MIDLAND, Texas — As the City of Midland continues to see growth, city council is taking a strategic financial approach to account for it -- their plan focuses on two areas of town.
The city approved a first reading of an ordinance to create two different tax increment financing reinvestment zones (TIRZ).
One TIRZ sets a boundary for the 191 Corridor in West Midland while the other TIRZ sets a boundary for the Scharbauer Sports Complex.
“We are planning ahead today for growth that we know is coming," said Midland Mayor Lori Blong.
In the Tall City, proactive financial planning is on the way.
“We know that we have to expand roads, we have to expand water lines and other types of infrastructure for the growth that is coming in this area," Mayor Blong said.
That area is West Midland, and on Tuesday, city council approved a TIRZ for the 191 Corridor with a 30-year timeline and financial projection.
“The 191 TIRZ around the Costco area is a smaller TIRZ where we only included 50% of the incremental growth of property tax because we know that we’re going to have expansion of infrastructure because of the growth in that area," Mayor Blong said. "So, that’s a smaller need – a smaller future need for expansion and development in the city there.”
The other 50% will remain in the city’s general fund.
The same will be the case for the Scharbauer Sports Complex, with one extra piece to the puzzle.
“This TIRZ includes a 50% of the property tax in that area and then also 50% of the sales tax in that area to allow us to have future maintenance operation and capital improvement to the Scharbauer Sports Complex because we know our community needs it and has come to expect it – we have to plan ahead for the financial stability of it," Mayor Blong said.
That TIRZ is particularly important in order to supplement an existing fund that is trending down.
“In 2017, the city council ended the sales tax that was allocated to the Scharbauer Sports Complex, and so, there was a healthy fund balance in there, but that fund balance is going to run out in about three years," Mayor Blong said. "And so, the TIRZ that we established today allows us to have a future-looking fund to maintain the Scharbauer Sports Complex.”
With the Tall City continuing to reach new heights, a little planning can go a long way.
“The decision that we made today is to allocate a future funding solution for those needs," Mayor Blong said.
Each TIRZ only deals with the city as a taxing entity, although city council did express the desire to see if the other taxing entities would want to get involved as well.
Mayor Blong said a second reading of the ordinance will be voted on in December before they aim to finalize the financial plan sometime in the first quarter of 2025.