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ITEM 4 |
City Council Memorandum Cultural Development Memo No.
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Date: |
March 23, 2023 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Andy Bass, Deputy City Manager |
From: |
Kim Moyers, Cultural Development Director |
Subject: |
Resolution No. 5674 Authorizing Modification of the Assessment Diagram; Making a Statement and Estimate of Expenses for the Downtown Chandler Enhanced Municipal Services District; Completing the Assessment; Setting the Date for the Hearing On The Assessment; And Ordering the Giving of Notice of Such Hearing |
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Proposed Motion: |
Move Council adopt Resolution No. 5674 authorizing Modification of the Assessment Diagram; making a Statement and Estimate of Expenses for the Downtown Chandler Enhanced Municipal Services District; completing the Assessment; setting the Date for the Hearing On The Assessment; and ordering the Giving of Notice of Such Hearing. |
Background: |
On November 17, 2005, City Council adopted Resolution No. 3905 creating the Downtown Chandler Enhanced Municipal Services District with the mission to provide marketing, promotion, security, enhanced beautification, and district management within Downtown Chandler. The City subsequently executed a master contract with the Downtown Chandler Community Partnership (DCCP) to perform such services for a period of 10 years and has renewed the agreement every year thereafter. Fiscal Year 2023-24 represents the 18th operating year of the District. As part of the annual assessment procedures each year, the Assessment diagram and Assessment Roll need to be updated to reflect changes in ownership, plats, and land uses. Additionally, a public hearing must be held, along with the opportunity for District property owners to file objections. |
Discussion: |
The following documents are submitted with this memorandum: (i) Resolution No. 5674; (ii) Notice of Hearing on Assessments; (iii) Boundary Map; (iv) Statement and Estimate of Expenses for the District; (v) Modified Assessment Diagram; and (vi) the District Assessment roll proposed for Fiscal Year 2023-24. The purpose of Resolution No. 5674 is to set the Public Hearing and to notify property owners of the intent to modify the Assessments for property in the District, a required formal step. This Resolution also authorizes the City Council to make an estimate of the expenses for the District for Fiscal Year 2023-24, to set the date for the hearing on the Assessment, and to give the Public Notice of the hearing date. As a result of Resolution No. 5674, the hearing for the setting of the Assessments will be held on May 25, 2023, at 6:00 p.m., in the City Council Chambers. DCCP staff will appropriately notify all property owners within the District boundary and the City will publish the notice of the hearing in a daily newspaper for five consecutive days, as required by state statute. Assessments in the Districts are based on three weighted factors, including assessed value, building square footage, and land square footage. All properties will be assessed at the same rate, with the exception of buildings within the Historic Square, which are assessed double the building square footage rate due to additional resources spent in this area because of greater pedestrian traffic. Privately-owned downtown parking garages are exempt from the building square footage calculations, but are still assessed on the other two factors (assessed value and land square footage). In May 2023, staff will return with a resolution to approve the Annual Assessment Roll, which will memorialize the amount assessed to each parcel and property owner. After City Council approval, the roll will be sent to the Maricopa County Assessor for inclusion on the fall property tax bills. In June, staff will present the Chandler Enhanced Municipal Services Agreement with the DCCP for Fiscal Year 2023-24, which will include an Operating Plan and District Budget. |
Financial Implications: |
The total assessments for Fiscal Year 2023-24, including the City's voluntary contribution, are $324,170.26. Given the success of the DCCP in building profitable events, the FY 2023-24 operating budget for the District may exceed this amount, but will stay in compliance with the contract reserve policy. The final amount will be presented to City Council in June as part of the DCCP contract with the City for District management services. The DCCP has requested a 5% inflation adjustment be added to this year's EMSD assessment to all private properties as well the City's voluntary contribution. The DCCP has not requested an increase to account for inflation since its inception in 2005. The total private assessment for FY 2023-24 with the new inflation adjustment is $199,426.06. As a public entity, the City is not required to pay into the District assessment, but has done so since the District's inception on a voluntary basis. As the largest single property owner in Downtown Chandler, the City has taken a leadership role in supporting the District both financially and operationally. DCCP has requested the City increase its voluntary contribution in the amount of 5% to match the requested CPI adjustment assessed on all private properties (the City has paid a voluntary contribution of $118,804 since 2010). With the proposed 5% increase, the new amount will be $124,744. Funds to provide the City's voluntary contribution are provided for in the Downtown Redevelopment operating budget request for Fiscal Year 2023-24. |
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