HomeMy WebLinkAboutWhat Is A PID? - 09.01.2007ERRYWIM
A Public Improvement District (or a PID) was formed for Georgetown Village by Shell Ranch
Development, instead of a Homeowner's Association, in order to operate and maintain most of
the common areas within Georgetown Village.
• The assessments paid to the PID are tax deductible, whereas those paid to a Homeowner's
Association are not.
• Assessments are collected via the Williamson County Tax Assessor's office and may be
collected and escrowed as part of an owner's mortgage payment rather than having to make
separate payments to a property management company or Homeowner's Association.
• The partnership between the PID and the City of Georgetown provides access to the
experience of parks and recreation, finance, and city government. A PID provides a platform
for the neighborhood to build a close working relationship with the City of Georgetown.
• Should property owners desire to add to their amenity package after Shell Ranch
Development has completed their planned improvements, the PID provides the means by
which additional infrastructure could be financed.
• Homeowner Associations can create a liability to the owners in the event the association is
sued. Because the PID is a quasi -governmental agency, the property owners of a PID are
exposed to less liability in the event a lawsuit is brought against the PID.
• The structure of the PID and the mechanisms by which Board members are appointed may
help to avoid some of the more common problems associated with the typical Homeowner's
Association: (e.g. vigilantism, lack of programming due to apathy and an inability to get
volunteers to serve, controversial and divisive elections, and a lack of homeowner
representation during initial buildout when the developer usually retains complete or
significant control over the association).
PID is a Tax District allowed by State Law and created by the City of Georgetown through a
petition filed by Shell Ranch Development and the Builders to operate and maintain most of
the common areas within Georgetown Village.
A PID is created pursuant to State Law and the Public Improvement Assessment Act,
Chapter 372 of the Local Government Code.
The PID is governed by a Board of Directors which includes Georgetown Village residents
and is appointed by the Georgetown City Council
• Basic maintenance (mowing and trimming) of parks and open spaces consisting of less than
one acre. (Basic maintenance of parks one acre and larger are maintained by the City of
Georgetown and is not paid for by the PID).
Georgetown Village — What is a PID? (09.01.07)
• Upgraded maintenance on all parks and open spaces. Upgraded maintenance items would
include things that a typical City of Georgetown Park would not have (e.g. flower beds and
landscape lighting).
• The landscaped area along Shell Road.
• Nature trails and pedestrian walkways that form mid -block connections.
• Alleys.
• Park benches and trash containers.
• The Gazebo and the landscaped area surrounding it.
• Entry signs, park marker, and other similar signs.
• The PID assessment does not pay for the operation and maintenance of the swimming pool.
Ownership, operation, and maintenance of the pool will be by the City of Georgetown. The
cost to build the pool was paid for by Shell Ranch Development. The cost to operate and
maintain the pool will be paid for by the City of Georgetown out of its annual Parks and
Recreation budget which is funded by city taxes and user fees. The swimming pool will
therefore be open to all residents of Georgetown, Texas.
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Ownership and operation of a swimming pool involve significant costs and liability issues
which Shell Ranch Development and the City of Georgetown both believed were best born by
the City. Were the pool to be owned and operated by the PID, the PID assessment would
have been prohibitively high, whereas having the pool owned and operated by the City of
Georgetown insures that the pool is adequately maintained and staffed and the costs for it
are financed through City taxes. Additionally, the City Parks and Recreation staff can provide
better programming activities than could have been afforded by the Georgetown Village PID
alone. Basically, this arrangement provides higher value and more service for the taxes paid
by the property owners of Georgetown Village than would have been possible had the PID
owned and operated the pool.
• The Board of Directors determines the budget on an annual basis. The budget is based on
actual costs, recognized cost standards, or competitive bids where possible. The PID budget
will be subsidized in the early years of the community by Shell Ranch Development in order
to maintain a competitive assessment rate.
• The assessment rate has been set at $0.20 per $100 valuation.
• For example: a $150,000 house equals $300 per year tax.
• A copy of the Annual Budget is available upon request.
• The Georgetown Village PID assessment is collected by the Williamson County Tax
Assessor and Collector along with all other real property taxes such as city, county, and
school district tax assessments. The assessment may be made as part of the homeowner's
monthly mortgage fee.
Georgetown Village — What is a PID? (09.01 A7)
Yes. Because the Georgetown Village PID assessment is a property tax like those levied by
cities, counties and school districts, the assessment is tax deductible. This is one of the
major advantages of the PID.
No. Forming a PID does not restrict Shell Ranch Development, or later the property owners,
from forming a Homeowner's Association should it be deemed necessary or helpful for a
Homeowner's Association to be formed. Since one can not perfectly predict future events
and conditions, Shell Ranch Development believed it prudent to provide within the
Covenants, Conditions and Restrictions the means to form an association should one
become necessary because of conditions not present at this time.
Georgetown Village — What is a PID? (09.01.07) 3