(Enter story for full audit)
Bethany, MO: Missouri State Auditor Nicole Galloway today released a citizen-requested audit of the City of Bethany, which found that poor planning in tax increment financing projects (TIF) spearheaded by the city resulted in delays and lack of oversight.
“Economic incentives can be valuable for communities, but they must be presented transparently and used effectively as part of a comprehensive economic development plan,” Auditor Galloway said. “In this case, lack of planning resulted in significant delays. When promises are made to taxpayers about projects to spur the local economy, they should not be left waiting nearly 15 or 20 years before seeing progress.”
Tax increment financing is an economic development tool that redirects local tax revenues to support specific development projects. After a TIF district is established by municipal ordinance, increases in property value and economic activity are used to fund the designated project. The audit report identified concerns with two TIF projects to build new roads: the West Interstate Addition – South District (South TIF) and the Northwest Interstate (North TIF).
Full details about the audit will be in next week’s Republican-Clipper. Every page of the audit is below.