Austin Downtown Public Improvement District
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. DPID is a type of special purpose district that allows property owners within a specific geographic area to enhance services and public improvements to benefit properties within PID boundaries.
Austin DPID
Boundary Map
Austin DPID
Management
Since its inception, the City has contracted with Austin DMO, Inc. doing business as 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 for a total contract amount of $79,197,757 (Council Item #10).
Austin DPID
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 DPID for ten years, instead of the minimum of five years under City rules and to make significant changes to DPID boundaries. The City Clerk certified the petitions met state law. Opportunities for public comment were provided at the South Central Waterfront Advisory Board (SCWAB) meeting on May 16, 2022 and the Downtown Commission meeting on May 18, 2022. Council conducted a public hearing on June 9, 2022, and approved Resolution No. 20220609-081, authorizing DPID from 2022-2032 and designating Downtown Austin Alliance as its advisory body. Notice of the public hearing was published in the local paper and mailed to all DPID property owners.
Austin DPID
Assessment Rate and Property Roll
DPID’s 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 Central Appraisal District (TCAD) is based on the costs of the services provided. Property used as hospitals, schools, religious organizations, charitable nonprofits, public facilities or homesteads are exempt from assessment. Rather than paying an assessment, the City of Austin contributes $360,000 annually for City-owned properties within DPID boundaries. Private property owners within the district pay the majority of assessments that fund the benefits of the PID. No bond debt can pay for PID projects as the PID is prohibited from issuing bond debt.
Sale of Real Property within a PID
Anyone who plans to sell or convey real property located in a PID must follow written notice requirements outlined in Texas Property Code Section 5.014 – Notice of Obligations Related to Public Improvement District.
Austin DPID
Annual Funding
To have time to collect assessments from property owners to fund DPID services, DAA’s fiscal year (May 1-April 30) lags the City’s (October 1 – September 30). Pursuant to Chapter 372 of the Texas Local Government Code, Austin City Council must approve annually the PID assessment rate, property roll and DAA’s proposed Service and Assessment Plan and Budget. This section provides information on current Council-approved rates, rolls and plans.
- Fiscal Year 2026-27 (May 1, 2026-April 30, 2027)
The governing ordinance and property roll is Ordinance No. 20250724-133. The 2026 Downtown PID Service and Assessment Plan and Budget (DAA’s annual budget) totals $12,673,521, including $153,045 of City and Travis County administrative expenses, was adopted in Ordinance No. 20250724-138. Council included the Downtown PID budget in the City’s approved budget on August 14, 2025.
Austin DPID
2026 Council Actions
There are several Council actions for the DPID in 2026. Some of them are annual Council actions that are pursuant to Chapter 372 of the Texas Local Government Code, which are tentatively scheduled.
- April 9, 2026 DPID Expanded
The Council conducted a public hearing and approved a 20260409-043 Resolution to expand DPID by adding one parcel of land at 360 Nueces Street, Austin, Texas 78701, as requested by the property owners.
- April 23, 2026: Amend Management Agreement and Service Assessment Plans
Council will consider amendments to the City's management agreement with the DAA for DPID services and to DAA's FY2026-27 Service and Assessment Plan and Budget. DAA leadership requested changes to respond more nimbly to downtown needs and provide a more effective quarterly report on DAA's spending and impact.
- May 21, 2026: Proposed Assessment and Property Roll
Council will consider setting the proposed assessment rate and property roll for 2027.
- July 23, 2026: Public Hearing
Council will conduct a public hearing to receive public comments and consider the proposed assessment rate and property roll. Council will also consider approval of FY2027-28 Service and Assessment Plan and Budget submitted by DAA. Notices required by state law will be mailed to owners and published in the Austin American Statemen by July 8, 2026.
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