Denton County commissioners are set to decide Tuesday, Oct. 20, whether to pay part of the county's future tax growth from a section of Oak Point into a fund for street projects there.
The item asks the Commissioners Court to approve an agreement with Oak Point to join the city's Tax Increment Reinvestment Zone Number One. It was placed on the agenda by Precinct 1 Commissioner Ryan Williams, whose memo says he and the city recommend it.
What the county would pay
Under the proposed agreement, the county would put 50% of the real property taxes it collects on the zone's captured appraised value, the growth in taxable value above a Jan. 1, 2023, baseline, into the zone's fund each year. Value from land added to the zone this year has its own starting point.
The arrangement would cover tax years 2026 through 2035. It ends sooner if the county's payments reach $1,483,893, the zone ends, or the zone's project costs and debts are paid off. The first payment is expected in 2027, based on 2026 tax collections, the memo says.
The county's money could be spent only on building or improving streets. The agreement also says the county would not be responsible for repaying any bonds or notes the zone issues or for the zone's operating costs.
Two county seats on the board
The county would get two voting members on the zone's board of directors, and the city would keep seven. Oak Point plans to amend the zone's creation ordinance in November to add a ninth board seat and make room for the county's appointees, the memo says.
