Title
Consider adopting Ordinance No. 4011 approving an annual update of the service and assessment plan and assessment roll for Mercer Crossing Public Improvement District pursuant to Chapter 372 of the Texas Local Government Code; and take appropriate action.
Body
REQUESTOR:
Finance Department
BACKGROUND:
City Council approved Resolution No. 2017-028 on February 14, 2017, establishing the Mercer Crossing Public Improvement District (PID) in accordance with a petition from a property owner representing greater than 50 percent of the property within the requested district.
The PID was established to finance public infrastructure needed to support development within Mercer Crossing. Eligible improvements include roadways and signalization, water and sanitary sewer infrastructure, storm drainage, right-of-way acquisition, and related public improvements. The costs associated with the improvements are allocated through assessments to properties within the district based on the benefit received.
State law requires the Service and Assessment Plan and assessment rolls associated with the PID to be reviewed and updated annually.
DISCUSSION:
City Council will consider approval of the Fiscal Year (FY) 2026-27 Annual Service Plan Update and updated assessment rolls for the Mercer Crossing PID.
For FY 2026-27, principal, interest, and administrative requirements associated with the original PID improvements total approximately $3.31 million. Approximately $1.88 million in available Tax Increment Reinvestment Zone (TIRZ) revenues will be applied as a credit, reducing the amount to be collected through annual PID installments to approximately $1.43 million. The update also includes the separate assessment associated with the 69-unit townhome development.
The annual update is important because it keeps the assessment rolls aligned with the current ownership and configuration of property within the PID, recognizes assessment prepayments, applies available TIRZ credits, and establishes the amount that must be collected from assessed properties for the upcoming year.
Mark Pfirrman, Vice President, and Tanner Siegert, Senior Associate, with MuniCap, Inc., the City's PID administrator, will present the annual update and be available to answer questions regarding the Service and Assessment Plan and assessment roll.
Approval of the update continues the existing financing structure for Mercer Crossing and does not establish a new PID or authorize a new major public improvement program.
DISTRICT:
Districts 1 & 3
FISCAL IMPACT:
The FY 2026-27 budget includes the TIRZ rebate and administrative costs.
POSSIBLE COUNCIL ACTION:
1. I move to approve Ordinance No. 4011 as presented.
2. I move to approve Ordinance No. 4011, with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Ordinance No. 4011, including Exhibit A, Assessment Plan
2. Presentation