Representatives for the Morgan Farms and Morningside developments told the Josephine City Council on Tuesday that public improvement districts (PIDs) already created under prior development agreements will be used to finance streets and utility infrastructure for the projects, and walked council through how assessments and bonds would work.

P3 Works and legal counsel said the PID is not a separate political subdivision and that PID debt is secured by property assessments inside the PID area rather than the city’s full faith and credit. They described three PID financing approaches: pay-as-you-go assessments, reimbursement bonds (developer builds first; bonds sold later) and upfront bonds to fund construction. The presenters said the PIDs are intended to localize infrastructure costs to the properties that receive direct benefit rather than levying a citywide tax.

Developers and counsel said annual administrative costs and bond-related expenses are typically included in the assessment and that homeowners may pay an assessment in installments or pay it off in full; assessments run with the land until retired. Presenters said previously negotiated developer fees — off-site water and sewer infrastructure fees and a capital-recovery fee — remain part of the underlying development agreements.

Council members asked how disclosure would reach prospective buyers and whether PID assessments or new development would fund ongoing services such as emergency response. Presenters said Texas law and the standard real-estate forms require seller disclosure and that the PID administrator maintains a homeowner help desk; one presenter said the applicable property-code disclosure (cited in discussion) applies at closing. On services, presenters said assessment proceeds typically pay infrastructure costs and not ongoing operational services such as emergency personnel; any recurring service costs remain part of the city’s tax base and operating budget.

Council asked whether utility oversizing and long-term capacity had been negotiated; consultants said oversizing for future phases can be addressed in development agreements, with cost-sharing negotiated between city and developer. Staff and developers said much of the infrastructure is already under construction: Morningside and Morgan Farms have active phases with utilities being installed. Presenters said meter-vault upgrades tying to the North Texas supply and a major gravity sewer on Milton Street remain under review and tied to outside approvals.

The presentation included project estimates and lot counts provided by the developers: Morgan Farms was described as about 87 developed acres with roughly 413 lots and phase buildouts; Morningside was described as a roughly 55-acre tract with about 215 lots. Developers said phase 1 home sales will follow infrastructure completion; no city action to change existing PID authorizations was requested at the meeting.

The council did not take a vote on financing at the meeting; presenters and staff said PID administration, underwriting and the specific bond structure would return to council when detailed financing proposals are ready.

Ending — Council members asked staff to return later with paperwork and next steps if the city will be asked to approve bonds or assessments. Staff said they will continue permit and construction oversight while completing due-diligence on financing options and will bring formal approval items back when financing terms are finalized.