COPPERAS COVE, Texas (KXXV) — Copperas Cove city leaders have approved a new financial tool aimed at encouraging commercial development and reducing the city's reliance on residential property taxes.
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City Council approved the creation of a Tax Increment Reinvestment Zone, or TIRZ, which designates a specific area of the city and sets aside future tax growth to reinvest in that area. The goal is to use revenue generated by new development to fund infrastructure projects like roads, water lines and parks.
Ryan Haverlah, the city manager, said the timing is intentional.
"The future growth of taxes can be invested in infrastructure," Haverlah said.
"Now is a good opportunity to capitalize on the population growth that is occurring so that we can diversify our tax base," Haverlah said.
Fred Welch of the Copperas Cove Economic Development Corp. said the zone targets areas with the most potential.
"We identify areas within the city that are either underdeveloped or are greenfield sites for future development," Welch said.
Supporters believe the TIRZ could help attract more businesses and ease the burden on residential taxpayers.
"The ideal goal in the next five to ten years is to encourage more commercial development, both industrial and retail development in our city," Welch said.
Haverlah said a more diverse tax base could bring long-term financial stability for residents.
"We would expect that taxes would be stabilized because we're diversifying that tax base," Haverlah said.
The next step is appointing the TIRZ board at the next council meeting on Tuesday, July 21. City leaders say development could begin within the next six months, including work connected to a future VA clinic.
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