City Council Workshop or Special Called Meeting

CITY COUNCIL WORKSHOP MEETING WEDNESDAY - MAY 28, 2025 - 5:00 PM Notice of AGENDA City Council Chamber/Municipal Courtroom 2801 Ranch Road 1869 Liberty Hill, TX 78642 Elisabeth Brown Tim Hennessy Jacquetta Thayer Diane Williams Michael Helbing Wade Ashley Crystal Mancilla LIVE VIDEO ACCESS AND RECORDINGS The live video link will be on the City's Facebook page. Following the meeting, the link for the live meeting will be removed. The recording of the meeting will be placed on the City's webpage: www.libertyhilltx.gov PLEASE SILENCE YOUR CELL PHONES 1) CALL TO ORDER AND ESTABLISH QUORUM 2) REGULAR AGENDA a) Workshop to discuss definitions, policies regarding and proper use of Public Utility Districts (PIDs), Planned Unit Developments (a zoning designation) (PUDs), Municipal Utility Districts (MUDs) and the legal requirements for PIDs, MUDs and PUDs, as discussed last at the April 9, 2025 Council meeting. (Mike Etienne) Workshop Meeting - PIDs MUDs and PUDs.pdf 2023-R-003_Public Improvement Districts PID Policies.pdf Resolution 2022-R-06.01-006 Adoption of Municipal Utility District - MUD - policy.pdf 3) ADJOURNMENT 1 The City Council, Boards, and Commissions reserve the right to reconvene, recess, realign, change the order of business, or adjourn into Execu ve Session at any me during the course of the mee ng, prior to adjournment, to discuss any item listed above, as authorized by Texas Government Code Sec on §551.071 (Consulta on with A orney), §551.072 (Delibera ons about Real Property), §551.073 (Delibera ons about Gi s and Dona ons), §551.074 (Personnel Ma ers), §551.076 (Delibera ons about Security Devices), and §551.087 (Development). In compliance with the Americans with Disabili es Act, the City of Liberty Hill will provide reasonable accommoda on for persons a ending mee ngs. To be er serve you, requests need to be received 48 hours prior to the meeting. Contact the City Secretary at 512-778-5449 – Extension 125. POSTING CERTIFICATION: I, ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was duly posted on the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 and on the City website (www.libertyhilltx.gov) on the ______ day of ____________________, 202_ at ______. Elaine Simpson – City Secretary. REMOVAL CERTIFICATION: I ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was removed from the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 on the ______ day of __________________, 202_ at _______. INITIALS _______ 2  CITY COUNCIL WORKSHOP CITY COUNCIL WORKSHOP MEETING WEDNESDAY - MAY 28, 2025 2801 Ranch Road 1869 - Liberty Hill AGENDA ITEM 2.a Workshop to discuss definitions, policies regarding and proper use of Public Utility Districts (PIDs), Planned Unit Developments (a zoning designation) (PUDs), Municipal Utility Districts (MUDs) and the legal requirements for PIDs, MUDs and PUDs, as discussed last at the April 9, 2025 Council meeting. (Mike Etienne) 3 Overview of PUDs, PIDs, and MUDs Land Use Basics Liberty Hill, Texas May 28, 2025 4 Marianne Landers Banks ■ Partner at Bojorquez Law Firm, PC. ■ City Attorney for the City of Liberty Hill ■ Has served as City Attorney and Special Counsel for cities across Texas ■ Has been practicing Municipal Law for over 30 years, with emphasis in Real Estate, Land Use, Code Enforcement, Utilities and Litigation ■ Fellow of Municipal Law for International Municipal Lawyers Association 5 Agenda 1. ETJ Land Use Refresher 2. Planned Unit Development (PUD) 3. Public Improvement District (PID) 4. Municipal Utility District (MUD) 3 6 Boundaries: City Limits & ETJ 4 7 City Limits City Limits = Incorporated Municipal Boundary LGC §41 ■ Determined at Incorporation ■ Expands by Annexation ■ Surveyed Map is Required ■ Full Municipal Police Powers ■ Zoning ■ Building Codes ■ Nuisance Prevention & Abatement ■ Protect Public Health, Safety, & Welfare 5 8 ETJ Extraterritorial Jurisdiction: ■ Unincorporated area contiguous to City Limits. ■ Established to promote and protect general health, safety, & welfare of persons residing in and adjacent to cities. ■ A buffer zone outside of City Limits / Map is Required. ■ Enlarged/Reduced through Annexations or Petitions by Owners. ■ Size varies as determined by Inhabitants: ■ Less than 5,000 – ETJ extends .5 miles past city limits (e.g. A, B, C cities) ■ 5,000-24,999 – ETJ extends 1-mile past city limits (usually Home Rule) ■ 25,000-49,999 – ETJ extends 2 miles past city limits ■ 50,000-99,999 – ETJ extends 3.5 miles past city limits ■ 100,000 or more – ETJ extends 5 miles past city limits ■ Certain cities have authority to swap or apportion ETJs. (Home Rule, maybe others) 6 9 LGC Ch 42  Can’t Do in the ETJ No Zoning LGC Ch 211 ■ Height / Lot Size / Use Building Codes ■ International Building Code (SFR, 2-Family, Commercial) ■ Fire / Electric / Plumbing / Mechanical / Property Maintenance ■ Certificates of Occupancy ■ Not in ETJ! LGC Ch 214 Town of Lakewood Village v Bizios (2016) 10 PLANNED UNIT DEVELOPMENT (PUD) 8 11 Planned Unit Development (PUD) ■ Definition - a customized zoning district, with standards applied to a specific area of the City by ordinance, based on the framework established in the City’s UDC. ■ A versatile zoning tool that is suited to address complex development. ■ Beneficial for developments that do not fit into traditional zoning districts. ■ Used to permit new or innovative concepts in land utilization … and to provide site-specific compatibility standards. ■ PUD = Zoning Map Amendment. ■ PUD runs with the land (transfers from owner to owner) 9 12 Planned Unit Development (PUD) ■ Criteria negotiated between City Staff and Developer. ■ Reviewed by Planning and Zoning Commission for recommendation. ■ Approval granted by City Council via Ordinance. ■ Changes to criteria require amendment to Ordinance. ■ PUD regulations found in UDC § 3.07.05. ■ PUD designated as a Special District in UDC § 4.08. 10 13 Planned Unit Development (PUD) ■ Recent PUD Approvals ■ 12920 Hwy 29 PUD ■ 14601 Hwy 29 PUD ■ Avilla Vista PUD ■ Ft. Tumbleweed PUD ■ Hidden Lane Glen PUD ■ Liberty Center PUD ■ Liberty Hill RV Resort PUD ■ Rio Oaks Rezoning Ordinance PUD 11 14 Public Improvement District (PID) 12 15 PIDs ■ PID Overview ■ A financing and development tool. ■ Confers a special benefit on the defined area. ■ Only those property owners that are in the defined area and benefitted pay assessments for authorized improvements. ■ The defined area of a PID can be in city limits or the ETJ. ■ Cities can undertake an improvement project that provides a special benefit on the defined PID area if the City finds that it promotes city interests. ■ Is not a new legal entity or governing body / political subdivision / taxing authority. LGC Ch 372 13 16 PIDs ■ PID Policy: Adopted via Resolution No. 2023-R-003. ■ Creation: City Council creates, approves budget, approves annual assessments, levies assessments to service debt (bonds). ■ Process: Owners’ Petition, Findings of Advisability, Feasibility Report, Advisory Body (optional), Notice / Hearings. ■ Projects: water, drainage, and wastewater facilities; parks; lighting; sidewalks; parking facilities; mass transportation facilities; advertising; promotions; business recruitments; recreation, and cultural enhancements; developments; rehabilitations; or expansion of affordable housing. LGC Ch 372 14 17 PIDs ■ Levy: City Council approves the levy of assessments by Ordinance. ■ Service & Assessment Plan: required & approved by City Council and includes: ■ Property included in the PID; ■ Public Improvements and project costs; ■ Assessment plan (benefits, allocation of costs); ■ Service Plan (sources and uses of funds); ■ Annual indebtedness; and ■ Assessment Roll. ■ Assessments: are comprised of debt service on outstanding PID Bonds, administrative expenses, operation and maintenance and reserve funds set- up to secure payment of the PID Bonds. LGC Ch 372 15 18 PIDs ■ PID Administration: ■ City oversees administration of the PID. ■ Administration costs are paid by the PID. ■ Service and Assessment Plan updated on an annual basis for City Council approval. ■ City must approve PID invoices. ■ City enforces by initiating the foreclosure process on a landowner for non- payment of assessments. ■ Third-party PID administrator is permitted to assist in billing, collection and administrative oversight of the PID. LGC Ch 372 16 19 PIDs ■ PID Bonds: Special obligations that are secured and payable solely through PID assessments. ■ Bond Payment: Other than the revenue the City receives from PID assessments, the City itself is not liable for repayment of the Bonds. ■ But note: City’s obligations – creation, administration, enforcement – collections & foreclosure, debt burden, oversight by municipal regulatory agencies. s. ■ Trust: All funds related to the PID are held by a Trustee through a Trust Indenture. ■ Trust Indenture: an agreement between the City and a Trustee to represent the bondholders’ interests. ■ Trust Indenture: establishes the terms of the bonds and secures the PID assessment revenue stream for the bondholders. 