Prattville boosts counties
By Marty Roney
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PRATTVILLE -- This town is the economic engine that drives Autauga County, but the community of 35,000 also plays a large role in Elmore County's economic growth.
The equation is simple: Growth equals increased tax revenue.
Elmore County has a 1-cent sales tax that is levied in Prattville. The proceeds are split between the county and the city, with each government earmarking 10 percent to a fund that pays for infrastructure improvements in the district.
Elmore County does not make any other direct contributions to its part of Prattville.
"That's kind of irritating," said Will Parker, who lives on the Autauga County side of the line. "My tax dollars are going out there and Elmore County is getting the benefit. It just seems like they're getting the gravy, but they're not helping pay the tab."
Prattville Mayor Jim Byard disagrees.
"I'm the mayor of Prattville. It's my job to keep the city on sound financial ground and improve the quality of life for its citizens," he said.
"Prattville is in two counties, and I'm glad we are becoming the shopping hub north of the river. A rising tide lifts all boats. I'm not going to pass on a project just because it happens to be in Elmore County."
The recent surge in Prattville's retail offerings, one 400,000-square-foot shopping center and a 900,000-square-foot development now under construction, are in the part of the city that sits in Elmore County.
The city's newest retailers include Target and T.J. Maxx, which celebrated grand openings Sunday. Bass Pro Shops will open its 185,000-square-foot Outdoor World on Aug. 15, and Home Depot has been operating for about a month.
Some of the stores and restaurants that have announced plans or are looking for a Prattville site include Books-A-Million; Circuit City; Best Buy; Belk; J.C. Penney; Dillard's; Kohl's; Publix; Bed, Bath and Beyond; Olive Garden; Beef O'Brady's; Mellow Mushroom; Logan's Steakhouse; and MacAllister's Deli.
Joe Faulk, chairman of the Elmore County Commission, said the county "stands ready" to support future projects.
"I hate to say it this way because it sounds so cliché," he said. "But we are just seeing the tip of the iceberg when it comes to growth in Prattville, and that includes the Elmore County part of Prattville.
"We are working with Prattville leaders, just as we work with every other municipality in Elmore County. We are going to do our part in future projects."
While Prattville is the big kid on the block, Faulk points out a 200,000-square-foot Wal-Mart Supercenter that recently opened in Millbrook and plans for a Lowe's Home Center in Wetumpka as evidence that growth is occurring all over Elmore County. In addition, Faulk said, there has been $15 million in industrial expansion in the Tallassee and Eclectic areas over the last two years.
Prattville levies a 2.5 percent sales tax, which it collects on both sides of the county line.
Elmore County has a 2 cent tax rate in Prattville, with 1 cent going to the Elmore County Board of Education. An accounting problem with the agency that collects taxes in Elmore County cut the BOE out of its due. When an audit uncovered the mistake, it was calculated that the tax generated $2.4 million since 2004.
The Elmore County Commission has agreed to pay back its share of $1.2 million. Prattville has pledged to repay its part, but hasn't ruled out seeking damages from the collection company.
By comparison, there's a cent-and-a-half sales tax charged in the Autauga County part of Prattville that goes to education. In 2006, that tax generated about $3.4 million for Autauga County public schools. Last year, the city collected about $11.5 million in sales tax revenue.
Steady growth in revenue allowed Prattville to float an incentives package of about $48 million to lure the developments now under construction in the east side of town. The money comes from a bond issue. City officials estimate that once all the stores are open, they will generate about $10 million a year in sales tax, property tax and business license fees. The annual bond payments of about $3.9 million will come from that revenue, leaving about $6 million a year to go into the city's budget.
Faulk said the public often is not aware of the level of planning it takes to bring such pro-
jects to the community.
"Leadership is planting shade trees that you know you will never have a chance to rest under," he said. "I think there's an incredible amount of vision on behalf of officials in both counties. We work together when we can because we know what's a benefit to one is a benefit to others. There are things on the horizon in Elmore and Autauga County, and when they get here, they will blow peoples' minds."