City expands TIRZ to include additional neighborhoods, library
The city of Dripping Springs has added multiple parcels to the first of its two Tax Increment Reinvestment Zones, involving a number of potential city projects and initiatives.
The Dripping Springs City Council voted in favor of the expansion at its meeting on Tuesday, Oct. 18. Moving forward, the city will finalize TIRZ project plan drafts and finalize ordinances. This round of review and approvals, according to city documents, will end Saturday, Dec. 31.
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 initially created to implement tax increment financing for the town center and other, future projects.
“The TIRZ is one layer of funding to help leverage additional funding sources for city improvements,” city documents stated. “Creating a TIRZ with identified projects is an effective method to communicate the city’s key areas for investment and targeted growth.”
A board of directors appointed by the city (and including county representatives) oversees the TIRZ, including Mayor Pro Tem. Taline Manassian and Commissioner Walt Smith, Precinct 4.
While the town center project has experienced significant delays and changes, the TIRZ and its various initiatives have persisted. These currently include roadway and drainage improvements on Mercer Street, Old Fitzhugh Road and Creek Road.
Specific projects the city is considering include work on the Stephenson Building and adding bathrooms downtown. To help fund these projects, the TIRZ board initially 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. After the initial proposal in early October, city staff also recommended the addition of the Dripping Springs Community Library, which was approved.
The new properties included in the TIRZ are expected to bring in approximately $83 million by 2046. Comparatively, proposed and current projects are expected to cost the city approximately $30 million.
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.
To learn more about Dripping Springs’ Tax Increment Reinvestment Zones, visit cityofdrippingsprings. com/tirz.