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Cleburne council approves expansion of TIRZ 1 into TIRZ 1A, staff projects major new taxable value
Summary
Council approved an ordinance to expand Tax Increment Reinvestment Zone (TIRZ) No. 1 and create TIRZ 1A, a 30-year financing area with an estimated $154 million in TIRZ revenue through 2055 and projected 2041 new development taxable value of about $996 million.
The Cleburne City Council unanimously approved an ordinance to expand Tax Increment Reinvestment Zone No. 1 and create a companion zone, TIRZ 1A, a long-term financing tool city staff and consultants say will be used to fund infrastructure projects within the expanded boundaries.
Natalie Ayala, a consultant with Petit & Ayala Consulting, told the council the proposed 1A boundaries encompass roughly 1,688 acres (about 917 acres of that in the city’s extraterritorial jurisdiction) and would run 30 years, terminating Dec. 31, 2055. Ayala said the preliminary project and financing plan estimates approximately $154 million in total TIRZ revenue available to city and county participants over the term, and she cited an estimated 2041 new development taxable value of about $996,000,000.
"The city of Cleburne is estimated to participate in the TIRZ at just under $90,000,000 with Johnson County just over $65 million," Ayala said, walking through proposed tiered participation caps and the types of projects eligible for TIRZ funds, including streets, utilities, pedestrian improvements, parks, public facilities and economic development grants.
Council members asked about county participation and the distinction between parcels inside and outside the city limits; staff said county participation will be handled through a separate interlocal agreement and that county policy would exclude residential-only parcels from county increment participation. The consultant emphasized that project allocations in the preliminary plan are estimates and that specific projects remain subject to application to the TIRZ board and subsequent council approval.
Mayor Pro Tem (presiding) moved to approve the ordinance amendment and the associated creation ordinance; the motion carried unanimously.
Next steps outlined by staff include the county’s consideration of the amended interlocal agreement and later formal approval of a final amended project and financing plan by the TIRZ board and the city council.
