Contract for MSD Authority

Sanford has a 134-acre Municipal Service District in which the City of Sanford levies an additional property tax for extra services that benefit downtown.

In order to carry out extra services, the City can contract an agency to appropriately disburse MSD funds. The agency is chosen through a bid process every five years.

The selected agency must give an annual report to the City and periodically solicit input from downtown stakeholders as to the needs of the MSD.

The City of Sanford is assessing the needs of the Municipal Service District so as to select the appropriate agency to disburse MSD funds for the next five years.

Why contract with an outside agency?

Taxes from an MSD can fund a wide range of downtown projects including, but not limited to, street and sidewalk improvements, promotional and marketing efforts, increased security, festivals and markets, enticing business investment, building façade improvements, etc (see G.S. 160A-536).

Contracting a liaison ensures the MSD's needs and priorities are addressed. The MSD authority can focus exclusively on identifying needs, prioritizing projects, managing initiatives, and lobbying for the district's goals.

The authority is also positioned to raise private monies to fund downtown initiatives and projects.

Current Contract

Currently, the City allocates all MSD revenues to Downtown Sanford, Inc. to provide MSD services on behalf of the City.

As of 2022, the MSD tax generates approximately $83,705 of funding a year. In addition to the MSD funds, the City budgets $74,492/year in organizational support.