Finance

The KURA, like most other urban renewal agencies around the country, is funded through a taxing concept called tax increment financing.  The basic idea is simple: future tax revenues pay for revitalization and redevelopment efforts. The City Council, acting on the recommendation from the KURA, draws a line around an area in need of improvement within the city called the revenue allocation area.  As property values increase in that area due to new investment, the rise in property tax revenues (called “tax increment”) is directed back to the KURA rather than to other taxing bodies.  The lifespan of the KURA is 24 years, and will be dissolved in 2030.

As a new organization in 2006, the KURA had no funds available for projects because no property tax revenue had been collected.  So, like many young URAs, the KURA jump-started its revitalization efforts by borrowing money.  In 2010, the KURA refinanced the debt, and then refinanced the debt again in 2021 by issuing municipal bonds.  The KURA has collected property taxes and is now using that revenue for repayment of the debt and general operations.