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Edinburg TIRZ board accepts audit, approves about $726,500 in tax‑increment reimbursements
Summary
The Tax Increment Reinvestment Zone (TIRZ) No. 3 board accepted an independent accountant's report and approved reimbursements from tax increment revenues — Hidalgo County $352,500.19 and the City of Edinburg $374,000 — tied to infrastructure work by the Burns Brothers developer.
The Tax Increment Reinvestment Zone (TIRZ) No. 3 board accepted an independent accountant’s report and approved tax‑increment reimbursements tied to infrastructure work in the La Siena/Monte Cristo area on May 16.
City staff explained the TIRZ was created in 2008 to spur development on previously undeveloped, infrastructure‑deficient property north of Edinburg along Frontage Road/281. "This audit is required under the agreement to verify the improvements and the costs the developer submitted so they can be reimbursed," the staff member who presented the report said.
Staff reported the baseline taxable value when the zone was established was about $2.4 million; the assessed value within the zone has grown to roughly $73 million, and only the incremental value above the baseline is captured for reimbursements. The board was told the developer’s total documented investment exceeds $10.4 million and that reimbursements are subject to a not‑to‑exceed cap (reported as $12 million) and are paid over a 30‑year period; the board is currently in year 15 of that schedule.
After discussion and questions, the board voted to accept the agreed‑upon procedures report prepared by McAll Gibson Swetland Barfoot PLC and then to authorize the tax‑increment payments described in the audit. The amounts discussed on the record were a Hidalgo County payment of $352,500.19 and a City of Edinburg payment of $374,000, for a combined payment of about $726,500.19. A council member noted the county had approved the county portion earlier that morning.
The city staff emphasized these payments reimburse documented infrastructure costs the developer advanced to support development in the zone and do not represent a tax increase on residents; instead, a portion of property tax growth within the zone is used to repay the developer under the TIRZ agreement.
The board carried the motions by voice/hand vote. The TIRZ session then adjourned and the regular council meeting began.
