‘Tough decisions’ likely as sales tax collections trend low

Macon-Bibb County leaders will face tough decisions on how projects will be funded if current sales tax collections fall short of the $190 million cap.

By early 2017, the County Commission will review its special purpose local option sales tax revenue as collections — so far — are trending to come in about $10 million below the maximum. The commission will be tasked with prioritizing projects if there is a shortfall in the tax. The six-year collection window ends March 30, 2018.

The commission will examine the latest SPLOST collections after the Christmas holiday, during which a shopping season could spur more spending.

Through July, Macon-Bibb had brought in $128.4 million in sales tax proceeds. The county has 20 months remaining to try to reach the $190 million target.

In the four full fiscal years since collections began in April 2012, the county took in $29 million to $30 million annually. If the current average holds, the final tally would be about $177 million. By early next year commissioners will begin deciding how to navigate the final 20 months before the current tax ends.

Mayor Robert Reichert “brought up SPLOST collections with the commission at a recent meeting and talked about reviewing collections and project priorities in the first part of 2017, once we’ve gotten past the holiday season,” Macon-Bibb spokesman Chris Floore said in an email. “At that point, we’ll have a better idea on what we anticipate collecting in the final year; the commission would then have a discussion on what the priorities would be for the remaining funds.”

At that meeting, Reichert estimated that the county could be about $10 million below the $190 million figure. He cautioned commissioners of “tough decisions” ahead if the SPLOST comes in lower than projections.

“We’re trying to plan ahead. We’re trying to be smart,” he said. “We’re also trying to renew the SPLOST so we have a source of funding, so if anything has to be reduced it can be added into the next SPLOST.”

Commissioner Scotty Shepherd said he’s unsure how much money the current SPLOST will bring in, but if it’s less than $190 million then officials could hear from residents concerned about the impact on some projects.

“I don’t know if we’ll be $10 million short, but if it doesn’t pick up we’ll definitely not collect all that we thought,” he said. “We’ll make those decisions as they come up. We won’t know for sure until the end of the road.”

The current SPLOST has already been used on an array of projects, from a new juvenile justice center and animal shelter to multiple recreation center upgrades, the largest of which is for a new $7.6 million facility in south Bibb.

The county also has used some of the SPLOST money for stormwater system repairs and to build several new fire stations.

The average yearly collections have fluctuated since the start of the tax when $30.3 million was brought in during the first full fiscal year. A year later that number had dipped by $1.2 million to $29.1 million. Fiscal 2015 brought in an additional $700,000 from the previous year, while $29.4 million was collected in the following 12 months that ended July 1, 2016.

Macon-Bibb voters will decide in November whether the extra penny-on-the dollar sales tax continues past the spring of 2018. That $280 million referendum would not have a sunset, meaning Macon-Bibb could collect the money until it reaches the full amount.

The future SPLOST also provides more wiggle room for commissioners. It designates a certain amount of money into 10 categories such as public facilities, blight remediation and road infrastructure, but it does not provide a specific dollar figure for each project.

This story was originally published September 9, 2016 at 7:05 PM with the headline "‘Tough decisions’ likely as sales tax collections trend low."