City says La Ventana property owners must pay higher fees

The Marble Falls City Council on Sept. 3 approved an increase in infrastructure payments due for several property owners in the La Ventana neighborhood. Some property owners will have to pay thousands of dollars in unexpected costs by 2033. The money is required to satisfy the terms of a public improvement district formed when the subdivision, located south of the U.S. 281 bridge, was developed in 2005.

The La Ventana Public Improvement District was created to help the original developer recoup the costs of installing public infrastructure, such as streets and wastewater lines. Under the terms of the original La Ventana PID, all residential property owners with a developed lot in the district were obligated to pay $8,250 by 2033 to satisfy their end of the deal.

Many residents were unaware of this obligation or believed they owed far less than what was presented in the 2024 Annual Service Plan Update the city approved. Sellers are legally obligated to inform buyers of PID terms, but this does not always happen.

Property owners with a developed residential lot (one with a house) have been paying around $536 annually toward the PID. Previous payment plans show the same amount due each year until 2033. 

The new 2024 plan adds a balloon payment of several thousand dollars that is due by the end of 2033. The balloon payments differ for everyone, but they’re all in the thousands of dollars range.

The city of Marble Falls is legally obligated to administer the terms of the La Ventana PID and ensure that money is effectively collected from residents and passed on to the owner of La Ventana PID LLC. 

“It’s our job to represent y’all the best we can as citizens of Marble Falls,” Councilor Richard Westerman said during the Tuesday meeting. “At the same time, we have a legal obligation to follow legal documents, and if we don’t do that, we put the rest of the citizens at risk.”

According to City Attorney Josh Brockman-Weber, the city has not been collecting the complete amount necessary for the terms of the PID to be satisfied by 2033, so adjustments to residents’ payment plans had to be made.

“Several months ago, it was brought to the city’s attention that some lots were not paying the proper amount for the reimbursement for the public infrastructure improvements,” Brockman-Weber said. “In this case, overall, we think that the ordinance is set up so that every residential lot is to pay the full $8,250 assessment.”

The city chose to move forward on the 2024 PID payment plan despite protests from several La Ventana residents. Council members expressed concerns the city could face legal retaliation from the La Ventana PID LLC owner and set a bad precedent for fulfilling deals with developers.

“It’s important for us to make sure that developers who come in here, they realize that we’re dealing with them straight up,” Mayor Dave Rhodes said. “Revenue is our life’s blood, and if we’re going to continue to grow, we need infrastructure. And for the vast majority of our infrastructure, developers pay for our infrastructure.”

The Marble Falls council approved the 2024 PID payment plan in a 5-1 vote, with Councilor Karlee Cauble voting against it. Councilor Bryan Walker was absent from the meeting.

“We have obligations on both sides,” Cauble said of her vote. “I was torn.”

During public comment, La Ventana property owner Randy Kruger said the PID was “badly done” and the city should stick to the 2022 assessment sans balloon payments.

Another property owner, Rhonda Brown, said the situation seemed unfair.

“We had no idea what a PID was (when we moved here),” she told the council. “I don’t think it is fair that you can help the investor get more money by ruling in their favor.”

Property owner Mark Bohlmann told the council how the PID balloon payment would affect him. It would increase his overall payment from $3,632.94 to $8,182.33.

“This is a hard pill to swallow,” he said.

dakota@thepicayune.com