A Jefferson City project appears to be a prime example of Missouri's need for more protections in its Transportation Development District (TDD) laws.
Earlier this week, State Auditor Nicole Galloway released an audit showing that Jefferson City's Stone Ridge TDD accepted a nearly $2 million construction contract from a company owned by some of the TDD's board members. That, despite the fact that the company submitted a late bid and didn't meet all the bid requirements.
Neither the contractor, nor the board members, were named.
The Stone Ridge TDD includes the group of stores off Missouri Boulevard that include Kohl's, Menards and Sam's Club.
A TDD is an independent political subdivision organized to levy taxes or assessments to pay for construction of roads, parking facilities or other transportation-related improvements within the district. A TDD may be created by filing a petition in the circuit court of any county partially or totally within the proposed district. Once the political subdivision approves the petition, the district can set the tax rate to be applied. TDDs are governed by a board of directors.
The audit notes that TDDs can be formed without voter approval or adequate public scrutiny. The law also does not have appropriate safeguards to ensure projects benefit the public, the audit said.
It pointed to the apparent conflict of interest in the Stone Ridge TDD.
"As a result, there is no assurance projects were properly procured, project costs are reasonable, and public monies are used for allowable purposes," the audit said, adding that it allows projects with undefined costs, which can allow TDDs to continue
Among other things, the audit also cited a lack of transparency in reporting TDD sales tax distributions.
Like Galloway suggested, the current law doesn't favor taxpayers.
In the case of the Stone Ridge TDD, those of us who shop in the stores within the TDD pay higher taxes for roads and other infrastructure in the district.
We knowingly pay that higher sales tax rate, trusting that the money is being handled properly, with needed safeguards in place. In this case, they weren't, because of an inadequate state law.
Lawmakers should take needed time to study the issue and come back next January with a plan for stronger laws to protect consumers.
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