Aubrey City Council members, sitting first as the board of a new tax increment zone and then as the council, were scheduled to vote Thursday night on the final financing plan for Sherman Ridge, a 122-home subdivision planned on about 23 acres north of West Sherman Drive (FM 428) and west of Linda Street.
The council created the zone, Tax Increment Reinvestment Zone No. 5, and a matching public improvement district on Sept. 24, both on 5-0 votes, according to the minutes in Thursday's packet. Tonight's step adopts the final project and financing plan prepared by MuniCap, the city's district administrator. State law requires the council to approve that plan by ordinance.
What the plan pays for
The plan estimates about $14.4 million in project costs, covering public improvements plus related interest and administration. The improvements listed are water and wastewater lines, sanitary and storm sewers, roads and paving, right-of-way, landscaping and irrigation. Another roughly $4.26 million in development costs would not be paid through the zone.
Part of the infrastructure bill is to be covered by bonds tied to the Sherman Ridge Public Improvement District and secured by special assessments on property inside the district. The plan puts the maximum estimated size of those bonds at $12.5 million.
How much city tax money is involved
The zone captures part of the growth in city property taxes from the land, which is appraised at about $1.21 million today and carries a starting tax base of $0 for the zone because, the plan says, it was not annexed into the city before Jan. 1, 2026.
Under the plan, 32% of the new city property tax revenue from Sherman Ridge goes toward project costs. The rest stays with the city.
