Title
Agreement with the Pflugerville Tourism Public Improvement District Corporation in the amount of $454,313 for ten years of administrative services.
Summary
The Agreement with the Pflugerville Tourism Public Improvement District Corporation (PfTPIDC) formalizes the City's role in providing administrative services related to collection and expenditure of the Tourism Public Improvement District (TPID) hotel fee beginning on October 1, 2026. The City anticipates revenues of $454,313 over 10 years for supporting the TPID.
The Agreement ensures that PfTPIDC investments are guided by a Board of Directors of hotel representatives within the City limits plus a representative from the Pflugerville Convention and Visitors Bureau (Pflugerville CVB).
City Council already approved the TPID petition, service plan, assessment rate and assessment roll, and creation of the TPID Special Revenue fund. Established by local hoteliers, the TPID aims to strengthen tourism by increasing overnight stays and enhancing the visitor experience. The 2% assessment fee applies to room-night sales which are subject to local hotel occupancy tax under Texas state law. Based on current Hotel Occupancy Tax generation, the City anticipates $4.53 million collected by the tax over a 10 year period with approximately $361,000 anticipated in the first year.
The PfTPID will dissolve after 10 years unless renewed by a petition signed by 60% of the existing hotels in the Pflugerville city limits. The PfTPIDC includes all hotels with more than 70 hotel rooms in Pflugerville. This item supports the Community Amenities and Events pillar of the Strategic Plan by supporting events and bringing programs to Pflugerville. It supports the Economic and Business Development Pillar by supporting local businesses including hotels, restaurants and entertainment venues which all benefit from increased tourism.
Prior City Council Action
7/14/2026 and 7/28/2026 Public Hearing held and Ordinance accepted on the TPID final service plan, assessment rate and assessment roll. TPID Special Revenue Fund established.
5/26/2026 Approval of the format for the Tourism Public Improvement District petition and service plan.
Deadline for City Council Action
9/8/2026 to ensure ample time to begin by October 1, 2026.
Funding Expected: Revenue _X_ Expenditure __ N/A __
Budgeted Item: Yes _X_ No __ N/A __
Budget Source: _Tourism Public Improvement District Special Revenue Fund__________
Budgeted Amount: __$454,313 over 10 years_________
Amount: N/A
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: ___8/28/2026___
Supporting documents attached:
Agreement between the City and TPID Corporation
TPID Service Plan
TPID petitions received June 24, 2026
Recommended Action
Approve the agreement between the Pflugerville Tourism Public Improvement District Corporation and the City of Pflugerville.