Lake brings in big tax revenue

By Kenneth Boone (Contact) | Alex City Outlook

Published Monday, June 15, 2009

Editor’s Note: This is the second in a series of stories highlighting a new economic analysis of Lake Martin. See the next edition of The Outlook for a report about Lake Martin’s economic impact last year.

In fiscal year 2007-2008, revenues taken in by local governments as a result of development on Lake Martin are impressive. These revenues come from a number of sources including taxes, city water revenue, funds received for road and bridge work and other sources depending on the governmental entity.

n Tallapoosa County received $7.4 million as a result of Lake Martin development last year. That figure includes $4 million in school district revenue and $1.4 million in property taxes.

n Elmore County took in $3.33 million, including $764,500 for property tax and $1.5 million for its school district.

n Coosa County netted $563,000 in funds, about half for its school district and $110,000 in property tax.

n The City of Alexander City received a total of $1.75 million, including $1.12 million in sales tax, as well as monies from lodgings tax, city water revenue and other sources.

n The City of Dadeville took in about $311,000 in revenue related to lake development, including $231,000 in sales tax.

McClellan said even though Lake Martin encompasses less than a quarter of Tallapoosa County’s development, the new analysis shows that lake properties account for more than half of the county’s ad valorum tax. It’s a fact that, while not readily available before this analysis, was apparent to Tallapoosa County lawmakers.

“The county already knows that,” McClellan said, “When they lost the tax revenue from Russell Corp., the lake is what made that difference up, if you want to get down to the nitty gritty. And it’s going to get better because of the lake. In the next two or three years you’re going to see a remarkable difference in the county’s finances.”

The study showed the assessed value of all current improvements on the lake is $3.4 billion – and that figure does not include the value of undeveloped land around the lake.

“It would include a little bit of interior development,” said Russell Lands President Tom Lamberth, citing the Stillwaters development where a number of homes are located around the golf course, or interior lots at River Oaks, both areas that would not be developed without the influence of Lake Martin. “But it’s 99.9 percent just waterfront.”

As for employment created by lake development, the study identified three different categories that total 3,170 jobs.

Lake Martin is now directly responsible for 449 permanent jobs in businesses that operate on the lake or would not exist without the lake.

Indirect or “spinoff” employment adds another 1,100-1,200 jobs, such as retailers in Alexander City or Dadeville that depend on shoppers from Lake Martin or the service jobs that are supported by Lake Martin residents.

Construction employment is the third category. Since 2000, the lake has brought an average of 764 construction jobs to our area and supports an additional 827 indirect construction jobs, such as those involved in selling building supplies or transporting materials.

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