The city's Tax Increment Reinvestment Zone (TIRZ) Number 1 is a political subdivision created to implement tax increment financing, which applies to a defined area generally encompassing the transit oriented development (TOD) district in Leander.
TIRZ Number 1 allows the City of Leander and Williamson County to capture the incremental difference in property tax value from the date it was established (2006) through its expiration date (2031). During this time, the city and county divert 50% of the increment into a TIRZ fund for future investments, while receiving the other 50% as normal into each entity's general fund.
Tax increment financing is a local government tool used to support financing needed for desired structural improvements and enhancements to public infrastructure. Tax increment reimbursements are considered on a case-by-case basis and target a limited scope of eligible TOD projects generally defined by a TIRZ project plan.
The TIRZ board manages the project plan and recommends reimbursement agreements that are (1) subject to Leander City Council approval, and (2) performance based, since the cost of improvements are expected to be repaid by the creation of value and subsequent tax revenues from each improved property.
The Development Authority is the contracting agent for the TIRZ Board. It has the capability to implement projects as necessary and as approved by Leander City Council. The Development Authority Board consists of the same members as the TIRZ board.