WHAT IS A PID?
A PID works much like a neighborhood HOA, helping maintain and revitalize public areas within the district, but is funded through an annual assessment primarily set for business/commercial property owners, rather than homeowner dues. Authorized by Chapter 372 of the Texas Local Government Code, Public Improvement Districts have been created in all major Texas cities since 1986. Some examples of PIDs are Deep Ellum, Lake Highlands, Knox Street, Uptown, Downtown, and Vickery Meadow. These have been highly successful and have improved the areas exponentially over the years.
HOW WOULD THE WESTHOLLOW PID BE FUNDED?
The WHPID is funded through a special assessment on commercial, condominium and single-family properties in the WHPID boundaries. The anticipated annual assessment rate for 2016 will be $0.13 per $100 of appraised value as determined by the DallasCentral Appraisal District. So a $300,000 property valuation would face an approximate $390/year increase in taxes in order pay for the PID.
WHAT IS THE DIFFERENCE BETWEEN A TIF AND A PID?
On a very basic level, a TIF (Tax Increment Financing District) is an economic development tool that utilizes public funding incentives to promote private sector investment and redevelopment projects along integral city corridors to boost real estate values. A PID (Public Improvement District) is a special agreement between the city and commercial, condominium and townhouse property owners within a specified district to fund public improvements beyond existing municipal services. Much like an HOA for homeowners, a PID helps commercial property owners and involved residential owners maintain and revitalize public/common areas within the District such as parks, medians, and much more.
HOW WOULD THE WESTHOLLOW PID BE MANAGED?
The Westhollow PID would be managed by a private, non-profit association:Westhollow PID. The WSPID is governed by a Board of Directors comprised of contributing property owners and key leaders within the Westhollow community. The corporation would employ a full time Executive Director, who is responsible for day-to-day management and strategic planning, submits an annual budget and assessment rate plan to the Dallas City Council for approval and serves as a community liaison. The corporation also would employ a Public Safety Coordinator to work with the Dallas Police Department and to assist property owners with concerns and best practices.
WHAT ARE SOME GOALS OF THE WESTHOLLOW PID?
The PID would work behind the scenes on subtle but important projects to benefit the Westhollow community, including marketing the area, providing additional security, landscaping and lighting, street and sidewalk maintenance and cleaning, and cultural or recreational improvements as well as:
• ALL of the causes listed under our CAUSES are of our website as well as:
• Funding and coordinating additional Dallas Police Department (DPD) neighborhood patrols 35-40 hours per week
• Landscaping and maintaining park and median improvements along the Forest, Marsh, Walnut Hill and Webb Chapel corridors
• Partnering with local organizations to improve the quality of life in the Westhollow area
• Unifying businesses, property owners, neighborhoods and organizations that shape daily life in Westhollow.
• Working with developers to bring in higher-end establishments and better quality restaurants, grocers, and retailers.
WHY NOT JUST MAKE THE CITY DO ITS JOB INSTEAD OF IMPOSING MORE TAXES?
We, as well as many other organizations and individual homeowners have tried for many years, and several city council reps, to fix these issues, and others through the typical channels. Of course the city SHOULD do these things on its own, but the reality is that they won’t, and if they ever do, it will be many years in the future.
For example, Jennifer Staubach-Gates said that the city needed over $900 Million to bring the city’s horrible streets back to only around 85% of acceptable condition. We have been told directly as well via city council meetings that the city “doesn’t have the money” to fix our streets/alleys/etc. the way they should be – so instead they continue to “patch” them and spend billions on bridges and roads buried in the Trinity. What are we left to do, just sit by while our streets and communities continue to deteriorate or take the power of the people to fix the problems we have, now, not ten years from now.
Isn’t a PID usually spearheaded by and for local retail owners, not by residential neighborhoods?
A – Most of the City’s public improvement districts (PIDs) are mixed-use or commercial areas. Under City policy, PIDs in established residential areas may be considered for the purpose of funding screening wall improvements, park improvements, landscaping and other improvements and additional security if less than 50% of the total PID budget. All PID petition efforts are property owner driven, typically with a lead property owner or organization spearheading the proposal.
Is there such a thing as a purely residential PID?
A – The Prestonwood PID is the only existing PID that is single-family residential and was established before current City policy was adopted and has been allowed to be renewed until such time the City Council deems it appropriate not to approve the renewal.
Does it not takea a 2/3rds approval of all within the proposed PID boundaries for approval?
A – Under City policy, for new or renewing single-family PIDs, the City will require that owners representing at least 66.7% of appraised value and 66.7% of all record owners or 66.7% of land area support the creation or renewal of the PID.
What is the estimated cost in terms of additional taxes levied?
