Title
Public Hearing and Resolution to Approve the 2020 Downtown Enhanced Muncipal Services District Assessments (Resolution 21792)
Description
Request to hold a public hearing for the approval of the 2020 Downtown Enhanced Municipal Services District (EMSD) assessments and adopt a resolution approving such assessments for the 2020 calendar year. The City's estimated annual expenditure for this program is $1,329,856.
Report
Summary
Pursuant to State law, a public hearing must be held prior to the annual adoption of the assessments for the Downtown EMSD. 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 costs for the Downtown EMSD’s services are paid through assessments on property owners within the Downtown EMSD boundaries, which are generally bounded by Fillmore Street on the north, 7th Street on the east, 3rd Avenue on the west, and on the south by the railroad tracks south of Jackson Street. The City contracts directly with Downtown Phoenix, Inc. (DPI) to implement the work plan of the Downtown EMSD. The work plan and budget for calendar year 2020 provides a variety of enhanced services in the Downtown EMSD area, including the Ambassadors, streetscape improvements and maintenance, a Clean Team, marketing, events, economic and community development, and transportation services.
The annual assessments for the Downtown EMSD will be levied for the 2020 calendar year after the required legal process for the Downtown EMSD has been completed. Assessments are determined in proportion to the benefits received by each parcel. There are approximately 785 parcels in the Downtown EMSD that the budget will be assessed on. This is based on the approved Downtown EMSD assessment diagram that indicates the properties to be assessed for enhanced municipal services. This diagram is on file in the office of the Director of the City of Phoenix Street Transportation Department, and was posted online at the City's Community and Economic Development Department website.
The figures below represent the assessments for private and public property owners based on the approved 2020 Downtown EMSD budget of $4,069,672. This includes $156,315 for streetscape maintenance expenses, which are paid only by property owners and tenants adjacent to the Streetscape Improvement District, as shown below.
Downtown Enhanced Municipal Services District Calendar Year 2020 Assessments
Private Property Owners Assessments: $1,865,313
Public Property Assessments: $2,204,359
Total Assessments: $4,069,672
Streetscape Maintenance Expenses (expenses included in the figures above)
Private Property Owners Assessments: $90,883
Public Property Assessments: $65,432
Total Streetscape Expenses: $156,315
Financial Impact
The City's estimated annual expenditures for this program are $1,329,856, which includes: $377,169 from the General Fund; $559,892 from the Phoenix Convention Center; $133,738 from the Sports Facilities Fund; $9,342 from the Genomics Facilities Operations and Maintenance Fund; and $249,715 from collections from tenants on City-owned properties. An additional $874,503 is collected from other government-owned properties including Maricopa County, Maricopa County Stadium District, and the State of Arizona. The remaining $1,865,313 of funds are collected from private property owners through an assessment on their property tax bills. The total amount for the calendar year 2020 Downtown EMSD budget is $4,069,672.
Concurrence/Previous Council Action
On Oct. 16, 2019, the City Council approved the Downtown EMSD 2020 estimate of expenses, assessment of expenses, the Downtown EMSD assessment diagram, and set the date of Nov. 6, 2019, for the hearing on the estimated assessments. The work plan and budget were recommended for approval by the Workforce and Economic Development Subcommittee on Sept. 25, 2019 by a vote of 3-0.
Public Outreach
On Oct. 16, 2019, the City Council set the date of Nov. 6, 2019 as the date for the public hearing on the Downtown EMSD assessments. On Oct. 16, 2019, a total of 21 days prior to the hearing, which is greater than the legally required 20 days, all property owners were notified by mail of their annual assessment cost by the Street Transportation and Community and Economic Development departments. In addition to the budget and work plan being recommended by the Workforce and Economic Development Subcommittee on Sept. 25, 2019, DPI has sent letters to all property owners, and the Downtown EMSD Board approved the 2020 budget at its June 2019 board meeting.
Location
The Downtown EMSD is generally bounded by Fillmore Street on the north, 7th Street on the east, 3rd Avenue on the west, and on the south by the railroad tracks south of Jackson Street.
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, and the Street Transportation and Community and Economic Development departments.