City Council Members

TIF Overview for Kansas City Council Members

As a Kansas city council member, you may soon face a TIF vote requiring a two-thirds supermajority — the highest threshold for any incentive approval in your jurisdiction. Kansas’s Taxpayer Agreement Act (HB 2737) has introduced protections that make developer-backed TIF Bonds far more favorable for municipalities. Here is a high-level overview. TIF in Plain […]

As a Kansas city council member, you may soon face a TIF vote requiring a two-thirds supermajority — the highest threshold for any incentive approval in your jurisdiction. Kansas’s Taxpayer Agreement Act (HB 2737) has introduced protections that make developer-backed TIF Bonds far more favorable for municipalities. Here is a high-level overview.

TIF in Plain Language

TIF captures only the increase in property taxes generated by new development. No existing revenue is redirected — the base year taxes continue flowing to all taxing jurisdictions. The 20 mills for school districts and 1.5 mills for the state are fully protected from TIF capture. Only the new growth is set aside for up to 20 years to fund eligible public infrastructure costs like streets, utilities, demolition, and site preparation. When the TIF period ends, all revenue flows permanently to the taxing jurisdictions.

What HB 2737 Means for Risk

The Taxpayer Agreement Act ensures the developer — not your city — guarantees bond repayment. Delinquent payments are enforceable as delinquent real estate taxes. Conduit bonds issued under the Act carry no city obligation to advance funds. No public debt is created, no municipal credit is pledged, and the feasibility study required before any TIF approval must demonstrate the project would not proceed without TIF assistance.

What You Are Voting On

Kansas requires a two-thirds supermajority to adopt a redevelopment project plan. Before that vote, you will review the feasibility study, attend a public hearing, and evaluate whether the project area qualifies as an eligible area. The project plan must include estimated costs, projected increment, and the financing structure. Your job is to verify the analysis is sound and the protections are in place.

Free Educational Support

Hageman Capital provides free TIF education to Kansas council members. Connect with Whitney Peterson, our Director – Government Relations, for a no-obligation conversation before your next vote.

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