Title
2022 Downtown Enhanced Municipal Services District Budget, Assessments and Set Public Hearing Date (Resolution 21969)
Description
Request City Council approval of the 2022 Downtown Enhanced Municipal Services District (Downtown EMSD) proposed budget, assessments on the Downtown EMSD, and set the date of Nov. 17, 2021 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 $449,664.
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. (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.
2022 Downtown EMSD Proposed Budget
The work plan and budget for Calendar Year (CY) 2022 provides a variety of enhanced services in the downtown core, including business improvement services and overall business development.
In July 2021, the Downtown EMSD Board of Directors, which includes representatives of the City and other Downtown EMSD property owners, approved the proposed CY 2022 Downtown EMSD budget of $4,380,935. See Attachment B for a breakdown of the expense categories. This includes $162,509 for streetscape maintenance expenses, which are paid only by property owners and tenants adjacent to the Streetscape Improvement District (SID). The SID 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.
This proposed budget represents a 19.2 percent increase over the CY 2021 budget, or approximately $704,610. However, the CY 2022 proposed budget represents only a 5.89 percent increase over the CY 2020 budget. CY 2021 saw a 10 percent decrease in the budget over 2020, in large part because of the impacts of the COVID-19 pandemic.
The proposed CY 2022 assessment revenue of $4,230,935 represents a 15.5 percent increase over the CY 2021 assessments, or approximately $568,230. However, the CY 2022 proposed assessments represents only a 3.96 percent increase over the CY 2020 assessments. The CY 2022 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 2022 Downtown EMSD Diagram are based on the estimate of expenses and property data available as of April 26, 2021.
Estimated 2022 District Budget: $4,380,935
Estimated 2022 Assessment Revenue: $4,230,935
Estimated 2022 Non-assessment Revenue: $150,000
Public Hearing Date
It is requested that the City Council set the date of Nov. 17, 2021 as the date for the public hearing on the 2022 Downtown EMSD assessments.
Financial Impact
The City's total estimated annual expenditure for this program is $1,432,799, which includes:
- $449,664 from the General Fund (approximately $110,173 increase from 2021);
- $582,505 from the Phoenix Convention Center;
- $139,147 from the Sports Facilities Fund;
- $9,720 from the Genomics Facilities Operations and Maintenance Fund; and
- $251,764 from collections from tenants on City-owned properties.
Concurrence/Previous Council Action
This item was recommended for approval at the Economic Development and Equity Subcommittee meeting on Sept. 28, 2021, 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. 17, 2021 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 City's 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. 3, 2021
- Nov. 5, 2021
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.