Question: Where is the annual forecast for this revenue and who developed it? The total amount for Tier 1 & 2 is almost $170 million dollars over 6 years. However, the amount of revenue forecasted with the LOST, which is also a 1% tax for the past 6 years, has only been some $93 million dollars.
Answer: The revenue collections were estimated by our Chief Financial Officer, in conjunction with two economists at the College of Coastal Georgia, as well as input from Gude, our outside SPLOST consultants. The range of tax collected estimated was between $1.85M to $ 2.4M. Glynn County used the low end of the monthly estimate to establish the Tier 1 amount: $133M and the high end to determine the Tier 2 amount: $170M. The Tier 1 amount represents the projects the County (and all partners) must fund and complete. Tier 2 projects will only begin if SPLOST revenue collects more that the Tier 1 amount.
By comparison, LOST collections for the County and City over the last 6 years have totaled $151M. The State of Georgia started implementing a sales tax on all internet purchases, which has increased collections monthly. In FY22, we collected $32M between the County & the City. Assuming no growth at all if everything stayed flat, we would collect $192M over six years, so it is clear the six-year SPLOST estimates are conservative, in case of an economic turndown in the economy.
Also, by comparison, E-SPLOST has collected $32.4 million in FY21/22 with an average of $2.7 million collected per month. In July 2022, E-SPLOST collected $3.2 million.