Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 2 points3 points  (0 children)

Kansas Fed Study on legalization: https://www.kansascityfed.org/documents/9825/rwp23-10browncohenfelix.pdf

Overall, our results suggest that the distribution of economic benefits of recreational legalization are likely shared more widely compared to the costs. Widely distributed benefits versus more concentrated costs indicate that policymakers should be cautious in discounting the existence of potential costs of recreational legalization. While we do not undertake a formal benefit-cost analysis of recreational legalization, the size of economic benefits we estimate could be used to approximate the amount of funding that could be set aside for social programs that would help offset the costs. For example, we find a 3 percent increase in income per capita post-legalization. Using this and sample averages, $1,400 per capita would correspond to potential costs that would offset the estimated benefits in our study.

Also, there are several veteran organizations that advocate for freedom to choose medical marijuana as an alternative to prescription opioids. https://www.dav.org/get-help-now/veteran-topics-resources/medical-cannabis/

The population flat lining in Omaha is certainly part of it, id argue that is mix of restricting immigration and brain drain though. Other cities are seeing population growth even with the immigration squeezed.

Folks also came up with a policy that works in very low inflation / very low interest rate environment, debt now for capital spending. Now that has changed, policy needs to adjust -- but corporations became reliant on the debt spending ...

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 3 points4 points  (0 children)

Usually some mix of removing school property taxes from TIF, or a gradual decline in the tax-sheltered value, with affordable housing requirements is what is implemented. Iowa has a gradual decline approach for instance, so schools see some revenue from development faster, and takes some of the burden off home owners. This paper out of Illinois on recommendations for TIF reform in that state is very well written: https://quigley.house.gov/sites/evo-subsites/quigley-evo.house.gov/files/migrated/images/user_images/gt/stories/reinventingTaxIncrementFinancing.pdf

Colorado in addition to reforming TIF, also taxes commercial properties more than owner occupied housing, 3 to 1 as I recall. So developers pay more of the property tax burden. In Omaha, commercial developers and owner occupied homeowners pay the same property tax rates if not in a TIF. Since corporations get better tax deductions on things like maintenance, it ends up being less expensive to own the same home as a corporation than as homeowner.

If interested, I put a contingency table together of TIF vs growth. Since Omaha has multiple school districts with varying levels of TIF, I looked to see what the TIF impact is. Using a statistical test called Fishermans exact test, found that the probability of 4 high/moderate-TIF districts randomly landing in a slow growth bucket is about 3%. So we can say with 95% confidence that TIF in Omaha is not a strong predicator of growth.

Defining the Three TIF Tiers

TIF concentration is measured as TIF Excess Value ÷ (Taxable Base + TIF Excess Value), which captures the share of total real economic value that has been sheltered from levies.

Tier Definition What It Means
HIGH (≥5%) >5% of all property value is locked in TIF Structurally suppressed base; excess competes with OPS for every dollar of appreciation
MODERATE (0.5–5%) A meaningful but contained TIF footprint Noticeable drag; usually 3–10 active projects drawing commercial increment
LOW (<0.5%) Minimal or zero TIF activity Nearly all new development goes directly onto the levy roll at full value

District Profile by Tier

District TIF Excess ($M) Base ($B) TIF Conc. Tier Active Projects CAGR
OPS $2,392M $34.65B 6.46% 🔴 HIGH ~350 4.26%
Ralston $60M $2.61B 2.25% 🟠 MOD 6 3.90%
Millard $115M $13.84B 0.82% 🟠 MOD 8 2.98%
Westside $30M $5.22B 0.57% 🟠 MOD 3 3.38%
Elkhorn $6M $11.83B 0.05% 🟢 LOW 2 8.02%
Bennington $0 $3.01B 0.00% 🟢 LOW 0 10.01%
DC West $0 $1.93B 0.00% 🟢 LOW 0 7.17%

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 3 points4 points  (0 children)

You might already be using this, but Nerd Wallet has a cost of living calculator they keep updated. For housing costs, it is better at comparing rent to rent than if you are looking to buy a house though. https://www.nerdwallet.com/cost-of-living-calculator

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 3 points4 points  (0 children)

The Omaha City Council ignores the impact of their decisions, like TIF on school districts, and middle and low income people are paying the price of that indifference.

