HomeMy WebLinkAbout26-0114 - 2026-09-29 - Informal ReportFORT WORTH®
INFORMAL REPORT TO CITY COUNCIL MEMBERS
SUBJECT: PROPOSED UPDATES TO THE OPERATING O-PID POLICY - BRADY KIRK, FWLAB
ASSISTANT DIRECTOR
DATE: 09/29/26 NUMBER: IR 26-0114
TO THE MAYOR AND MEMBERS OF THE CITY COUNCIL
The purpose of this Informal Report is to summarize proposed updates to the City's Operating
Public Improvement District (O-PID) Policy. The updates are intended to streamline
administration, strengthen financial and management controls, clarify existing requirements,
and better align administrative fees with the City resources required to administer the
program.
BACKGROUND
The City currently administers 11 O-PIDs under Chapter 372 of the Texas Local Government
Code. The City's O-PID Policy provides the framework for their establishment and ongoing
administration, including annual budgets and Service and Assessment Plans, assessments,
financial oversight, and management company requirements. Staff reviewed the policy to
identify opportunities to streamline processes, strengthen controls, and clarify administrative
requirements.
KEY POLICY UPDATES
The proposed policy includes the following updates:
• Annual Public Hearing Process: Transition the additional City -administered hearing,
which is not statutorily required, to a Management Company -led annual property
owner budget meeting, with mailed notice and an opportunity for property owner input,
followed by the statutorily required City Council public hearing. The proposed policy
continues to require property owner notice and an opportunity for input before Council
action.
Five -Year Review of Additional City Hearing
Five -Year Period
Reviewed
Notices Mailed
Speakers Identified in
Meeting Minutes
Tax Years '21-'25 54,755 3
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The 54,755 notices represent notices mailed for the additional hearing —one of two
hearings historically conducted as part of the annual O-PID process. Based on the
limited participation reflected in the meeting minutes reviewed, staff recommends
implementing the streamlined hearing process, which remains consistent with state
law, beginning during FY2028 budget planning process.
• City Administrative Fee: Update the annual administrative fee to the greater of 2% of
projected externally generated revenue or $10,000, with transition provisions for
existing O-PIDs. The proposed minimum recognizes that each district requires a
baseline level of City administration regardless of district size or annual assessment
revenue.
As part of the fee review, staff evaluated the direct personnel resources dedicated to
administration of the O-PID program. The estimated salaries and benefits cost of O-PID
administration by dedicated staff alone is $270,000, or $24,545 per O-PID. These
figures don't include other relevant staff input such as FWLab administrative support,
Legal staff time, City Manager's Office oversight, etc.
The proposed fee establishes a $10,000 minimum to reflect the baseline administration
required for each O-PID, while the 2% revenue -based fee allows contributions for larger
O-PIDs to scale with district size and activity.
Illustrative Impact of $10,000 Minimum
$10,000
Illustrative Annual O-PID
2% Revenue -
Minimum as % of
Revenue
Based Fee
Revenue
$250,000
$5,000
4.00%
$350,000
$7,000
2.86%
$450,000
$ 9,000
2.22%
$500,000
$10,000
2.00%
At $500,000 in annual revenue, the 2% fee equals the $10,000 minimum. For smaller
districts, the minimum represents a greater percentage of revenue, while districts
above this threshold continue to pay based on the 2% formula. Existing O-PIDs would
be subject to the transition provisions included in the proposed policy, limiting the
immediate impact of the revised minimum.
The new fee structure will apply on a prospective basis for new O-PIDs and upon
renewal or expansion of a previously created O-PID.
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• New O-PID Formation: Add criteria for evaluating new O-PIDs, including public purpose,
available HOA/private/City alternatives, proximity to existing O-PIDs, and the scope
and benefit of proposed services.
• Petition Requirements: Establish an April 30 petition deadline for new, renewing, or
expanding O-PIDs seeking a levy in the following fiscal year to allow sufficient time for
City review and Council processing.
• Service and Assessment Plan Administration: Allow limited administrative budget
reallocations and clarify Eligible Location standards for PID-funded maintenance in
residential/HOA areas.
• Reimbursements and Procurement: Require proof of payment for reimbursements and
establish minimum procurement and documentation standards based on expenditure
level to strengthen financial accountability and City oversight. For purchases under
$10,000, no procurement documentation will be required. For purchases between
$10,000 to $99,999, the management company must show sufficient documentation to
demonstrate the price paid was reasonable. For any purchase above $100,000, the
management company will be required to show they followed a competitive process
with multiple vendor quotes or proposals.
• Dispute Resolution: The new O-PID policy will allow property owners to appeal the City
Director's determination regarding an action taken by the management company on
property owner complaints.
For questions regarding this information, please contact Brady Kirk, FWLab, Assistant Director
at 817-392-8712.
Jesus "Jay" Chapa
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
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