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Highlands Today

Downturn In Shopping May Affect County Roads

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By Douglas  Carman | Highlands Today

Published: July 6, 2008

SEBRING –– Some Highlands County roads may sit a while longer before they're repaved, and other proposed projects may be pushed back due to an anticipated shortfall in sales tax revenues.

The local one-cent sales tax that shoppers pay is used to build and maintain many of the roads, bridges and some other buildings throughout the county.

For this fiscal year, County Budget Manager Tim Mechling said he expects only $7.8 million of the $9.1 million in sales tax revenue to come his way.

The 15-percent anticipated drop in revenues mean that the county's infrastructure fund will have to do with less. .

Though Mechling declined to mention specific projects that could be on the chopping block because the the county commissioners have not decided yet, Mechling said the county may delay several planned road resurfacing and some new construction.

"It's something we're still working out," he said.

The Sebring Parkway is one of the major projects funded by this tax revenue, but Mechling did not anticipate its construction would be affected. Then again, he suggested some projects would have to be postponed so that the county can balance the budget and get Phase II of the parkway completed.

"The parkway's already under construction; there's nothing we can do," Mechling said. "We eliminated a few things."

Many of the residential roads within the three cities are maintained by separate funds built up by the cities, and the county's budget shortfall does not directly affect them.

The county budgets its road projects according to the projected revenue from the one-percent sales tax, which is added to the six-percent statewide sales tax and collected by the state before it's then paid to the county. Last fiscal year, which ended Sept. 30 2007, the county received more than $8.89 million, slightly above their projections then.

Historically, Mechling said the county HAS estimated a 2- to 3-percent increase in the tax revenue. This year hasn't been the case, and next year, the county isn't expecting the cash flow to get any bigger.

The decline was noticed by the end of 2007. Going by calendar years, county budget director Bernis Gainer told Highlands Today in April that the county received $8.6 million, a drop from the $9.2 million collected in 2006. That was despite the opening of Shelby Crossing last year.

Budget workshops for the county start July 15.

Reporter Doug Carman can be reached at 386-5838 or dcarman@highlandstoday.com

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