On August 19, 2014, the City of Sugar Land approved Resolution No. 14-32 authorizing the creation of the Enclave at Riverpark Public Improvement District (the District) and the District's FY15 Service and Assessment Plan. The District was created to finance improvements to the Enclave at Riverpark subdivision, an approximately 54.5-acre single family residential development located along US59 adjacent to and accessed through the Riverpark subdivision.
The District is similar to a MUD but has limited authority. By electing to create a public improvement district, rather than a MUD, the City has eliminated an extra layer of government and the operating expenses associated with it.
Based on the agreements approved on August 19, 2014, the City will reimburse the developer of Enclave at Riverpark up to $2 million for infrastructure plus actual interest cost up to a maximum of $2.5 million total. The City must reimburse the developer once the development has $31 million in value on the Certified Tax Roll. The 2018 certified taxable value meets this threshold, and the City will reimburse the developer for approximately $2.125 million in 2018.
Assessments are made based on the status of property as of January 1 of that year. All 139 residential lots have been platted, so the 2018 assessment is applied on a per-lot basis, excluding any landscape reserves or exempt property. All buyers are advised of the PID assessment at closing.
The 2018 assessment is $970 per lot, a decrease from 2017 of $35 or 3.5%. The assessment is decreasing from 2017 due to the fact that the value within the PID has increased, offsetting the assessment needed from property owners. As part of the PID agreement, the City contributes 50% of the prior year’s property tax revenue from these properties toward the PID, similar to the MUD rebates that the City has with the 6 in-city MUDs. Additionally, the City is proactively planning to finance the bonds for the developer reimbursement over a 15 year repayment schedule to limit the duration - and ultimately minimize the burden - of the assessment on homeowners.
A public hearing is required to be held each year as part of the assessment process. The assessments will be included on the 2018 tax bills, as prepared by Fort Bend County Tax Office, for the 139 properties in the district. Notice of the proposed assessment was mailed to each property owner within the district in early August. The ordinance setting the assessment and service plan for 2018 will be considered by the City Council for first reading on September 4, 2018 and second reading on September 18, 2018.