Pennies during a pandemic: What’s next for road work in the Rock Hill, Fort Mill area
There was a time the COVID-19 pandemic threatened new road or maintenance projects needed to keep pace with a busy, growing region.
Then, at least in York County, it didn’t.
Pennies for Progress director Patrick Hamilton recently told road experts from York and Lancaster counties that early fears of funding losses weren’t realized. Early 2020 shortfalls leveled out last summer and even surpassed what revenues were in 2019.
“People were spending more and people had just been stuck inside for a few months,” Hamilton said. “They were ready to get out and spend some money.”
Pennies is a voter-approved cent sales tax in York County. It began in 1997. Voters can choose to approve or deny the tax every seven years. Voters have extended it at each opportunity.
The sales tax approach is attractive. People, such as commuters, traveling in from border counties spend money and pay taxes, and thus help fund roads. Yet each of the four Pennies campaigns so far come with projections for how much tax revenue to expect. And economic factors can impact sales tax revenue.
In February through April last year, Pennies revenue was down 4.2% from the same span in 2019. Relatively few people left home as the coronavirus pandemic shut down schools, businesses and traffic. It wasn’t just Pennies that felt the pinch.
A May 2020 financial forecast from the South Carolina Department of Transportation anticipated a $78 million loss in April through July due to COVID. The department projected a $54 million gas tax and $24 million vehicle sales tax loss. Statewide traffic was down 20% in March, 45% in April and 25% in May.
At the time, SCDOT projected an up-to-two-year recovery period with an economic impact of up to $293 million.
As the pandemic lingered, the funding outlook changed. May through July 2020 revenue came in much stronger. It was up 12.4% compared to 2019. Combined with slightly stronger income than expected prior to the pandemic, the net result has been continued road work.
“No impacts on any project,” Hamilton said. “Everything is full steam ahead.”
Project status report
S.C. 160 widening recently wrapped up near Tega Cay.
Traffic shifted onto the new bridge without a detour on the S.C. 274 and Pole Branch Road project in Lake Wylie. Crews recently poured the new bridge deck and will begin to tie in ramps on the I-77 and Gold Hill Road project in Fort Mill.
There’s a bid advertised for a Galleria Boulevard extension in Rock Hill, with spring construction planned.
The Fort Mill Parkway and Spratt Street intersection will have a bid advertised in February. Construction should begin in late spring and last a year to 15 months.
“There’s minimal impact to existing traffic,” Hamilton said, noting most work there is off the existing road.
A bid this spring should precede summer construction for the Hubert Graham Way extension in Tega Cay. Final right-of-way acquisition and planning are underway now.
Hamilton said June or July is the estimate for wrapping up the I-77 and Gold Hill work, but SCDOT issued a time extension. He’d anticipate an early fall completion, and SCDOT official Jason Johnston said Friday he’s “not heard anything different.”
Lower than expected costs
Another strong sign for the economics of Pennies is the recent S.C. 160 work.
“We finished the project somewhere around a million dollars less than what the project was bid for,” Hamilton said.
Pennies campaign can have dozens of projects. It’s common for some work on each list to come in under or over budget. Money saved on one road will go to the next. Still, road experts say, noticeable cost savings are a welcomed sight.
“You rarely hear of anyone saving anything, much less $1 million,” said Fort Mill Mayor Guynn Savage, chairwoman through Friday (the group elected Tega Cay Mayor David O’Neal to serve the coming year) of the Rock Hill-Fort Mill Area Transportation Study policy committee.
RFATS administrator David Hooper said finishing $1 million under budget is an accomplishment.
“Most of the time,” he said, “cost estimates increase.”
Hooper said the news is a “break from historical experience.” York County had significant cost overruns in prior Pennies campaigns. Large construction projects were pushed back to later Pennies campaigns after initial cost estimates missed final totals. Pennies put a significant emphasis on improved cost estimates before the most recent referendum in 2017 that area road leaders say helped.
“It’s not the easiest thing to do,” Hooper said.
There are still some projects wrapping up from the Pennies 3 campaign in 2011. Some were moved over four years ago as part of Pennies 4. The financial outlook now, even in a pandemic, suggests planned work will happen.
“We anticipate every Pennies 3 project being complete and every Pennies 4 project being complete,” Hamilton said, “with the exception of...Neely Road.”
Work along Neely Road in Rock Hill had an asterisk beside it on the last referendum to say it would happen if funding were available. It was the last priority on the lists. Hamilton said it still may happen, but he couldn’t commit to it along with the rest of Pennies 4.
This story was originally published January 25, 2021 at 8:22 AM.
