Title
2026 Downtown Enhanced Municipal Services District Budget, Assessments and Public Hearing Date (Resolution 22331) - Districts 7 & 8
Description
Request City Council approval of the 2026 Downtown Enhanced Municipal Services District (Downtown EMSD) proposed budget, assessments on the Downtown EMSD, and setting the date of November 5, 2025, for the Public Hearing on the estimated assessments, pursuant to Arizona Revised Statutes Section 48-575. The General Fund estimated annual expenditure for this program is $452,017.
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. 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 Garfield Street, 7th Street, 3rd Avenue, and the railroad tracks south of Jackson Street.
2026 Downtown EMSD Proposed Budget
The work plan and budget for calendar year (CY) 2026 provide a variety of enhanced services in the Downtown core, including business improvement services and overall business development.
In June 2025, the Downtown EMSD Board of Directors, which includes representatives of the City and other Downtown EMSD property owners, approved the proposed CY 2026 Downtown EMSD budget of $5,240,953. Attachment B includes a breakdown of the expense categories. Included in the proposed budget is $172,645 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 2026 Downtown EMSD budget of $5,240,953 represents an increase of $250,697 over the CY 2025 Downtown EMSD budget. The increase results from increasing costs of the organization. The CY 2026 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 2026 Downtown EMSD Diagram are based on the estimate of expenses and property data available as of April 10, 2025.
- Estimated CY 2026 District Budget: $5,240,953.
- Estimated CY 2026 Assessment Revenue: $4,990,953.
- Estimated CY 2026 Non-assessment Revenue: $250,000.
Public Hearing Date
It is requested that the City Council set the date of November 5, 2025, as the date for the Public Hearing on the 2026 Downtown EMSD assessments.
Financial Impact
The City's total estimated annual expenditure for this program is $1,343,610, which includes:
- $452,017 from the General Fund (approximate $8,628 increase from 2025).
- $665,747 from the Phoenix Convention Center.
- $159,804 from the Sports Facilities Fund.
- $66,042 from the Phoenix Bioscience Core.
Concurrence/Previous Council Action
The Economic Development and the Arts Subcommittee meeting approved the CY 2026 Downtown EMSD work plan and budget on September 10, 2025, 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 provided in connection with the Downtown EMSD. If this request is approved, the public hearing will be set for November 5, 2025, at 2:30 p.m., in the Phoenix City Council Chambers. All property owners are notified by mail of their annual assessment costs by the Street Transportation and Community and Economic Development departments no fewer than 20 days prior to the public hearing. Notice of the public hearing will also be published on October 22, 2025, and October 24, 2025, in the Record Reporter. No further notification is required after the public hearing.
Location
The Downtown EMSD is generally bounded by Garfield 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 Inger Erickson, Deputy City Manager John Chan and the Street Transportation and Community and Economic Development departments.