Council approves annual PID service-plan updates, creates phase 4 for Waxahachie PID

The Waxahachie City Council approved annual updates to public improvement district (PID) service and assessment plans for Waxahachie PID No. 1 and North Grove PID and approved the establishment of Phase 4 for Waxahachie PID No. 1.

City staff explained that state law (Texas Local Government Code Chapter 372) requires annual review of a PID service and assessment plan. Sean (city staff) presented the Waxahachie PID No. 1 update covering phases 1 through 3 and said collections for the coming year are largely unchanged from last year: roughly $136,119 for Phase 1, $53,306 for Phase 2 and $124,301 for Phase 3. Staff noted the assessments are designed to be predictable and avoid surprises to property owners; examples of per-property assessments were provided to the council.

For the North Grove PID, staff presented amounts to collect for three improvement areas: about $559,881 for Improvement Area 1, $146,670 for Improvement Area 2 and $313,118 for Improvement Area 3. Staff said reductions from prior-year budgets were possible in some areas due to lower interest or credits from excess collections and investment earnings.

On a related item, staff presented a public hearing and ordinance to accept and approve the service plan and assessment roll for Phase 4 of Waxahachie PID No. 1 (Saddle Brook). Staff said Phase 4 assessments would be set consistent with earlier phases at approximately 21 cents per $100 of assessed value. The council held the public hearing on the Phase 4 assessment (no speakers) and then approved the ordinance accepting and approving the service plan and assessment roll. The council also approved a resolution authorizing a Phase 4 improvements reimbursement agreement between the city and 287 Waxahachie LP.

Why it matters: PID assessments fund infrastructure and improvements in the districts; annual updates ensure assessments cover bond obligations, reimbursement agreements and administration costs.

Discussion and details: Council asked about remaining years on assessment schedules; staff said Phase 1 was originally 30 years (about 15 years remaining at present), Phase 2 started in 2018 with roughly 24 years remaining, and Phase 3 similar to its original schedule. Staff provided sample per-lot assessment figures and noted year-to-year changes are tied to principal and interest payment schedules.

Formal actions: Ordinances adopting the Waxahachie PID No. 1 annual service-plan update and the North Grove PID annual update were approved; an ordinance accepting Phase 4 service plan and assessment roll and a resolution authorizing a Phase 4 reimbursement agreement with 287 Waxahachie LP were also approved.

Implementation: Staff will submit required documents to the tax assessor and include assessments on property tax bills in October.