By the numbers
Since an initial agreement made with Dell Technologies in 1993, the city of Round Rock has seen a $550 million net tax benefit. While excluding the industry giant Dell, the city has still received $147 million in total property and sales taxes, provided $40 million in incentives, and retained a net benefit of $107 million, according to city documents.
Susan Morgan, Round Rock’s chief financial officer, noted to council the considerable benefit that these agreements pose for the local economy. Property taxes in Round Rock are relatively low compared to the rest of Central Texas, in part due to the city’s economic strategy, according a city statement.
Dell is also the city’s largest sales tax generator. Sales tax is used to fund public services.
The city has approved a total of 26 economic agreements to date, 11 of which having occurred in the past three years, Morgan said.
The framework
Economic development agreements may differ from property tax incentives, sales tax incentives, hotel occupancy tax incentives or direct economic incentive payments.
These agreements are intended to support long-term economic growth by setting up deals based on performance. The city sets specific parameters that aim to boost job creation and generate tax revenue for the local community, Morgan said.
The employment created by economic agreements accounts for 10% of the total 78,000 jobs in the Round Rock workforce, excluding Dell, Morgan said.
The city monitors compliance with agreement terms annually. If terms are not met, the city is not obligated to pay incentives.
More information on economic agreements can be found on the city's transparency website.
