Chappell: CPST’s potential deficit shrinking, projects being completed
Assuming revenue from capital project sales tax collections remains flat, Greenwood County officials estimate the penny tax will bring in $10 million less than initially projected — up from an anticipated $20 million shortfall forecast this time last year.
Greenwood County Manager Toby Chappell made the announcement Aug. 28 during the State of the City/County presentation, the same platform used to acknowledge the potential shortfall in 2019.
To reach that figure, the county took the past four quarters of collections and adjusted for COVID-19 and internet sales.
Chappell provided a breakdown of the revenues received from the Capital Project Sales Tax by quarter to explain how this figure was reached. The July 2020 collection is the first where the county sees the effect of COVID-19, Chappell said. July’s collection was $2,152,632. To calculate an estimate for future collections that adjusted for a pandemic-related reduction in revenue, the county took the average of October 2019 and January 2020. April’s revenue was excluded because it is always higher than most quarters because of Christmas holiday shopping.
The new revenue projection for July in future years is $2,417,471. Once July’s new figure is included with the other three quarters the total is $9,827,994 or $2,456,998 per quarter on average. When this figure is added with the existing collections and interest, it projects a total revenue of $77,455,845, which results in a $10,482,340 deficit.
Chappell said the $10 million deficit is based on a zero increase in collections for the next 20 quarters. He said this is unlikely because the county has seen growth each year.
“For example, over the last year we saw 5.4% growth even with COVID hampering sales,” Chappell said in an email.
The 5.4% growth was comparing collections from October 2019 to July 2019 to those from October 2019 to July 2020.
Completed, in-progress projectsCPST projects completed to date include Piedmont Technical College’s Advanced Manufacturing Center, a $6 million project, and the implementation of a countywide public safety radio system, a nearly $5 million project.
Several projects are in the design phase. The conceptual plans on all of the parks in phase one of the parks and trails project have been completed and design firms are beginning to design. Conceptual plans on the Lake Greenwood Master Plan have been presented to County Council and the design firm are working on a design plan.
A design team is working on a conceptual design for the J.C. “Fox” Boozer Sports Complex as part of the athletic facilities renovation project. The county can start working on Young Park in Ware Shoals at any time.
Design work has been completed on the Benjamin E. Mays Historical site expansion. The county is working on bringing the cost in line with the budget.
The North Greenwood Industrial Park spec building is expected to be completed in November, finishing phase one of that project.
The Town of Ware Shoals has obtained its DHEC permit for its treatment lines and it is working on easement acquisition.
Ninety Six Commissioners of Public Works have selected a design team and are in the environment review process with DHEC on replacing water lines in the town.
Two new fire stations have opened as part of the Fire Master Plan phase one. The Bradley Fire Station opened in April and the new station on Carter Road opened Friday. Apparatus for each fire station has been purchased and is in use.
‘Wise and prudent decision’At the opening of the Carter Road fire station Friday, Chairman Steve Brown took the opportunity to thank county residents for supporting the penny sales tax.
“We are also appreciative of the people of Greenwood County,” Brown said.
He said voters came together in supporting the tax so that services could be provided to other places in the county.
Councilman Theo Lane said in a phone interview about the Capital Project Sales Tax that voters made the right decision.
“I just think it is very clear now that the Greenwood voters made a wise and prudent decision that’s placed us in a much better position from the standpoint of public safety, quality of life, workforce development, economic development,” Lane, who chaired the CPST marketing effort for the Greenwood SC Chamber of Commerce, said. “It’s all coming to fruition now and will only get stronger with the passing of time and collection of dollars that allow for more investment.”
Originally Published by Index-Journal on:Sep 6, 2020
By JAMES HICKS jhicks@indexjournal.com
Leave a Reply
Want to join the discussion?Feel free to contribute!