Council Action Requested:
Approve Ordinance 2024-1889 that clarifies Capital Project Sales Tax 2 excess funding.
Points to Consider:
In March 2022, County Council adopted an Ordinance (2022-1796 attached) to utilize excess Captial Project Sales Tax 2 funds for projects on the Capital Project Sales Tax 3 list, per a proviso budget amendment adopted by the State Legislature related to the use of excess funds generated by the Capital Project Sales Tax.
The authorizing language from that 2022 ordinance (2022-1796) stated
Section 3. Approval of Budget Proviso Projects
Pursuant to the State Budget Proviso, the Council of Lancaster County hereby approves and specifies that excess collections from the First Reimposed Tax shall be utilized on selected road projects not included in the Second Reimposed Tax as well as certain road projects and pedestrian projects identified in the Second Reimposed Tax as listed on Exhibit 2 which is attached hereto and incorporated herein by reference.
Since the adoption of that Ordinance, there has been some uncertainty as to whether or not that language was directing funds to the Pettus Greenway and the USCL Pedestrian project from both excess CPST2 funds and again from CPST3 funds. There are also questions as to how much total funding would be provided for road projects between the excess funds in Capital Project Sales Tax 2 and project funds in Capital Project Sales Tax 3.
The draft amending ordinance, clarifies that The Lindsay Pettus Greenway will receive $1.5 million between Capital Project Sales Tax 2 excess funds and Capital Project Sales Tax 3 funds with specific language that states the Greenway Phase 2 funds "shall be in lieu of and not in addition to funds to be available for those projects" in Capital Projects Sales Tax 3.
The draft language also states that the USCL Pedestrian master plan would receive $1 million between Capital Project Sales Tax 2 excess funds and Capital Project Sales Tax 3 funds with specific language that states the Pedestrian Master Plan "shall be in lieu of and not in addition to funds to be available for those projects" in Capital Projects Sales Tax 3.
The draft language further clarifies that excess for Capital Project Sales Tax 2 shall be used for roadway projects shall be in addition to and not in lieu of funds to be available for those projects. This action clarifies that $9 million in excess Capital Project Sales Tax 2 Funds are in addition to the $13.2 million that was originally identified in the Capital Project Sales Tax 3 list of projects for a total of $22.2 m being directed towards roads between excess CPST2 funds and CPST3 funds.
The language also clarifies that the detention center project will also receive excess CPST 2 funds that are in addition and not in lieu of funds from CPST3.
Funding and Liability Factors:
This ordinance clarifies that:
- the Pettus Greenway would receive $1.5 million total from Capital Project Sales Tax funding
- the USC-L pedestrian master plan would receive $1 million total from Capital Project Sales tax funding
- the roads program would receive $13.2 million in funding from Capital Project Sales Tax 3, as well as $9 million that was committed from Capital Project Sales Tax 2 excess funds.
Recommendation:
Approve the Ordinance.