2023-06-Resolution-Guidelines for Public Improvement Districts-05/15/2023CITY OF SANGER, TEXAS
RESOLUTION N0.2023-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS, TO
ADOPT GUIDELINES FOR PUBLIC IMPROVEMENT DISTRICTS (PIDs) AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, it is the intent of the City Council to promote the gene_ ral welfare of the
public; and
WHEREAS, Chapter 372 of the Texas Local Government Code allows the City of Sanger
to levy and collect special assessments on property that is located within the city or within the
city's extraterritorial jurisdiction; and
WHEREAS, the funds from these special assessments can be used to make certain
improvements as authorized by the Texas Local Government Code to the infrastructure to facilitate
economic growth within an area; and
WHEREAS, the City Council finds it in the best interest of the citizens of Sanger to adopt
guidelines to allow a case -by -case determination as to whether specific projects are financially
feasible and serve a public purpose; and
WHEREAS, the City Council finds that the passage of this Resolution is in the best interest
A the citizens of Sanger.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SANGER, TEXAS:
SECTION 1. The facts and recitals set forth in the preamble of this resolution are hereby
found to be true and correct.
SECTION 2. That the City Council hereby authorizes the adoption of the PID guidelines,
which are attached hereto as Exhibit A and made a part hereof by reference;
SECTION 3. That the City Council may, from time to time, consider changes to these
guidelines as will be reflected by their future action.
SECTION 4. This Resolution shall take effect immediately from and after its passage, and
it is accordingly so resolved.
Resolution —PID Guidelines
Page 1 of 2
PASSED AND APPROVED THIS THE 15tu DAY OF MAY 2023.
APPROVED:
ATTEST:
Thomas E. Muir, Mayor
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KeIIYJEdwarcig,City SecretaryLu
ATTEST: '
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Coleman, City Attorney
Resolution — PID Guidelines
Page 2 of 2
EXHIBIT A
PID GUIDELINES
Chapter 372 of the Texas Local Government Code, the "Public Improvement District (PID)
Assessment Act" (the "Act") allows the City of Sanger to levy and collect special assessments on
property that is within the City or within the City's extraterritorial jurisdiction in order to make
certain improvements to the infrastructure to facilitate economic growth, as authorized by the Act.
A PID can finance capital costs and fund supplemental services to meet community needs that
could not otherwise be constructed or provided. A PID may only be used to pay for public
improvements under the PID Act.
The City reserves the right to consider PID applications on a case -by -case basis as indicated in
these guidelines, and these guidelines do not require or commit the City Council to participate in
any particular PID.
MINIMUM REQUIREMENTS FOR CONSIDERATION OF CREATION
1. A proposed PID must be located in the City's extraterritorial jurisdiction and the owner is
willing to voluntarily annex into the City. The City will not consider the creation of a PID
where any large portion of the property is already located within the City limits.
2. A proposed PID must consist of at least 300 acres in developable total land area.
3. If it is proposed that debt obligations secured by and payable from PID assessments are to
be issued to reimburse for public improvements that a developer would ordinarily fund at
its own cost, the petition must demonstrate how the creation of the PID and financing of
the infrastructure provides extraordinary benefits to the City as a whole and to the property
in the PID, such as accelerated development or furtherance of a major City policy objective.
The City will not create a PID only to finance the costs of the construction of infrastructure
without special benefit to the City.
4. All estimated costs must be identified within a financing plan before a decision is reached
on a request to establish a PID. Costs to be identified include costs related to establishing
the PID; costs for maintenance, operation, and administration; and costs for future revision,
repair, or replacement of any improvements.
5. Water/Sewer Capacity, The Developer is responsible to provide the infrastructure and
facilities required to accommodate the development at the developer's cost. On a case basis, basis, the City may consider allowing the developer to borrow certain City water
and/or sewer capacity, if available, while the developer constructs the necessary
infrastructure to service the project.
PID OBJECTIVES
PID consideration may be granted for projects that:
1. Demonstrate an extraordinary benefit and public purpose evidenced through:
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Resolution No. 2023-06
a. Advancing the vision and goals of the Sanger 2040 Comprehensive Plan by meeting
or preferably enhancing the City's master plan, thoroughfare plan, and water and
wastewater plans; advance the City's trail and park plans;
b. Exceeding the City's requirements for design, building standards, amenities, and
landscaping;
c. Accomplishing a particular housing objective or goal established by City Council;
2. Are comprised of mixed residential and commercial use;
3. Are master -planned residential communities;
4. There is an underlying district (such as MUD) already created but still undeveloped with
no bonds issued, and the developer is willing to give up the right to sell district bonds and
dissolve the district in exchange for PID financing.
5. Are located in the Water CCN of another service provider and the developer is willing to
decertify its land from the other CCN so City can acquire CCN and serves and/or
6. Require public participation to materialize.
7. Priority will be given to PID projects:
a. In support of development that will generate greater economic development
benefits to the City beyond the project and not merely as a financing source for the
developer.
b. That provide enhanced aesthetic features (e.g., entryways, landscaping, fountains,
specialty lighting, art, decorative and landscaped streets and sidewalks, bike lanes,
multi -use trails, signage); and,
c. That meet specific community needs.
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1. A PID may be created and utilized to construct qualified public improvements and/or
reimburse a developer's actual, documented costs above and beyond the costs for standard
infrastructure required to serve the development. Such incremental costs shall be
associated with the construction of qualified public improvements.
2. PIDs must be self-sufficient and not require the City to incur any costs associated with the
formation of the PID, bond issuance costs, PID administration or the construction of PID
improvements unless otherwise agreed for oversizing consideration.
3. A PID's budget shall include sufficient funds to pay for all additional costs incurred by
the City above its normal operational costs, including administrative and/or operational
costs.
4. Property owned by the City of Sanger that is located in the boundaries of the PID shall not
be subject to any assessment by the PID.
Resolution No. 2023-06
BOND FINANCING FOR PIDs
In addition to other conditions set forth in a development agreement, the following performance
standards and limitations shall apply to PID debt issues approved by the City:
1. The maximum term of a PID assessment is not to exceed 30 years and the assessment term
must equal the bond term.
2. Minimum appraised value to lien ratio of 3:1, unless otherwise approved by the City.
3. No annual assessment increases once assessments are levied. Assessments for future
phases will remain competitive with the tax rate equivalent of the original Phase and Lot
Type(s) as defined in the Service and Assessment Plan (SAP).
4. Any debt requested will be for reimbursement of costs.
5. Not more than 70% of the total cost of capital improvements may be included in any debt
issuance unless otherwise approved by the City.
6. At least 50% of the direct transactional costs of debt issuance shall be paid by the applicant
without remuneration or inclusion in the debt financing unless otherwise approved by the
City.
OTHER
The Developer is required to enter into a Professional Services Reimbursement Agreement with
the City and pay the required deposit to cover the expenses incurred by the City through the entire
PID review process until final completion of the development including but not limited to:
professional services, legal publications, notices, reproduction of materi
prals, public hearings,
recording of documents, engineering fees, attorney fees, and special consultant fees.
Entering into a Professional Services Reimbursement Agreement with the Developer does not
obligate the City to establish a PID.
These guidelines may also apply to Municipal Management Districts (MMDs), if applicable.
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Resolution No. 2023-06