On August 19, 2014, the City of Sugar Land approved Resolution No. 14-32 authorizing the creation of the Enclave at River Park 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 River Park subdivision, an approximately 54.5-acre single family residential development located along US59 adjacent to and accessed through the River Park subdivision. The District is similar to a MUD but has limited authority. By creating 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 River Park up to $2 million for public 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, totaling $37.2 million,  and the City will reimburse the developer for approximately $2.125 million in the fall of 2018. Approximately $1.63 million of this will be financed through the issuance of  debt to be repaid over 15 years to minimize the amount and duration of the assessments on homeowners. The remaining $490,000 will be paid from prior year assessment balances.

Assessments are made 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 landscape reserves and 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.

In accordance with Local Government Code Chapter 372.016, notice of the proposed PID assessment and public hearing was published in the newspaper on August 15, 2018 and mailed to the address on record for each property owner to be assessed. The public hearing was held on the 2018 assessment on August 28, 2018 at 5:30pm. No residents spoke at the public hearing, and the City received one written objection as of August 29, 2018.  The assessments will be included on the 2018 tax bills for the properties in the district.

Ordinance No. 2138 sets the 2018 assessment at $970 per lot, excluding landscape reserves and exempt property. Along with the Ordinance setting the assessment, the agreement requires an updated Service and Assessment plan be approved, which are shown as Exhibit B to the ordinance.  Staff recommends approval of first reading of Ordinance No. 2138.