Visitors paying less than promised for Truist Park bonds

Cost burden heavier for local taxpayers since the pandemic.

Visitors to Cobb County in 2021 again contributed less than expected to pay off the public’s share of the Truist Park construction bonds, shifting more of the costs onto local taxpayers, county financial documents show.

Still, county finance offi- cials characterized the update released Tuesday as great news for county residents, because the pandemic-fueled dip in hotel taxes was more than offset by a rise in prop- erty taxes paid by businesses in the surrounding Cumber- land area.

As a result, Cobb’s gen- eral fund — the main funding source for most county government services — contributed just $4.9 million toward the stadium debt service in 2021, 23% less than the $6.4 million a year that county officials planned when the project was approved.

“Every year since the beginning of this investment, we have been below that $6.4 million projection, including a pandemic,” said Bill Volckmann, the county’s chief financial officer. “So that says a lot about the sustainability of this investment.”

In total, the county con- tributes $16.4 million a year toward the debt service on the $300 million stadium bonds, using a mix of general tax revenue, a special property tax on Cumberland-area businesses and taxes and fees predominantly paid by visitors for car rentals and hotel stays. The Atlanta Braves pay the county $6.1 million a year in rent, for a total debt payment of $22.5 million.

Visitors have contributed less than expected since the pandemic hit. In 2021, $866,000 in hotel motel taxes were spent on the stadium debt. That was up from $419,036 in 2020, but well below the $1.5 million initially budgeted.

Meanwhile, a $3 hotel room fee charged in the Cumberland Special Service District generated $2.8 million last year. But county commissioners have opted to spend a growing share of that fee on other expenses, such as police overtime and tourism promotion. In 2021, just $1.8 million of that fee was spent on the stadium debt, far less than the $2.7 million the public was initially told would be used for the debt.

“This is misleading,” Commissioner Keli Gambrill, a West Cobb Republican, said at Tuesday’s presentation. “... This $2.8 million isn’t going toward this debt like it’s being portrayed.”

With visitor spending declining and being redirected to other services, Cobb has relied more heavily on commercial property taxes from the Cumberland Special Service District, which contributed $8.2 million to the stadium debt in 2021, up from the $5.2 million budgeted. That doesn’t mean residents are completely insulated from the tax burden: Businesses often pass on some share of their taxes to customers.

Also on Tue s day, the Braves released a report on the fiscal impact to Cobb County, adding another voice to the debate over whether the stadium was worth the cost to taxpayers.