LOST-TIF

SSB 3121 was introduced this week by Senator Mary Jo Wilhelm (D-Howard), chair of the Senate Local Government Committee. Current law allows a city to change the use of its increased LOST revenues without an election if the purpose of the change is to fund an urban renewal project in a LOST-TIF district. The bill imposes a reverse referendum process, so the citizens may petition to vote on the question of changing the use of the LOST revenues. If no petition is filed, the city council may change the use of its increased LOST revenues to fund an urban renewal project in a LOST-TIF area. Any other change in the use of LOST revenues (i.e., other than to fund an urban renewal project in a LOST-TIF area) requires a vote of the people, both under current law and under the bill.

Under current law, all increased LOST revenues over a base year amount can be captured by the city where the sale occurs and used to fund urban renewal projects in a LOST-TIF district in that city. This is contrary to the statutory allocation process, which allocates LOST revenue to the county and cities within the county based on their population and budget size – not on where the sale occurs. The bill maintains the statutory allocation process, even for increased LOST revenues. All jurisdictions within the county will continue to receive their statutory share of the LOST revenues, regardless of where the sale occurs. Under the bill, a city is permitted to change the use of its portion of increased LOST revenues to fund urban renewal projects, subject to the reverse referendum change noted above. This is an ISAC Legislative Objective.

Return to this week's ISAC Update.