Here’s a recap of the Aug. 10 meeting of Greenville City Council.
Final approval: Penny sales tax referendum
City Council unanimously approved the second and final reading of an ordinance to add a 1% municipal sales tax referendum to the November general election ballot. The first reading of the ordinance was held July 13.
If approved by voters, the proposed penny tax would take effect on May 1, 2027. It would add an extra penny to every dollar spent on eligible retail purchases in the city, exempting most groceries, prescription medicines or gasoline.
The city of Greenville estimates that a penny tax could generate $511.6 million over the next eight years, around $64 million annually. Approximately 20% of the generated tax revenue – $102.3 million – would be used for property tax relief for owner-occupied homes in the city.
Read more about the city’s penny tax proposal
The remaining $409.3 million would fund an expansive list of capital improvements throughout the city, estimated to cost approximately $410.2 million. The tax revenue would specifically go towards:
- $294.3 million for 464 roadway improvement projects
- $41.9 million for 25 sewer infrastructure projects
- $32.4 million for 12 stormwater enhancement projects
- $17.6 million for 18 public assembly facilities, administration buildings and public safety projects
- $24 million for two fire station projects
Minor revisions were made to the city’s proposed project list prior to City Council’s final reading. The total number of projects proposed to receive penny tax revenue decreased from 527 to 521. Each project was organized into three priority tiers to reflect the order in which they would be funded and completed.
Initial approval: Intergovernmental agreement with Greenville Arena District
The Greenville Arena District plans to complete an estimated $282 million renovation of the Bon Secours Wellness Arena and surrounding 12-acre campus. The district wants to issue up to $60 million in accommodations fee revenue bonds – called capital improvement bonds – to help fund the project.
Approximately 2.3% of local accommodations fees are distributed to the district for debt payments through an existing intergovernmental agreement with the city of Greenville and Greenville County. City Council gave initial approval to amend this agreement to update the allocation formula for the new debt issuance.
Under the amendment, the city will fund 55% of the annual debt service on the capital improvement bonds using local accommodation tax revenue. Greenville County will be responsible for the remaining 45%. Greenville County Council approved a similar amendment to the intergovernmental agreement in February.
During the Aug. 10 meeting, City Council also approved an amendment to an escrow agreement among the city, Greenville Arena District, Greenville County and The Bank of New York Mellon Trust Company. The amendment updates the refunding and distribution procedures to support the new capital improvement bonds.
The multi-million-dollar renovation of the Bon Secours Wellness Arena will also be funded with $40 million in general obligation bonds issued by the Greenville Arena District and $100 million in hospitality tax revenue bonds issued by Greenville County. Both bonds were approved by Greenville County Council earlier this year.
Initial approval: $275M waterworks system revenue bonds
City Council approved the first reading of an ordinance authorizing the Commission of Public Works to issue one or more series of bonds not exceeding $275 million to fund capital improvement projects for the Greenville Water System.
The waterworks system revenue bonds would be used to cover the cost of projects outlined in the capital improvement plan adopted by the Commission of Public Works. These capital improvements include:
- Installing and replacing water mains
- Expanding and renovating water treatment, storage, transmission and distribution systems
- Acquiring, constructing and expanding water sources
- Renovating and repairing facilities, including necessary road repaving and repairs
The bonds would be repaid using revenue from the Greenville Water System.
Additional items
- First reading was approved of an ordinance to appropriate $110,863 to programs and initiatives outlined in the Greenville Zoo’s conservation plan. The allocated funds come from the zoo’s conservation fund.
- Final approval was given to appropriate more than $1 million in state funding for the Greenville Police Department’s School Resource Officer Program.
- Final reading was approved of an ordinance to appropriate $535,049 in opioid settlement funding to support the Greenville City Fire Department’s Opioid Response Team.
- Final approval was given to appropriate $228,331 in state funding to purchase a brush loader for the public works department. The state grant was awarded through the fiscal year 2026 Solid Waste Hurricane Helene Grant program.
- City Council held a public hearing for the proposed abandonment of a portion of Spartanburg Street between East Stone Avenue and North Church Street. The applicant, AP Hold Investments LLC, plans to complete improvements to the site which currently functions as a parking lot for a barber shop.
