STATE OF SOUTH CAROLINA
COUNTY OF LEXINGTON
OF THE LEXINGTON COUNTY CAPITAL PROJECT SALES TAX COMMISSION REGARDING THE FORM OF THE PROPOSED BALLOT PURSUANT TO TITLE 4, CHAPTER 10, ARTICLE 3 OF THE CODE OF LAWS OF SOUTH CAROLINA 1976, AS AMENDED, AND OTHER MATTERS RELATED THERETO.
Whereas, Sections 4-10-300 through 4-10-380 of the Code of Laws of South Carolina 1976, as amended (the "CPST Act"), allow for the imposition of a one percent sales and use tax by ordinance, subject to a referendum within the County to fund specific capital improvement projects and for a limited amount of time not to exceed 8 years;
Whereas, the Lexington County Capital Project Sales Tax Commission (the "Commission") was created pursuant to Section 4-10-320 of the CPST Act, by resolution of Lexington County Council (the "County Council") dated May 25, 2021, and pursuant to which the County appointed three commissioners from the County;
Whereas, three commissioners from the municipalities within the County have been appointed in accordance with the CPST Act;
Whereas, the South Carolina Revenue and Fiscal Affairs Office has estimated that a one percent sales and use tax would generate approximately $536.7 million during the 8-year period from May 1, 2023 to April 30, 2031; and
Whereas, the Commission received funding proposals for projects qualifying under the CPST Act in excess of $800 million;
Whereas, the Commission has reviewed all projects and made a determination of the purposes-for which the sales and use tax imposed under the CPST Act should be imposed and the projects funded thereby, and formulated the ballot question to be placed on the ballot, if County Council approves an ordinance (the "CPST Ordinance") to place the question as formulated by the Commission on the ballot for the November 8, 2022, general election; and
Whereas, the Commission is recommending a prioritized list of projects with a total estimated cost of approximately $668 million to be funded as and to the extent funds become available, including the case in which sales and use tax receipts outperform current estimates.
NOW THEREFORE BE IT RESOLVED BY THE LEXINGTON COUNTY CAPITAL PROJECT SALES TAX COMMISSION IN MEETING DULY ASSEMBLED:
Section 1 Formulation of Ballot Question.
The question as formulated by the Commission in discharging its responsibility under Section 4-10-320(C) of the CPST Act is attached as Exhibit A (the "Ballot Question").
Section 2 Projects to be Funded, Conditions and Restrictions on Use of Sales Tax Proceeds.
The projects to be funded from the sales and use tax, and each project's designated funding priority, are listed at Exhibit B. The Commission has determined that as sales and use tax revenues become available, or if sales and use tax revenues are insufficient to fund all projects, those projects with higher priority rankings shall be funded in a manner consistent with such prioritization (with "1" being the highest priority ranking). Nothing herein shall prevent the simultaneous funding of multiple projects consistent with each project's designated priority.
The Commission determination as to funding priority in this Section 2 is a condition precedent to the imposition of the sales tax, and a condition and restriction on the expenditure of sales tax proceeds pursuant to Section 4-10-330(A)(4) of the CPST Act. Provided, however, that in all cases, the County Council, by ordinance duly enacted, may determine to fund projects of a lower priority before projects of a higher priority upon a finding that the higher priority project is delayed or impractical on the basis of construction schedules or other events that may affect the schedule or scope for any particular project. Such ordinance and finding shall specify the basis of the delay or scope adjustment, which may include, but is not limited to, issues concerning acquisition of title and rights of way, design and engineering considerations, environmental issues, the receipt of all necessary permits and regulatory approvals, funding of the projects from other sources, bids in excess of project estimates and cost overruns and related scope reduction or value engineering, qualification of bidders, the availability of sales and use tax revenues or other funding sources, project impossibility, and force majeure or other unforeseen circumstances.
Section 3 Provision of Ballot Question to County Council.
Pursuant to Section 4-10-330(D) of the CPST Act, the Commission has determined the question to be submitted to County Council for the referendum on November 8, 2022, must read substantially as set forth in Exhibit A, with such modifications and changes thereto as may be required or authorized by law and approved by County Council. The Chairman of the Commission is hereby directed to provide this Resolution and the Ballot Question to the County Council for its consideration.
Section 4 Prior Action Rescinded and Repealed.
Any resolution or formal act previously taken by the Commission under the CPST Act with respect to the Ballot, including without limitation the resolution adopted by the Commission on May 12, 2022, is hereby rescinded and repealed, and replaced with this Resolution.
Section 5 Effective Date.
This Resolution is effective immediately upon its adoption by the Commission.
DONE AND RESOLVED this 3rd day of June, 2022.
LEXINGTON COUNTY CAPITAL PROJECT SALES TAX COMMISSION