 3rd Street from Monroe to Van Buren streets.
The proposed CY 2027 Downtown EMSD budget of $5,115,863 represents a decrease of $125,090 compared to the CY 2026 Downtown EMSD budget. The decrease in the total budget results from an adjustment in the non-assessment budget to better reflect actual historical non-assessment revenue and more accurate estimating of future revenue. The budget also includes a small increase to assessment revenue to address rising cost of the organization. The CY 2027 assessments for the Downtown EMSD will be levied after the required Downtown EMSD approval process has been completed. Assessments are determined in proportion to the benefits received by each parcel. The proposed assessments and 2027 Downtown EMSD Diagram are based on the estimate of expenses and property data available as of June 22, 2026.
- Estimated CY 2027 District Budget: $5,115,863
- Estimated CY 2027 Assessment Revenue: $5,040,863
- Estimated CY 2027 Non-assessment Revenue: $75,000
Public Hearing Date
It is requested that the City Council set the date of November 18, 2026, as the date for the Public Hearing on the 2027 Downtown EMSD assessments.
Financial Impact
The City's total estimated annual expenditure for this program is $1,341,334, which includes:
- $456,977 from the General Fund (approximate $4,960 increase from 2026)
- $673,373 from the Phoenix Convention Center
- $161,086 from the Sports Facilities Fund
- $49,897 from the Phoenix Bioscience Core
Concurrence/Previous Council Action
The Economic Development and the Arts Subcommittee approved the CY 2027 Downtown EMSD work plan and budget on September 9, 2026, by a vote of 4-0.
Public Outreach
A public hearing will be held for property owners to discuss the proposed assessments, costs, and services provided in connection with the Downtown EMSD. If this request is approved, the public hearing will be set for November 18, 2026, at 2:30 p.m., in the Phoenix City Council Chambers. All property owners are notified by mail of their annual assessment costs by the Street Transportation and Community and Economic Development departments no fewer than 20 days prior to the public hearing. Notice of the public hearing will also be published on November 2, 2026, and November 4, 2026, in the Record Reporter. No further notification is required after the public hearing.
Location
The Downtown EMSD is generally bounded by Garfield Street, 7th Street, 3rd Avenue, and the railroad tracks south of Jackson Street.
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer, Deputy City Manager Frank McCune, and the Community and Economic Development and Street Transportation departments.