According to city definitions, PIDs are used to fund new or improve inadequate or substandard infrastructure and public services in a specific area.
City Council held a workshop March 28 to discuss the process of creating a PID and the requirements needed.
According to Deputy City Manager Brian James, the PID requires a petition including owners of taxable real property representing more than 50% of the appraised value of taxable real property liable for assessment under the proposal.
The petition must also include record owners of real property liable for assessment under the proposal who constitute more than 50% of all record owners of property that is liable for assessment under the proposal, or own taxable real property that constitutes more than 50% of the area of all taxable real property that is liable for assessment under the proposal.
Under state law, the 50% requirement is sufficient to create a PID. However, the city does have the option to increase that requirement should they deem it necessary.
With the creation of a PID, properties within the area will have an assessment charged to fund the project. This assessment charge will not affect other properties within the city.
This assessment can be paid at once or over a period of time as an additional fee to those properties.
Council Member Jill Whittaker expressed concerns that with the 50% requirement, the property owners that did not approve of the PID will be required to pay the assessment.
“I think in this case 50% is not enough support,” she said. “Clearly, if you look at the outline of the properties that most benefit, it is not even close to 50%, so it is a small portion.”
Whittaker also said that the property owners need to understand that they will be responsible for the maintenance of the PID, which will add additional costs outside of the assessment.
Since the PID process was discussed in a workshop, no action was taken on the item.
With the process being in the early stages, City Council and staff will work to determine the boundaries of the PID, and work with the residents petitioning on the improvements for the area.
Additional details regarding the PID boundaries, the improvements for the area and the cost to surrounding properties will be discussed in future meetings.