Newspaper Page Text
HOW TO FIX SPLOST
Now that SPLOST-11 appears to be tak
ing its final shape,, here's what I think:
this SPLOST is broken, and the Mayor and
Commission should fix it fast!
Here's the deal.
I The SPLOST project-selection process
■ was to rely upon a 22-member Citizens
Committee (CC), instructed by the M&C to use
nine "sustainability" criteria to determine a
$170 million slate of projects with operating
(general-fund) consequences not to exceed $4
miltion. As directed by the M&C, the list was
to include a designation of $84 million for a
new jail and anticipate a collection rate of
$20 million per year.
But after the CC had completed its
assigned task, the rules changed and the M&C
leaned upon the CC to reconvene specifically
to add another $25 million for a Classic Center
expansion. Then, the M&C began its own
deliberations by adding seven "hardscape"
projects ($16.5 million) not recommended by
the CC, and chopping $4.9 million from the six
"green" projects which best met their sustain
ability criteria.
2 The state-enabling legislation imposes
■ a five-year time limit on SPLOST, or
six years if we include Winterville or the
county jaiL The presumption is that SPLOST
should not exceed public capacity to reason
ably foresee present and future needs. But
our visionary M&C has exploited an option
which allows consolidated governments an
unlimited time to collect a specific amount
"if general obligation bonds are issued in
conjunction with the imposition of the tax."
Thus, we appear headed merrily for a SPLOST
referendum seeking $196 million, over a
period approaching 2.5 times the four-year
term of the M&C, and including $15.7 million
in interest costs.
3 The original purpose of SPLOST was to
■ fund compelling, big-ticket projects
which would have previously required debt
financing. Indeed, the ACC website touts
SPLOST as allowing ACC to remain "debt
fee," and to "pay for enhancements in cash."
Nonetheless, SPLOST-11 includes a substantial
interest component ($12.0 million for the jail
and $3.7 million for the Classic Center) which
deprives us of $15.7 million for projects that
otherwise could have been funded.
4 ACC has typically had sufficient SPLOST
■ capacity to fund individual capital
projects that would otherwise absorb general-
fund revenues, as needed. Examples are ongo
ing road, intersection, bridge and facility
improvements which also derive an extra kick
by leveraging additional state and federal
funding. Far better, however, would be to
provide a single, block-item, SPLOST alloca
tion to the ACC capital
budget, broadly not
ing specific project
types. Thereby, the
politicians can delib
erate annual alloca
tions within the capital budget, and voters
would conf .»*.* "he stark choice of paying for
routine infrastructure improvements and mod
ernization expenses with either sales-tax or
property-tax money.
5 Taxpayers have been fooled into believ-
■ ing their stormwater-utility fees pay for
flood-sparing, capital improvements. Indeed
they should. But in reality, stormwater fees
go to stormwater "programs" and employee
salaries shifted from the general fund in 2006,
whereas the proposed SPLOST now includes
$2 million for stormwater projects not recom
mended by the CC.
6 The Classic Center expansion will cut off
■ Hancock Street—without any discussion
of the immediate effect on our street grid, or
access to the unplanned, vacant area to the
east down to the North Oconee River.
7 Dudley Park will receive $1 million,
■ mostly for a music/theatrical amphi
theater and replacement of the bathrooms
unnecessarily demolished two years ago.
Unfortunately, this initial implementation of
the Dudley Park master plan is likely to con
flict with construction of the rail-trail sched
uled over the next several years.
8 The golden egg of SPLOST has reverted
■ to a magnanimous Santa Claus—and
the longer the time period, the larger his
goodie bag. Make no mistake, SPLOST.money
is real money, and hardly free, whether
collected and spent in the first or ninth
year. Furthermore, money appropriated in
SPLOST-11 for today's nice-to-have proj
ects will not be available for unforeseen,
then-urgent projects nine years from now.
Economists refer to these foregone, future
projects as "opportunity costs," that swell
as our project list gets longer and as the
extended time-period heightens uncertainty.
