City staff outlines draft project list tied to a possible 1% municipal sales‑tax referendum; 20% of revenue must go to property‑tax credits

City staff reviewed the Municipal Tax Relief Act recently signed into law and walked council through a draft project list and implementation approach tied to a potential 1% municipal sales‑tax referendum.

Staff explained the key legal and procedural elements: the authority applies only to cities or counties that do not already have the local option; the tax must be approved by voters via a referendum ordinance submitted to the county election commission (staff noted an August 17 deadline for commission submittal to appear on the November general‑election ballot); 20% of revenue collected must be returned as a credit on owner‑occupied residential property‑tax bills; proceeds are restricted to specified capital categories (roads, infrastructure, emergency buildings) and all projects must be listed before the vote.

Using current revenue baselines, staff estimated the city would collect about $50 million annually before the property‑tax relief requirement, leaving roughly $40 million per year available for listed projects after the required 20% credit. Staff emphasized this is an early estimate and that growth assumptions and final modeling still need work.

To accelerate delivery, staff proposed a three‑tier approach: tier one prioritizes shovel‑ready work (resurfacing, sidewalk repair, sewer rehab), tier two brings projects online as funds are encumbered, and tier three contains longer‑lead projects that require design or grant coordination. Staff said they mapped projects citywide to promote district parity and emphasized a neighborhood‑centric allocation across resurfacing, streetscape, sidewalks, sewer rehabilitation and park investments.

Examples on the draft list included a new fire station in the Mauldin Road area, West End fire‑station replacement, bridge maintenance (Queen Street, Cleveland Street), traffic‑signal rebuilds, upgrades to park facilities and playgrounds, Court Street Market design, a Swamp Rabbit Trail restroom and expansion of sidewalk networks (staff cited $38 million for new sidewalks across both tiers and $30 million for sewer rehab as example line items). Staff also noted the list is preliminary and will be refined before any ordinance is introduced.

Councilmembers asked about leveraging C‑funds and federal grants, parity across council districts, greater transparency on which sidewalks would be built first, and how surplus funds would be treated at the end of any sunset period. Staff said proceeds could be used as matching funds, confirmed an intent to publish an interactive GIS map and project matrix for the public, and explained that unused funds at the end of the tax term would be governed by the statute and city ordinance (re‑enactment would require voter approval).

Staff provided illustrative homeowner credit examples (taxable‑value basis): roughly $183 on a $150,000 taxable‑value home and about $600 on a $500,000 taxable‑value home, while noting final relief amounts depend on taxable‑value definitions and program detail. Staff outlined next steps: gather council feedback on the project list, finalize ordinance language and project attachments, and (if council chooses to proceed) present readings in July and August to meet election‑commission deadlines.

The council asked staff to publish more project‑level detail for sidewalks and resurfacing and to schedule public outreach and demonstrations of the interactive map before finalizing the ordinance.