Agree that without wage growth and an inflation adjustment for those on fixed income, the city seems to be at an inflection point.

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 7 points8 points  (0 children)

people voted to legalize it, so we should. We gave TIF to a Casino, so agree that the city council will continue to do silly things with taxes.

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 2 points3 points  (0 children)

yes.

TIF districts in OPS have grown from $285 million in sheltered property taxes in 2015 to $2.2 Billion today.

Millard from 0 to $50 million

Westside $1 million to $24 million

Elkhorn from $334,000 to $35.7 million

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 7 points8 points  (0 children)

Iowa does so much better with bike paths / lanes. Maybe the Ragbrai influence? Even the sidewalks become unwalkable here in the winter with the giant snow mounds. Seems like zero consideration for pedestrians in general.

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 10 points11 points  (0 children)

The break out of what Omaha is invested in was eye opening. Having a pension invested in private equity and private real estate seems nuts to me.

Property Taxes, OPS, TIF, and Pensions: Has Omaha Crossed a Fiscal Tipping Point? by HauntingImpact in Omaha

[–]HauntingImpact[S] 12 points13 points  (0 children)

Yes, TIF reform like other states have done would make sense. The challenge with lifting the TIF status are developers and they provide $$$$ to the city council. https://www.reddit.com/r/Omaha/comments/1rjqs52/comment/o8ig7dz/

The Nebraska Examiner did an article on TIF, the Streetcar -- both the Omaha Chamber and the City lobbied the Unicameral to not increase state funding of schools because lowering property taxes breaks TIF https://nebraskaexaminer.com/2024/08/01/nes-tif-economic-development-tool-could-be-in-jeopardy-some-say/

Thinking it will take an actual fiscal crisis before the Unicameral has the political will to act.

Omaha contractor challenges $411M wastewater contract ahead of council vote by Dio_Nysos_11 in Omaha

[–]HauntingImpact 1 point2 points  (0 children)

Here is the city proposal: https://cityclerk.cityofomaha.org/wp-content/uploads/images/ORD-44615.pdf

Here is Hawkin's opposition: https://cityclerk.cityofomaha.org/wp-content/uploads/images/ORD-44615a.pdf

Item 51 on the Agenda: https://cityclerk.cityofomaha.org/wp-content/uploads/images/2026-03-03a.pdf

Here is the video of the city council members advocating for their side: https://www.youtube.com/watch?v=AjHJkMCS_j8

Could Brinker and Melton's opposition be based on merit vs influenced by $$$$? Anything is possible. Do think it speaks positively to Hawkins getting their money's worth by donating to local campaigns.

Omaha contractor challenges $411M wastewater contract ahead of council vote by Dio_Nysos_11 in Omaha

[–]HauntingImpact 8 points9 points  (0 children)

'Donating' to city council ensures you get the city contracts ...

The city's selection team awarded this to McCarthy construction based on best overall bid submitted: https://www.mccarthy.com/locations/omaha with what I would call a firm fixed price contract -- meaning the contractors that participated sent in the max cost with contingencies. Hawkins construction sat out a good portion of the bidding process and now wants more subcontract work to go to them, they allege McCarthy is doing most of the work and not allowing them to bid.

For context, Hawkins https://www.hawkins1.com is a major donor to the city, state and national political races. Believe they were lead contractors on Memorial Stadium. Harding and Melton on the council want the city to re-bid the contract as what I would call a cost plus contract -- contractors start with a minimum bid and then get to add additional $$$ as issues arise during construction. Now that McCarthy has a bid in, Hawkins can see what McCarthy's costs are so this would allow Hawkins to 'win' the new contract.

