07/26/2024 - Jefferson City, MO
State Auditor Scott Fitzpatrick today issued the closeout audit of
the Wentzville II Transportation Development District (TDD), located in St.
Charles County. State law requires an audit of a TDD prior to moving forward
with dissolution.
The Wentzville II TDD was formed in March
2005 for the purpose of making improvements to Wentzville Parkway, West Pearce
Boulevard, exit 208 from Interstate 70, and Bear Creek Drive; including
widening existing driving lanes, construction of dedicated turn lanes,
signalization, and related improvements within the city of Wentzville, for an
estimated cost of $2,077,500. The
project was substantially completed in December 2007, but was modified in 2008
to include the construction of a drive connecting Wentzville Parkway to May
Road.
The
project was funded by a 1/2 cent (0.5 percent) sales tax on all
taxable transactions within the boundaries of the district. The Board of Directors
passed a resolution formally establishing the sales tax rate to be effective
November 2005. The Board
approved rescinding the sales tax and notifying the Department of Revenue to
stop collecting the district's sales tax on August 10, 2023. The sales tax
officially expired on September 30, 2023. From the district's inception in 2005
through August 2023, the Wentzville II received $2,269,265 in sales tax
revenues.
In March 2006,
the Wentzville II TDD Board entered into an agreement with UMB Bank to issue
revenue notes up to $2,077,500. Between March and October 2006, the District
borrowed $2,077,500 for project costs, and the district satisfied these notes
in June 2022. In October 2008, the Wentzville II TDD Board entered into an
agreement with UMB Bank to issue additional revenue notes up to $672,500. The
district borrowed $503,768 in October 2008 and $50,525 in April 2022. The
district satisfied these notes in June 2022.
Based on the audit, the cash
balance of the Wentzville II TDD as
of August 31, 2023, was $183,816. The cash balance as of February 29, 2024, was
$200,455. According to district legal counsel, as of August 31, 2023, the
district is expected to incur approximately $98,785 in fees to dissolve the
district. After the district's final costs and professional fees are paid, the
remaining balance will be distributed to the City of Wentzville and the Missouri
Highways and Transportation Commission
in accordance with state law.
The audit determined the financial condition of the Wentzville II TDD
was such that the Board of Directors may proceed with abolishment of the
district.
The complete audit can be found here.