A Sports Authority (SA) was created and has been meeting for months
The proposed recreation center in the heart of Crossville has been a lightning rod for criticism, discussion and hope and could double the city’s bond indebtedness (from $ 39M to 79M).
Still, Crossville Mayor R.J. Crawford has said the city would only be on the hook for $1.1M monthly. According to the Mayor that seems doable, noting the recently built Bucee’s has increased revenue by $4M since it started dishing out brisket in June 2022.
A Sports Authority (SA) was created and has been meeting for months. According to officials, the authority’s involvement ensures no property taxes will be used, only sales tax. If everything goes as planned, the city could break ground in October while the YMCA (which will partner with the city on the project) will contribute additional money through a capital campaign they will oversee.
In April, Crawford spoke to the Upper Cumberland Business Journal about the project.
“Currently, we have $20 million in savings and reserves and close to an additional $ 2 million projected increase in our budget in sales tax revenue compared to last year and see that to continue to rise,” said Crawford.
Despite the mayor’s confidence, questions persist. Is Crossville running such a surplus in sales tax that it could service the interest and bond payments that would follow for years to come? Let’s look at a few numbers.
The city saw lower-than-average sales tax numbers in City Manager Valerie Hale’s June sales tax report (with collections of just over $1.03 a million down $22,000 from last year.) However, year-to-date revenue is 2.7% above targeted projections. According to the report, the city received $1.07M in collections for March, down $110,000 from the year prior.
At $1.1 million a month, the city could pay the 39 Million dollar loan (which may total approximately $63M after a hypothetical 5% interest rate) in approximately 5.25 years. No official number has been placed on loan details or interest rates, but officials have stated “the city gets really good rates” so we will take the wait and see approach.
Sales tax totals by the numbers (totals reported in June but collected in April):
- Collections in The City Of Crossville: $2,055,761.98
- State of TN Cost of Administration:1.125%$23,127.32
- Net Collections(sent to Trustee’soffice): $2,032,634.66
- Local Option Out of StateDistribution: $14,470.40
- Trustee of Cumberland County: 1% $20,326.35
- Net To Be Distributed: $2,026,778.71
- City of Crossville split; Check to City of Crossville $ 1,013,389.36,
- Check to Cumberland County Board of Education $ 1,013,389.36
Since the bond acquisition proposal for funding was announced a year ago, there has been a public outcry for a referendum, but in a 3-2 decision earlier this year the city council approved forward momentum for the project without a referendum. Crawford broke a 2-2 stalemate within the council.
“It’s time to move forward,” Crawford said at the time.
The UCBJ contacted City Manager Valerie Hale for comment and will update this article with any responses received. For more information on the proposed recreation center visit HERE.
This is an ongoing story. Check back for details.
The facility will include:
- an indoor pool
- gymnasium
- fitness area
- exercise rooms
- child care center
- spectator seating
- flat walking track
Photo via crossvillerecreationcenter.com.
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