Title
2023 Downtown Enhanced Municipal Services District Budget, Assessments and Set Public Hearing Date (Resolution 22075)
Description
Request City Council approval of the 2023 Downtown Enhanced Municipal Services District (Downtown EMSD) proposed budget, assessments on the Downtown EMSD, and set the date of Nov. 16, 2022 for the public hearing on the estimated assessments, pursuant to Arizona Revised Statutes (A.R.S.) 48-575. The General Fund estimated annual expenditure for this program is $439,108.
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 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. 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.
2023 Downtown EMSD Proposed Budget
The work plan and budget for calendar year (CY) 2023 provides a variety of enhanced services in the downtown core, including business improvement services and overall business development.
In July 2022, the Downtown EMSD Board of Directors, which includes representatives of the City and other Downtown EMSD property owners, approved the proposed CY 2023 Downtown EMSD budget of $4,706,256. See Attachment B for a breakdown of the expense categories. This includes $167,222 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 2023 assessment revenue of $4,556,256 represents a 7.69 percent increase over the CY 2022 assessments, or approximately $325,321. The CY 2023 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 CY 2023 Downtown EMSD Diagram are based on the estimate of expenses and property data available as of April 19, 2022.
Estimated 2023 District Budget: $4,706,256
Estimated 2023 Assessment Revenue: $4,556,256
Estimated 2023 Non-assessment Revenue: $150,000
Public Hearing Date
It is requested that the City Council set the date of Nov. 16, 2022 as the date for the public hearing on the 2023 Downtown EMSD assessments.
Financial Impact
The City's total estimated annual expenditure for this program is $1,497,884, which includes:
• $439,108 from the General Fund (approximate $10,556 decrease from 2022);
• $626,558 from the Phoenix Convention Center;
• $150,118 from the Sports Facilities Fund;
• $10,486 from the Phoenix Bioscience Core; and
• $271,614 from collections from tenants on City-owned properties.
Concurrence/Previous Council Action
The Economic Development and Equity Subcommittee approved the 2023 Downtown EMSD work plan and budget on Sept. 28, 2022, 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 approved, the public hearing would be set for Nov. 16, 2022 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.
To be published:
The Record Reporter
• Nov. 2, 2022
• Nov. 4, 2022
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 Ginger Spencer and Mario Paniagua, and the Community and Economic Development and Street Transportation departments.