TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
Jeffery Yates Assistant City Manager
FROM: Chris Cauley, MPA, Economic and Community Development Director
Derrick McArthur, Economic Development Manager
DATE: February 9, 2026
RE:Title
Public Hearing on Owner's Request for Removal from Downtown Municipal Service District
Title
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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 and 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 and 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
Executive Summary:
Council is asked to hold the public hearing required by North Carolina General Statute ?160A-538.1(a1) and provide direction to City staff.
Background:
At the January 09, 2026, Work Session, City Council directed staff to hold a public hearing regarding the reduction of the Downtown Municipal Service District (MSD) Boundary.
The City established the Downtown MSD in 1978 under Article 23 of N.C.G.S.?160A, authorizing an additional ad valorem tax fund 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: Economic Vitality and Development, Art and Design Enhancements, Promotion and Marketing, Speci...
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