Title
2021 Downtown Enhanced Municipal Services District Estimate of Expenses, Assessment of Expense and Set Public Hearing Date (Resolution 21871)
Description
Request City Council approval of the 2021 Downtown Enhanced Municipal Services District (Downtown EMSD) estimate of expenses, assess this total on the Downtown EMSD, and set the date of Nov. 18, 2020 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 $339,491.
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 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.
2021 Downtown EMSD Estimate of Expenses
The work plan and budget for calendar year 2021 provides a variety of enhanced services in the downtown core, including the Ambassadors program, streetscape improvements and maintenance, the Clean Team program, marketing, event promotion, business assistance and transportation services.
In June 2020, the Downtown EMSD Board of Directors, which includes representatives of the City and other Downtown EMSD property owners, approved the proposed calendar year 2021 Downtown EMSD budget of $3,662,705. This includes $140,684 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.
This proposed budget represents a 10 percent decrease from the calendar year 2020 budget resulting in a decrease of approximately $406,967. The decrease is driven by the impacts of the COVID-19 pandemic on the economy. The proposed work plan shows decreases in events, marketing and improvement services. There are some slight increases to business development and field services such as homeless outreach, streetscape improvements and public art displays.
Estimated District Expenses: $3,522,021
Estimated Streetscape Maintenance Expenses: $140,684
Total estimated District Expenses: $3,662,705
Assessment of Expenses
The annual assessments for the Downtown EMSD will be levied for the 2021 calendar year after the required Downtown EMSD approval process has been completed. Assessments are determined in proportion to the benefits received by each parcel.
The proposed 2021 Downtown 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 City of Phoenix Street Transportation Department and may also be viewed at phoenix.gov/econdev/Reports-Maps. The proposed assessments and diagram are based on the estimate of expenses and property data available as of April 7, 2020. The proposed calendar year 2021 Downtown EMSD assessment diagram was completed on June 10, 2020.
Public Hearing Date
It is requested that the City Council set the date of Nov. 18, 2020 as the date for the public hearing on the 2021 Downtown EMSD assessments.
Financial Impact
The City's total estimated annual expenditure for this program is $1,197,007, which includes:
- $339,491 from the General Fund (which represents an approximately $37,679 decrease from 2020);
- $503,959 from the Phoenix Convention Center;
- $120,379 from the Sports Facilities Fund;
- $8,409 from the Genomics Facilities Operations and Maintenance Fund; and
- $224,771 from collections from tenants on City-owned properties.
Concurrence/Previous Council Action
This item was recommended for approval at the Workforce and Economic Development Subcommittee meeting on Sept. 23, 2020, by a vote of 3-1.
Public Outreach
A public hearing will be held for property owners to discuss the proposed assessments, costs, and services for the 2021 calendar year provided in connection with the Downtown EMSD. If approved, the public hearing would be set for Nov. 18, 2020 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 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
- Oct. 26, 2020
- Oct. 28, 2020
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 Jeff Barton and Mario Paniagua, and the Community and Economic Development and Street Transportation departments.