Transportation Development Districts
Transportation Development Districts (TDD) are independent political subdivisions organized to impose sales taxes, property taxes or special assessments to pay for the construction of roads, bridges, interchanges, intersections, parking facilities or other transportation related improvements. TDDs are approved and organized by order of a circuit court. As long as the TDD is proposed to construct transportation related improvements, any property is eligible to be included in a TDD.
TDDs may generate revenues through sales taxes (up to 1%); ad valorem taxes on real and personal property (up to ten cents per $100 assessed valuation); special assessments; or tolls. The TDD is authorized to issue bonds on its own behalf, utilizing these taxes and assessments to pay debt service on bonds issued to construct transportation projects. Either MoDOT or the city are required to sponsor the project(s) and must agree to accept a completed project for maintenance. When the bonds are paid off or a project is otherwise completed and funded, the TDD is terminated.
By law, the city must determine that certain requirements have been met before approving the establishment of a TDD. These requirements are set forth under Sections 238.200 – 238.275 of the Revised Statutes for the State of Missouri (RSMo) (the “TDD Act”).
The city may pass a resolution endorsing (or opposing) a project prior to the time of the circuit court review of the petition filed to establish the TDD.
CITY APPLICATION & APPROVAL PROCESS
Once a project is deemed eligible, a petition may be filed in the circuit court and in the office of the City Clerk. as required by statute.
Upon receipt of the petition, the city shall determine whether the request substantially complies with statutory requirements and city policy and will then forward the matter to the Board of Aldermen. The Board of Aldermen will then consider a resolution of support in favor of the TDD.
Once established and approved by the circuit court, the city and the TDD board shall enter into a cooperative agreement for the purpose of establishing the terms of the relationship between the city and the TDD.
CITY REPRESENTATION ON FUNDING DISTRICT BOARD OF DIRECTORS
Most favorable consideration will be given to a TDD where the majority control of the board of directors rests with persons designated by the city, including city staff and elected or appointed city officials.