Hutto City Council approved a new development zone along SH 130 on Dec. 5, establishing a dedicated funding tool to support long-term infrastructure needs.

The overview

The tax increment reinvestment zone, or TIRZ 4, covers about 1,970 acres along the SH 130 corridor. As new development increases property values in that area, part of the new tax revenue generated will be set aside to pay for roads, utilities and other public improvements within the zone.

About the project

Cheney Gamboa, director of Economic Development, said the project list in the preliminary plan is intentionally broad so the TIRZ can be established this year and lock in its base property values. More specific project selections will be developed next year in coordination with engineering, public works and parks staff.

Eligible projects include:

• Roadway connections and frontage-road improvements
• Water, wastewater and stormwater infrastructure
• Sidewalks, public buildings and transportation corridors
• Parks, landscaping and streetscape enhancements
• Administrative costs and eligible economic development grants

According to the city’s financial forecast, the zone is expected to generate revenue over time as development continues along SH 130. These projections will be updated annually to reflect tax-rate changes and real estate growth.

The city will next begin conversations with Williamson County, which has not yet committed to participating in the TIRZ. Staff and council members said county officials typically wait for cities to formally adopt a zone before considering their own contribution levels.

City staff will now finalize the project and financing a plan for council consideration in 2026.