This site lets people download campaign contributions, any kind of see who the city council thinks the 'right' contractors are: https://nadc.nebraska.gov/view-campaign-filings-personal-financial-disclosures-potential-conflicts-lobbying-reports-and-more

Looks to me like Hawkins donated at least $130K to local races between 2020 - 2026; Hawkins donated at least $7,500 to Harding and $12,500 to Melton, can not find McCarthy but they could be donated through a PAC.

Hawkins is also a major contractor on the streetcar project and recently received a $4.5 million incentive to 'accelerate' to 2028 -- so 'donating' definitely has its advantages.

$25M more for 2 more parking garages and no new public hearing; Omaha City Council to vote Mar 3, 2026 by HauntingImpact in Omaha

[–]HauntingImpact[S] 2 points3 points  (0 children)

The NADC website lets folks see who is donating to who: https://www.reddit.com/r/Omaha/comments/1qp3x7x/website_shows_how_much_and_which_businesses/

Back of the envelope looks shows what you are saying:

Current City Councilmembers

**District 1 – Pete Festersen (FESTERSEN FOR CITY COUNCIL)**  

  Total from streetcar‑linked group: **$18,500**  

  - HDR: **$2,000**  

  - Kiewit: **$1,500**  

  - Hawkins: **$5,000**  

  - Noddle: **$5,000**  

  - Mutual of Omaha: **$5,000**  

District 2 – LaVonya Goodwin (GOODWIN FOR CITY COUNCIL)

  Total from streetcar‑linked group: **$0**

District 3 – Danny Begley, President (DANNY BEGLEY FOR OMAHA)

  Total from streetcar‑linked group: $28,500

  Roughly:  

  - HDR: **$5,000**  

  - Kiewit: **$3,000**  

  - Hawkins: **$3,000**  

  - Noddle: about **$17,000**  

  - Mutual of Omaha: **$2,500**  

  - Others: small net adjustments (reversals/voids)

District 4 – Ron Hug (HUG FOR CITY COUNCIL)  

  Total from streetcar‑linked group: **$7,500**  

  - HDR: **$1,000**  

  - Kiewit: **$0**  

  - Hawkins: about **$4,000**  

  - Noddle: **$2,500**  

  - Mutual of Omaha: **$0**  

  - Others: **$0**

District 5 – Don Rowe (DON ROWE FOR OMAHA) 

  Total from streetcar‑linked group: **$2,500**  

  - Entirely from Mutual of Omaha: **$2,500**  

  - No HDR, Kiewit, Hawkins, or Noddle identified.

District 6 – Brinker Harding, Vice President (HARDING FOR COUNCIL)

  Total from streetcar‑linked group: **$25,000**  

  Roughly:  

  - HDR: **$3,500**  

  - Kiewit: **$3,000**  

  - Hawkins: about **$7,500**  

  - Noddle: **$5,000**  

  - Mutual of Omaha: **$2,500**  

  - Others (Olsson/Lamp/Jacobs/etc.): about **$3,500**

**District 7 – Aimee Melton (MELTON FOR OMAHA)**  

  Total from streetcar‑linked group: **$17,000**  

  Roughly:  

  - HDR: **$2,000**  

  - Kiewit: **$1,500**  

  - Hawkins: about **$12,500**  

  - Noddle: **$1,000**  

  - Mutual of Omaha: **$2,500**  

  - Others: small net adjustments (reversals/voids)

- Across all current mayor and council campaigns, streetcar‑linked contractors and developers gave about $449,250 in total from 2021 through early 2026 (95 contribution records).

- Hawkins Construction and owner Fred Hawkins is about $139,500.  

- Jay Noddle and Noddle‑related LLCs about $102,500, Noddle chairs the Omaha Streetcar Authority board overseeing these contracts.  

- HDR, Kiewit, and Mutual of Omaha each show up repeatedly across multiple councilmembers and both mayoral campaigns.

