The Town of Century will use Local Option Sales Tax (LOST) funds to help with their debt service — including past due loan payments — and free up cash for other uses.
The LOST provides discretionary funding for local governments in Escambia County for infrastructure projects that have a life longer than five years.
For example, Escambia County has used LOST funds for law enforcement, fire and public safety facilities and equipment, transportation and drainage improvements, infrastructure projects, public facilities,recreation and natural resources, jail and court facilities, Growth Management Act mandates, capital equipment community services, and economic development projects. The Escambia County School District has used LOST funds to fund the construction of new schools (such as the new Ernest Ward Middle School in Walnut Hill), renovations, additions to existing schools, land acquisition and improvements, and school technology. In the past, Century’s use of LOST funds has including street paving.
Century currently has just under a $1 million in available LOST funds, according to accountant Robert Hudson. The town council approved his request to use LOST funds as follows:
- $96,249 total for three loan payments, including two past due, for a 2014 gas line relocation project
- between $95,000 and $98,000 for water bond debt service
- about $25,000 in payments to the state revolving loan fund for the water department
“How did we get behind like that?” council member Luis Gomez asked about the past due gas project loan payments.
“Gas has no money,” Hudson responded.
Hudson said the town collects about $250,000 in LOST monies annually.
In the 2014 gas line project, natural gas pipes were relocated to the east and west sides of North Century Boulevard eliminating the need to install individual service lines under the road to service natural gas customers.
Pictured: A 2014 gas line relocation project begins in Century. NorthEscambia.com file photos, click to enlarge.
