While many TIF districts across the state and the nation implemented in the last 10 years have failed or are struggling, the Raytown Live TIF District is still progressing. No one could have predicted the economic downturn that followed the approval of the TIF, and admittedly it has been slower in growth than projected. However, at no time since the TIF’s inception has the City missed a payment or required additional input from any entity outside the original agreement.
Through a review of audited numbers and future projections, the City is optimistic that the District will continue to meet the necessary revenue requirements for the life of the debt. The City has made no additional funding requests of any other taxing entities outside the original agreement.
Some of the reasons for the City’s optimism in being able to continue to meet debt requirements on the TIF are as follows:
- The city of Raytown currently has no General Obligation debt. Standard & Poor, who are paid to review and rate debt issuances, issued the city an A+/Stable rating in September of 2015.
- To date, no additional funds outside of original pledges have been spent out of the City’s General Fund for the TIF.
- Current TIF reserves are sound. The TIF fund started out with 3.8 million, and it has now grown to over 4 million dollars.
- The City of Raytown is working to help fulfill the TIF’s original promise in attracting business and residents to the area.
While many current Aldermen and the current Mayor were not a part of voting for the TIF, moving forward, they are looking for a strategy to deal with any burden to the budget IF—and only IF—it becomes necessary. Their goal is for the City and all its entities to remain solvent and to maintain a budget that does not adversely affect services. They are working hard to safeguard taxpayer money.
In 2007 the Fire District entered into an agreement with the City to participate fully with the other taxing entities on Project Area #1, which includes Wal-Mart. State statutes govern the remaining participation. The Fire District has since asked the City to release it from the Project Area #1 agreement retroactively, but the City has a duty to protect the bond holders and the taxpayers of Raytown and cannot allow that change 8 years later.
Per State Statute the Fire District was required to participate in Project Area #2; however, the Fire District has requested to not participate at all in this area. Missouri State Statute 99.848 allows for any district providing emergency services to request at least 50% but not more than 100% of that district’s tax increment to be refunded.
Until November of 2014 the Fire District had not previously asserted its claim for consideration by the City. While not required to honor this request retroactively, the City did calculate the amount of refund the District would be owed since the activation of Project Area #2. The City subsequently applied that refund amount of $8,096.32 to the amount owed the City by Raytown Fire.
Going forward the City will work with the Fire District to formalize their request as required by law and apply the 50% refund amount considered and presented to Raytown Fire on numerous occasions during the initial implementation of the TIF District.
“I am dedicated to moving this city forward and to monitoring this TIF District just as we monitor all parts of our budget and spending,” Raytown Mayor Mike McDonough said.
“Granted the TIF may not have been productive as those who supported it hoped, but we have to deal with it and it is still progressing.”
Click HERE for a PDF file from Standard & Poor dated Sept. 2015 concerning this matter.
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