Title
2021 Downtown Enhanced Municipal Services District Work Plan and Budget
Description
This report requests the Workforce and Economic Development Subcommittee recommend City Council approval of the 2021 Downtown Enhanced Municipal Service District (EMSD) work plan and budget, as outlined in this report.
THIS ITEM IS FOR CONSENT ACTION.
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. The Downtown EMSD is generally bounded by Fillmore Street, 7th Street, 3rd Avenue and the railroad tracks south of Jackson Street. The costs for the Downtown EMSD's services are paid through assessments on property owners within the Downtown EMSD boundaries, representing approximately 785 parcels.
Arizona state law requires that the City Council take action annually to approve an estimate of expenses and a diagram showing the corresponding assessments upon individual properties within the Downtown EMSD. Once the property assessments have been determined, the City Council must hold a public hearing, and pass a Resolution, declaring the final assessment amount.
The City contracts directly with Downtown Phoenix, Inc. (DPI) to implement the work plan via the Downtown Phoenix Partnership, as described in Attachment A, for the Downtown EMSD, as approved by City Council on June 17, 2020. The work plan and budget for calendar year 2021 provides a variety of service enhancements in the downtown core, including the Ambassadors, streetscape improvements and maintenance, the Clean & Green Team program, marketing, event promotion, business assistance and transportation services.
This action is the first of three City Council actions required annually to approve the Downtown EMSD budget, work plan and assessments. Subject to the WED Subcommittee recommendation, in fall 2020, the City Council will be asked to tentatively adopt the calendar year 2021 Downtown EMSD budget and assessment diagram, and to provide notice of a public hearing to also be held this fall at a future Formal City Council meeting. Once the City Council tentatively adopts the calendar year 2021 EMSD budget and assessment diagram, City staff will distribute letters to all private-property owners notifying them of their proposed assessments, and the date of the public hearing. At that hearing, the City Council can receive public comment and then consider final approval of the 2021 Downtown EMSD budget and assessments.
Financial Impact
In June 2020, the Downtown EMSD Board of Directors, which includes representatives of the City and other Downtown EMSD property owners, approved the calendar year 2021 proposed Downtown EMSD budget of $3,662,705. This includes $140,684 for streetscape maintenance expenses, which are paid only by property owners and tenants adjacent to the Streetscape Improvement District.
This proposed budget represents a 10 percent decrease from the calendar year 2020 budget resulting in a decrease of approximately $406,967. The decrease is driven by the impacts of the COVID-19 pandemic on the economy. The proposed work plan shows decreases in events, marketing and improvement services. There are some slight increases to business development and field services such as homeless outreach, streetscape improvements and public art displays.
The City’s proposed 2021 General Fund assessments total approximately $339,491, representing an approximately $37,679 decrease from 2020. Assessments for the Phoenix Biomedical Campus land the City is responsible for, the Phoenix Convention Center and Talking Stick Resort Arena total approximately $632,746.
Location
The Downtown EMSD is generally bounded by Fillmore 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 Deputy City Managers Jeff Barton and Mario Paniagua, and the Street Transportation and Community and Economic Development departments.