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Aiken City Council Allocates Surplus Funds for Infrastructure Improvements

Aiken City Council discussing surplus funds for infrastructure improvements

Aiken, August 27, 2025

News Summary

The Aiken City Council has unanimously approved the allocation of surplus funds from its Capital Project Sales Tax IV, resulting from increased tax revenue. This funding will be directed towards vital infrastructure improvements, including $2.5 million for the water system and $1.9 million for sewer enhancements. The council’s actions represent a commitment to enhancing public services, while ongoing projects such as the Powderhouse Road Connector address transportation needs. With additional funds expected before the tax collection period concludes, residents can look forward to updated infrastructure solutions.

Aiken City Council Allocates Surplus Funds from Capital Project Sales Tax IV for Infrastructure Improvements

The Aiken City Council unanimously approved the allocation of surplus funds from Capital Project Sales Tax IV during a meeting held on August 25, 2025. This allocation comes as the tax revenue has outperformed initial projections, resulting in additional funds available for crucial infrastructure improvements.

The Capital Project Sales Tax IV, which was approved by local voters in 2018, was initially expected to generate just over $50.9 million. However, as of July 31, 2025, total revenue collections have reached approximately $52.1 million. City Manager Stuart Bedenbaugh highlighted the exceptional nature of these collections, indicating that more funds are still anticipated to come in.

Previously, in 2020, the council approved allocations totaling $39.8 million for various infrastructure projects, including equipment purchases and improvements to sewer, water, and road systems. With the additional surplus now available, the council plans to increase funding to the following areas:

  • Water system infrastructure: $2.5 million
  • Sewer system infrastructure: $1.9 million
  • Stormwater system improvements: $905,018

Ongoing Projects

Among the notable infrastructure initiatives currently underway is the Powderhouse Road Connector project. Phase one of this project is currently in progress with 30% completion, while the design work for phase two has been finalized. It is essential for funding this project to be fully financially prepared, as anticipated costs are expected to surpass the budget.

Revenue Trends and Future Projections

Data indicates that the recent surge in tax revenue can be attributed to several factors, including inflation since 2019 and increased sales tax collections resulting from higher prices on goods. Furthermore, rising interest rates have generated greater yields on the city’s investments. The council estimates that CPST IV generates approximately $2 million in revenue every quarter, with potential for further allocations before the tax collection period concludes on April 30, 2026.

Additionally, voters in Aiken County approved the Capital Project Sales Tax V in November 2024, which is set to commence collection in May 2026. This introduces the prospect of continued funding for future infrastructure projects.

Wastewater Treatment Facility Upgrades

Aiken County is currently addressing challenges with its wastewater treatment facilities, planning to enhance its capacity by an additional 6 million gallons. This upgrade is projected to cost around $120 million and may result in an 11% increase in the wholesale rate, raising the cost from $2.73 to $3.04 per 1,000 gallons. Consequently, Aiken County residents can expect higher utility bills as these improvements are carried out.

Political Landscape

In the upcoming local election, two Republican candidates—Clayton Clarkson and Barbara Morgan—are vying for the Aiken City Council District 6 seat. Both candidates emphasize the importance of addressing aging infrastructure, enhancing public safety, and fostering community engagement. They advocate for modernization of the city’s zoning code and committed efforts for transparency with local voters. Public safety and fiscal responsibility are predominant themes within their campaigns, signaling a focus on better resource allocation and effective communication between the council and constituents.

Conclusion

The current financial success of Aiken City’s Capital Project Sales Tax IV presents a significant opportunity for enhancing essential infrastructure, with a unified council committed to serving the needs of the community through careful planning and allocation of resources.

FAQ

What are the allocated surplus funds intended for?

The surplus funds are allocated primarily for infrastructure improvements in water, sewer, and stormwater systems.

How much surplus revenue has been generated?

The total revenue collected has reached approximately $52.1 million, exceeding the initial projection of $50.9 million.

What infrastructure project is currently underway?

The Powderhouse Road Connector project is currently under construction, with phase one at 30% completion.

What are the expected impacts of the wastewater treatment facility upgrades?

The upgrades will enhance capacity and may result in increased utility bills for Aiken County residents due to higher rates.

What are the upcoming political elections relevant to Aiken City?

Clayton Clarkson and Barbara Morgan are competing for the Aiken City Council District 6 seat in the upcoming election.

Key Features of Aiken City’s Surplus Funds Allocation

Key Feature Details
Total Surplus Revenue $52.1 million
Allocations for Water System $2.5 million
Allocations for Sewer System $1.9 million
Allocations for Stormwater Improvements $905,018
Powderhouse Road Project Phase One 30% Completed
Projected Revenue Generation Approximately $2 million quarterly

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STAFF HERE AIKEN
Author: STAFF HERE AIKEN

The AIKEN STAFF WRITER represents the experienced team at HEREAiken.com, your go-to source for actionable local news and information in Aiken, Aiken County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Aiken Horse Show, Aiken Bluegrass Festival, and polo matches at Whitney Field. Our coverage extends to key organizations like the Aiken Chamber of Commerce and the Aiken County Historical Museum, plus leading businesses in manufacturing and tourism that power the local economy such as Bridgestone and the Aiken County Visitors Center. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.

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