St.Louis, MO (KTRS) Auditor Nicole Galloway released not so favorable results from an audit on Community Improvement Districts.
Galloway released those findings during a Thursday morning news conference in downtown St. Louis. The audit showed what Galloway called “a pattern self dealing and lack of accountability.:
“Taxpayers are on the hook for billions in project costs they did not approve and have little to no say in,” Galloway said. “Meanwhile, there is no law to ensure developers are accountable for the public dollars they receive and there are few requirements of the municipalities that approve these districts. State laws must be reformed to ensure taxpayers get the protection they deserve.”
In one case, the board for the Downtown St. Louis CID paid more than $1.6 million for management services to a not-for-profit organization that was represented on the board. In another case, the Park Ridge CID, located in Lee’s Summit, paid over $75,000 for lawn and landscaping services to a company owned by the board chairman.
“There need to be protections in place to ensure public dollars are being utilized efficiently, effectively and for the good of the public,” Galloway said. “It is simply unacceptable that state law allows for self-dealing and conflicts of interest within these taxpayer-supported projects.”
As a result of these findings, Galloway is urging legislators to reform CID laws.
Community Improvement Districts, also known as CIDs are special taxes designed to fund projects to better a community.
The full audit is available online at www.auditor.mo.gov
