After several discussions about a Tax Increment Reinvestment Zone (TIRZ), several councilmembers signaled it is not a development they are interested in.
Council held a work session to discuss the TIRZ, which could have been as big as the entire city, with Wylie Economic Development Corporation Executive Director Jason Greiner during the Tuesday, Oct. 11, regular meeting.
Based on the past year with 100% participating in a citywide TIRZ, Greiner said the zone would have generated $548,000. The only catch with the full participation is that the funds collected through local tax revenues would not go into the city’s unassigned fund balance for the general fund, he added.
Despite that, the TIRZ is a way that the city can leverage tax revenues and fund local improvements rather than including them in a bond package.
“I think it’s a long-term investment in the community,” Greiner said. “If you do earmark this money, you need to be careful that you don’t hurt the city.”
That catch presented the biggest holdup for council after City Manager Brent Parker said that a 100% participation in the zone could potentially impact the city’s ability to give employee’s raises and quality benefits if the city did not make a corresponding tax raise to compensate for the lost revenue.
Both Greiner and Parker agreed that a TIRZ would have been a better investment 20 years ago but with the city approaching buildout, the short-term payoff may not be worth it.
For the full story, see the Oct. 19 issue of The Wylie News.
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