Special Districts

Background

The City of Warrensburg utilizes a Neighborhood Improvement District (NID) Fund to account for NID activities, and a Tax Incremental Financing fund (TIF) to account for TIF related activities. The activities of the NID and TIF funds are generally associated with the collection of special assessments dedicated to servicing the debt incurred to fund specific neighborhood improvement projects or defined tax districts.

Definitions

Neighborhood Improvement District (NID): A program to finance improvements that will be used by the public and must confer a benefit on property within the district; with revenue from a special assessment. 

Tax Increment Financing (TIF): A TIF allows the use of a portion of state or local property and sales taxes to assist funding the redevelopment of blighted areas.  

Current Special Districts

Russell Road Neighborhood Improvement District (NID) 

The Russell NID was established in the FY01 budget year to fund the extension of Russell Road from Burkarth Road east to PCA Road. Bonds were issued to pay the cost of construction and are repaid from a special tax assessed against the benefited property owners through FY21 when these bonds will be retired. 

View the map of the Russell NID.

Hawthorne Neighborhood Improvement District (NID) 

The Hawthorne Neighborhood Improvement District (NID) was first undertaken in 2005 pursuant to a Development Agreement and in accordance with state statute. The Hawthorne NID includes various subdivisions: Hawthorne Plaza, Hawthorne Development, Caleb’s Place PUD, and D-C Developments. Final bonds were issued in 2011 to provide permanent financing for public improvements previously completed. Notices of Assessment were delivered to the property owners and recorded with the Recorder of Deeds. The first of 20 annual assessments were imposed with taxes at the end of 2011. Each lot within the District receives an annual assessment for the life of the NID, which is twenty years. 

Upon default by property owners of Hawthorne Plaza and Hawthorne Development parcels to reimburse for the NID obligations, the City initiated foreclosure proceedings culminating in a court order to proceed with a Sheriff Auction April 5, 2013. 6 of the Hawthorne Plaza lots and 5 of the Hawthorne Development lots/tracts listed on order of sale were sold to others and not the City. 

NID public improvements included road construction, intersection improvements, street lights, storm water and sanitary sewer and water line extensions with a combined value of $3.1 million. 

As an incentive when purchasing into the NID, the City will reimburse owners an amount not to exceed 50% of the City 1 cent Sales Tax collected by the City for retail sales. This incentive is available immediately following the payment of the first two annual installments of Special Assessments and is not to exceed the amount of the Assessment for that current calendar year. 

View the map of the Hawthorne NID.

Hawthorne Transportation Development District (TDD) 

As of note, but unrelated to the City, the Hawthorne Transportation Development District (TDD) was established in 2005. The Hawthorne TDD is a separate political subdivision that includes the Hawthorne NID properties, Lots 4 and 9 of Hawthorne Development, Wal-Mart and Liberty Plaza. The TDD prohibits discount department stores, or other discount stores, and grocery stores or supermarkets in excess of 45,000 square feet. Public improvements of the TDD totaled $4.3 million. To finance the improvements, an additional ½ cent sales tax is imposed on businesses located within the TDD. In June of 2017, the TDD Board refinanced the debt paid for with the ½ cent sales tax, to take advantage of lower interest rates and include road improvements.

View the map of the Hawthorne TDD.

Keystone Tax Incremental Financing (TIF) 

The Keystone Tax Incremental Financing Project was approved by the Warrensburg Tax Incremental Financing Commission and City Council in 2015. Under the guidelines of this contract, the City will reimburse the Developer for all verified Reimbursable Project Costs with limitations. 

This Fund was established to account for the Special Allocations associated with the TIF agreement, and contains separate accounts for Payments in Lieu of Taxes, Economic Activity Taxes, and the Reimbursable Project Cost. 

View the map of the Keystone TIF.