Report No. 2008-71
October 2008
Complete Audit Report

The following was reported in our audit of the Troy/Lincoln County Transportation Development District.

The Troy/Lincoln County Transportation Development District (TDD) was established on October 5, 2004, and is located in the city of Troy in Lincoln County. The district was initially formed for the purpose of renovating and upgrading the U.S. Highway 61/Highway 47 interchange and overpass, and the completion of other road work in that area. The district's registered voters approved the imposition of a 1 percent sales tax on all taxable transactions within the district effective November 1, 2004. The costs of the district's transportation projects were originally estimated at approximately $14 million. However, in August 2005, the district's registered voters repealed the district's sales tax. The district received approximately $1.2 million in sales tax revenues before it was repealed.

In October 2005, the board entered into an agreement with the Missouri Department of Transportation (MoDOT) to share in the cost of funding a reduced scope road project at an estimated cost of $1.8 million, with the district agreeing to pay $900,000 of the project costs. In June 2008, the district reimbursed MoDOT $900,000 for its portion of the transportation project costs incurred. In July 2008, the board and MoDOT entered into a supplemental agreement whereby the district agreed to provide $196,000 in additional funding to MoDOT to help pay the costs of a signal project at Missouri Highway 47/Fairgrounds Road/Ellis Avenue. The agreement provided that this payment was to be made to MoDOT in September 2008.

On April 9, 2008, the board approved a resolution formalizing its intent to: dissolve the district, request the required audit, and subsequently submit to its voters a ballot question to abolish the district. The State Auditor's Office has performed an audit of this TDD as required by state law. Our audit indicated the TDD's cash and investments balance at June 30, 2008, was sufficient to pay any remaining obligations and costs of the district, and concluded the TDD's Board of Directors can proceed with the abolishment of the district.

In addition, the district did not solicit requests for proposals for some professional services, overspent its budget in some years, and did not always submit its annual financial reports to the State Auditor's Office in a timely manner. Because this district is in the process of being abolished, no recommendations were made regarding these matters.

Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov