INTRODUCTION | The City of Kansas City, Mo. is planning an expansion of the new streetcar system. This FAQ

sheet explains how construction and maintenance of the expanded system will be funded. The expanded streetcar

system is expected to use a funding formula similar to the one used to construct the downtown streetcar line. This

includes creating a new, larger Transportation Development District (TDD). The revenue formula plans to combine

local taxes and assessments with federal and/or state funds and other non-TDD sources. The amount of non-TDD

revenue will determine how far the expansion routes can be built in Phase 2.

Q: Would the proposed expansion of the streetcar line also be financed with a Transportation Development District

(TDD)?

A: Yes, in part. Phase 2 of the streetcar line (also known as NextRail KC) plans to be paid for with a combination

of revenue from a new TDD (to pay for annual operating costs and approximately 40-50 percent of construction

costs) and from federal and state funds and other non-TDD sources, including potential public-private partner-

ships.

Q: What are the boundaries of the Expansion TDD?

A: The Expansion TDD would run from State Line Road on the west to I-435 on the east, with the Missouri River

as the northern boundary. The southern boundary is 89th Street from State Line Road to Ward Parkway; 85th Street

from Ward Parkway to 71 Highway; and Gregory Boulevard east from 71 Highway.

Q: What are the revenue sources proposed for the Expansion TDD?

A: The revenue sources for the Expansion TDD would be the similar to the Phase 1 TDD, a combination of a 1

percent sales tax within the entire boundary of the Expansion TDD and a special assessment on some, but not all,

property.

Q: What happens to the Downtown Streetcar TDD?

A: If a new, larger TDD is created to finance the expanded streetcar system (the “Expansion TDD”), the existing

Kansas City Downtown Streetcar TDD (the “Phase 1 TDD”) will be replaced by the Expansion TDD once Phase 2 is

ready to proceed. The Expansion TDD will seek voter approval for the same sales tax and maximum special assess-

ment rates as are currently being imposed by the Phase 1 TDD. Although voters may be asked to approve these

revenue sources in November 2014, the Expansion TDD’s sales tax and special assessments would not begin until

it is determined that Phase 2 has sufficient non-TDD funding to be viable. At that point, the revenue sources in the

Phase 1 TDD would be replaced with the revenue sources from the Expansion TDD. Property owners in the Phase 1

TDD will not notice any difference. Their sales tax and special assessment will remain the same.

FREQUENTLY ASKED QUESTIONS ABOUT LOCAL FUNDING

TO EXPAND THE KANSAS CITY STREETCAR SYSTEM

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Potential TDD

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Main Street Plus

Prospect MAX

TDD (Starter Line)

This map depicts the proposed streetcar expansion lines. Potential ending points have not yet been determined.

In order for the first question - to approve forming the Expansion TDD - to be on the Aug. 5, 2014 ballot, the

court order authorizing that first election needs to be issued more than 10 weeks in advance, which would be May

27, 2014.

To allow plenty of time for all necessary notices and legal procedures, it is necessary that the petition to form the

Expansion TDD be filed around Jan. 24, 2014. If it becomes necessary during the court proceeding, it would be

possible to make amendments to the petition, although this is not anticipated.

This timeframe is important because the current leadership at the U.S. Department of Transportation is very sup-

portive of transit funding for local projects like the expansion routes.

Q: What are the revenue sources and maximum rates that have been approved for the Phase 1 TDD?

A:

•Asalestaxnottoexceed1percentonsaleswithinthePhase1TDDboundary

•AspecialassessmentonrealestatewithinthePhase1TDDboundary,withmaximumannualrates

as follows:

•48¢foreach$100ofassessedvalueforcommercialproperty($1,536foreach$1

million of market value)

•70¢foreach$100ofassessedvalueforresidentialproperty($266foreach$200,000of

market value)

•$1.04foreach$100ofassessed value for property owned by the City (which would mean

atotalannualCitypaymentofabout$810,000)

•40¢foreach$100ofassessed value for real property exempt from property tax, such as

religious,educational,charitable,etc.property,butonlyonmarketvaluemorethan$300,000and

lessthan$50Million.

•AsupplementalspecialassessmentonsurfacepayparkinglotswithinthePhase1TDDboundary

(not garages and not free parking lots). The maximum rate for the supplemental special assessment

onsurfacepayparkinglotswillbe$54.75perspaceperyear.

THIS FAQ SHEET WAS PREPARED BY THE CITY OF KANSAS CITY, MO. AND IS ONLY A SUMMARY

OF INFORMATION ON THIS SUBJECT. READERS MAY ALSO REFER TO THE PETITION THAT WILL

BE ON FILE WITH JACKSON COUNTY CIRCUIT COURT IN LATE JANUARY FOR A COMPLETE DE-

SCRIPTION OF THE TDD AND ITS PROPOSED PROJECT AND REVENUE SOURCES.

Q: How would the special assessment work in the Expansion TDD?

A: The special assessment would be applied at the same maximum rates as the Phase 1 TDD. However, not every

property in the Expansion TDD would pay a special assessment. In the Expansion TDD, it’s anticipated that only

properties within a reasonable distance (up to approximately a half mile on either side of the streetcar line, with

some exceptions) will pay the special assessment. Downtown properties that already pay special assessments under

the Phase 1 TDD will continue to pay those assessments under the new Expansion TDD.

Q: How much would a special assessment cost?

A: The special assessment rates for the Expansion TDD would be no more than the maximum approved rate for

the Phase 1 TDD. Using those maximum permitted rates, below are examples of the annual special assessment for

property that is subject to the assessment (the actual formula is outlined in the final answer of this FAQ sheet):

•Forresidentialproperty:Thespecialassessmentwouldbe$66.50/yearforevery$50,000of

assessed property value (as determined by Jackson County);

•Forcommercialproperty:Thespecialassessmentwouldbe$1,536/yearforevery$1,000,000of

assessed property value (as determined by Jackson County).

Special assessments would also be imposed on property owned by the City, property owned by non-profit entities

(propertyvaluedunder$300,000wouldbeexempt),andsurfacepayparkinglots.

Q: Will special assessments be paid by properties that have tax abatements?

A: Yes. Special assessments are different than property taxes and tax abatement does not abate special assess-

ments.

Q: What is the process for forming an Expansion TDD?

A: A petition will be filed with the Jackson County Circuit Court. The petition will describe the proposed project

to be undertaken, boundaries of the Expansion TDD, revenue sources and the maximum rates for each type of rev-

enue. If the court rules the petition to be proper, it will order an election.

Creating and funding the Expansion TDD requires two public votes. The first vote, expected in August 2014, will

ask voters to approve creating the Expansion TDD. The second vote, expected in November 2014, will ask voters

to approve the specific revenue source, i.e., the sales tax and the maximum special assessment rates.

Q: Why are we starting now to create the new Expansion TDD if the expansions are not expected to be constructed

until 2019?

A: It is essential that a local funding source be in place when the federal government is considering the City ’s ap-

plication. The City ’s intention is to apply for federal funding in early January 2015, and therefore the two Expan-

sion TDD elections need to be completed before then.