12-1771e.   Flood-plain condition redevelopmentdistrict; financing of investigation and remediation of flooding; taxincrements, procedures and requirements.(a) The governing body of a city may establish an increment in ad valorem taxesusing the procedure set forth in subsection (b) for projects that are initiatedupon a finding that the area is a blighted area as defined under K.S.A.12-1770a, and amendments thereto, when the following conditions exist:

      (1)   A majority of the property in the proposed district has beenidentified by a Kansas licensed professional engineerand the United States federal emergency management agency asexisting in the 100-year flood-plain; and

      (2)   the city intends to establish a redevelopment district pursuant to K.S.A.12-1771, and amendments thereto, to wholly finance or partially finance theinvestigation and remediation of a flood-plain within such a district.

      (b)   A flood-plain increment, established after a city has found that theconditions described in subsection (c) of K.S.A. 12-1770a, and amendmentsthereto, exist, shall be set on a yearly basis. For purposes of this section, ayearly basis shall be a calendar year. Each year's increment shall be an amountsufficient to pay the direct cost of investigation and remediation of theflood-plain condition anticipated to be incurred that year including principaland interest due on any special obligation bonds or full faith and credit taxincrement bonds issued to finance in whole or in part the remediation andinvestigation, costs relating to remediation investigation and feasibilitystudies, operation and maintenance expenses and other expenses relatingdirectly to the investigation of flooding. Each year's flood-plain incrementshall not exceed 20% of the amount of taxes that are produced by all taxingsubdivisions within any currently existing or subsequently createdredevelopment district area in the year the redevelopment district is firstestablished, notwithstanding that such subdivision was not required to receivenotice of the establishment of the district.

      (c)   The budget that established the yearly flood-plain increment shall becertified by the city to the county clerk and county treasurer no later thanAugust 15th, preceding the calendar year for which the budget is being set.Funds derived from a flood-plain increment established by this section andinterest on all funds derived from a flood-plain increment established by thissection may be used only for projects involving the investigation andremediation of the flood-plain in the district.

      (d)   The real property taxes produced by the flood-plain increment establishedunder subsection (b) from a redevelopment district established under theprovisions of K.S.A. 12-1771, and amendments thereto, and this section shall beallocated and paid by the county treasurer to the treasurer of the city anddeposited in a special separate fund of the city to pay the direct cost ofinvestigation and remediation of flooding in the redevelopment district.

      (e)   A redevelopment district created under the provisions of this sectionshall constitute a separate taxing district. If all costs for suchinvestigation and remediation of flooding in the redevelopment district havebeen paid and moneys remain in the special fund, such moneys shall be remittedto each taxing subdivision which paid moneys into the special fund on the basisof the proportion which the total amount of moneys paid by such taxingsubdivision into the special fund bears to the total amount of all moneys paidby all taxing subdivisions into the fund.

      (f)   Nothing in this section shall prevent any city from establishing aredevelopment district for other purposes pursuant to K.S.A. 12-1770 etseq., and amendments thereto, which may include part or all of the realproperty included in the district established under this section.

      (g)   Redevelopment projects relating to flooding investigation and remediationunder this section, shall be completed within 20 years.

      (h)   Nothing in this section shall be construed to affect the obligationsof the county to annually review the fair market value of property inaccordance with procedures set by law or to affect the right of any taxpayer toprotest and appeal the appraised or reappraised value of their property inaccordance with procedures set forth by law.

      (i)   For the purposes of this act, the governing body of a city may pledgeincrements receivable in future years to pay costs directly relating to theinvestigation and remediation of flood-plain areas. The provisions in suchcontracts pertaining to pledging increments in future years shall not besubject to K.S.A. 10-1101 et seq. or 79-2925 et seq., andamendments thereto.

      (j)   The provisions of this section shall be effective on and afterJuly 1, 2004.

      History:   L. 2004, ch. 173, § 20;L. 2005, ch. 53, § 2; July 1.