Proposed Ordinance — Tax Increment Financing Transparency & Accountability
Drafted — Not Yet SubmittedI independently researched and drafted a proposed ordinance to strengthen transparency, financial accountability, and taxpayer protections involving Tax Increment Financing (TIF) districts in the City of Independence. The proposal would require regular public reporting of tax revenues captured, developer reimbursements, project performance, outstanding obligations, and the financial impact on affected taxing jurisdictions. It also proposes stronger protections against the City assuming development financing risks, clearer disclosure requirements before Council votes, and accountability measures when required information is missing or financial commitments are not fulfilled. My objective is to ensure that when public revenues are committed to economic development, residents can see what was promised, what has been delivered, what remains outstanding, and who bears the financial risk. This ordinance is my independently drafted legislative proposal. It has not been submitted for Council consideration or adopted by the City.
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I developed this proposed ordinance to address the long-term financial commitments and public accountability associated with Tax Increment Financing districts.
**Public Reporting of Tax Revenues**
The proposal would require quarterly plain-language reports and an annual comprehensive report showing revenues captured through TIF arrangements, including applicable sales taxes, property taxes, payments in lieu of taxes, and other eligible revenues.
Reports would identify the affected taxing jurisdictions, cumulative revenues, remaining obligations, and duration of the financing arrangement.
**Tracking Public Money and Developer Benefits**
The ordinance would require disclosure of developer reimbursements, transfers between accounts, debt service, administrative expenses, and other uses of TIF revenues.
It would also require reporting of promised development outcomes compared with completed work, missed milestones, and remaining project obligations.
**Protecting Taxpayers From Development Risk**
For future TIF arrangements covered by the proposal, developers would bear upfront financing risk rather than relying on City-backed debt.
Reimbursements would be tied to actual, verified tax increment generated by the project, rather than anticipated revenues.
The proposal also includes performance-security and developer-responsibility provisions intended to protect public funds if a project underperforms.
**Transparency Before Council Decisions**
Before major TIF approvals, amendments, extensions, or refinancing decisions, the draft would require publication of a comprehensive disclosure packet at least 30 days before a vote.
It also proposes written acknowledgments by voting members confirming review of the financial disclosures and risk allocation, along with enhanced conflict-of-interest safeguards.
**Public Questions and Accountability**
Residents would have a formal process for submitting written questions about TIF finances, reimbursements, transfers, and performance.
The proposed response period is 30 days, with additional oversight when questions remain unanswered.
**Enforcement and Financial Oversight**
The ordinance proposes compliance reviews, financial audits, public hearings, corrective-action requirements, and restrictions on certain financial activities when reporting or accountability requirements are violated.
It also calls for a permanent public registry containing TIF approvals, reports, audits, Council votes, enforcement actions, and termination records.
**Current Status**
This is an independently prepared ordinance draft that has not been formally submitted, introduced, or adopted.
Before potential submission, the proposed enforcement provisions, financing restrictions, and applicability to existing agreements require review for consistency with Missouri law, existing contractual obligations, and the City's legal authority.
The complete draft is retained as a supporting document.
Timeline
Independently Drafted TIF Transparency and Taxpayer Protection Ordinance
Prepared an independent draft ordinance proposing stronger transparency, financial accountability, and taxpayer protections for Tax Increment Financing districts in Independence. The proposal addresses public reporting of captured tax revenues, developer reimbursements, financial obligations, project performance, public questions, Council voting disclosures, and developer responsibility for financing risks. The ordinance remains in draft form and has not been submitted for formal Council consideration.
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