Title
Pay Invoices for 2025 Downtown Enhanced Municipal Services District (Ordinance S-51383) - Districts 7 & 8
Description
Request to authorize the City Manager, or his designee, to pay all invoices received from Downtown Phoenix, Inc. (DPI) through the Phoenix Downtown Enhanced Municipal Services District (EMSD) Agreement, in an amount not to exceed $4,740,256 for work related to the calendar year 2025 Downtown EMSD budget and work plan through December 31, 2025. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
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 City contracts directly with DPI to implement the Downtown EMSD work program, including the Ambassadors program, streetscape improvements and maintenance, the Green and Clean Team program, marketing, event promotion, business assistance and transportation services. Pursuant to State law, the Downtown EMSD's budget must be approved each year. This action is the final step in the annual budget process to authorize the Community and Economic Development Department to pay DPI for services rendered in calendar year 2025 under the Downtown EMSD contract, City Contract No. 153585, as amended.
Financial Impact
The City's total estimated annual expenditure for this program is $1,290,391, which includes:
- $443,389 from the General Fund (approximate $4,266 increase from 2024);
- $632,648 from the Phoenix Convention Center;
- $151,673 from the Sports Facilities Fund; and
- $62,681 from the Phoenix Bioscience Core.
An additional $1,142,955 is collected from other government-owned properties including Maricopa County, Maricopa County Stadium District, and the State of Arizona. A total of $712,679 is also collected from tenants on City-owned properties. The remaining $1,594,233 of funds are collected from private property owners through an assessment on their property tax bills.
Estimated 2025 District Budget: $4,990,256
Estimated 2025 Assessment Revenue: $4,740,256
Estimated 2025 Non-assessment Revenue: $250,000
In preparation for remitting the first payment by January 1, 2025, the Community and Economic Development Department request the advance term as December 1, 2024 - December 31, 2025, to prepare for implementation.
Concurrence/Previous Council Action
This item was recommended for approval at the Economic Development and Housing Subcommittee meeting on September 11, 2024, by a vote of 3-0.
On October 2, 2024, the City Council approved:
- The 2025 Downtown EMSD Budget, Assessments and Set Public Hearing Date of November 13, 2024 for the hearing on the estimated assessments; and
- The 2025 Downtown EMSD Assessment Diagram.
Public Outreach
On October 2, 2024, the City Council set November 13, 2024, as the date for the public hearing on the Downtown EMSD assessments. On October 18, 2024, a total of 26 days prior to the hearing as legally required, all property owners were notified by mail of their annual assessment cost by the Street Transportation and Community and Economic Development departments. In addition, DPI has sent letters to all property owners, and the Downtown EMSD Board approved the 2025 budget at its June 2024 board meeting.
To answer any questions that property owners in the Downtown EMSD might have, Community and Economic Development Department staff were available virtually for an hour prior to the November 13, 2024, public hearing. Notice of the public hearing was also published in the Record Reporter on October 30, 2024, and November 1, 2024. No further notification is required after the public hearing.
Location
The Downtown EMSD is generally bounded by Garfield 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 Deputy City Managers John Chan and Inger Erickson, and the Community and Economic Development and Street Transportation departments.