Forney council approves maintenance assessment for Fox Hollow Public Improvement District

The Forney City Council on Tuesday held a public hearing and approved an ordinance adopting a service and assessment plan and assessment roll for Fox Hollow Public Improvement District No. 1, affirming a maintenance assessment rate of $0.12 per $100 valuation.

The ordinance, read into the record by city staff, authorizes levying special assessments to pay for common-area maintenance in the Fox Hollow subdivision, including perimeter walls, landscaping, lighting and pool/amenity upkeep. The council voted to approve the ordinance after a brief public comment period.

City staff member Miss Woodham told the council the PID’s proposed levy this year is $0.12 per $100 valuation, the same rate levied in previous years, and that the assessments are collected through the Kaufman County Tax Collector’s office. Woodham said the PID’s budget includes routine maintenance and that bids have been received for several projects.

Fox Hollow residents raised questions about how the assessment appears on mortgage statements and whether veterans who are exempt from property taxes are also exempt from PID assessments. Resident Catherine Scroggins said she received a bill for “over $600” and that the assessment had been placed on her mortgage escrow without her knowledge, increasing her monthly payment.

Mr. Batcher, a city staff member who responded during the hearing, explained the distinction: “A public improvement district is an assessment, it's not a tax.” He said PIDs operate more like homeowners association dues and therefore are not covered by property-tax exemptions for veterans. On the mortgage/escrow question, Batcher said because PID assessments are collected through the tax office they can be included in escrow payments and advised residents to contact their mortgage lender for specifics.

Jean Wise, another resident, pressed staff for an explanation of how an assessment that is not a tax can affect a mortgage payment; staff reiterated that escrow and mortgage procedures are determined by lenders and that the tax collector’s method of collection can lead to escrow inclusion.

After closing the public hearing, the council approved the ordinance (listed in the record as Ordinance No. 25-19) by voice vote. Councilmembers who moved, seconded and voted were recorded in the meeting minutes; the transcript does not capture a roll-call tally in the audio.

Why it matters: The assessment funds ongoing maintenance of shared neighborhood infrastructure and is billed in the same manner as property taxes, which can affect homeowners' escrowed mortgage payments even though PID assessments are not property taxes. Residents seeking exemptions from property taxes should not assume those exemptions apply to PID assessments.

Council action and next steps: The ordinance establishes a lien mechanism, specifies payment methods and authorizes penalties and interest on delinquent assessments. The city indicated bids for maintenance projects are pending implementation under the approved service plan.