Council interested in downtown tax zone

February 20, 2013, 12:30 am by Adam Troxtell

While Marble Falls city officials continue to look for ways to improve downtown, council members have shown interest in establishing a tax increment finance zone (TIF) as a way to fund such changes.

A TIF channels increases in property tax as a result of additions that benefit the public – such as sidewalks or benches – into a fund that is then used to develop other projects within a specific area. In their Tuesday meeting, council members were presented with the idea of a TIF in the city's downtown by Economic Development Corporation Executive Director Christian Fletcher. They instructed Fletcher and city staff to put together an implementation plan, but have not approved establishing a TIF district at the moment.

"Within parts of downtown, you've got undeveloped property, alleys that are not very well kept, gravel blending into broken asphalt,” Fletcher said. "Downtown Marble Falls needs basic infrastructure improvements.” The EDC has been exploring the use of a TIF zone since June.

In a TIF zone, the city creates a plan to improve the area by installing sidewalks, repaving roads or adding a building that would serve the community. Once these additions are complete, the city then reevaluates the property tax value of that land, and the difference between the previous property tax rate and the new one is used to fund additional projects.

Fletcher said one benefit of a TIF is it does not directly increase taxes for funding. there would be a tax increase if the property value went up. Any TIF requires a public hearing at which point property owners could submit their input.

For the full story, see Friday's Highlander.