COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 090981
Establishing the Special
Allocation Agency Fund in the records of the City; directing the City Manager
to include in the annual budget submittal a report on the Special Allocation
Agency Fund and to create a long term plan to address tax increment financing
accounting matters and report back to the Council in six months.
WHEREAS, the City desires to use an agency fund to account for TIF, Super-TIF,
and other economic activity and property tax redirection and take these
expenses off-budget so as to allow for the immediate transfer of these taxes to the proper entity in accordance
with state statute and other legal obligations of the City; and
WHEREAS,
the City desires to establish and utilize the agency fund to receive and
thereafter disburse payments in lieu of taxes and economic activity taxes (as
each are described by Sections 99.800 to 99.865 of the Revised Statutes of
Missouri (the TIF Act”) and collectively referred to in this Ordinance as “TIF
Revenues”) generated within Redevelopment Project Areas approved by the City in
accordance with the TIF Act and certain other taxes pledged by the City to
support Redevelopment Projects funded by tax increment financing, and to
characterize such amounts as off budget expenses and to provide for their
immediate transfer to the Tax Increment Financing Commission of Kansas City,
Missouri (the “TIF Commission”) in accordance with the TIF Act and City
ordinances; and
WHEREAS, the
City intends to capture excess FY 2010 appropriations to fund a TIF/EATs
reserve to address future TIF/EATs expenditure needs of the City;
and
WHEREAS,
the City has recorded as a liability on its books since 2001 an amount equal to the estimated TIF Revenue received
(the “Historical TIF Liability”); and
WHEREAS,
the City
now desires to resolve the
Historical TIF Liability
over the next three fiscal years; and
WHEREAS, the City desires that the City Manager create a
plan to address issues related to this matter; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF
KANSAS CITY:
Section 1. There is hereby established in the records of
the City a new fund, to be known as Fund No. 6999, the Special Allocation
Agency Fund.
Section 2. That the Director of Finance is hereby
designated as requisitioning authority for Accounts in the Special Allocation
Agency Fund.
Section 3. That the Council states its intention to
capture excess FY 2010 appropriations to fund a TIF/EATs reserve to address
future TIF/EATs expenditure needs of the City.
Section 4. That the Mayor and Council hereby direct that
the City Manager include in the annual budget submittal a report on the Special
Allocation Agency Fund.
Section 5. That the
Mayor and Council direct the City Manager to create a long term plan to address
tax increment financing accounting matters and make recommendations
to the Council on ways to make the processes more effective, efficient and
timely, within six months of the passage of this ordinance.
____________________________________________________
Approved as to form and legality:
_______________________________
Heather
A. Brown
Assistant
City Attorney