TSPLOST for paving the way

Even while fewer funds are available, there is an increased demand for upgrades to existing services. In some cases, such as fire protection services, those costs will be met by adjustments to fees — amounts that are not taxes but are collected at the same time taxes are paid.

One such fee announced last week, a public safety fee, was explained during the public hearing by the commissioner and Fire Chief Blake Hodge.

Rather than including the stipend paid for contracted ambulance services, first responders and emergency management as separate items on the general operations budget, this consolidated “public safety” fee will be kept in a separate account.

Rather than a flat annual charge of $130, the safety fee will be billed at a 10-cents per square foot of habitable space with a minimum of $90 and a maximum of $400 per structure. Money from this fee will help secure new fire stations, new equipment and full time fire fighters/EMTs.

Another funding source will require voters saying “yes” to voluntarily adding another 1 percent to all retail sales (excluding gasoline and diesel fuels) that will be earmarked for transportation related capital projects.

Whitfield projects that a TSPLOST, if adopted, is expected to bring in about $3 million annually. That amount could be used to free up about $1 million of state LMIG (local maintenance and improvement grant) money that is currently in an escrow account but is unavailable because the county lacks matching funds.

Because a regional TSPLOST was voted down in 2012, the county must provide 30 percent of a project’s cost before the state kicks in any cash. Before the TSPLOST defeat, counties paid 10 percent of qualifying road project costs and the state paid 90 percent.

Whitfield said the county presently cannot afford to commit budgeted funds toward LMIG funding, not only the $1 million currently banked, but an amount that will grow by about that same amount when the state funds for the current year are delivered in December.

The commissioner said that not having the matching funds, funds that could have paved about 150 miles of county roads.

“When I saw that I thought I was going to be sick,” he said.

And the situation could get worse. Whitfield told those attending the meeting that if LMIG money is not spent within three years of its allocation it must be returned.

Paying now or later

After Whitfield had laid out the sad state of the county’s financial health, an unusual remedy was suggested from several of those attending the meeting. They possible onetime levy charged all residents that would retire the Erlanger debt, freeing the county to tackle its other obligations.

The commissioner said an additional tax would probably not be possible, but a dedicated fee, either a one-time charge or one for a few years, might be established to pay off that portion of the county’s debts.

Whatever is decided, even as more cuts to the budget are made, a property tax increase is coming.

Whitfield said he had few options, either the 2 mill increase could be adopted or the more than 100-page budget could be scrapped and taxes raised even further.

Whatever decision is reached, the county faces decades of belt tightening and increased demands on taxes and other revenue to reverse the county’s fiscal fiasco.

Since it took years to get so far in arrears, it will take years to correct.

And bankruptcy is out of the question.

Whitfield, a career businessman, said that a business or an individual filing for bankruptcy protection would be possible. But state law does not allow a local government to pursue that route. Instead, the commissioner and his staff will continue working to make the greatest dent in county debt while at the same time being as gentle on taxpayers’ wallets as possible.