Title
Public Hearing on Municipal Service District 5 Boundary Expansion
Action
Action:
Conduct a public hearing on the proposed expansion of Municipal Service District 5.
Body
Staff Resource(s):
Alyson Craig, City Manager's Office
Shahid Rana, Economic Development
Policy
* State law allows cities to create municipal service districts (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 accordance with NC General Statute Section 160A-536, projects funded through MSD revenue may include (but are not limited to): expansions/improvements to support utility provision, street lighting, streets and sidewalks; construction of pedestrian and bicycle paths, construction of public buildings, improvements to relieve traffic congestion, improvements to reduce the incidence of crime, providing city services or functions in addition to or to a greater extent than those provided for the entire city, sponsoring events, promoting business investment and economic vitality, coordinating public private partnerships, and marketing support.
* NC General Statute 160A-538 requires a public hearing prior to decisions on MSD boundary expansion.
Explanation
* MSD 5 is operated by University City Partners.
* 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.
* A boundary expansion of MSD 5 was included in the Manager's Proposed FY 2027 Budg...
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