17 LGC Ch 372 20 PIDs ■ City’s obligations under the Trust Indenture: ■ Send Notice of Assessment to landowners in the PID. ■ Collect assessments from landowners in the PID. ■ Transfer collected assessments to the Trustee. ■ Take legal action to enforce the foreclosure process for delinquent assessments. ■ PID Administrator (city staff or third-party) performs these functions, other than foreclosure, and fees are paid by the PID. 18 21 PIDs City’s compliance options: ■ Controlled by Development Fee Agreement, PID Financing Agreement, or PID Reimbursement Agreement. ■ Agreements should contain language to remedy defaults. ■ Must follow any notice and opportunity to cure provisions. ■ Review for possible claim against any performance bonds. ■ Discuss legal action to enforce contractual obligations. 19 22 PIDs ■ Recent PIDs: ▪ Butler Farms PID No. 1 & 2 ▪ Butler Farms PID MIA ▪ Liberty Parke PID MIA ▪ Liberty Parke PID NIA #1 ▪ Summerlyn West PID 20 23 Municipal Utility District (MUD) 21 24  MUDs Municipal Utility Districts ■ A political subdivision of the State of Texas, like a County or School District, created by the Texas Legislature or the Texas Commission on Environmental Quality (TCEQ). ■ Created by the State over a limited area to provide water, sewer, drainage, parks & recreational facilities, and roads. ■ Can’t be created in City Limits without consent from the City Council. ■ Can’t be created in ETJ without consent from city but if 22 Tex Water Ch. 54 city fails / refuses then applicants may petition TCEQ. 25 MUDs Municipal Utility Districts MUDs provide municipal services: ▪ In areas usually in the ETJ. ▪ A MUD can be an In-City MUD. ▪ Where a City determines that it is not feasible to extend services. ▪ Where the City wants the new development to bear the costs of the new infrastructure. Tex Water Ch. 54 23 26 MUDs MUD Powers: ■ Levy tax and impact fees. ■ Issue bonds. ■ Annex land. ■ Obtain easements and property, including outside of district boundaries. ■ Eminent Domain. ■ Adopt rules to govern their methods, terms, and conditions of service. ■ May contract for the provision of services with the City. Tex Water Ch. 54 24 27 MUD Process and Procedures MUD Creation. Texas Legislature adopts a district creation bill or by TCEQ with petition and consent process described in the Texas Water Code. Property located in the City’s jurisdiction. City consent is required prior to creation as part of the TCEQ process. Limitations. Many MUDs do not propose to connect to the City’s water or sewer systems. (This has not been the case in Liberty Hill, but provisions between how MUDs operate with the City under operating agreements vary.) City does not grant consent within 90 days after receipt of a petition. Starts the 120-day period for negotiation of a contract for City water and sewer service to the proposed development. 25 28 Taxation of the MUD ▪ A MUD in the beginning levies an Operation and Maintenance Tax on all the property in the boundaries of the MUD. ▪ After a MUD has issued bonds payable in whole or in part from taxes, it has the authority to levy an ad valorem tax for each year that any of the bonds are outstanding in an amount sufficient to pay the interest and principal of the bonds. 26 29 Potential Revenue for a MUD Water & Sewer MUD Taxes Revenue ▪ Collected from all ▪ Rate Order dictates costs. taxable property in the ▪ Water / Sewer Rates MUD. include cost for buying or ▪ Usually capped at $1.50 producing the water and per $100 of assessed collecting revenue. value. ▪ Operator collects the ▪ Based on the value on revenue and remits to the the ground on January MUD bookkeeper. 1st of the taxing year. 27 30 MUDs MUDs impacting the City: ■ Liberty Hill MUD ■ Williamson-Liberty Hill MUD ■ Williamson County MUD No. 12 ■ Williamson County MUD No. 13 ■ Williamson County MUD No. 17 ■ Williamson County MUD No. 19 ■ Williamson County MUD No. 19A ■ Williamson County MUD No. 19B ■ Williamson County MUD No. 31 (formerly No. 27) ■ Williamson County MUD No. 22 (formerly No. 28) ■ Williamson County MUD No. 33 ■ Williamson County MUD No. 23 28 31 MUDs Summary of general concerns for cities with MUDs in their ETJ: ■ No ability to apply zoning ordinances in the MUD. ■ Can accelerate growth outside of long-term land use plans. ■ Water/WWTP operational concerns if operated by private provider. ■ Cooperation with regionalization plans. ■ Cannot annex MUD unless MUD agrees to strategic partnership agreement. ■ City assumes the debt, if any, of the MUD with annexation. ■ Development Agreements options to address creation of MUDs. 29 32 QUESTIONS? 30 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58