Mission council extends TIRZ to 2045, clears way for roughly $22 million bond for infrastructure

The City of Mission on Jan. 13 unanimously voted to extend its Tax Increment Reinvestment Zone (TIRZ) by 15 years, moving the expiration from Dec. 31, 2030, to Dec. 31, 2045, and changing the city's participation from 100% to 50% of the levy inside the zone.

City staff told the council the extension would create an initial borrowing capacity of about $22 million to fund a package of capital projects listed in staff materials. "The resulting TIRZ extension will allow for a current capacity of $22,000,000 for its first bond issuance," the presenting staff member said.

Staff read the tentative project list the bonds would support: Bridal Road construction ($6.2 million), Taylor Road construction ($4 million), a treated water line at Cimarron ($2.1 million), South Water Plant feasibility ($4 million), Citriana Street drainage ($1.3 million), Horner Street ($1.6 million), Benson Palm Park renovation ($1 million) and Los Habanos Road improvements ($1.5 million). The presenter said the package totaled roughly $21.7 million.

An executive director working with the TIRZ board explained the extension is a common financing tool and allows the city and the reinvestment zone to borrow against future incremental tax revenues to complete projects sooner. "These sorts of extensions are very common," the director said, adding the extension would create capacity for future issuances if desired.

Councilmembers asked for additional public workshops and tax-office coordination before finalizing details about how the change would affect the citywide tax rate. The council then moved, seconded and approved the extension; the motion carried unanimously.

Next steps: staff said they will prepare public hearings and more detailed worksheets on tax impacts and bring the matter back for further council consideration and required public notice.