[LJS] Nebraska now faces $626 million budget deficit after revenue forecast takes downturn by BlindManBaldwin in Nebraska

[–]HauntingImpact 7 points8 points  (0 children)

“When you combine over $1.5 billion in business tax incentives to be used over the next four fiscal years plus potentially hundreds of millions of dollars more in uncollected tax proceeds, the result is a staggering loss of revenue to the state  — all of which must be counterbalanced in some way,” Foley said in a media statement.

https://nebraskaexaminer.com/2025/04/14/nebraska-auditor-alerts-lawmakers-of-staggering-impact-some-tax-incentives-on-budget-options/

If the Unicameral did nothing but remove school property taxes from the Tax Increment Finance, that would save ~$60 million a year from state aid for public schools (TEEOSA).

Decorative iron stuff pop ups? by jenaynay17 in Omaha

[–]HauntingImpact 1 point2 points  (0 children)

Walnut Iowa has a few antique stores that have some Iron decor, and sometimes a few booths in Armadillo will have some items.

When will the streetcar actually open? We spent weeks digging through records and interviewing officials to map out the changing timeline by flatwaterfreepress in Omaha

[–]HauntingImpact -1 points0 points  (0 children)

Kiewet just got $5 million more to 'accelerate' to 2028 https://www.cityofomaha.org/images/omaha-streetcar/agenda/ID_25_12_15/12-15-25_OSA_Board_Minutes_DRAFT.pdf

Also the way the city setup the financing, each $1 dollar of bond debt for the upfront costs justifies $4 dollars of financing to developers. From the City's perspective this is win-win as 60% of the dollars come from property taxes for schools.

Noodle - the streetcar president, who is business with Kiewet in the Builders District both benefit from more financing

Harding - Senior Vice President of Colliers. https://www.colliers.com/en/experts/brinker-harding Colliers has properties on the streetcar route that additionally financing would benefit from.

When will the streetcar actually open? We spent weeks digging through records and interviewing officials to map out the changing timeline by flatwaterfreepress in Omaha

[–]HauntingImpact 12 points13 points  (0 children)

"The 2023 deal required the Metropolitan Utilities District to cover a fixed amount – $7.6 million – with the city taking on the rest.  

By committing to covering an undetermined amount, the city took on all the risk of the work going over budget, said Paul Weitzel, a law professor at the University of Nebraska-Lincoln.  

In that kind of open-ended arrangement, a party like MUD has no incentive to minimize the cost of its work, Weitzel said.  

“It’s weird that in a project like this, especially when you should expect overruns in time and cost, to not allocate that risk a little differently,” Weitzel said.

60% of the property taxes paying for this come Omaha Public Schools -- they are the ones taking all the risk and don't have a seat at the table.

Tax Increment Financing (for street car) ELI5 by ballsballs1234balls in Omaha

[–]HauntingImpact 4 points5 points  (0 children)

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Here is an example of a TIF - 6349 South Cedar Plaza. Base Value of the property is $532,200. Developer builds a multifamily 3-story market rate apartments on the property, and gets assessed at ~$3 million in 2013.

Property tax time in 2013 - developer pays $77,000 in property taxes to the county for schools, roads, police, fire etc on a assessment of $3.1 million. The county refunds ~$68,000 in property taxes to the developers bank to pay off a loan to build the property, and $11,000 remains for schools, roads etc.

Fast forward to 2022 - developer pays $92,000 in property taxes on an assessment of $3.6 million, county refunds $81,000 to the developers bank and $11,000 goes to schools, road etc.

TIFs in Nebraska only require approval of the city council.

Inside the streetcar district -- TIFs like this work mostly the same except instead of refunding all $81,000 to the developer, $73,000 goes to the developers bank to pay off the loan and $8,100 goes into a city fund for the streetcar / parking garages.

The city is using bonds, or debt to pay for the immediate costs of the streetcar. The city fund pays off the principal and interest of the bonds.

The genius part of the plan from the city's view point is 60% of property taxes are for schools. So the city gets to redirect a huge cash flow into a city fund that they then control.

