TIF Overview for Nebraska City Council Members

As a Nebraska governing body member, you vote on substandard and blighted declarations and redevelopment plan approvals — decisions that shape your community’s development trajectory. Here is a high-level overview of how TIF works under the Community Development Law and what proposed changes under LB 1168 would mean.

TIF in Plain Language

TIF captures only the increase in real property taxes generated by new development. The base value of taxes continues flowing to all taxing bodies — city, county, school district, community college, and others. No existing revenue is redirected. Any interest and penalties on delinquent taxes go to the taxing bodies, not the TIF fund. The excess value is set aside for 15 years (or 20 for extremely blighted areas) to pay eligible redevelopment costs. When the period ends, all revenue flows permanently to every jurisdiction.

What LB 1168 Would Change

Proposed conduit revenue bonds would not be CRA general obligations — payable solely from pledged project revenues. Taxpayer agreements would create enforceable developer shortfall guarantees with super-priority lien security. This means the CRA’s broader assets would be insulated from project-specific risk, and the developer would contractually bear the performance risk.

What You Are Voting On

You vote on the substandard and blighted declaration (after a blight study, planning commission review, and public hearing) and the redevelopment plan approval. The cost-benefit analysis must demonstrate the project is in the community’s best interest and would not proceed without TIF. The CRA must give 30 days’ written notice before accepting a redevelopment contract. Public notice requirements include published notice and mailed notice to affected neighborhood associations and political subdivisions. These safeguards ensure transparency throughout the process.

Free Educational Support

Hageman Capital provides free TIF education to Nebraska governing body members. Connect with Whitney Peterson, our Director – Government Relations, for a no-obligation conversation.