TO: Mayor and Members of City Council
THRU: Kelly Olivera - Assistant City Manager
FROM: Christopher Cauley, MPA - Economic Development Director
Taurus L. Freeman, MPA - Assistant Economic Development Director
DATE: June 12, 2023
RE:
Title
Reauthorization of the Downtown Municipal Service District
end
COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal 2: Responsive City Government Supporting a Diverse and Viable Economy.
• Strategic Objective 2.1: Ensure a diverse City tax base.
• Strategic Objective 2.2: Invest in community places to ensure revitalization and increase the quality of life.
• Strategic Objective 2.4: Sustain a favorable development climate to encourage business growth.
Goal IV: Desirable Place to Live, Work, and Recreate
• Strategic Objective 4.5: Ensure a place for people to live in great neighborhoods.
Goal VI: Collaborative Citizen and Business Engagement.
• Strategic Objective 6.2: Ensure trust and confidence in City government through transparency & high-quality customer service.
• Strategic Objective 6.3: Inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration, and empowerment.
Executive Summary:
On June 25, 2018, the City Council reauthorized the Downtown Municipal Service District (MSD). This continuance was for a five-year period through June 30, 2023. The Economic & Community Development Department recommends the City Council adopt the attached Resolution continuing the Downtown MSD. The rate and boundary will not change with this action.
Background:
On June 26, 1978, the Fayetteville City Council created a Municipal Service District (MSD) for the downtown area pursuant to Article 23, Chapter 160A-536 of the North Carolina General Statutes (attached). The purpose of the Downtown Municipal Service District is to finance and support downtown services and activities that are, in addition to or to a greater extent, those activities financed, provided, or maintained for the entire City.
Each year, the City establishes the tax rate for the district and identifies the proposed expenditures. The tax rate has remained at 10 cents per $100 value for several years.
The current period of the District expires June 30, 2023. The current statute does not allow sunset provisions for these districts. The resolution continues the MSD until Council decides that the current provisions need to be changed or that the district needs to be dissolved.
Issues/Analysis:
The current MSD boundaries are generally Cool Spring Street (western side), Bragg Boulevard (both sides), Russell Street (both sides), and Grove/Rowan Street (from the eastern end, both sides up to the bridge and ramps, then the southern side to Bragg Boulevard). With very minor changes, the boundaries have been the same since the initial creation of the District.
Staff is not proposing any change to the existing boundaries. If the boundaries are modified, recommendations from downtown planning processes or significant new projects warrant an adjustment to the boundaries; these changes will need to be made pursuant to state statutes.
Budget Impact:
Should the Council determine not to reauthorize the Municipal Service District, a separate action will be required in accordance with the state statute, after which the revenue would be impacted. Nothing of this resolution alters the existing special revenue stream of the MSD.
Options:
• Approve the resolution to reauthorize the district with its current boundaries.
• Do not approve the continuance of the district and provide direction to Staff.
Recommended Action:
Staff recommends that the City Council move to approve reauthorizing the Downtown Municipal Service District with its current boundaries.
Attachments:
• Downtown Municipal Service District Reauthorization Resolution
• Downtown Municipal Service District Map