MIDLAND, Texas (KOSA) -The Midland City Council took the first steps to approve two new tax increment reinvestment zones for infrastructure needs in West Midland and the current Scharbauer Sports Complex.
That doesn’t mean that your taxes are going to change; it is only the way they are used.
We all know about the new Costco and the new retail stores coming to Highway 191.
The city of Midland wants to make sure the projects are properly funded, and they are doing so by changing the way it uses its tax dollars.
The first ordinance proposed will see more funds going to meet more infrastructure needs in the West of Midland.
“There is a going to be a lot of infrastructure needs things like streets, intersections, streetlights all those kinds of things to help traffic flow comfortably in the area. So rather than wait for that to happen and then try to react to it what council has done is taking a step to set up a fund that can be used in the future for those infrastructure needs,” said Planning & Development Officer, City of Midland Elizabeth Triggs.
The 2nd ordinance would improve funding for the Loop 250 corridor from 191 to Business twenty and help future maintenance and capital improvements to the current Scharbauer sports complex.
“We can become a hub for regional youth tournaments in sports and the sports complex plays a role in keeping it up and maintaining it but also continuing to grow it is critical this is a new funding source that will help us do that,” said Elizabeth Triggs.
Before the proposal, the Scharbauer sports complex relied on sales tax revenue called the type 4-B quarter-cent sales tax.
Residents voted not to renew it after the debt was paid off for the construction of the sports complex, but the city of Midland still has a fund balance of 10 million dollars.
“With how much things cost in terms of maintaining up to the level we want to maintain. We anticipate that to be depleted for the next 3 to 4 years and so we need to start thinking again about being proactive now about how we are going to maintain the sports complex once that 4-b fund balance goes away,” said Elizabeth Triggs.
Under this new ordinance, it would be funded by a combination of property, sales, and hotel occupancy taxes.
Both ordinances would have a 30-year term and a 50 percent participation rate.
“The new property tax revenue generated from new development in the zone or natural growths of the property value in the zone only half of that goes to the tourist fund the other half goes to the general fund meaning those dollars can go to provide services to other areas in the city,” said Elizabeth Triggs.
A final proposal is expected on December 17th.
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