SPLOST spending: How Cobb plans to use the money
In 2011, Cobb voters narrowly approved a four-year extension of the county’s SPLOST, which was projected to bring in $492 million. Here’s how the money was earmarked to be spent:
$82 million — Improvements and renovations to parks and recreational facilities. Example: $1.9 million to replace concession stands, scoreboards and tennis center buildings and renovate athletic fields at Fair Oaks Park.
$251 million in transportation improvements — Example: $17 million to widen and improve access at Windy Hill Road West and Cobb Parkway.
$16 million for facilities improvements — Example: $1 million for Phase 2 of renovations at the Powder Springs senior wellness center.
$13 million for public safety improvements — Example: $3.3 million to replace fire equipment in 2013; $2.4 million in replacements in 2012.
$130 million for Cobb cities — About 26 percent of SPLOST revenue earmarked to be spent by cities for improvements.
Penny sales tax collections in Cobb County are coming in much higher than predicted, putting the suburban county on track to collect upward of $15.2 million in unplanned revenue if the pace continues.
The trend is significant because it serves as another sign of the improved economic situation in Cobb. It also means the county will likely be able to fund more projects promised to voters when the extension of the 2011 special purpose local option sales tax was approved.
Taxpayer advocates, however, say overages like these are why the state should allow counties to collect less than a penny, if needed.
Bill Volckmann, who oversees accounting for Cobb’s SPLOST program, said the county tried to be conservative with revenue predictions, which were made in 2010 when the economy was on shakier ground. During the 2005 SPLOST the county didn’t bring in enough money to fund all the projects on its list, he said.
“We’re going very quickly with the new program, which is great,” Volckmann said. “We have the cash on hand now, so all projects are moving as quickly as possible.”
» RELATED: Cities see boosts from SPLOSTs, but tax has its critics
The Legislature enacted the SPLOST law in 1985 as a way for counties to fund capital projects. The tax generally runs for five or six years and is collected on items subject to state sales taxes within the county, including food. School systems may call for a separate SPLOST referendum.
Almost all the counties in the metro area — and most in the state — have a SPLOST, according to the Georgia Department of Revenue. But not all are enjoying the same strong returns.
Clint Mueller, the legislative director for the Association County Commissioners of Georgia, said he’s heard from smaller and midsize counties that collections remain sluggish. This could be the result of various sales tax exemptions passed by the Legislature in recent years, he said.
“You would assume that if the economy is growing that the sales tax revenue would be growing in line with the economy, but that’s not happening everywhere,” Mueller said. “Cobb is generating more than anticipated, so either their original revenue estimates were very low, or their local economy is outperforming other areas of the state.”
In Gwinnett County, where on Nov. 5 voters will be asked to renew a SPLOST for three more years, collections are also slowly increasing. But the county had to adjust predicted collections from its 2008 SPLOST from $850 million to $675 million, spokesman Joe Sorenson said.
The same thing happened in Cobb. Collections were strong for the 2005 SPLOST, but as the economy tanked along with spending, the county had to adjust revenue projections from $826 million to $786 million in 2009. This go-round, the county took a more conservative approach, planning to collect $492 million over four years. The measure passed in 2011 by only 79 votes.
If collections continue to come in strong, the county should be able to complete all the “tier one” projects on the list, such as $6 million in drainage improvements and $15.5 million in new sidewalks. Once those projects are complete, the county will use remaining funding to start work on “tier two” projects such as an $11 million renovation and expansion of the Central Library or $1.5 million in upgrades to Logan Farm Park.
If there is still money left over after all projects are completed, state law says the overages must be used to pay off any outstanding bond debt. After that, the SPLOST excess could be used to offset property taxes, but it’s rare counties have that much excess, said Mueller with the Association County Commissioners of Georgia.
Lance Lamberton, the president of the Cobb Taxpayers Association and a new appointee to the Cobb SPLOST oversight committee, said excess collections are all the more reason the state should change its law to allow counties to collect less than a penny on every dollar.
Cobb has a 6 percent sales tax rate — 4 percent goes to the state, 1 percent to the county and 1 percent to the schools. Supporters of a fractional SPLOST say counties may not always need to collect a penny to fund all the necessary projects. Cities in Cobb and across the state worry that cutting penny collections will mean cities will get little or no money for improvement projects.
“That would solve a lot of problems about overspending or padding the project list, and it would result in a net decline in the tax rate,” Lamberton said. “”When you add on things – replacing scoreboard signs and concessions stands that are perfectly good and usable are just a couple of examples of politicians finding ways to waste our money.”
About the Author
