11/21/2022 - Jefferson City, Mo.
Missouri
State
Auditor Nicole Galloway today issued a closeout audit of the US Highway 65 and
Truman Dam Access Road Transportation Development District (TDD), located in
Warsaw. State law requires an audit of a TDD prior to moving forward with
dissolution.
The
US Highway 65 and Truman Dam Access Road TDD was formed for the purpose of
improving the roadways with construction of Commercial Street, Polk Street,
storm drainage, and northbound and southbound highway ramps. The City of Warsaw
is the public entity with jurisdiction over the local portion of the project
and serves as the Local Transportation Authority. The Missouri Highways and
Transportation Commission (MHTC) serves as the entity with jurisdiction over
the state portion of the project. The project was completed in 2005, and the
City of Warsaw and the MHTC subsequently accepted ownership of the project.
From inception in 2003
through June 30, 2022, the US Highway 65 and Truman Dam Access Road TDD
received $3,723,178 in sales tax revenues from a 1/2-cent sales tax on all
taxable sales inside the district's boundaries, and paid $1,905,534 in project
costs and $1,079,268 in interest costs.
By
January 2020 all project costs and debts had been satisfied by the revenue
collected by the TDD. However, the Board of Directors waited more than two
years, until June 2022, to approve rescinding the sales tax and notifying the
Department of Revenue to stop collecting the district's tax. Legal counsel for
the district indicated the delay was caused by the Board not meeting between
2012 and June 2022. This delay by the Board resulted in significant over
taxation of the public. Approximately $700,000 in unnecessary sales taxes were
collected by the district through the end of September.
Because all outstanding
project costs and debts have been satisfied, the State Auditor's Office has
determined the Board may proceed with abolishment of the taxing district. After
the district's final costs and professional fees are paid, the remaining
balance of more than $600,000 will be distributed to the City of Warsaw
pursuant to state law.
A
complete copy of the report is available here.