The city of Hutto is accepting applications for appointments to the seven-member 4B development corporation board. Applications, available at City Hall and online, will be accepted until July 14.
A second reading to develop the 4B corporation and decision are likely at the July 20 City Council meeting. If approved, the city would ask voters to guide 0.5 percent of the city’s sales and use tax for economic development from the current 4A designation to the 4B designation.
“The 4B will allow us to be more nimble about how we think about retention and expansion of businesses,” City Manager Odis Jones said. “The 4A has served its purpose, but we need to be flexible and encourage growth. I believe this is the appropriate way to move forward.”
Projects permitted under the 4A corporation, which collects a 0.5 percent sales tax approved by Hutto voters in 1996, include more traditional types of economic development, including land, buildings, equipment, facilities, expenditures, targeted infrastructure and other improvements for the creation and retention of primary jobs.
The jobs are in manufacturing and industrial facilities, research and development facilities, recycling facilities, distribution centers, small warehouse facilities, primary job training facilities for use by institutions of higher education and regional and national corporate headquarters facilities. The Hutto Economic Development Corporation has used the funds to entice businesses to come to the city and given funds as partners in infrastructure projects.
Jones said the 4B corporation allows for additional projects and makes more sense when competing for business.
Projects in a 4B include land, buildings, equipment, facilities, expenditures and certain targeted infrastructure, such as streets, roads, rail spurs, water and sewer utilities, drainage and site development. Additionally, the 4B corporation permitted projects include professional and amateur sports facilities, athletic entertainment, tourist, convention and public park purposes and events.
Hutto currently collects 8.25 percent sales and use tax. Of that, 6.25 percent goes to the state of Texas, 1 percent goes to the city, 0.5 percent is a reduction of property tax rates and 0.5 percent is economic development.
Jones said if the question to change from the funds being designated from the 4A to the 4B goes before voters Nov. 7, the rate will remain the same.
“This isn’t an increase,” Jones said. “This will allow us to grow the right way.”