High Point council reviews municipal service district plan for downtown; no ordinance introduced

Stephen Howarluk, the city’s budget performance director, presented an overview of municipal service districts (MSDs) to the High Point City Council at a special meeting, describing how a locally created MSD could levy an additional property tax on taxable real and personal property inside defined boundaries to fund “enhanced” downtown services.

Howarluk said municipal service districts “are a defined area within a city where the elected body levies an additional property tax and that revenues from that property tax fund enhanced ... services.” He explained that statute-language allows downtown revitalization as an authorized MSD purpose and stressed that MSD revenue may not be used to supplant services the city already provides.

The presentation outlined statutory and procedural requirements for creating an MSD: a preliminary report that includes a property map and a statement of need; public availability of that report for at least four weeks; mailed notice to property owners four weeks before the required public hearing; a published notice at least one week before the hearing; adoption of an ordinance (statute changed this from “resolution” in 2016); and an effective date at the start of the next fiscal year (July 1). Howarluk also described options for service delivery (city staff or a contracted organization), noting contracts must generally be…