The Liberty County Board of Commissioners recently held a preliminary discussion on the Special Purpose Local Option Sales Tax, which voters likely will decide on in November.
Commissioners talked about possible projects to be funded by SPLOST VI and whether they wanted to pay off existing debts and projects within six years or over 15 years. If approved, the new SPLOST is projected to generate $54 million in sales-tax revenue.
County Administrator Joey Brown and Chief Finance Officer Kim McGlothlin compiled a list of projects based on a list from November 2014, when the last attempt to pass SPLOST failed. Some projects were removed, but possible SPLOST projects for 2016 included paying off the debts on the Justice Center, MidCoast Regional Airport and Hinesville City Hall; road funds for municipalities; and countywide road projects, such as the Highway 119 freight bypass.
McGlothlin said during the commissioners’ planning meeting Jan. 19 at MidCoast Airport that one option is to pay off existing debt within 15 years. That would take three rounds of SPLOST getting approved by voters. All the debts and capital improvement projects, such as a new ambulance or fire station for the Holmestown community will be covered by SPLOST.
“Which will free up money in the general fund so that you can either roll back the millage or possibly get the (county) staff (size) up to where they need to be,” she said.
Under the six-year plan, the project list is over budget by about $13 million. Commissioners would have to cut more projects or provide less money to certain projects
Commissioners went back and forth over where money could be saved.
Commissioner Justin Frasier felt that SPLOST can pass if there is a project that the citizens will support. He suggested putting a family entertainment center on the ballot.
“We had a feasibility analysis done to see if it’s even feasible to bring a family entertainment center in,” Frasier said. “With the research that Georgia Southern (University), under the Bureau of Business Research Economic Development, did, it showed not only can we sustain it but that it would be very good for the community.”
He felt that having a project like the family entertainment center can help the area grow. Commissioner Pat Bowen took issue with some businesses the study said the county is able to sustain. Bowen felt that if those businesses listed, like Chuck E. Cheese, thought Liberty County was a viable area they would already be here. Commissioners Chairman Donald Lovette told Bowen that the study only provided examples of business types that the area could sustain.
“The prior SPLOST that did pass, passed by 1 or 2 percent, and I said the same thing again, ‘If we do the same projects, it’s going to fail by 2 percent.’ And that’s what exactly happened,” Frasier said. “Whenever we talk about SPLOST, we talk about a sales tax, but we need something to create that sales tax. And what are we doing?”
Commissioners started to talk over one another loudly.
The conversation then shifted to whether they should pay off debts over six years or 15 years.
“We’ve all heard people say why SPLOST didn’t pass,” Commissioner Gary Gilliard said. “I’ve heard that people didn’t think the Justice Center was going to (be) spread over 15 years. That makes me think we should pay it off.”
Bowen agreed and said that instead of using SPLOST to build something else, the debts should be cleared. He suggested using all of SPLOST in the six-year plan toward $34 million in debts for the Justice Center, MidCoast Airport and Hinesville City Hall.
McGlothlin said that if people see that SPLOST will pay off all the debts, it will get passed. But then three or four years later, she said, there will be complaints about not having enough money for roads.
“Aren’t you better off than where you are if it doesn’t pass at all?” Bowen asked in reply to McGlothlin’s statement. “You’re still getting something for it. If it didn’t pass, then you’re back to roads and you’re right back to paying your bonds, but then you’ll get your debts paid off. You’re still better off.”
Brown added that the title ad valorem tax will help fund road work.
Frasier again pushed for the family entertainment center, saying that it will show citizens that their tax dollars are being put to good use and will help generate money in the county.
Brown suggested retiring at least half the debt on all the buildings currently owned with SPLOST and retire the remaining half with the next SPLOST, instead of restructuring through 2029 with the 15-year plan.
Lovette said at least one project should be paid off. Commissioner Connie Thrift said either the Justice Center or airport should be paid off. Bowen thinks people will be in favor of SPLOST if it’s spent on clearing up major debts.
McGlothlin told the commissioners to keep in mind that the millage rate will pay for either debts or projects.
Lovette said the commissioners will need to get input from stakeholders, such as the other municipalities and county departments.
“You’ll still need their buy-in. So while we’re looking at (cutting $13 million), maybe we need to look at 15 (years), if it will allow them seed money for their pet projects,” Lovette said. “You could possibly gain more public support to pay off things, but lose it from your municipalities with six (years).”
Lovette felt that a stronger case for SPLOST could be made if one of the major debts was paid. The commissioners went back and forth over what should be paid off. Frasier felt that the Justice Center cost too much and the airport was a better option.
“I think the airport because it’s more manageable, but then people will say, ‘Why are you paying on the airport still?’ We have to find that anchor project that we can support,” Frasier said. “It’s either going to be a paying things off or come up with a project that the citizens can rally behind, or a combination.”
The majority of commissioners seemed to be leaning toward the six-year plan, with paying off the Justice Center debt in full and part of the airport debt.
No decisions were made. There will be more SPLOST meetings scheduled in April to gather stakeholder and community input.