In a recent government committee meeting, significant concerns were raised regarding the management and oversight of local taxing districts in St. Louis, specifically Community Improvement Districts (CIDs), Transportation Development Districts (TDDs), and Special Business Districts (SPDs). An audit revealed that the city's approach to these districts has been largely reactive, lacking a strategic vision that aligns with broader economic goals.

The audit highlighted that the proliferation of local taxing districts—138 in total, including 86 CIDs, 31 TDDs, and 21 SPDs—has resulted in overlapping jurisdictions that impose financial burdens on residents through increased taxes, often without corresponding benefits to the community. For instance, sales tax rates in these districts have reached a state high of 11.679%, exacerbating the financial strain on local taxpayers.

CIDs, designed to fund improvements and services, have been criticized for their vague proposals and lack of accountability. The auditor noted that many CID petitions lack clarity on how funds will be utilized, allowing developers to pursue projects that may not serve the community's best interests. Furthermore, CID boards are frequently dominated by developers or property owners, raising concerns about the absence of independent oversight.

Similarly, TDDs, which are meant to support transportation-related initiatives, have been found to often fund private developments rather than public infrastructure. A notable example cited was a TDD that used public funds to lease a parking lot exclusively for tenants of a private apartment building, rather than for public use. The audit also pointed out that the city has failed to appoint required advisors to TDD boards, undermining necessary oversight.

The situation with SPDs is equally troubling, as none of the 21 existing SPDs were established in compliance with state law. The auditor reported that a staggering 85% of CIDs did not submit their annual budgets on time, and 65% failed to provide annual performance reports, many of which were submitted late.

These findings underscore a critical need for reform in the management of local taxing districts in St. Louis to ensure that they operate transparently and in the public's best interest. The committee's focus on these issues signals a potential shift towards more strategic oversight and accountability in the future.