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An ordinance approving the Fiscal Year 2027 Midtown Central Business Improvement District Budget.
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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. BL2025-1113 authorized the creation of a Midtown Central Business Improvement District (“MBID”) and appointed a District Management Corporation with the necessary powers and authority to carry out the purposes and intent of the MBID, which is codified as Title 2, Chapter 176 of the Metropolitan Code of Laws; 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 2.176.070, the District Management Corporation is required to submit a proposed budget to the Metropolitan Council for approval; 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.
NOW THEREFORE, BE IT ENACTED 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 Midtown 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 future annual budgets submitted by the District Management Corporation may be approved by a resolution receiving twenty-one affirmative votes of the Metropolitan Council.
Section 3. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance approves the Fiscal Year 2027 Midtown Central Business Improvement District (“MBID”) Budget.
State law allows municipalities to create Central Business Improvement Districts and specifically assess properties within that district to fund enhanced services and improvements. Ordinance No. BL2025-1113 authorized the creation of the MBID and appointed a District Management Corporation (“DMC”) with the necessary powers and authority to carry out the purposes and intent of the MBID.
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 MBID board of directors are tasked to revise and resubmit a budget until the Council approves the budget.
The proposed budget anticipates revenues and expenses of $1,531,089, all of which would be assessed from property owners in Midtown through June 30, 2027. The expenses are categorized as follows:
• Clean, Safe, and Beautiful: $1,119,838
• Marketing & Communications: $124,936
• Administration & Office: $157,242
• Contingency/Reserve: $76,554
• Uncollectible Assessments: $52,519
The ordinance provides that future MBID budgets could be approved by resolution of the Metropolitan Council.