2018-021 Public Improvement DistrictsDate: February 13, 2018 Report No. 2018-021
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Use of Public Improvement Districts (PIDs) in residential developments in neighboring
communities
BACKGROUND:
Councilmembers requested information regarding the use of PIDs in the Harvest and Canyon
Falls residential developments.
Harvest
Harvest is located in the extraterritorial jurisdiction of the towns of Northlake and Argyle and is
in the Northlake Public Improvement District #1. The residential PID assessment for Harvest is
set at $0.21 per $100 of assessed value; the commercial PID assessment is $0.11 per $100 of
assessed value. The PID will not incur bonded indebtedness; its term is 30 years. The PID
provides for turf, shrub, and tree maintenance, irrigation, and other ongoing repairs and
maintenance to public areas.
Other special districts are in place at Harvest: A Fresh Water Supply District with a rate of $1.00
per $100 of assessed value; an Emergency Services District to provide fire protection and
emergency medical services with a rate of $0.10 per $100 of assessed value.
Residents of Harvest pay Denton County taxes ($0.237812), and school district taxes to either
Argyle ($1.58505) or Northwest ($1.49) ISDs.
Canyon Falls
Canyon Falls is located in Flower Mound, Argyle, and Northlake. The developer, Development
Planning & Financial Group, requested the Town of Flower Mound create a PID in order to
finance a portion of the public infrastructure for the project; the PID was not approved. The
developer of Canyon Falls paid for the roadway improvements and water/wastewater
infrastructure; the developer received rebates from the Town for portions of the
water/wastewater impact fees. Canyon Falls is part of the Town of Flower Mound’s Denton
Creek District, which is not a taxing district, but regulates land use as a part of the Town’s
Master Plan.
The Canyon Falls Municipal Utility District #1 covers the part of the development that is in
Argyle’s ETJ. It can be used to provide water, sewage, drainage and other utility-related services
within the MUD boundaries; it has not issued bonds yet. The Canyon Falls Water Control and
Improvement District #2 covers the part of the development that is in Northlake. It can be used to
provide utility-related services and roads within the WCID boundaries; it has issued road bonds.
Flower Mound and Northlake provide water, wastewater, solid waste, and recycling services to
the development.
Date: February 13, 2018 Report No. 2018-021
Depending on where they live within the development, residents of Canyon Falls pay city taxes
to Flower Mound ($0.439), Argyle ($0.3975), or Northlake ($0.295), Denton County taxes
($0.237812), school district taxes to either Argyle ($1.58505) or Northwest ($1.49) ISDs, the
Canyon Falls MUD assessment ($1.00), and the Canyon Falls Water Control and Improvement
District #2 ($0.705).
TAX RATE COMPARISON
City of
Denton
Harvest
(Argyle ISD)
Harvest
(Northwest
ISD)
Canyon Falls
Argyle
Canyon
Falls
Northlake
Canyon
Falls
Flower
Mound
(Argyle
ISD)
Canyon
Falls
Flower
Mound
(Northwest
ISD)
Tax Rate
per $100 of
valuation
$2.41 $3.13 $3.03 $3.22 $2.72 $2.26 $2.16
CONCLUSION:
The use of PIDs and other special districts like MUDs or WCIDs varies according to a
community’s policy goals, and the necessity of special districts for a successful development
varies according to the specifics of the project.
STAFF CONTACT:
Caroline Booth, Director of Economic Development
940-349-7751
Caroline.Booth@cityofdenton.com