The agenda for Tuesday night’s regular meeting of Horry County Council has only two items of consequence on it.
Under Old and New Business, council will discuss the Financial Participation Agreement with the South Carolina Department of Transportation for the I-73 project.
The agreement has been in effect since December 2018 when it was signed by former administrator Chris Eldridge for the county after receiving council approval to do so. However, the real date for its beginning is the start of the new fiscal year on July 1, 2019.
Generally the agreement provides that Horry County will provide up to $25 million per year from Hospitality Fee revenues to fund the construction of I-73 within Horry County (the Project) and SCDOT will oversee the project from design through construction.
The written agreement states, “SCDOT shall provide an Annual Work Plan to the county on the activities proposed by March 31 that the county shall approve prior to June 30 before commencing work in the succeeding fiscal year.”
SCDOT provided a work plan for next fiscal year which allots $6 million for engineering services and $6.5 million for right of way acquisition. Council has yet to act on that work plan, but there is NO money in the upcoming budget to pay for it.
The plan was for Horry County to provide up to $25 million per year from 1.5% Hospitality Fee revenues collected countywide as funding. Since March 2019, the county has been sued by the cities over hospitality fee collections and there is no guarantee at this time how much, if any, of the countywide 1.5% fee revenue will be available to the county in the next or ensuing fiscal years.
However, Section V of the agreement, “Payments by the County”, states, “The County shall maintain an account balance which shall be sufficient to cover the Project expenses for the relevant fiscal year including annual payments to the consultants, contractors or SCDOT…”
In addition, Section III D of the agreement states, “Nor shall the County’s prior approval be required for any right-of-way acquisition agreement or consultant agreement for work of the Project provided the cost thereof does not exceed the estimates provided in the Annual Work Plan.”