TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
Jeffery Yates, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
DATE: November 24, 2025
RE:Title
Administrative Report on Downtown Municipal Service District Boundary and Inclusion of Park View TownhomesTitle
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COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
GOAL 2: Responsive city government supporting a diverse & viable economy
2.1: To ensure a diverse City tax base
2.2: To invest in community places to ensure revitalization and increase quality of life
GOAL 4: Desirable place to live, work, & recreate
4.4: To provide a clean and beautiful community with increased green spaces
4.5: To ensure a place for people to live in great neighborhoods
GOAL 5: Financially sound city providing exemplary city services
5.1: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities
Executive Summary:
At the September 2, 2025, City Council Work Session, staff was directed to review the inclusion of Park View Townhomes (Park View) in the Downtown Municipal Service District (MSD). The following report outlines the history, creation, legal framework for changes, and financial impact of this request.
Background:
The City established the Downtown MSD in 1978 under Article 23 of N.C.G.S. ?160A, authorizing an additional ad valorem tax to fund enhanced downtown services. The district expanded in 1983 and has been renewed every five years since, most recently in June 2023 (Resolution R2023-024). The current rate for Fiscal Year 2026 is $0.1489 per $100 of assessed valuation.
The MSD supports activities such as downtown maintenance, marketing, economic development, and events that are beyond the scope of the City's general fund. Its management evolved as follows:
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