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Home My WebLink AboutIR 7605 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7605 May 19, 1992 To the Mayor and Members of the City Council Subject: PROPOSED ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT #4 On April 21 , 1992, the City Council approved M&C G-9618 which certified the sufficiency of a petition for establishment of Public Improvement District No. 4 . As a result, the City Manager was directed to prepare a report detailing certain information concerning the proposed district, and to file the same with the City Secretary as required by Chapter 372 of the Local Government Code. The original of this report was filed with the City Secretary, and a copy is being provided for review by the City Council. A. The general nature of the improvements and/or services to be initially provided by the district shall include: ( 1 ) an improvement district landscaping, and maintenance program consisting of the planting and maintenance of supplemental landscaping, the maintenance of supplemental fencing, and the maintenance of supplemental irrigation systems along Park Vista Boulevard, Basswood Boulevard, ?Pl North Beach Street, and in and along parks and open spaces; (2 ) an improvement district management program to provide for the establishment, administration, management and operation of the district. The District shall be authorized to engage in any activity permitted under Section 372 .001 et. seq. of the Local Government Code, subject to annual approval by the City Council. The improvements and/or services will be a supplement to the standard existing level of city improvements and/or services and will constitute an added increment to the improvements and/or services normally provided to the taxpayers generally. The City will continue to furnish or pay for standard improvements and/or services in the district at the same level as they would be provided to the taxpayers generally. B. The estimated costs of the improvements and/or services for the district during the first year of operation are: ( 1 ) City Administration Costs $ 10,000 (2 ) Cost of Maintenance $ 48,500 (3) Expense of Management and Operation $ 2 ,500 TOTAL ESTIMATED COST $ 61 , 000 -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7605 May 19, 1992 To the Mayor and Members of the City Council Page 2 of 4 Subject: PROPOSED ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT #4 eTi The cost of providing additional supplemental services in subsequent years will be determined in the annual service plan to be adopted and amended on an annual basis by the City Council. The annual service plan may include a reasonable capital reserve for costs of replacement of capital improvements. C. The improvement district consists of a tract of land containing ' 677 .411 acres, more or less, in the City of Fort Worth, Tarrant County, Texas, and is a portion of the land lying north of Western Center Boulevard, east of North Beach Street and west of Denton Highway (S.H.377 ) . A map of the proposed district is on file in the office of the City Secretary, 1000 Throckmorton Street, Fort Worth, Texas, and is attached hereto as Exhibit A. D. The method of assessment is: ( 1 ) A service plan will be approved and adopted by the City Council for a period of not less than five years. The plan would be reviewed and updated annually by the City Council to determine the annual budget for improvements and/or services within the district. (2 ) The cost of improvements and/or services will be assessed against real property within the district on an ad valorem basis. The assessment rate per $100 of assessed valuation during the District's first year will be no greater than $0.16. The assessment rate for subsequent years will be determined in the annual budget and plan of services approved by the City Council. (3 ) The City Council of the City of Fort Worth will be authorized to establish by ordinance reasonable classification and formulas for the apportionment of costs between the city and the property to be assessed and to establish the methods for assessing special benefits for various classes of improvements and/or services. E. The apportionment of costs between the improvement district and the city as a whole shall be: ( 1 ) All of the cost of any improvement and/or service shall be paid by special assessments against real property and structures or other improvements thereon in the district. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7605 May 19, 1992 To the Mayor and Members of the City Council Page 3 of 4 stz Subject: PROPOSED ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT #4 (2) The City as a whole will continue to provide standard improvements and services to the district at the same level as they are provided to the taxpayers generally. (3 ) Each annual plan of service and budget will fully fund all costs incurred by the City in connection with the administration of the District including, but not limited to the costs for personnel, data services, appraisals, notifications, and collection of fees . The City shall 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 to do so. F. The probable maximum benefits to be conferred on each tract in the district because of the improvements and/or services will be greater than the amount of the assessment against such tract and the owners thereof. G. The area to be assessed may not include any property not within the area described in paragraph (C) unless an additional hearing is held to include the property and notice for the hearing is given in the same manner as notice under Section 372 . 009 of the Public Improvement District Assessment Act. H. The District will be managed by a private corporation under a professional services contract with the City. I. In addition to the required information discussed above, the following issues are related to proposed Public improvement District No. 4 : (1 ) Relationship to Public improvement District No. 2 The proposed District No. 4 borders Public Improvement District No. 2 which was established in 1988. Both are part of the Park Glen residential area being developed by the Hillwood Development Corporation, who will provide management services for both districts. While the same services are to be provided in both districts, state law will require that assessments from the two districts be kept in separate funds. In addition, the City will require the management company to maintain separate financial records for both districts. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7605 May 19, 1992 ,0i To the Mayor and Members of the City Council Page 4 of 4 X Subject: PROPOSED ESTABLISHMENT OF PUBLIC IMPROVEMENT DISTRICT #4 (2) Capital reimbursement to developer The area included in the proposed district is currently being developed as a single family residential neighborhood by the Hillwood Development Corporation. However, the petition prohibits any assessment revenues from being used to reimburse the developer for any capital development costs. (3 ) Termination of District As presented, the petition does not provide a sunset clause for the district. However, State law allows for the City to terminate the district if a sufficient number of property owners submit a petition for termination. In addition, the petition does provide the City with the option to terminate the district on every fifth year anniversary of its creation should the Council determine that termination is in the best interests of the property owners . This would not require a property owner petition, but would only require a public hearing. (4 ) Formation of back-up homeowners association The applicant has agreed to create a back-up homeowners association which would be capable of providing the services and maintaining the improvements should the district be terminated. Creation of the District does not obligate the City to continue services or maintain improvements provided by the District should the District be terminated. (5) Sales disclosure At this time, all of the land within the proposed district is owned by the Hillwood Development Corporation. Once the necessary infrastructure is in place, Hillwood will sell groups of lots to homebuilders who will in turn sell individual lots to homebuyers. The City will require that a disclosure acknowledging the existence of the district be included in all closing documents associated with the sale of land within the district. A similar disclosure is required in Public Improvement District No. 2. Bob Terrell Acting City Manager �ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS EXHIBIT "A" slos*l 00. 00 00 0, 9 2$35-67 7_ P.0.&4 tl 1.17. woAt E)STM M N04. elks. ear£v. 426. L.00ATION MAP off ♦Alww Cma Aire r, t"a too, SITE ftft ch., Sol taw.14 MAP OF PROPOSED DISTRIC7 FORT WORTH so Iry ics ctv,Imils.of