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Missouri Steps Up Oversight Of Local Taxing Districts

Elle Moxley
/
KCUR 89.3
Missouri Rep. Donna Pfautsch, R-Harrisonville, and State Auditor Nicole Galloway watch as Gov. Jay Nixon signs legislation tightening the rules for CIDs and TDDs.

Missouri Gov. Jay Nixon has signed legislation stepping up oversight of the state’s 360 Community Improvement Districts.

“When residents vote to improve their communities through local taxing districts, they expect those districts to be held accountable and follow the law,” Nixon said Wednesday in Kansas City. “They need a watchdog, and that watchdog needs to have teeth.”

The bill Nixon signed makes that watchdog State Auditor Nicole Galloway. Before, Galloway could only audit a CID if a citizen petition requested it.

Trouble is, CIDs are used to build things like shopping malls, convention centers and city parks, and often no one lives there.

“There is no vehicle to bring the state auditor in to make sure the oversight is handled professionally,” Nixon said.

Nixon also signed legislation Wednesday adding another layer of oversight to Transportation Development Districts, such as the one that built the downtown streetcar line. State law now imposes penalties if TDDs fail to file annual financial statements with the auditor’s office.

Galloway says Kansas City has invested in its downtown to the tune of $110 million.

“Where there are public investments, there must be public accountability,” she said.

Elle Moxley is a reporter for KCUR. You can reach her on Twitter @ellemoxley.

Elle Moxley covered education for KCUR.
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