Title
University City Municipal Service District Boundary Expansion
Action
Action:
Adopt an ordinance approving the expansion of the University City Municipal Service District.
Body
Staff Resource(s):
Alyson Craig, City Manager's Office
Shahid Rana, Economic Development
Explanation
* This action requests the second of two required approvals by City Council for the expansion of Municipal Service District (MSD) 5 (University City).
* According to NC General Statute Section 160A-537(f), "no ordinance defining a service district as provided for in this section shall be finally adopted until it has been passed at two meetings of the city council by majority vote of the voting members present, and no service district shall be defined except by ordinance."
* The first approval occurred along with Budget Adoption on June 8, 2026.
* This action requests City Council to adopt the ordinance a second and final time.
* University City Partners serves as the administrators for Municipal Service District 5, which is located in Council District 4.
* A boundary expansion of MSD 5 was included in the Manager's Proposed Fiscal Year (FY) 2027 Budget, which was presented on May 4, 2026.
* On January 16, 2026, University City Partners requested a boundary expansion for FY 2027.
* Council received information about the potential boundary expansion on January 29, 2026.
* On March 5, 2026, the Budget, Governance, and Intergovernmental Relations Committee received an overview of the potential boundary expansion.
Policy
* State law allows cities to create MSDs to promote economic development and/or provide services at a higher level in the district than provided for the entire city.
* Urban development/redevelopment areas are one of the municipal services for which a district can be created.
* MSDs are funded through an assessment on all property owners within the district boundaries. All the money raised by the MSD assessment must be spent on district enhancement programs.
* In a...
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