Wed Sep 18 22:07:00 UTC 2024: ## Kansas City Audit Finds City Delays Reimbursement for TIF Projects
**Kansas City, MO** – A new audit released by the Kansas City Auditor’s Office found the city has delayed reimbursement requests for 11 public projects totaling nearly $4.7 million funded through Tax Increment Financing (TIF). The audit revealed that the city has not established a streamlined process to ensure timely submission of reimbursement requests, resulting in delays and potentially jeopardizing other city projects.
According to the audit, TIF agreements require Kansas City to submit eligible project costs to the TIF Commission within 18 months of the cost being incurred. However, the city has failed to meet this deadline for several projects, leaving reimbursements in limbo.
“These late submissions cause delayed reimbursements and increase the city’s chances of the TIF denying its reimbursement requests,” the audit stated. “If the city does not receive reimbursement, the city must use the capital improvement fund balance to cover the costs, potentially impacting other city projects.”
The audit pinpoints several contributing factors to the delays, including a lack of centralized processes, inconsistent departmental policies, and inadequate training for staff on TIF reimbursement procedures. The report recommends implementing a citywide system to manage TIF reimbursements and ensure timely submissions aligned with agreed-upon amounts.
Following the audit, the city has initiated the process to request reimbursements for three projects totaling approximately $638,000. However, the audit emphasizes the need for comprehensive system-wide changes to address the issue long-term.
The full audit report is available online at [link to report].
First Piper 