State Auditor Scott Fitzpatrick has released the closeout audits for three Transportation Development Districts (TDDs) in Missouri, detailing their financial conditions and paving the way for their dissolution.
Hawthorne Development Transportation Development District
The Hawthorne Development TDD, located in Warrensburg, Johnson County, was established in November 2005 to enhance various roads, including Hawthorne Boulevard, Highway 13, Simpson Street, and others. The district implemented a three-phase project to improve traffic flow and safety. The phases involved upgrading intersections and signals, constructing a roundabout, and extending Cooper Boulevard, completed in 2011, 2019, and February 2024, respectively. The total project cost amounted to $5.7 million.
Funding was provided through a 0.5 percent sales tax on all taxable transactions within the district boundaries, effective since January 2006. The district issued revenue bonds through Commerce Bank to finance the first two phases, later consolidating the debt in a 2017 agreement. All outstanding debts were cleared by October 2022.
As of April 30, 2024, the district held a cash balance of $542,470. It is expected to incur $75,000 in dissolution fees, after which the remaining funds will be transferred to the City of Warrensburg as per the amended cooperative agreement from January 2023.
The audit (available at this link) concluded that the Hawthorne Development TDD is in a suitable financial state for dissolution.
Neosho Transportation Development District
The Neosho TDD in Newton County, formed in February 2011, aimed to enhance Highway 60 and Adams Drive. The project, executed in three phases from 2016 to 2022, included extensive road improvements and drainage systems. Repairs to Adams Drive were completed in May 2024. The district’s total project expenditure was $4,940,920.
Similar to the Hawthorne Development TDD, the Neosho TDD was funded by a 0.5 percent sales tax, effective April 2011. Revenue notes were issued in 2014 by Arvest Bank to finance the project costs, which were fully repaid by November 2023.
By April 30, 2024, the Neosho TDD had a remaining cash balance of $478,364. Anticipated dissolution costs are estimated at $152,500. Once all expenses are settled, any surplus funds will be allocated to the City of Neosho in line with the cooperative agreement dated March 29, 2012.
The audit (available at this link) confirmed that the Neosho TDD is financially prepared for abolition.
Pershall Road Transportation Development District
The Pershall Road TDD in St. Louis County, established in July 2003, aimed to improve Pershall Road with projects including road widening, shoulder additions, and various infrastructure enhancements. The project, costing $615,611, was completed by July 2004, and ownership was subsequently transferred to the City of Ferguson and the Missouri Highways and Transportation Commission.
This district was funded by a 1 percent sales tax effective from January 2004. In 2005, a revenue note was issued to cover the total project cost, which was eventually canceled in November 2023 after the district’s main property owner, Cracker Barrel Old Country Store, Inc., ceased operations.
As of July 31, 2024, the Pershall Road TDD had a cash balance of $11,159, with expected dissolution costs totaling $11,159, including legal and banking fees. Any additional costs will be borne directly by the property owner.
The audit (available at this link) indicated that the Pershall Road TDD is in a position to proceed with dissolution.
The audits for all three TDDs confirm their readiness for dissolution, ensuring that remaining funds are appropriately allocated and all legal and financial obligations are met.
