Assessments for this Service Plan will be based on the certified appraisal rolls of the Harris County Appraisal District for non-exempt real property within the boundaries of the District. The first year’s assessment under this Service Plan is proposed to be 12.0 cents per $100 of assessed valuation. In no year during this Service Plan will the assessment rate exceed 25.0 cents per $100 of assessed valuation.
Estimated Costs of the Services to be Provided under this Service Plan
The following chart shows the annual estimated costs for this Service Plan.
| SERVICE |
ANNUAL ESTIMATE |
15-YEAR TOTAL |
| Security & Public Safety (40%) |
$635,126 |
$9,526,890 |
| Planning & Urban Design ( 25%) |
$396,954 |
$5,954,306 |
| Marketing & Perception Enhancement (25%) |
$396,954 |
$5,954,306 |
| Administration (10%) |
$158,781 |
$2,381,723 |
| Estimated Annual Total |
$1,587,815 |
$23,817,225 |
The District will provide funding to the major project areas as outlined above. These figures are general projections based on needs and priorities anticipated today. From year to year, priorities will change, and this Service Plan provides that the Board has the flexibility to adjust the application of resources to meet the changing needs of the area. If revenues exceed projections, the Board may allocate those additional revenues to the various program categories.
Basis of Assessment In each year of this Service Plan, the assessment will be based on the Harris County Appraisal District ("HCAD") latest certified value for each property. This means that an individual property owner's assessment may vary each year. The total assessment will be billed in annual installments. Initially, property will be assessed at its value on HCAD’s appraisal rolls for the most recent year that certified values are available after a public hearing is held to approve this Service Plan and determine the benefits to be received by the property assessed. The assessment for the first year of this Service Plan will be $0.12 for each $100 of assessed value for the property subject to assessment. In subsequent years, the District will assess property based on the next year’s certified HCAD value. Under this Service Plan, the Board may vary the rate of assessment each year, provided that the rate cannot exceed $0.25 per $100 of assessed value in any year of this Service Plan, and the rate may not be increased more than 10% above the previous year’s rate without a hearing. The District's approach will be to provide services and improvements on a pay-as-you-go basis with assessments made to fund projects in the current and following year. If the Board determines that projects are needed which cannot be financed on this basis, an election will be called to determine whether bonds or other debt financing should be undertaken. Delinquent payments will be subject to the same additional charges as taxes in accordance with the Texas Tax Code.
Property Subject to Assessment The property subject to assessment will be land and improvements (real property only) of commercial property owners within the District. No personal property will be assessed. The District will exempt from assessment all property exempt by law as the law may change from time to time. At the time of the preparation of this Service Plan, the following types of property are exempt from assessment by the District unless the owner consents:
- Single-family detached residential property; residential lots; residential duplexes, triplexes, and quadraplexes;
- A residence homestead as defined by Section 11.13, Texas Tax Code;
- Property owned by municipalities, counties, other political subdivisions, and organizations exempt from federal income tax under Section 501(c)(3), Internal Revenue Code of 1986, and exempted from property taxation by state law and the exemption is granted by HCAD, unless agreed to by contract.;
- Recreational, park, or scenic use property that meets the requirements of Section 375.163, Texas Local Government Code;
- 5. Property, equipment, or facilities owned by a utility, which is defined as a person that provides to the public cable television, gas, light, power, telephone, sewage, or water service;
- Property owned by homeowner associations; and
- A rental townhome or condominium (not an apartment complex) owned by a person (not a corporation, trust or debtor-in-possession) who has an over age 65 exemption on file with HCAD, provided that if such person owns more than one rental townhome or condominium, the highest valued rental, as determined by HCAD, will be exempted.
The properties that are exempt from assessment by the District will not be provided services by the District, unless the owner/lessee of such property enters into a contractual agreement with the District to pay the District an amount equal to the assessment, had the property not been exempt.
Yearly Budgets and Assessment Rates The District proposes to have the Board evaluate annually the need for and advisability of the services authorized under this Service Plan to determine the specific projects within the Service Plan that will be undertaken the following year. The Board will then set and approve a budget for the following year consistent with the yearly plan and set the assessment rate for such year, taking into consideration the value of the property subject to assessment and the revenue that the assessment rate will produce. As this Service Plan is fifteen (15) years in length, it is probable that the service needs in each of the major categories will change, particularly as District objectives are met. Therefore, this Service Plan allows the Board the flexibility to apply the assessment revenue to the categories of services in varying percentages as the Board deems appropriate.
Cap on Yearly Assessment Rate Increases After the first year of this Service Plan, the assessment rate set by the District cannot be increased by more than 10% over the previous year’s assessment rate unless the Board holds a public hearing before setting an assessment rate that exceeds 10% of the previous year’s rate.
New Construction and Property Annexed into the District Value increases due to development, rehabilitation or new construction and any property annexed into the District, if any, will be added to the assessment roll at the value set by HCAD for the year such value is added. The Board will prepare a supplemental assessment roll which includes such property, hold a public hearing and levy assessments against such property for the specific benefits to be received though the services and improvements to be provided by the District.
Delinquent Payments and Recapture Assessments will become due and payable and become delinquent and incur penalties and interest in accordance with the Texas Tax Code. Property which has a special use designation for tax purposes on the HCAD rolls, such as (a) agricultural use, (b) timber land use, or (c) recreational, park or service use, will be assessed by the Board at its designated special use value for so long as it enjoys that special use designation. If property that has a special use designation is converted to another use and loses its special use designation on the HCAD tax roll, the Board will assess such property in accordance with the provisions of the Texas Tax Code concerning recapture upon the conversion of such property to another use.
CONCLUSION
The successful delivery by the District of the proposed services and improvements described in this Service Plan is anticipated to add value to all properties within the District. The District property owners will be able to collectively leverage greater resources, resulting in increased levels of service and an enhanced public awareness and image for the District. An improved District benefits property owners directly and also the Houston metropolitan region at large.
To implement this Service Plan, the petition requesting this Service Plan must be signed by at least fifty (50) owners of property within the District boundaries. A public hearing will then be held to allow owners of property subject to assessment to protest against or testify in favor of this Service Plan and the assessment of their property. After the hearing, the Board will reject, modify, or approve this Service Plan. If the petitions and this Service Plan are approved, the Board will then set the rate of assessment and levy the assessment to fund the District’s projects.
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