12/11/2017
JEFFERSON CITY, Mo--Missouri State Auditor Nicole Galloway released a report today on the Hospital Interchange Transportation Development District (TDD) in Cass County. The report, which is required by law before a TDD can proceed with a dissolution, brought to light a failed project that resulted in thousands in taxes collected, but no benefits for taxpayers.
"Over the years, this taxing district has collected thousands in tax dollars, but there is nothing to show for it," Auditor Galloway said. "This is another example of why safeguards are needed to ensure these special taxing districts are established with better protections for Missouri taxpayers."
The Hospital Interchange TDD was formed in 2010 to improve the Highway 71 corridor through upgrades and the construction of several bridges. A one percent sales tax on transactions within the district was approved in April 2011. In December 2016, however, the TDD Board of Directors acknowledged funding to move forward with the upgrades was not materializing and began moving forward to dissolve the TDD.
Sales tax revenue collected by the TDD since 2011 went entirely towards district administration, financing no actual transportation improvements.
The State Auditor's Office was informed of the district's intent to dissolve in October 2017 and performed the audit as required by law. Auditors determined that the board can move forward with dissolution and should repeal the sales tax.
This spring, Auditor Galloway released a report on Transportation Development Districtsthat revealed weaknesses in the existing laws governing TDDs. The report highlighted the fact that TDDs do not need to be approved by a public body and do not require an assessment of the cost/benefit of a project prior to the formation of a district.
A complete copy of the closeout audit on the Hospital Interchange TDD is available here.
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