Stephenville City Manager Allen Barnes announced that during the city council’s called meeting on April 25, the council approved an ordinance establishing Stephenville Tax Increment Financing District #1.
Tax Increment Financing or TIF is a law that allows municipalities to establish special funding districts. The district is funded by tax paid within the district.
As sales and property taxes rise in the district the incremental increase in taxes fund projects in the district. Examples of allowable funding include water, sewer, transportation, economic development contracts, as well as other improvements that benefit the district.
On May 7, the council will pass an improvement funding plan for the district based on a recommendation of the TIF board.
“This TIF is not only a huge step forward in making Stephenville attractive for developers, but it also gives us a dedicated funding source to accomplish several necessary projects,” said SEDA Director Jeff Sandford. “This process provides another vital tool for developing Stephenville without any negative impact on the taxpayer. I applaud the council and the SEDA board for creating this innovative approach for growth.”