Did you receive one or more notices of public hearing related to Fox Hollow?
What does it mean?
You are receiving notice of two public hearings to be conducted by the City Council on November 7, 2017. The public hearings are required before the City Council can consider proposed assessments to be levied against the property within the Public Improvement Districts (“PID”).
A Public Improvement District is a defined geographical area established to provide specific types of improvements or maintenance which are financed by assessments against the property owners within the area. PIDs provide a development tool that allocated costs according to the benefits received. A PID can provide a means to fund supplemental services and improvements to meet community needs which could not otherwise be constructed or provided.
Chapter 372 of the Texas Local Government Code authorizes the creation of PIDs by cities. The owners of the properties in the defined area can request the City to form a PID through a petition, which may include the establishment of an Advisory Body. With the establishment of an advisory body, the property owners within the PID have control over the types of improvements, level of maintenance, and amount of assessments to the levied against the property owners.
In 2004, the City Council authorized the creation of the “Fox Hollow Public Improvement District No. 1” (“Maintenance PID”). This PID was created to assist the development with routine maintenance projects not covered by the Home Owners’ Association for the Fox Hollow Subdivision. Examples of what maintenance is covered by this PID include repair and maintenance of the masonry wall around the subdivision and landscaping of the common areas, etc.
Since its inception in 2004, assessments have been levied on the property within the PID at a rate of $0.12/$100 valuation. This would equate to $360 in paid assessments annually on a home with a taxable value of $300,000, for example.
Those persons living within the boundaries of the Maintenance PID area have already been levied these assessments in previous years. Even though a PID assessment is not a tax, it is nonetheless collected through the payment of other taxes through the Kaufman County Tax Assessor and Collector’s Office.
Following the public hearing on the Maintenance PID, the City Council will consider action to continue to levy the assessments for maintenance projects as done in previous years. This PID will require levying of assessments annually moving forward as well.
A PID may be dissolved after public notice and a public hearing by the City Council upon receipt of a valid petition requesting dissolution of the PID. The petition must contain the signatures of the record owners of real property in the district that constitutes more than 50% of all record owners of real property that is liable for assessment and that represents more than 50% of the appraised value of taxable real property liable for assessment as determined by the current roll of the appraisal district in which the property is located.
In 2008, the City Council authorized the creation of “The Villages of Fox Hollow Public Improvement District No. 1” (“Capital PID”). This PID was created to provide financing for certain public improvements such as water and sewer infrastructure and public roadways that benefit the property owners of the assessable property in the Capital PID area. The Capital PID area boundaries are not the same as the Maintenance PID.
Though it was created in 2008, no assessments have been levied on any property for the Capital PID at this point. Following the public hearing, the City Council will consider levying the assessments for the Capital PID against those properties included in the Capital PID area. Once levied, no additional assessments will be levied against the property.
The Capital PID as proposed is divided into two different improvement areas. The assessments levied against the properties in the two different improvement areas vary based on what projects are allocated to each area. For those properties in Improvement Area #1, it is estimated that the assessment per unit will be either $7,344 or $8,812 depending on the location of the property. For those properties in Improvement Area #2, it is estimated that the assessment per unit will be either $8,765 or $10,518 depending on the location of the property.
Assessments can be paid by the owner of real property in one lump sum, or paid out over a number of years based on an equivalent tax rate of $0.27/$100 valuation. This will equate in annual assessments of $676 to $817 on average, depending on the location of the property.
The developers of the subdivision have proposed a service and assessment plan for both the Maintenance and Capital PIDs that sets out what projects will be paid for by the assessments and how the assessments are calculated and levied against the different owners of property in the PIDs. These documents are available for inspection at the City Secretary’s Office located at 101 E. Main Street, Forney, Texas.