The TIRZ is in partnership with Hays County, and will serve as a financial mechanism for supporting the public infrastructure improvements outlined in the development, according to a news release.
Explained
A PID is a geographic area that receives specific improvements through special assessments on the property owners within the defined area. The assessments are based on the proportionate cost of the improvements and debt issuance costs, according to the news release.
A TIRZ records all taxable value of property within that geographic area and deposits those funds in a tax increment fund. Revenues from that fund can only be used for the improvement projects located inside the TIRZ, according to the news release.
How we got here
The dais approved a development agreement with Milestone Community Builders and an agreement with landowners Bailey Land Investments LP and Armbruster Land Investments LP to annex approximately 762.44 acres of land into the city’s extraterritorial jurisdiction, or ETJ, in June, according to previous reporting by Community Impact.
Following the approval of the development agreement, the landowners petitioned the city for the creation of a PID on June 20, according to the news release.
By the numbers
The TIRZ will generate $266 million in incremental property taxes over a 45-year period, of which the city of Buda will retain $125 million.
The $250 million in proposed public improvements will be recovered through a special assessment levied within the development, with each parcel paying a proportionate amount of the costs, the news release states.
Per the development agreement, Buda will contribute 50% of the city's property taxes collected for the portion of the project located within city limits and 75% of the city's property taxes collected for the portion of the development located within Travis County. Hays County has also agreed to contribute 50% of the county's property taxes for the property located within Hays County, according to the news release.
A quick note
The authorization and creation of the PID and issuance of bonds does not obligate the city of Buda to provide funds. All improvements costs will be paid from assessments levied on the property within the PID and paid directly to bond holders annually, according to the news release.
What’s next?
The TIRZ board, which consists of Buda City Council and two Hays County representatives, will analyze the financial and service plan. Then, the council will issue PID bonds.
