Editor's note: This article was updated to more accurately describe a city council action.

City officials established a policy should the city of Buda ever consider granting public improvement districts going forward.

The purpose of the PID policy is to provide direction to city staff and residents who will live within a PID. A PID is created by a majority of property owners in a district and allows them to finance enhanced amenities, services or public improvements.

The motion to approve the PID passed 7-0 during the Aug. 2 Buda City Council meeting.

The city of Buda has considered authorizing the use of a PID as a method of funding public infrastructure required for new development. The city currently does not have a policy for the use of PIDs. The proposed resolution adopts and approves a PID policy for Buda, according to meeting documents.

Adoption of a PID policy can indicate to developers that the city is willing to utilize this funding tool and what conditions will be viewed most favorably for approving a petition. The policy includes criteria for projects, limitations on the amount and terms of the PID assessment, limitations on bond size, requirements on developer interest, terms for the administration of the PID, procedures and other requirements, per meeting documents.

City Attorney Alan Bojorquez said the PID policy can be updated and amended if the city council sees a need to make changes to the existing PID policy. A council member must bring it to city council as an agenda item and have it passed through council as a resolution.