Title
2019 Downtown Enhanced Municipal Services District Estimate of Expenses, Assessment of Expenses and Set Hearing Date (Resolution 21682)
Description
Request for City Council to approve the 2019 Downtown Enhanced Municipal Services District (EMSD) estimate of expenses, assess this total on the EMSD, and set the date of Nov. 7, 2018 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 $1,285,640.
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 program of the downtown EMSD.
2019 Downtown EMSD Estimate of Expenses
The work plan and budget for 2019 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 2018, the EMSD Board of Directors (District Board), which includes representatives of the City and other EMSD property owners, approved a 2019 proposed EMSD budget of $3,922,780. This includes $156,315 for streetscape maintenance expenses, which are paid only by property owners and tenants adjacent to the Streetscape Improvement District.
This proposed budget represents a 2.04 percent increase over the 2018 budget. The total increase is approximately $78,493, and is distributed among the approximately 785 parcels in the EMSD. The 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, safety enhancements and assistance with conventions. These expenses are outlined below.
- Estimated EMSD Expenses: $3,766,465.
- Estimated Streetscape Maintenance Expenses: $156,315.
- Total estimated of District Expenses: $3,922,780.
It is important to note that the City of Phoenix General Fund will see a $3,192 reduction in expenses in 2019 due to the sale of the Barrister Building.
Assessment of Expenses
The annual assessments for the Downtown EMSD will be levied for the 2019 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 June 21, 2018. The proposed diagram was completed on June 21, 2018.
Public Hearing Date
It is requested that the City Council set the date of Nov. 7, 2018, as the date for the public hearing on the EMSD assessments.
Financial Impact
The City of Phoenix estimated annual expenditure for this program is $1,285,640, which includes $368,117 from the General Fund, $539,798 from the Convention Center, $128,607 from the Sports Facilities Fund, $8,983 from the Genomics Facilities Operations and Maintenance Fund, and $240,135 from collections from tenants on City-owned properties.
Concurrence/Previous Council Action
The Planning and Economic Development Subcommittee heard this item on Oct. 2, 2018 and recommended approval 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 EMSD. If approved, the public hearing would be set for Nov. 7, 2018, 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 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.
Published:
The Record Reporter
- Oct. 24, 2018.
- Oct. 26, 2018.
Location
The EMSD is generally bounded by Jackson Street to Fillmore Street from 3rd Avenue to 7th Street.
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Mario Paniagua, and the Community and Economic Development and Street Transportation departments.