US 36/I-72 corridor TDD announces termination of 1/2 cent sales tax as U.S. 36 Loan is paid off

Larry Craig presents MoDOT the paperwork to confirm its final payment. Pictured are: (l - r) Kevin James, MoDOT Northeast District Engineer; Roberta Broeker, MoDOT Chief Financial Officer; Craig; Tom Boland, and Lyndon Bode, who served as secretary for the U.S. 36 TDD Board of Directors.

The U.S. Highway 36 – Interstate 72 Corridor Transportation Development District announces the termination of its half-cent sales tax, effective August 1, 2017. 

The District’s sales tax was established on January 1, 2006, for a period of up to 15 years to support paying for a 52-mile expansion project of U.S. Highway 36 from eight miles west of Hannibal to Macon, MO. 

The District’s Board of Directors authorized the repeal of the sales tax at a special meeting held March 16, 2017, in Shelbina, MO.

“On behalf of the District’s Board of Directors and everyone else that has been involved in this 52-mile project, we are thrilled that we can repeal this sales tax some three and a half years early.   We want to thank the voters of the four-county district for supporting this safety project and having the faith in the Board to complete this project on time and ahead of schedule” said Larry B. Craig, Executive Director of the District.

The U.S. Highway 36 – Interstate 72 Corridor Transportation Development District would not have been able to accomplish this project without the outstanding support of the Missouri Highway and Transportation Commission, MoDOT Headquarters, and especially the outstanding team of the Northeast District, Mo DOT and the leadership of Kirk Juranas, former Northeast District Engineer, and Paula Gough the current Northeast District Engineer.  The U.S. Highway 36 – Interstate 72 Corridor Transportation Development District wants to thank everyone that had a part in this project including the support, trust, and confidence of the voters in this project.

Craig continued, “Furthermore, it is my pleasure to announce on behalf of the District that as of July 27th, 2017 the District has made its final two installments totaling over $6.5M to complete our financial obligation to the Missouri Transportation Finance Corporation’s loan of $34,299,339.63 in support of this project.  We always said from the beginning that when we had enough funds to pay back our loan and to meet our obligations, we would repeal the tax and abolish the District. The action taken by the District’s Board of Directors at its March 16th meeting is a fulfillment of that promise.”

By taking this action, the Board of Directors is terminating the sales tax nearly three and a half years earlier than the 15-year period approved by the voters.

It is anticipated that the District will repay the Missouri Transportation Finance Corporation loan before the end of 2017.  Thereafter, the District’s Board of Directors will seek voter approval to abolish the District, which the District expects could occur in 2018.

From this point on the District will be focused on the steps necessary complete the abolishment for the TDD by June 30, 2018.  This includes a statutory requirement of a State Auditor review of the District’s financial records.  Once that report is received, the District will be petitioning the 10th Circuit Court in Marion County for an order for submittal of the general election for abolishment question with the four County Clerks of the District for April 3, 2018, Municipal Election cycle by January 15, 2018.

Following certification of the stated election, a final Board meeting will be scheduled to accept the election results, accept the final audit, approve all final administrative cost, and adopt a resolution of final actions for disposition of funds.  The final act will be to distribute certified copies of the resolution of final actions to Mo DOR, MEC, State Auditor, County Commissions of Macon, Marion, Monroe and Shelby Counties, and disbursement of final funds; and record resolutions of final actions with the recorder of deeds in the four county District.