OVERVIEW. At the request of downtown property owners, the Austin Downtown Public Improvement District (DPID) was created in 1993 and reauthorized by City Council in 1997, 2002, 2007, 2012 and 2022 as permitted by Chapter 372 of Texas Local Government Code.  Since its inception, the City has contracted with the Downtown Austin Alliance (DAA) to manage the DPID.  On February 23, 2023, City Council authorized staff to execute a management agreement with DAA from 2023-28 with estimated funding of more than $79 million.  As required by state law, City Council must act each year on DPID’s assessment rate, property roll and DAA’s Service and Assessment Plan.  City Council conducts public hearings annually to receive public comments on these DPID actions. A map of DPID boundaries is here. 

DPID AUTHORIZATION, 2022-32. Following requirements in Chapter 372 of Texas Local Government Code, authorization began with a petition from 229 downtown property owners whose parcels had a taxable value of 51% of the total taxable value of the new DPID.  The petitions sought to authorize the DPID for ten years, instead of a minimum of five years under City rules, and to make significant changes to DPID boundaries.  The City Clerk certified the petitions met state law.  Given the impact of DPID, additional opportunities for stakeholder and public comment were provided at the South Central Waterfront Advisory Board (SCWAB) May 16, 2022 meeting and the Downtown Commission May 18, 2022 meeting.  The SCWAB took no action while the Downtown Commission supported the DPID authorization in Recommendation 20220518-2c.  Council conducted a public hearing on June 9, 2022 and approved Resolution No. 20220609-081, authorizing  DPID from 2022-2032.  Notice of the public hearing was published in the Austin American Statesman and mailed to all DPID property owners 15 days prior to the hearing, as required by State law.

ASSESSMENT RATE AND PROPERTY ROLL. DPID costs are based on a proposed assessment rate of a maximum of $.0925 per $100 on the value of the real property improvements above $500,000 as determined by the Travis County Appraisal District (TCAD). Property used as hospitals, schools, religious organizations, charitable nonprofits, public facilities, or homesteads are exempt from assessment. The City of Austin contributes $360,000 annually as a payment in lieu of assessment for city-owned downtown properties; therefore, the apportionment of costs falls primarily to property owners’ assessments. The PID will not incur bond indebtedness.

FISCAL YEAR 2024-25 (May 1, 2024-April 30, 2025)

The governing ordinance and property roll is Ordinance No. 20230720-155.  The 2024 Downtown PID Service and Assessment Plan and Budget (DAA’s annual budget) totals $16,041,341, including $146,761 of City and Travis County administrative expenses, was adopted in Ordinance No. 20230720-164 and amended in Ordinance No. 20240718-014 to modify spending by category.  The City Council included the Downtown PID budget in the City’s approved budget on August 16, 2023 and the requested amendment on August 14, 2024.

PROPOSED FISCAL YEAR 2025-26 (May 1, 2025-April 30, 2026)

On July 18, 2024, City Council acted on:

  • Item#101 conducting a public hearing and considering an ordinance setting the assessment rate and approving the 2025 assessment roll for the Downtown Public Improvement District.
  • Item#123 to pass Ordinance 20240718-123 approving the Austin Downtown Public Improvement District Service and Assessment Plan and Budget update for 2025 and declaring an emergency.  (Note: An emergency declaration by Council is required because the City must report the ordinance to the Travis County Clerk within 7 days of approval by State law.  This requirement was met.)   
  • Item#14 approving an ordinance amending Ordinance No. 20230223-164, which approved the Austin Downtown Public Improvement District Service and Assessment Plan and Budget Update for Fiscal Year 2024, to modify spending by category.

On August 14, 15, and 16, 2024, City Council will consider adopting the 2025 Downtown PID Service and Assessment Plan and Budget and related administrative expenses in the City’s FY 2025-26 Budget.