Mayor John Reid and Chairman Bill Sharp presided over a relatively rare joint meeting of the City of Eatonton Council and Putnam County Commission at 5 p.m. Monday to discuss reintroducing SPLOST 10 to pay for multiple municipal and countywide projects and expenses.
A one-percent Special Local Option Sales Tax (SPLOST) was defeated last November after local citizens who opposed the tax rallied enough opposition to its adoption at the polls. At the time, the primary issue was the county’s stated plan to issue an approximately $33 million bond against projected SPLOST 10 revenues. That apparently is not an issue now, as no bonds are attached to the current plan.
SPLOST funds are widely used in Georgia to fund much-needed capital projects instead of requiring property taxes to do the same.
The argument goes that, for municipalities and many citizens, the simple and perceived fairness of a one-percent sales tax payable by residents and visitors alike is preferable to increasing property taxes to achieve the same capital improvements. Many also consider voting on SPLOST renewals to reinforce democratic principles.
Monday’s meeting began with County Manager Paul Van Haute describing a series of projects and equipment acquisitions that a revived SPLOST 10 could provide.
Chief among them is the renovation of the Putnam County Jail, a building that also serves as Putnam County Sheriff’s Office headquarters. Repairs and improvements to the aging facility on Ridley Drive are estimated to cost approximately $9.14 million. As the PCSO building repairs are considered a Tier 1 project, they would be paid for before any other SPLOST 10 revenues could be allocated.
The PCSO also requires several new vehicles each year and a new roof on the old EMS building, which will cost another $2 million over six years.
The county’s expected expenses include upgrades to Jimmy Davis Park, a new EMS ambulance almost annually, and new cardiac monitors and other medical equipment. Van Haute said the fire department always needs new vehicles and equipment to remain modern and well-stocked, as well as new living quarters, as the department will inevitably expand with expected population growth.
Beyond those few items, Van Haute mentioned that the Putnam County Animal Services building would soon need a new roof, new vehicles, and exterior animal housing facilities. The county-owned Uncle Remus Golf Course has ongoing vehicle and equipment needs. Oconee Springs Park is slated for a renovated store, new “condos” on site, and other modernizing improvements.
Van Haute said Putnam General Hospital also has expensive needs, which would total more than $10 million if all were satisfied.
City Administrator Gary Sanders also described some of Eatonton’s hoped-for, SPLOST-funded projects, including police and fire department vehicles and equipment, heavy equipment for road repairs, senior citizen transportation needs, economic development projects, light remediation, and various “furnishing and equipment needs.”
“But that is, again, just a wish list of projects to revise over the coming days and weeks,” Sanders concluded.
When County District 3 Commissioner Steve Hersey questioned how long a SPLOST should be in force, Van Haute suggested it would be advantageous to secure a six-year SPLOST rather than a five-year term or less.
“Funding it for six years is a little easier because you’re allowed to over-collect,” Van Haute responded.
He explained that if a five-year or less SPLOST is established, the county must declare the sum it expects to collect over the SPLOST’s entire term. He said that if that sum is reached early, however, the SPLOST will be deemed complete, and no more money can be collected.
He also said with so many expenses waiting in the wings, SPLOST funds tend to get spent quickly, so despite historically collecting more than $3 million annually since 2021 (and $4.26 million last year), not a lot of interest typically accrues once it’s in place.
Hersey countered that he still would feel more comfortable with a five-year term. Still, Van Haute pointed out that his projected revenues did not even consider the tax collection impact of projects like the multimillion-dollar Len Resort currently under construction on the western shores of Lake Oconee or the similarly scaled live-play-work complex to be anchored by a second Lake Country Publix store about to spring up alongside Hwy. 44 and Harmony Road.
“So, that’s why six [years] makes sense, in my opinion, that we can over-collect based on the timing of these things, and we’re not getting in trouble or outrunning our punt coverage,” Van Haute said. “The last thing I want to do is put this county in tough shape when the county’s in really, really good shape because we don’t go out with a wild hair and go try to fabricate a number. I act like it’s our money, all of our money, my money, too. So, I’m not going to do anything stupid with it.”
After establishing some discussion on a 69 percent/31 percent, county/city split of potential SPLOST 10 revenues, independent votes of county commissioners and city councilmembers were taken.
For the county, on whether to adopt a five-year SPLOST 10, District 1 Commissioner Tom McElhenney voted no, District 2’s Richard Garrett voted no, District 3’s Hersey voted yes, and pressed into service by the absence of District 4 Commissioner Jeff Wooten, County Chairman Bill Sharp was pressed into voting service and cast a no to defeat the motion.
Next, the same foursome voted on a six-year term for SPLOST 10, and predictably, all votes reversed, and the measure passed.
Finally, the commissioners unanimously approved a third motion to accept the 69/31 split between county and city revenues.
Shortly after, city council members voted, with Ward 2’s James Gorley introducing a motion to accept the six-year term. Teresa Doster (Ward 4), Mylle Mangum (Ward 1), Marie Rainey (Wards 1 and 4), Janie Reid (Ward 3), Michael Smith (Wards 2 and 3), and Chip Walker (Council at Large, Mayor Pro Tem) unanimously approved the motion.
Next, an intergovernmental agreement (IGA) must be formally established, spelling out finalized projects and needs for both the city and county. Once secured, the IGA must also agree to the 69/31 percent split of SPLOST 10 revenues.
Eatonton Administrator Sanders confirmed all that should be established by late summer, with a November election to determine the fate of Eatonton-Putnam County’s latest attempt to continue what already is a more than 30-year SPLOST collection.