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A resolution approving the Fiscal Year 2027 Central Business Improvement District Budget, and accepting previous Central Business Improvement District Budgets.
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WHEREAS, Tennessee Code Annotated section 7-84-501, et seq, authorizes municipalities to create a Central Business Improvement District and to specially assess properties within the district to finance enhanced services and improvements; and
WHEREAS, Ordinance No. O98-1037 authorized the creation of a downtown Central Business Improvement District (“CBID”) and appointed a District Management Corporation with the necessary powers and authority to carry out the purposes and intent of the CBID, which is codified as Title 2, Chapter 174 of the Metropolitan Code of Laws; and
WHEREAS, the CBID was renewed by Ordinance Nos. BL2007-1312 and BL2017-580 and expanded in Ordinance No. BL2025-846; and
WHEREAS, Tennessee Code Annotated § 7-84-519(e) requires a management corporation to submit an annual budget for review and approval by the governing body; and
WHEREAS, pursuant to Metropolitan Code of Laws Section 2.174.070, the District Management Corporation is required to submit a proposed budget to the Metropolitan Council for approval; and
WHEREAS, pursuant to Ordinance No. O98-1270, the Metropolitan Council provided that future annual budgets submitted by the District Management Corporation may be approved by Resolution by twenty-one affirmative votes of the Metropolitan Council; and
WHEREAS, the District Management Corporation submitted annual budgets to the Metropolitan Government, but those budgets were not sent directly to the Metropolitan Council. These past budgets were approved through the annual operating budget of the Metropolitan Government; and
WHEREAS, in an effort to show transparency, the CBID budgets from Fiscal Year 2009 to Fiscal Year 2026, as approved through previous annual operating budgets, have been submitted to the Metropolitan Council; and
WHEREAS, it is in the interest of the citizens of Nashville and Davidson County that the Metropolitan Council approve the budget proposed for Fiscal Year 2027 by the District Management Corporation and accept previous budgets from the District Management Corporation from Fiscal Year 2009 to Fiscal Year 2026.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Budget for Fiscal Year 2027, submitted by the District Management Corporation for the Downtown Central Business Improvement District, which budget is attached hereto as Exhibit A and, incorporated herein by reference, is hereby approved; provided that, the District Management Corporation shall not expend revenues in excess of the amount of special assessments actually collected.
Section 2. That the Budgets for Fiscal Years 2009-2026, submitted by the District Management Corporation and the Metropolitan Department of Finance for the Downtown Central Business Improvement District, attached hereto as Exhibit B and, incorporated herein by reference, are hereby accepted.
Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves the Fiscal Year 2027 Central Business Improvement District (“CBID”) Budget and accepts CBID Budgets from previous fiscal years.
State law allows municipalities to create Central Business Improvement District and specifically assess properties within that district to fund enhanced services and improvements. Ordinance No. O98-1037 authorized the creation of a downtown CBID and appointed a District Management Corporation (“DMC”) with the necessary powers and authority to carry out the purposes and intent of the CBID.
State law and section 2.177.070 of the Metropolitan Code of Laws further requires a DMC to submit an annual budget and an annual report of activities for review and approval by the Metropolitan Council. According to the Metropolitan Code of Laws, the budget is not subject to line-item modification by the Metropolitan Council. However, the Council may review and approve or not approve the budget. If the budget is not approved, the CBID board of directors are tasked to revise and resubmit a budget until the Council eventually approves the budget.
The proposed budget anticipates revenues and expenses of $8,898,296, all of which would be assessed from downtown business owners and residents. The expenses are categorized as follows:
• Safety Services - $2,812,684
• Cleaning Services- $3,163,733
• Economic Development - $704,660
• Parks/Placemaking Development - $803,072
• Strategic Development and Communications - $620,619
• General & Administration - $793,528
Annual budgets submitted by the District Management Corporation may be approved by a resolution with twenty-one affirmative votes, pursuant to Ordinance No. O98-1270.
The resolution also submits previous CBID budgets from Fiscal Year 2009 to Fiscal Year 2026 for the acceptance of the Council. These budgets were previously approved by the Metropolitan Council through previous annual operating budgets of the Metropolitan Government. These budgets were submitted to the Department of Finance for those fiscal years, though not directly to the Metropolitan Council. Acceptance of these CBID budgets would be a non-binding measure and would not affect previous budgets.