Newcomers to northeast Tomball could be facing an increase in property taxes when purchasing future homes in the proposed Yaupon Trails subdivision.

During the March 2 Tomball City Council meeting, officials held a public hearing to discuss implications of the proposed public improvement district No. 5 designed to finance infrastructure costs for 37 lots in the future subdivision. PIDs are typically established by developers and property owner groups to cover costs for improvements or maintenance on selected subdivisions or larger areas.

Scott Bean, partner with Houston-based development consulting firm Hawes Hill Calderon LLP, gave a presentation during the meeting to answer questions about the PID before council members take action on the issue at an upcoming meeting.

If approved, the PID would cover approximately 10.94 acres at the Yaupon Trails site proposed for construction on the northeast corner of Quinn Road and Brown-Hufsmith Road, according to the data sheet submitted to City Council.

Information about the extra tax assessment costs will be disclosed to potential homebuyers before they purchase a home in the district, Bean said. Tomball City Councilman Mark Stoll raised a concern that the extra cost may be enough to drive buyers away from the area.

"Where each of [the council members] have our homes, we don't have PIDs, so those homes are much more attractive for resale than these areas [that do]," Stoll said. "And I'm just wondering from a standpoint of people coming in and looking at buying homes with the tax rate if that's what they'll look at."

The PID assessment taxes were initially estimated to be around $3,000 per year for an individual property valued at $350,000, Bean said. However, the actual amount is expected to be about $2,275 per year, or the equivalent of a 65-cent tax increase, he said.

Bean said the proposed PID would be less costly for residents than municipal utility district or extraterritorial jurisdiction fees in surrounding areas. Several years ago, city officials carried out a study to compare typical MUD and ETJ tax rates assessed in nearby communities, he said.

"Typically those MUDs start at a tax rate of $1 or $1.25 to $1.35," Bean said. "And what we showed is that 65 or 85 cents combined with the city's tax rate is still under what an equivalent MUD or ETJ would be charging for a comparable home. So I think at the time [City Council] was comfortable with that."

Though the PID could mean an additional tax for homeowners, Bean said the rate would be lower than MUD fees in areas near Tomball.

"The competition would be favorable inside the city as far as the tax rate [is concerned] on new development," Bean said.

If approved by City Council, the duration of the Yaupon Trails PID could last for approximately 15 years, based on previous PID durations in Tomball.

City Council is expected to take action on the proposed PID resolution at its next meeting scheduled for March 16.