Sachse councilmembers continued two public hearings into the most recent council meeting as it sought input from residents.

An increase in the city’s contribution to the Tax Increment Reinvestment Zone and a levying of special revenue assessment bonds were the two subjects of the hearings held during the Nov. 14 regular meeting.

Assistant City Manager Lauren Rose introduced the items that were a continuation from the Oct. 17 meeting.

“Many of these items are continuations of items that we’ve had previous conversations about at previous council meetings,” Rose said. 

City Attorney Kevin Laughlin and Mary Petty from P3 both explained the need to amend the contribution to the TIRZ because of contractual obligations in the development agreement. At the time the agreement was signed in 2018, the city agreed to contribute 50% of the tax rate when the agreement was made.

In 2018, the tax rate was 72 cents, which meant Sachse contributed 36 cents from taxes raised in the area to the TIRZ, said Laughlin. However, because of the city’s decreasing tax rate and the need to meet the obligation, it is required to increase the amount it contributes, he added.

Both Petty and Laughlin said the 30-year term for the TIRZ and the cap at $41 million would be unaffected by the amendment to the city’s contribution. A TIRZ no longer receives a contribution once it reaches a dollar cap or its term expires.

“They could quit getting reimbursed after they hit the max or the 30 years, whichever comes first,” Laughlin said. “I think everybody anticipates they’ll hit the max before the 30 years at the rates values are going up.”

Petty said that the increased assessment values do not adequately cover the reduction in the tax rate, which necessitated an increase in contribution from the city.

During the public hearing, no residents came forward to speak for or against the measure.

Councilmembers approved increasing the percentage contribution to the TIRZ encompassing the station.

For the full story, see the Dec. 1 issue of The Sachse News.