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CLEBURNE — Burleson’s economic development director on Nov. 28 requested Johnson County participation in a planned 20-year tax increment finance, or TIF, project. But concerns over loss of tax revenue and the project’s length caused county commissioners to table the matter until the next scheduled meeting Dec. 12.
The TIF zone encompasses the area of Burleson known as Old Town as well as undeveloped portions of the city. Economic Development Director Allison Thompson said the purpose of the project is to spur revitalization and new development.
Under the plan, the base rate of ad valorem taxes would remain the same and continue to go toward the city’s and county’s general funds. Any additional ad valorem taxes realized due to increased property values caused by capital improvements property owners undertake, however, would flow into the TIF fund. The city would use such funds for infrastructure improvements within the targeted area.
Johnson County Economic Development Director Diana Miller said TIFs move the timeline of development up, since TIF funds may only be used to improve public property. She said improving infrastructure in aging areas, or adding it in undeveloped areas, provides incentive for businesses to enter the area as opposed to locating in another city or county.
The Burleson City Council approved preliminary financing for the TIF project but has not yet passed the ordinance, Thompson said. The city now hopes Johnson County will sign on to the project for 20 years at 100 percent participation. If adopted, Burleson would contribute 61 percent and the county 39 percent of their respective ad valorem tax revenues over and above the base rate to the TIF project.
“None of the taxes are abated or given back. The base stays the same, just the additional value is targeted to the TIF zone,” Thompson said. “The increase in taxable value will benefit Burleson and the county.”
Commissioners expressed concern over foregoing 20 years of additional tax income and designating such a large area as a TIF zone. Commissioner R.C. McFall said the plan “basically freezes taxes” in the area for the duration.
“Any improvement anyone makes in that area over 20 years we’re relinquishing that [value] to the TIF board for an overall project that is vaguely defined, in my opinion,” Commissioner Troy Thompson said.
Other commissioners agreed.
“I want to help Burleson out, but we have to define this project very clearly and figure out the county’s contribution in greenback dollars, not some conceptual amount,” Commissioner John Matthews said.
County Judge Roger Harmon said the county should participate in the TIF project to some degree, but not on the scale envisioned.
Commissioners considered capping the county’s contribution to the project and participating for a term of less than 20 years, but they took no action and requested Allison Thompson to return to discuss the matter further at the next meeting.
In other action, commissioners:
• Continued the order prohibiting outside burning in unincorporated areas of the county. Several grass fires were reported over the weekend, including one Nov. 27 that destroyed eight homes and 24 barns and other structures. Matthews used the meeting’s public participation segment to thank the firefighters for their hard work battling the fire.
• Increased compensation for election judges from $7 to $8 per hour and for election clerks from $6 to $7 per hour. The last pay increase occurred in 1998, Johnson County Elections Administrator Cheri Haley said. The increase takes effect for the March primary and will not affect the county budget.
• Welcomed Vital Link students from Rio Vista who spent the week working with various county employees.
Matt Smith can be reached at 817-645-2441, ext. 2339, or msmith@burlesoncrowley.com
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