By Moses Leos III
A sense of apprehension from Bunton Creek Estate residents on Public Improvement Districts (PIDs) continues as Kyle readies to enact a new policy on the financing mechanism.
That was the crux of a variety of questions posed by several homeowners at the city’s open house informing residents on PIDs and its new policy on July 1.
In a presentation, Rick Rosenberg, principal at DPFG, said that PIDs would not affect citizens of existing communities. In addition, he said the city council would gain control of any future PIDs, and that any PID bonds issued would have no impact to the city’s bond capacity.
The city wouldn’t be able to spend money toward a PID. Assessments would also be handled by the Hays County Tax Assessor’s office.
According to Rosenberg, PIDs also benefit homeowners, as PID assessments on any home are fixed, and do not fluctuate based on ad valorem taxes. Homeowners also have the option to pay their assessments up front.
In addition, DPFG sought to inform citizens on PIDs and the city’s new policy. Under the new policy, PID developers would only be allowed to use funds for public improvements, which include infrastructure. Along with being self-sufficient, any new PIDs must get 100 percent of support of the landowners.
A concern from Bunton Creek resident Larry Jones stemmed from the lack of information given to homeowners by PID Holdings, the group that oversaw the failed Bunton Creek PID.
According to Jones, many homeowners in Bunton Creek are “still on the hook” for interest and assessments.
Kyle City Manager Scott Sellers said the city is “working on a resolution” with PID Holdings to resolve the matter, but couldn’t comment further.
Under the city’s new policy, developers must make homeowners aware at closing that they are in a PID and that they would be levied an assessment.
Signage must also be placed in the neighborhood informing residents they are in a PID.
But Jones maintained an apprehensive stance, saying there is still “a lot of non-disclosure going on.” It goes toward his claim that new residents moving into Bunton Creek are still not fully informed on their PID assessments.
“They (PID Holdings) are not telling people that this is a PID,” Jones said. “They aren’t explaining it to them. They don’t know what a PID is…they are being very evasive in how they explain it.”
District 6 council member Daphne Tenorio also held an apprehensive stance toward PIDs. She felt “uncomfortable” with making a decision on the policy without gaining more information on PIDs. She also felt it was “interesting” that the presentation was put on by the group Kyle planned to tab as its PID manager.
On July 7, the city council approved DPFG as its Bunton Creek PID administrator by a 7-0 vote.
But for Tenorio, fixing the issues in Bunton Creek is paramount before the city moves forward with its PID policy.
“I want to make sure everything is taken care of and then move forward,” she said. “It’s difficult to move forward when we have impending stuff that hasn’t been taken care of.”
District 5 council member Damon Fogley disagreed, saying the city shouldn’t “put a moratorium on new PID development because one project had a bad PID.”
Fogley supported the new policy and felt that it was important to avoid any future PID issues.
“It’s unfortunate what happened in Bunton Creek, but that’s why we want to have a policy in place,” he said. “At the same time, it’s our responsibility for (council) to make sure that doesn’t happen again.”