Since approval in June 2013, the penny-on-the-dollar sales tax has funded construction + infrastructure projects across Richland County – but the revenue stream isn’t keeping up with Council spending.
With concerns that the tax may not be able to cover the cost of all slated projects, County Council is considering issuing bonds to cover discrepancies in cost (a.k.a. debt that will eventually fall to taxpayers).
So far, the penny tax has collected $253.5 million of the $1.2 billion 20-year goal in just three years. While the penny tax is bringing in more than expected, construction is more expensive than planned + moving faster than funds are being collected (Council has paid out ~$35 million in overdrafts). Construction projects like the expansion of N. Main St. can cost up to $59 million, and rarely stay within budget.
County Council essentially has two options – borrow additional funding up to $450 million or continue to rely on the penny tax. The decision does not need to be made immediately, so Council has enough time to thoroughly consider legal options + impact on taxpayers.