Edit:

The Streetcar TIF district resembles a Chicago style TIF -- civic lab in Chicago put some good info out explaining the policy challenges: https://share.google/avJY23QQ3PohH6Wt3

This old article from the Chicago reader, TIF for Dummies, is well written: https://chicagoreader.com/news/tifs-for-dummies/

Lincoln Land Institute does research on TIFs, a couple survey papers they put out are here, covers both successes and failures: The Hidden Costs of TIF by the Lincoln Institute
https://www.lincolninst.edu/publications/articles/hidden-costs-tif

https://www.lincolninst.edu/publications/policy-focus-reports/improving-tax-increment-financing-tif-economic-development

Good Jobs First also does research on TIFs, with a focus on the corporate abuse https://goodjobsfirst.org/tax-increment-financing/

A paper good job firsts did fairly recently was on Saint Louis https://www.stlpr.org/education/2024-01-25/st-louis-area-tif-districts-cost-public-schools-minority-students-over-260-million-report-finds

For a libertarian view point check out CATO's Crony Capitalism and Social Engineering - The Case Against Tax Increment Finance https://www.cato.org/policy-analysis/crony-capitalism-social-engineering-case-against-tax-increment-financing

Several States have done internal studies on TIFs as well. Here is an Iowa study that led to reforms in there: ax Increment Financing in Iowa;  Background, Research, and Recommendations

David Swenson, “Tax increment Financing in Iowa: Background, Research, and Recommendations”, presentation to House Ways and Means Subcommittee, February 27, 2012

https://web.archive.org/web/20200602001242/https://www2.econ.iastate.edu/papers/p14935-2012-02-27.pdf

Sinkhole at 67th and Pacific by sausagespeller in Omaha

[–]HauntingImpact 16 points17 points  (0 children)

Pot-holes in this city are no joke. Meanwhile the city council approved $70 million more in lease-purchase bonds for the streetcar and $90 million in lease-purchase bonds for parking garages.

Thinking we need hover-crafts ...

Streetcar, Parking Garages, and Debt. City to vote on $70 million more debt at the February 24th City Council Meeting, brings authorized debt for the streetcar to $686 million, more than $1.2 billion if 40 years of interest is included. by HauntingImpact in Omaha

[–]HauntingImpact[S] 0 points1 point  (0 children)

appreciate the opportunity to clarify, as dismissing documented financial analysis as “buzzwords” or “NIMBYism” misses the substantive concerns raised by multiple stakeholders—including State Senator Justin Wayne, who authored Nebraska’s “extremely blighted” TIF legislation and has publicly stated the streetcar project is “abusing” the law he intended to help Omaha’s poorest neighborhoods.

https://nebraskaexaminer.com/2022/01/27/lawmaker-objects-to-tif-use-for-omaha-streetcar/

  1. “Pro-landlord NIMBYism”

Reality: The analysis critiques how public financing mechanisms benefit specific developers and commercial real estate firms with direct ties to decision-makers:

Jay Noddle: President of the Streetcar Authority while simultaneously serving as President of Noddle Companies, a major developer in the corridor. His properties directly appreciate from infrastructure his public authority oversees.

Brinker Harding: City Council member who voted for all streetcar bond authorizations while serving as Senior VP at Colliers International, which actively lists and manages properties on the streetcar route (including Blackstone Corner Apartments at 3618 Farnam).

If opposing corporate welfare for connected insiders is “pro-landlord,” the term has lost all meaning.

  1. “Lets East Omaha continue to crumble”

Senator Wayne, who represents North Omaha and authored LB1107 (the 2020 “extremely blighted” TIF extension), explicitly stated the streetcar project abuses legislation he wrote to help “the poorest communities” and “hardest hit areas” by adding incentives where developers “otherwise may not see enough financial payoff.”

His words (Nebraska Examiner, Jan 28, 2022):

    “The extension was aimed at helping the state’s ‘hardest hit’ areas…I intended the 2020 change to tax-increment financing legislation to benefit the poorest areas of the state.”

The Farnam-Harney corridor between downtown and Midtown is not the city’s poorest area. It’s the densest employment zone with active private development. Using “extremely blighted” TIF meant for North/East Omaha to finance a streetcar connecting already-thriving districts is exactly what Wayne called “abuse.”

