City to consider adding properties to TIRZ

The city of Dripping Springs may soon be adding parcels and projects to its two Tax Increment Reinvestment Zones, looking at a number of potential city initiatives.

The city first created the TIRZ, TIRZ 1 and TIRZ 2, in 2016 as part of an effort towards building a town hall center. These political subdivisions, as part of an interlocal agreement between the city and Hays County, were created to implement tax increment financing. A board of directors appointed by the city oversees the TIRZ, including Mayor Pro Tem. Taline Manassian and Commissioner Walt Smith, Precinct 4. While the town center project has experienced significant delays, the TIRZ and its projects have persisted. These include transportation improvements on Mercer Street and Old Fitzhugh Road.

Potential projects the city is currently considering include work on the Stephenson Building, Creek Road, Wallace Street and adding bathrooms downtown. To help fund these projects, the TIRZ board recommended the addition of Village Grove, Cannon Ranch — Ashton Woods, New Growth, Planned Development District 11 (formerly Terry’s Mobile Home Park), Creek Road, Hardy/Florio, and Anarene/ Double L Ranch. The city will discuss and consider action on these items at its City Council meeting on Tuesday, Oct. 18. A public hearing will be held for community input.

Inclusion of property in a TIRZ does not increase the tax rate or change the taxable status of a property. The city council makes the final determination of what projects to do, how to fund them and all contracts related to the projects.

The tax increment is 50% of the tax gathered from the increased appraised value of the properties from when they were added to the TIRZ. This increment is used for specific projects that benefit the TIRZ areas.