The process of wrapping up the Stardust-Munger-Diamond Transportation Development District (TDD) in Hannibal has taken another step.
The process of wrapping up the Stardust-Munger-Diamond Transportation Development District (TDD) in Hannibal has taken another step. On Tuesday, State Auditor Tom Schweich released his audit of the local TDD.
According to the auditor’s office, because of the limited objective of the audit, no overall rating was released.
State law requires the state auditor to determine the financial status of a TDD before it may be abolished. The Stardust-Munger-Diamond TDD had a cash balance of $2,508 at March 31. The TDD subsequently received sales tax collections in April, May and June, bringing its account balance to $53,000 as of June 30. The TDD’s legal counsel estimated the remaining costs and obligations to be $825.
“There will be some other costs, but not a whole lot,” said Doug Warren, finance director for the city, projecting another $7,000 in costs. “There will be attorney fees and an audit has to be paid for.
“We’ll have a little more in funds from some interest. With interest rates being what they are, it will be just a little bit.”
Even with the additional expenses, the TDD’s assets will be sufficient to pay the remaining costs and obligations.
According to Schweich, the remaining balance will be transferred to the city of Hannibal after the July 2012 tax revenues are received. That TDD money can only be used on city streets, according to Warren.
The Stardust-Munger-Diamond TDD was organized in October 2001. The TDD Board approved a 1/4 cent sales tax on all taxable transactions within the TDD. It later approved increasing the tax to 5/8 cent. The TDD was formed for the purpose of constructing approximately $1.7 million worth of transportation projects. Full payment of the final bond obligation was made in May of this year. On March 30 the TDD Board approved resolutions formalizing its intent to dissolve the TDD and repealing its sales tax. That’s when Schweich’s office was notified.
Based upon the results of the state audit, the TDD’s Board of Directors may proceed with the abolishment of the Stardust-Munger-Diamond TDD.
According to Warren, with one exception the collection of the special sales tax ceased in the TDD on July 1. Warren has taken action to have that store, which he declined to identify, stop charging its customers the additional fee, the revenue of which will ultimately be turned in to the state and be returned to the city.
“I wrote the parent company about getting this fixed. I’ve heard they’re in the process of correcting that,” he said. “I want the stigma of that area charging higher taxes to go away. I want to close out (the TDD) and get it over with.”