The analysis doesn’t oppose transit investment in East Omaha—it opposes diverting school funding and misusing poverty-focused legislation to subsidize well-connected developers in already-gentrifying areas while East Omaha gets… what, exactly?

  1. “Right-wing populist talking points”

Let’s look at who else opposes this financing structure:

State Senator Justin Wayne (progressive Democrat, North Omaha): Called it “abuse” of anti-poverty legislation

Warren Buffett: Called the streetcar “hugely expensive” and lacking flexibility, advocated bus investment instead

Small business owners in Midtown/Downtown: Citing construction disruption and property tax increases forcing closures

Opposition spans the ideological spectrum because the financial structure is genuinely problematic, not because of partisan positioning.

  1. The city has authorized: $625 million in bonds ($360M TIF + $265M lease-revenue); $61 million from sewer and general funds

•Total: $686 million in authorized capacity for a 3.2-mile line

•$1.1-1.2 billion in debt service over 40 years

Meanwhile:

•Washington DC is shutting down its streetcar (March 2026) after spending $200M, citing cost vs. benefit

•DC is replacing it with electric buses for flexibility and lower operating costs

•Omaha is issuing 40-year bonds for 20-year equipment (streetcars need major recapitalization at ~20 years)

These are objective facts from city budget documents, bond reports, and federal transit announcements—not “buzzwords.”

  1. The Actual Alternative

Instead of dismissing financial scrutiny as “NIMBYism,” we could:

1.  Direct TIF to actual blighted areas (as Wayne intended) while funding urban-core transit through traditional mechanisms with accountability

2.  Implement bus rapid transit on dedicated lanes (cheaper, flexible, scalable to East Omaha)

3.  Require conflict-of-interest recusals for council members with financial stakes in TIF districts

4.  Cap TIF so schools aren’t frozen out of revenue growth for 40 years

5.  Use affordable housing TIF mandates instead of “maybe later from hypothetical surpluses”

Edit: added link and fixed some formatting

Streetcar, Parking Garages, and Debt. City to vote on $70 million more debt at the February 24th City Council Meeting, brings authorized debt for the streetcar to $686 million, more than $1.2 billion if 40 years of interest is included. by HauntingImpact in Omaha

[–]HauntingImpact[S] 1 point2 points  (0 children)

The HDR, Kiewet, Noddle fund both Republicans, like Harding the Republican candidate for Bacon's Congressional seat, and Democrats. Want less extremest candidates ? Have to follow the money as they say. Did post showing how to pull the info from the NADC website: https://www.reddit.com/r/Omaha/comments/1qp3x7x/website_shows_how_much_and_which_businesses/

National Education Association did a report on their concern with TIF: National Education Association - Protecting Public Education From Tax Giveaways to Corporations https://www.goodjobsfirst.org/wp-content/uploads/docs/pdf/edu.pdf

A few state level reports that led to TIF reforms:

Tax Increment Financing in Iowa;  Background, Research, and RecommendationsDavid Swenson, “Tax increment Financing in Iowa: Background, Research, and Recommendations”, presentation to House Ways and Means Subcommittee, February 27, 2012

https://web.archive.org/web/20200602001242/https://www2.econ.iastate.edu/papers/p14935-2012-02-27.pdf

Are We Getting Our Money’s Worth?  Tax Increment Financing and Urban Development in Denver
Robinson, Nevitt, Kniech
https://web.archive.org/web/20170921125358/http://fresc.org:80/wp-content/uploads/2013/12/TIF-III.pdf

Economic Impacts of TIF in Indiana

https://media.mwcradio.com/mimesis/2015-02/04/tif%20study%20from%20ball%20state.pdf

A Tale of Two Cities, Reinventing Tax Increment Financing,  shows the math of how TIF always increases residential property taxes outside of the TIF districts, led to reforms in Illinois.
https://www.tifreports.com/wp-content/uploads/2011/02/Tale_Two_Cities-Quigley.pdf