9 At the first SPLOST work-session three
■ weeks ago, Mayor Davison character
ized SPLOST as being primarily an instrument
of economic development—also a common
theme of Classic Center advocates. But that is
fallacious, and partly explains what is broken.
In fact, the purpose of SPLOST is to pay cash
for capital projects that allow government
efficiently to deliver basic services related to
health, safety and the common good, which,
in turn, enable economic development.
Accordingly, the business of government
is to provide the infrastructure that indirectly
allows for economic
development; whereas it
is the business of entre
preneurs, bankets, educa
tors, farmers, scientists,
healers, etc. to create
the market-place product and jobs manifest
by economic development. That fundamental
distinction also defines the proper role of the
public and private sectors, and asks at what
point a "civic" center, grown into an ever-
larger "convention" center, crosses the line
beyond which ongoing public investment can
be justified.
How Would I Fix It?
1 Reduce SPLOST to a reasonable time
■ period consistent with practical fore
sight—five years—with a much shorter proj
ect list Ten years is far too long, and the 43
projects dilute public scrutiny. The inclusion of
numerous nice-to-have projects has driven this
SPLOST well beyond the immediate period for
which there are compelling, must-have projects.
2 Submit a five-year, $100 million SPLOST
■ to the taxpayers. Indude the jail as 9
first priority thereby sparing substantial inter
est expense. Include Winterville as a partner.
With only an additional $30-$40 million left
to spend, only the cream wiU rise to the top.
Then evaluate and select other projects in
another five years, at a time more proximate
to when they will be built.
3 Consider including the Classic Center
■ atrium, but defer the exhibit-hall exten
sion and parking until we have a downtown
master plan into which they will assuredly fit
Return credibility to the Citizens
■ Committee, whose members know far more
about these projects than the M&C—who chose
mostly not to attend the project presentations,
and then subverted their own selection criteria.
Otherwise, the enormous time and talents of
these 22 citizens will have been squandered.
Also, open the selection process to public com
ment much earlier and more frequently.
5 Change the "Spedal Purpose" part of
• SPLOST to "Spedfic Purpose." Many of
the current submissions are overly vague and
general thereby ending up in the hands of
the politicians and ACC Manager as pots of
money searching for ways to be spent. SPLOST
was always intended to buy specific projects
with enough detail to minimize the role of the
political middleman.
6 Make a single, block-item allocation to
■ the annual ACC capital budget, instead
of funding a long list of individual, ongoing
capital activities over the life of the SPLOST.
7 Pay for stormwater improvements with
■ stormwater-utility fees, not with SPLOST
funds.
8 Defer consideration of Dudley Park
■ improvements until the rail-trail and its
park interconnections are complete.
■*(
Never, never include projects which
■ sneak in hidden, back-door provisions
which should be discussed and planned sepa
rately in a larger context Likewise, never
include projects with more questions than
answers. Thus, give extra scrutiny to the
Classic Center expansion, 800 MHz radio reno
vation, "next-generation" E-911 system, fire
station #2 replacement cooperative-extension
agriculture center, Garnett Ridge Community
Center, public art and improvements for HUD-
assisted housing projects.
In conclusion, past SPLOST programs have
paid cash for valuable civic projects such as a
new library, courthouse expansion, government
buildings including fire houses and police sta
tions, streets and bridges, parks and recreational
facilities, downtown rejuvenation, preservation
of the Morton Theatre and other historic struc
tures, a nature center and greenways.
The list goes on, and Athens would surely
be poorer in substance and spirit without
them, paid for unceremoniously by all our resi
dents and visitors. Of course, I want the even
tual project lineup for SPLOST-11 to be equally
civic and benefkiaL
So, please, Mayor Heidi and Commissioners,
shorten the project duration to five years,
include the jail, be dear about your public
priorities, work hard and fast and get it right
We surely need to continue using sales-tax
revenues to balance the hard reality of our ris
ing property-tax burden.
Carl Jordan
Carl Jordan is a former District 6 Athens-
Clarke County Commissioner.
The golden ej) of
SPLOST has reverted to a
magnanimous Santa dans