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Chairman, 4 mayors push new SPLOSTTue, 07/14/2009 - 4:26pm
By: Ben Nelms
PTC’s Logsdon tells $22 million shopping list; county wants $5 million ‘spec’ campus in 6-year, $135 million extension of 1¢ tax The Fayette County Commission and the mayors of four municipalities agreed Monday night that the idea of continuing the current 1-cent sales tax should be put to the voters in November. And they agreed to turn it into a 6-year collection effort to raise $135 million from the extra penny sales tax. Of the four towns, only Peachtree City Mayor Harold Logsdon came with a shopping list of projects he wants to see funded — a $22 million shopping list. The county wants a buffet of items, including a $5 million for-rent college campus for prospective institutions of higher learning. Commission Chairman Jack Smith also announced that commissioners are proposing to double the local homestead exemption if the measure passes, essentially neutralizing the removal of the Homestead Tax Relief Grant (HTRG) credit earlier this year by the Georgia General Assembly. Fayette County’s current Special Purpose Local Option Sales Tax (SPLOST) will expire in spring 2010. It’s been used mainly for transportation projects. The proposal to continue it included a 5-year collection maximum of $115 million and a 6-year maximum of $135 million. The consensus by those at the table called for a 6-year collection. The county’s share, under either scenario, was placed at $72 million. Smith said the commission would propose to double the local homestead exemption if voters approve an extension of the SPLOST in November. Smith said the measure would offset the HTRG deduction that, through this year, has reduced property taxes by approximately $250 for an average homeowner. The tax credit was removed by the General Assembly beginning next year. Smith said a doubling of the local homestead exemption would generate a savings of approximately $225-230 for a home valued at $200,000. Smith near the beginning of the meeting asked the mayors if their municipalities supported continuing the SPLOST. All agreed that SPLOST revenues were a viable way to acquire funding for transportation and other needs, though Tyrone Mayor Don Rehwaldt added the passage of the measure could be problematic. “I think we have a consensus of opinion to let the voters decide if the projects we determine are worthwhile,” Smith said after each of the mayors weighed in on the proposal. From the county’s perspective, Smith then identified four project areas for which SPLOST funds would be used. Those included $50 million to pay off the county’s Justice Center, $2 million for an emergency operations center, $5 million to establish a university campus and $15 million for transportation projects. The proposed project list would give residents the best bang for their buck, Smith said. Pertaining to the Justice Center, Smith said the annual debt payment to the leasing agent amounts to $3.7 million, with a total amount owed of $50 million. Smith said retiring the debt on the Justice Center would save taxpayers $31 million in interest over the lifetime of the debt payment. Smith in referencing the $2 million for an emergency operations center said it was a facility that had been needed for some time. As for the university campus, Smith said Fayette had tried for years to have a university established here. He said the $5 million could be used to acquire land and construct buildings. The county appears to be postured to attempt what Fairburn did last year when it paid for the construction of its college campus. The initial Fairburn classroom buildings are now being leased to Brenau University and Georgia Military College. Smith said the county still has existing transportation projects that need to be completed. Decreased revenues from the current SPLOST mean the county might fall short of the minimum collection threshold. As with most of the municipalities, the list for the $15 million for transportation projects will be forthcoming. Only Peachtree City came with a list of projects for the continued 1-cent sales tax. If passed by voters, Peachtree City under a 6-year SPLOST would receive approximately $22 million. Among the numerous projects identified by Mayor Harold Logsdon were $5.4 million for debt retirement, $6 million for street resurfacing and $2.4 million for multi-use path resurfacing, with the balance going for multiple smaller projects related to the extension and upgrading of multi-use paths, tunnel work and erosion control. Fayetteville Mayor Ken Steele said that while his city was not ready with project list, it is likely that 90 percent would be used for transportation-related projects and 10 percent for debt reduction. Tyrone Mayor Don Rehwaldt said his town would likely use the entire amount for transportation since Tyrone has no debt. And Brooks Mayor Robert Butler said he would have a list ready for the next meeting. The current SPLOST carries a maximum 5-year collection ceiling of $115 million, though less than $90 million has been collected. The current distribution, if the maximum were collected, shows Peachtree City receiving $12.02 million, Fayetteville receiving $4.2 million and Tyrone receiving $1.49 million, with $81.1 million going to countywide transportation projects. Smith said the county has sufficient funds to complete the three phases of the West Fayetteville Bypass. Next up on the move to continue the SPLOST, the municipalities will work on their project lists and return to meet with commissioners to develop an intergovernmental agreement to determine the distribution of SPLOST dollars to the various entities. Finally, the commission will call for the current SPLOST to be continued by placing it on the November ballot. The entire process must be completed by Aug. 13. Along with commissioners and mayors, the few people in the audience included council members and administrative staff from the various municipalities. login to post comments |