G.  Downtown Service District

The purpose of this forum is to receive comments and suggestions from downtown business people, property owners and other interested citizens regarding:

• the use of Downtown Service District taxes in 2006-07;
• the scope of projects and programs in the service plan for the Downtown District.

Purpose

In 1989, the Council established a Downtown Service District in response to requests from several downtown businesses and property owners.

State law allows the Council to establish this service district and to apply a supplemental property tax to promote the economic vitality of downtown, enhance Town services in the downtown district and other related activities.

Most of the property in the Town Center-1 and -2 zones is in the district.  Several properties used only for residential purposes are not in the service district.

Estimated Funding in 2006-07

We estimate that funding will remain about the same for the Downtown Service District in 2006-07 as in 2005-06, at $70,000. 

Downtown District Services

Currently, downtown district funds are allocated entirely to the Chapel Hill Downtown Partnership.

Next Steps

We will develop recommendations for use of the downtown district funds and for any changes in the service plan as part of the budget process this spring.

The Council will hold a public hearing on May 10th.

The Council normally adopts the downtown district tax rate in June with the overall budget and makes decisions concerning services and the district boundary during June.