ARGYLE — Town leaders are exploring whether four more special taxing districts could pay for Argyle’s portion of a $17 million sewer line expansion with the Trinity River Authority along Interstate 35W.

Those special districts, called public improvement districts, could be formed in addition to the four freshwater supply districts that the developers of the Canyon Falls and Belmont subdivisions in southern Argyle have already proposed.

Ultimately, individual property owners in those districts would pay the tab through their property taxes. The owner of an average home in the area, worth $244,330 according to the 2007 valuations, could pay as much as $7,525, or more, in annual taxes.

Argyle first agreed to allow developers to form the freshwater supply districts in exchange for paying Argyle’s way into the Trinity River Authority. But the Trinity River Authority leaders have said those agreements do not deliver enough secure, long-term financial backing for them to begin construction on the sewer line.

Town Administrator Lyle Dresher said the additional public improvement districts could allow Argyle to do what the freshwater supply districts couldn’t — provide upfront money.

“It’s a chicken-and-egg thing,” Dresher said. “We have to get it started.”

A public improvement district works by assessing fees on property to pay for public works projects, such as new water and sewer lines, streets and sidewalks, parks, public art and mass transit.

The Argyle public improvement districts would pay only for the sewer line; the freshwater supply districts would still cover the other public improvements, like streets and water lines, in Belmont and Canyon Falls, Dresher said.

With a public improvement district, the town could help the developer find upfront money to pay for the improvements, according to David Medanich, of First Southwest Securities, who spoke to the Town Council about the districts Tuesday.

If the developer defaults, the city would not be liable for the debt, but the city needs to be careful because its good name is at stake, he said.

 “You want to look at the value of the project and the financial strength of the developer,” Medanich said. “You want to be very careful.”

A steady stream of developers have approached town leaders in the past year asking for various types of tax-funded financing to jump-start other large-scale development projects.

At their regular meeting Tuesday, town leaders did not commit to financing a public improvement district, but they did re-engage McCall, Parkhurst & Horton, the law firm that has represented the town in previous bond revenue deals.

The firm also serves as bond counsel for the Trinity River Authority, Northlake and the Belmont districts.

PEGGY HEINKEL-WOLFE can be reached at 940-566-6881. Her e-mail address is pheinkel-wolfe@dentonrc.com.

Argyle area homeowners could pay markedly different tax bills depending on whether they live in a freshwater supply district. Here’s an estimate of the different tax bills, all based on a $244,330 home valuation:

Belmont or Canyon Falls: $7,525.36

Lantana: $7,319.93

Argyle, inside town limits: $5,167.57

Argyle, outside town limits: $4,226.90

SOURCE: Denton County tax tables and Denton Record-Chronicle research