A – PID revenue is an added assessment (not a tax levy) and the assessment rate will depend on the amount needed to provide the services/improvements in the proposed budget. However, under City policy the maximum assessment rate that may be proposed is $0.15 per $100 of value. The lead property owner group will need to develop a proposed budget as part of the petition form and review with City staff.
How would the PID affect senior tax exemptions? (we can have an exemption for seniors with an exemption from the PID assessment correct?)
A – The petition can include a provision to exclude certain classes of property from assessment such as those with over 65 homestead exemptions. The City’s arrangement with Dallas County for the assessment billing/collection is an “all or nothing” – either properties are assessed based on market value or they are completely excluded. From an administrative standpoint, it’s an additional step each year for the City as the status of accounts may change year to year.
How would monetary contribution be decided?
A – The petition will include a proposed 7 year budget outlining the types of services and improvements. The budget is subject to an annual review process (July-Sept) including public notice/hearings and City Council approval. Per City policy, minor adjustments are allowed up to 20% year to year among budget categories shown in the petition.
How would the percent dedicated to each project be determined?
A – The proposed 7 year budget will outline the types of services and improvements by category. How eligible expenditures are made within the categories may be determined by the PID management entity/governing board with input from property owners. The City requires an annual meeting for all property owners prior to each year’s updated budget submittal to the City.
How would start-up costs be handled? What are these expected to be?
A – The City requires a $15,000 creation/renewal fee when petitions are submitted – this covers the cost of staff time and mailing/publication costs. After the initial creation year, there are also annual costs for City oversight/admin but are typically less than the initially fee. Other costs incurred by the lead group such as mailings will need to be absorbed by the group as PIDs do not begin collecting revenue until after they are established and in accordance with the Dallas County billing cycle in the October-January timeframe
How would a project be approved or disapproved?
A – How eligible expenditures are made within the categories may be determined by the PID management entity/governing board with input from property owners.
How would project voting occur? By what method?
A- This may vary by the nature of each PID – if there are security or landscaping contracts that last for a year or more, the PID Board may have limited action needed. Then, day to day operations may be handled by paid staff or volunteers.
What is the process from approval by the PID to implementation by the city?
A – In summary a proposed petition with map and budget, approved by the City may be circulated to owners between October-March, petitions are due by April 1st and if thresholds are met/City manager approves then Council consideration for creating the PID typically occurs in the May/June. From there an approved PID begins the annual budget/assessment rate process with Council consideration in August/Sept. Dallas County issues the assessment as part of property tax statements for collection in the October-January cycle.
If a project were to be approved, what would be the time table for implementation?
A – that depends on the type of services/improvements. For example, security patrols may be scheduled for certain times or day/night for some period of time. Landscape improvements may be 2-3 times a year as seasons change.
How would the Board be chosen?
A – For PID Boards there is no formal approval process or requirements by the City. However, they strongly advise that there is consideration/board positions offered to a good representation of property owner types (i.e. if you’ve got multifamily properties, commercial retail centers, etc.). They’ve had some PID Boards with community representatives that have a broad perspective but primarily PIDs try to make sure that major property owners/a cross section of types are represented. The size of the Board can vary depending on needs of the PID. Some PIDs have sought advice from attorneys/non-profit specialists in setting up their by-laws, etc.
What, if any, salaries would there be and for whom?
A – That varies by the budget and needs of the PID. Some operate with volunteers or mostly in-kind as part of a larger company but several PIDs have part time or full time paid staff. It would only offer a salary if required to hire a qualified full-time director which may or may not be required and for a nominal amount.
How many years would the PID be active?
A- PIDs are typically approved for a 7-year term (although the budget/assessment rate are subject to annual review/approval). A petition for renewal can be pursued toward the end of each term.
What is the plan to get retail involved?
A –Since we do not plan to have retail as part of our PID, we would ideally have a marketing budget to market our area to potential new developers, court better retail development, and better maintenance of these properties through our campaigns and clout as a community organization.
What are the geographic boundaries proposed? How many homes are within the proposed boundary?
A – This is to be determined by the Public PID Workshops. Our first workshop left us with the residents’ opinions on what areas should and shouldn’t be included in the PID. After our final PID Workshop we will aggregate all of the information and present the proposed boundaries at the following Public Meeting.
What is the plan to engage all within the proposed PID?
A – Continuing to have public meetings as we have had for three years for public input and feedback, online campaigns and mailers and flyers to each individual household throughout the process.
What projects are being considered?
A – This is to be determined by the Public PID Workshops. Our first workshop left us with the residents’ opinions on what projects they would like to see addressed by a PID. After our final PID Workshop we will aggregate all of the information and present the proposed projects at the following Public Meeting.