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Audit Finds Issues With Transportation Districts

October 06, 2008

THE ASSOCIATED PRESS

Saturday, Oct. 04 2008

JEFFERSON CITY — A state review of local taxing districts for transportation projects calls for more transparency and better accounting.


The audit released Friday suggests that transportation development districts use competitive bids for construction contracts and professional services. It also identified problems with budgets and financial status reports.


State Auditor Susan Montee focused on nine of the special tax areas, called transportation development districts.  State law allows creation of the districts for projects such as roads, bridges and interchanges. The districts are governed by a board of directors of between five and 15 members and are allowed to create sales taxes, tolls or special property taxes.
The districts have been created with greater frequency since lawmakers allowed the owners of property within a proposed transportation district to petition for a special taxing area if no registered voters live there.


According to the audit,
Missouri had 122 transportation development districts through 2006, almost 70 percent of them in the St. Louis and Kansas City areas. But districts also are scattered across the state, including in some relatively rural areas such as Butler, Marion and Pulaski counties. Supporters of using transportation development districts say that those who frequent the areas and benefit from the transportation projects pay for them without redirecting other
public funds.


Auditors found that five of the transportation districts studied did not use competitive bidding to pick the construction contractor for a selected project or there weren't enough records to verify that proper bidding procedures had been used. Although state law doesn't require competitive bidding for engineering and legal services, auditors recommended it and found that seven of the districts had not been doing that.  "Formal bidding procedures for major purchases provide a framework for economical management of the district's resources and help ensure the district receives fair value by contracting with the lowest and best bidders," the audit reported.
The audit also found several districts had not prepared budgets or approved them in a timely manner or had overspent. And 23 percent of the state's 122 transportation districts in 2007 did not file required financial status reports with the auditor's office.



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