Categories: Breaking NewsEconomyGovernment NewsNews

Savannah Faces $60 Million Reduction in SPLOST Allocation

An aerial view of Savannah highlights ongoing and proposed infrastructure projects.

News Summary

Savannah’s share of the proposed $700 million SPLOST tax is set to decrease by $60 million following negotiations with Chatham County. With this adjustment, the city will receive approximately 40% of the remaining funds, about $200 million, for local projects. Priority projects include $40 million for Benton Boulevard enhancements and $40 million for the Savannah Civic Center redevelopment. Community leaders stress the need for collaboration in securing the necessary support to complete vital infrastructure initiatives as they prepare for an Intergovernmental Agreement by July 16.

Savannah is facing a significant adjustment to its share of the proposed $700 million Special Purpose Local Option Sales Tax (SPLOST) following negotiations with Chatham County and its eight municipalities. The city anticipates a reduction of approximately $60 million to its local allocation, shifting priorities for infrastructure funding across the region.

This reduction means that Savannah will likely receive about 40% of the remaining $500 million in anticipated revenues, totaling around $200 million earmarked for local projects. However, significant projects have been designated as “priority one,” indicating their importance to the entire county, and will share a $200 million pool among all governmental entities.

Elevated Projects and Funding Allocations

Priority one projects include major expenditures, such as $40 million for enhancements to Benton Boulevard in the Highlands community and $40 million for the redevelopment of the Savannah Civic Center. Alongside these larger initiatives, Savannah’s local project list will address several crucial community needs. Top items on the local project list include $20 million allocated for improvements to the Springfield Canal Drainage Basin and another $20 million for enhancements to Skidaway Road.

Additional proposals have emerged for priority one projects, including a $25 million plan to eliminate the President Street railroad crossing and $8 million focused on beach projects in Tybee Island. There is also a proposal to elevate the removal of the Interstate 16 flyover over Martin Luther King Jr. Boulevard to priority one status, suggesting a $4 million investment aimed at reconnecting communities that have been divided by highways.

Community Input and Adjustments to the Draft List

In light of the budget decrease and revised project priorities, Savannah’s draft list must undergo significant adjustments. Initial estimates proposed around $260.9 million for various projects; however, due to the new allocation, this figure needs to be reconciled with the incoming budget limit. The revisions resulted in the removal of certain items, including $12 million that had been allocated for public safety radios and $2 million designated for improvements to the Savannah Fire Department’s building.

City officials have emphasized that the final project list reflects community needs and meaningful projects, aiming to impact residents positively. Feedback from council members during a preliminary discussion led to a total of $336.7 million in additional project requests, highlighting a strong interest in enhancing infrastructure and addressing community concerns. Nevertheless, adjustments will align with the new funding realities and priority project status.

Next Steps in the SPLOST Process

For the SPLOST measures to proceed, all municipalities within Chatham County, including Savannah, must adopt an Intergovernmental Agreement by July 16. This agreement will outline the parameters for the proposed funding allocations. Savannah is slated to approve its project list at its council meeting scheduled for July 10, which marks a crucial step in moving the process forward for voter approval.

The Special Purpose Local Option Sales Tax is a 1% sales tax primarily directed at financing capital projects and infrastructure improvements within the county. Community officials continue to stress the importance of a collaborative approach that meets the needs of all municipalities involved, reinforcing the idea that strong partnerships will be critical in enhancing regional infrastructure and community services.

Overall, these adjustments to the SPLOST funding allocations and the elevation of vital projects signify a concerted effort to prioritize community welfare while navigating budget constraints effectively. The outcomes will depend on further discussions and the approval of the proposed project lists by local government leaders.