The URL can be used to link to this page

Home My WebLink AboutIR 7539 Page 1 of 4 INFOAMAL REPORT TO CITY COUNCIL MEMBERS No. 7539 1•ia'. July 30, 1991 To the Mayor and Members of the City Council Subject: POLICY REGARDING PUBLIC IMPROVEMENT DISTRICTS (PIDS) BACKGROUND: Public Improvement Districts (PIDs) provide a development tool that allocates costs according to the benefits received. In times of declining city revenues, a PID can provide a means to fund supple- mental services and improvements which could not otherwise be constructed or provided to meet community needs and be paid by those who most benefit from them. - A PID may be viewed as a form of benefit taxation: costs associated with the public improvement or service are paid by property owners in proportion to the benefits received. Currently there are three PIDs in Fort Worth and interest in estab- lishing more. In view of these difficult financial times , the city's costs need to be addressed. This policy would go beyond state law requirements and establish a policy to address city administrative issues. PURPOSE: The purpose of this proposed City Council PID policy is to outline a uniform policy for supporting the establishment and continuation of a public improvement district covering the petition requirements , information to property owners , and determination of annual plan of services , budget and assessments. This policy addresses issues which are in addition to the requirements of state law. POLICY : A. GENERAL 1 . Public Improvement Districts (PIDs) must be established carefully and only when related to a public purpose to avoid a proliferation of special districts . 2 . PIDs must be self-sufficient and not adversely impact the ordinary service delivery of the City, except where City Council elects to participate in the project's costs . 3 . PID petition signatures should reflect the broadest possible support . 4 . Priority will be given to PIDs being used for improvements in the public right-of-way and/or which meet community needs and related operations and maintenance expense. Secondary consideration will be given for other "supplemental services" . Very careful consid- eration must be given before City Council will support a PID for improvements which require bond financing . Use of assessments for partial recovery of a developer's capital costs will be allowed only in special cases where extraordinary public benefit is shown. Only those capital costs associated with continuing district services will be considered for partial recovery. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 2 of 4 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7539 July 30, 1991 son? To the Mayor and Members of the City Council Subject- POLICY REGARDING PUBLIC IMPROVEMENT DISTRICTS (PIDS) 5. A PID's budget shall include sufficient funds to pay for all costs above and beyond the City 's ordinary costs, including additional administrative and/or operational costs as well as additional maintenance costs resulting from the PID. 6. A PID's petition and Plan of Services should contain procedures for the eventual termination of the PID without imposing unintended costs on the City. If the PID includes improvements in the right-of-wAy, the PID budget should include funds which could be used at termination to remove or modify improvements . 7 . The petition should include the notation that it is the City's right to maintain the project and assess the property owners of their appropriate share of the costs if the management firm's work is unsatisfactory . B. SPECIFIC POLICIES 1 . Before a PID can be established, the City Council must make a determination that a public purpose will be served. 2 . If funding is available, the City may participate in the "additional" costs of a PID to the extent that the project would provide general city benefits which exceed the local benefit and the project could not be done without public participation . 3 . A determination to use city funds to share in the costs of a PID will be treated the same as any other spending decision and must be justified annually on its merits when evaluated with alternative uses for such funds during the normal budgeting process of the city. 4. All city-owned land and improvements within a PID that are being used or are dedicated for use to provide a public service and will not benefit from the PID improvements and services (e .g. , streets and parks) will be exempted from special assessments . All other city-owned property that will benefit from the PID will be assessed on an equitable basis comparable to property similarly benefitted. 5 . It is strongly recommended that property owned by governmental bodies other than the City be assessed on a basis similar to that applied to the City of Fort Worth; and, except in the case of hardship, other tax exempt property should be assessed in proportion to benefits received in the same manner as non tax- exempt property. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 3 of 4 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7539 1 4 - ,,A VIA,a July 30, 1991 To the Mayor and Members of the City Council X Subject: POLICY REGARDING PUBLIC IMPROVEMENT DISTRICTS (PIDS) tell's 6. Anyone selling land in a public improvement district must include a "title encumbrance" which notifies any prospective property owner of the existence or proposal of special assessments on the property. All closing statements must specify who is responsible for payment of the PID assessment on a pro rata share thereof . C. PETITION REQUIREMENTS For a district to be established a petition shall include the following: 1 . Assurance of long-term backing and support . 2. Sunset clause or procedures outlined for public review and periodic evaluation of the success of the PID and a determination of property owners whether to continue with the district or dissolve it . 3 . Evidence that petition signatures meet the state law requirements or the petition will be accompanied by a reasonable fee to cover the city costs of signature verification. 4 . Details of how the district will fully fund city costs over and above those provided to the city in general , such as use of City personnel. , data services , appraisal , notifications and collection fees . The City will have the option to use in-house personnel or to contract with outside agencies to provide the same services if it is more cost-effective. 5 . Contingency plan to address the maintenance of PID improvements if a PID is dissolved. 6 . map of the area, description of the boundaries of the district for the legal notices and a "commonly known" description of the area to be included in the district . 7 . Section which clearly identifies the benefit of the PID to the affected property owners and how it benefits the city as a whole. 8 . Description of all city-owned land within the district as well as its proposed share of project costs . 9. Types of activities the District organization will undertake and who will determine those activities . 10. Budget , including District revenue in addition to the assessments , and how all funds will be managed . 11 . Staffing needs specified . ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 4 of 4 INFORMAL REPORT TO CITY COUNCIL MEMBERS N,. 7539 July 30, 1991 soft'r To the Mayor and Members of the City Council X Subject: POLICY REGARDING PUBLIC IMPROVEMENT DISTRICTS (PIDS) #61 12 . Documentation of adequate liability insurance required. 13. Specified procedure for eventual termination of the district . 14. Specified assurances to the City that the construction of improvements in the public right-of-way in no way obligates the City to future maintenance or operational costs. 15. A statement that the petitioners understand that the annual budget for the district is subject to review by city staff with final approval authority by the City Council . In addition, the following issues must be addressed before the City Council will take action on a petition. 1 . An "application fee" will be paid by the applicant to reimburse the city for the cost of evaluating the petition. Any unexpended portion of the fee shall be reimbursed to the PID or applicant when the evaluation is complete . 2 . A petition will be viewed more favorably if it has attached a current tax roll with the signatures of the owners registering support of the petition next to the account for the owner 's property on the tax rolls . 3 . All costs must be identified before a decision is reached on a request to establish a PID. Costs to be identified include costs related to establishing the district ; costs for maintenance, operations and administration; and costs for later revision, repair or replacement of any improvements . 4. A professional management plan must be submitted for review and approval before the petition is submitted. 5. For a residential PID, the City Council will look more favorably on a petition where the developer of a new subdivision has put in place, as a backup , a homeowners organization which mirrors the PID and may be implemented if the PID is dissolved. 6. Any management firm for the PID shall be required to annually hold a hearing for property owners in the PID to consider and approve the Budget and Plan of Services before it is submitted to the City Council for action. If the City Council is supportive of this , policy n M&C will be cy, submitted for Council action and policy impi me ation. 8't David vory City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS