KANSAS CITY, Mo. – The Missouri state auditor will have more authority to audit Community Improvement Districts and the process for auditing Transportation Development Districts was strengthened under two bills signed by Gov. Jay Nixon at Union Station on Wednesday afternoon.
Under SB 1002, CID’s can be audited by the auditor in the same way that state agencies currently get audited. That means a petition from residents is not necessary for an audit.
“These laws increase transparency, provide greater oversight for public dollars, and help ensure projects fulfill their intended purpose of improving Missouri’s communities,” said State Auditor Nicole Galloway, who was present with Nixon at the bill signing.
There are currently at least 360 CIDs in Missouri, but some have no residents, which prevented them from being audited.
“When residents vote to improve their community through local taxing districts, they expect these districts to be held accountable and follow the law,” Nixon said. “This legislation will provide taxpayers additional protection by strengthening the State Auditor’s ability to root out wrongdoing and mismanagement.”
Nixon also signed HB 1418, which requires the state auditor’s office to report any transportation development district failing to submit its annual financial statement to the Department of Revenue and allows a $500 per day fine to be imposed for missing financial statements.
According to Nixon’s office, in 2014, 24 percent of districts turned in the statements late and 14 percent didn’t file for at least 6 months.
“House Bill 1418 increases accountability for transportation development districts,” said Sen. Will Kraus, R-Lee’s Summit. “Rep. Pfautsch has been working hard for several years to make these taxing districts more accountable to taxpayers, and I am glad we were able to finally get in signed into law.”
