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Audit Of TDD In Warsaw Shows Overpayment

All News RSS Feed Business Politics Friday, December 2nd, 2022

An audit of the Highway 65 and Truman Dam Access Road Transportation Development District has been completed by Missouri State Auditor Nicole Galloway.

The TDD was formed in 2003 to improve the roadways and storm drainage along Commercial and Polk Streets…. along with adding northbound and southbound highway ramps.

Officials say THE TDD received just over $3,700,000 in sales tax revenues from a 1/2-cent sales tax inside the district’s boundaries and it was completed in 2005.

Although the project costs and debts were satisfied by 2020, the Board of Directors waited until June 2022 to notify 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.

Galloway says approximately $700,000 in unnecessary sales taxes were collected by the district through the end of September and since all 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.

 

Full report:

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.

All News RSS Feed Business Politics Friday, December 2nd, 2022

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