Title
2018 Downtown Enhanced Municipal Services District Estimate of Expenses, Assessment of Expenses and Hearing Date (Resolution 21571)
Description
Requests City Council approval of the 2018 Downtown Enhanced Municipal Services District (EMSD) estimate of expenses, assess this total on the EMSD, and set the date of Nov. 1, 2017 for the public hearing on the estimated assessments pursuant to A.R.S. 48-575. The EMSD is generally bounded by Fillmore Street, 7th Street, 3rd Avenue and the railroad tracks south of Jackson Street. The City of Phoenix estimated annual expenditure for this program is $1,255,074.
Report
Summary
The City Council authorized formation of the 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 Downtown Phoenix, Inc. (DPI) to implement the work plan of the downtown EMSD.
2018 Downtown EMSD Estimate of Expenses
The work plan and budget for 2018 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.
In June of 2017, the EMSD Board of Directors (EMSD Board), which includes representatives of the City and other EMSD property owners, approved a 2018 proposed EMSD budget of $3,844,287. This includes $153,250 for streetscape maintenance expenses, which are paid only by property owners and tenants adjacent to the Streetscape Improvement District.
This proposed budget represents a 4.79 percent increase over the 2017 budget. The total increase is approximately $175,724, and is distributed among the approximately 768 parcels in the EMSD. The slight increase is driven by fixed costs (utilities, liability insurance and health insurance) and does not add new full-time employees. DPI continues to increase services including improving walkability by adding and maintaining trees, trash pickup, graffiti removal and assistance with conventions. These expenses are outlined below:
Estimated EMSD Expenses: $3,691,037
Estimated Streetscape Maintenance Expenses: $153,250
Total estimated of EMSD Expenses: $3,844,287
Assessment of Expenses
The annual assessments for the downtown EMSD will be levied for the 2018 calendar year after the required EMSD approval process has been completed. Assessments are determined in proportion to the benefits received by each parcel.
The proposed EMSD assessment diagram indicates the properties to be assessed for enhanced municipal services. This proposed diagram is on file in the office of the Director of the Street Transportation Department in the City of Phoenix. The proposed assessments and diagram are based on the estimate of expenses and property data available as of May 18, 2017. The proposed diagram was completed on June 2, 2017.
Public Hearing Date
It is requested that the City Council set the date of Nov. 1, 2017, as the date for the public hearing on the EMSD assessments.
Financial Impact
The City of Phoenix estimated annual expenditure for this program is $1,255,074, which includes $371,309 from the General Fund, $524,459 from the Convention Center, $124,871 from the Sports Facilities Fund, $8,501 from the Genomics Facilities Operations and Maintenance Fund, and $225,934 from collections from tenants on City-owned properties.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee heard this item on Sept. 6, 2017 and recommended the approval 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 EMSD. If approved, the public hearing would be set for Nov. 1, 2017, at 2:30 p.m., in the Phoenix City Council Chambers. All property owners will be notified by mail of their annual assessment cost by the Street Transportation and Community & 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.
Published:
The Record Reporter
Oct. 11, 2017
Oct. 13, 2017
Location
The EMSD is generally bounded by Jackson Street to Fillmore Street from 3rd Avenue to 7th Street.
Council Districts: 7, 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.