Title
2020 Downtown Enhanced Municipal Services District Estimate of Expenses, Assessment of Expense and Set Public Hearing Date (Resolution 21787)
Description
Request the City Council approve the 2020 Downtown Enhanced Municipal Services District (Downtown EMSD) estimate of expenses, assess this total on the Downtown EMSD, and set the date of Nov. 6, 2019 for the public hearing on the estimated assessments, pursuant to Arizona Revised Statutes (A.R.S.) 48-575. The City of Phoenix estimated annual expenditure for this program is $1,329,856.
Report
Summary
The City Council authorized 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. 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 Fillmore Street, 7th Street, 3rd Avenue and the railroad tracks south of Jackson Street.
2020 Downtown EMSD Estimate of Expenses
The work plan and budget for 2020 provides a variety of enhanced services in the downtown core, including the Ambassadors program, streetscape improvements and maintenance, the Clean Team program, marketing, event promotion, business assistance and transportation services.
In June 2019, the Downtown EMSD Board of Directors, which includes representatives of the City and other Downtown EMSD property owners, approved a proposed 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. 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 Street to Van Buren Street; and 3rd Street from Monroe Street to Van Buren Street.
This proposed budget represents a 3.74 percent increase over the 2019 budget. The total increase is approximately $146,892, and is distributed among the approximately 785 parcels in the Downtown EMSD. The increase is driven by fixed costs (utilities, liability insurance and health insurance) and does not add new full-time employees. DPI continues to increase services including improving walkability by adding and maintaining trees, trash pickup, graffiti removal and assistance with conventions. These expenses are outlined below.
Estimated District Expenses: $3,913,357
Estimated Streetscape Maintenance Expenses: $156,315
Total estimated of District Expenses: $4,069,672
Assessment of Expenses
The annual assessments for the Downtown EMSD will be levied for the 2020 calendar year after the required Downtown EMSD approval process has been completed. Assessments are determined in proportion to the benefits received by each parcel.
The proposed 2020 Downtown EMSD assessment diagram indicates the properties to be assessed for enhanced municipal services. This proposed diagram is on file in the Office of the Director of the City of Phoenix Street Transportation Department. The proposed assessments and diagram are based on the estimate of expenses and property data available as of May 7, 2019. The proposed 2020 Downtown EMSD assessment diagram was completed on June 10, 2019.
Public Hearing Date
It is requested that the City Council set the date of Nov. 6, 2019 as the date for the public hearing on the 2020 Downtown EMSD assessments.
Financial Impact
The City's estimated annual expenditure for this program is $1,329,856, which includes: $377,169 from the General Fund (which represents an approximately $9,053 increase from 2019); $559,892 from the 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.
Concurrence/Previous Council Action
This item was recommended for approval at the Workforce and Economic Development Subcommittee meeting on Sept. 25, 2019, by a vote of 3-0.
Public Outreach
A public hearing will be held for property owners to discuss the proposed assessments, costs, and services for the 2020 calendar year provided in connection with the Downtown EMSD. If approved, the public hearing would be set for Nov. 6, 2019 at 2:30 p.m., in the Phoenix City Council Chambers. All property owners are notified by mail of their annual assessment cost by the Street Transportation and Community and Economic Development Departments 20 days prior to the public hearing. Notice of the public hearing also will be published in the Record Reporter as specified below. No further notification is required after the public hearing.
Published:
The Record Reporter
Oct. 23, 2019.
Oct. 25, 2019.
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 Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, and the Street Transportation and Community and Economic Development departments.