Title
Public Hearing and Resolution to Approve the 2019 Downtown Enhanced Municipal Services District Assessments (Resolution 21686)
Description
Hold a public hearing for the consideration of the 2019 Downtown Enhanced Municipal Services District (EMSD) assessments and request to adopt a Resolution approving such assessments for the 2019 calendar year. The City of Phoenix estimated annual expenditure for this program is $1,285,640.
Report
Summary
Pursuant to State law, a public hearing must be held prior to the annual adoption of the assessments for the EMSD. City Council authorized the formation of the EMSD in 1990 to provide enhanced public services, over and above the level of services provided in the remainder of the City. The EMSD is generally bounded by Fillmore Street, 7th Street, 3rd Avenue, and the railroad tracks south of Jackson Street. The City contracts directly with Downtown Phoenix, Inc. (DPI) to implement the work plan of the EMSD. The work plan and budget for 2019 provides a variety of enhanced services in the Downtown core, including the Ambassadors, streetscape improvements and maintenance, a Clean Team, marketing, events, economic and community development, and transportation services.
The annual assessments for the EMSD will be levied for the 2019 calendar year after the required EMSD legal process has been completed. Assessments are determined in proportion to the benefits received by each parcel. There are approximately 785 parcels in the EMSD that the budget will be assessed on. This is based on the approved 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 Street Transportation Department in the City of Phoenix and was posted online at the Community and Economic Development Department website.
The figures below represent the assessments for private property owners and public property owners based on the approved 2019 EMSD budget of $3,922,780. 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 2019 Assessments
Private Property Owners Assessments: $1,795,817
Public Property Assessments: $2,126,963
Total Assessments: $3,922,780
Streetscape Maintenance Expenses (expenses are included in the figures above)
Private Property Owners Assessment: $89,365
Public Property Assessments: $66,950
Total Streetscape Expenses: $156,315
Financial Impact
The City's estimated annual expenditure for this program is $1,285,640; which includes $368,117 from the General Fund, $539,798 from the Convention Center, $128,607 from the Sports Facilities Fund, $8,983 from the Genomics Facilities Operations and Maintenance Fund, and $240,135 from collections from tenants on City-owned properties. An additional $841,323 is collected from other government-owned properties including Maricopa County, Maricopa County Stadium District, and the State of Arizona. The remaining $1,795,817 of funds are collected from private property owners through an assessment on their property tax bill. The total amount for the 2019 calendar year budget is $3,922,780.
Concurrence/Previous Council Action
On Oct. 17, 2018, the City Council approved the 2019 EMSD estimate of expenses, assessment of expenses, the EMSD assessment diagram, and set the date of Nov. 7, 2018, for the hearing on the estimated assessments. The work plan and budget were recommended for approval by the Planning and Economic Development Subcommittee on Oct. 2, 2018 by a vote of 4-0.
Public Outreach
On Oct. 17, 2018, City Council set the date of Nov. 7, 2018, as the date for the public hearing on the EMSD assessments. On Oct. 17, 2018, 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 Community and Economic Development Department. In addition to the work plan and budget being recommended for approval by the Planning and Economic Development Subcommittee on Oct. 2, 2018, DPI has sent letters to all the property owners and the EMSD Board approved the 2019 budget at the June 11, 2018 board meeting.
Location
The 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 Mario Paniagua and Deanna Jonovich, and the Street Transportation and Community and Economic Development departments.