Council plans no tax increaseVotes to hold public hearing on higher SCE&G franchise fee By Prentiss Findlay (Contact)
The Post and Courier
Wednesday, July 9, 2008
MOUNT PLEASANT — Town Council signaled Tuesday that it will not raise property taxes for the first time in more than a decade when it voted to hold a public hearing on increasing the franchise fee for South Carolina Electric & Gas customers. Town Administrator Mac Burdette has said that council needs to consider raising the franchise fee from 3 percent to 5 percent or hiking the property tax rate 6.7 percent so that the town will be in good financial shape in the next few years. Either measure would generate an additional $1.4 million in revenue. Otherwise, the town could be looking at cuts in the level of its public services, he said. "You're running out of time if you want to consider a tax increase," Burdette said. Charleston County needs to be notified in September about a change in the tax rate for next year's property tax bills, he said. There is no deadline to act on an increased franchise fee to generate more funds for the 2009 budget year, which begins July 1, he said. Not doing anything, though, is risky, he said. "I think the danger is that you are going to be taking fund balances down to dangerously low levels," he said. In three years, if council does not increase revenue, its contingency account could fall to $1.5 million. Currently, it is at about $7 million. "If you have a hurricane, it could be pretty tough," Burdette said. New revenue is needed because of the slower economy. Burdette forecasts that the next two to three years will be lean ones for the town, and he is tightening the staff's belt. Growth has slowed considerably from double digits to less than 3 percent. Increasing the franchise fee for SCE&G and Berkeley Electric & Gas customers would add about $4 to a typical monthly electric bill, he said. "I have always preferred to raise the revenue from the broadest stroke of the brush," said Councilman Kruger Smith. He said raising the franchise fee was the most appropriate action. "I agree with Kruger," said Councilman Nick Collins. Councilman Joe Bustos questioned whether the town could trim some additional fat by reducing $250,000 in annual donations to community organizations. "Should the taxpayers in hard times have to bear that burden?" Bustos said. Council voted to approve a public hearing for a franchise fee increase, but it did not set a date for the hearing. In other action, Council voted to send questions about bike lanes in the Coleman Boulevard Revitalization Master Plan back to a citizens committee for further study. The current plan removes bike lanes from the boulevard for about 3,000 feet from Simmons Street toward Sullivan's Island. Some cyclists spoke Tuesday night to ask that the bike lanes be restored to the $4 million revitalization plan. Council heard a recommendation from an advisory committee that a town sailing center be located at the Bailey Docks on Shem Creek instead of Memorial Waterfront Park. And it rejected a proposal for a dog park in the shadows of the Arthur Ravenel Jr. Bridge. Council members decided that the dog park needs to be more centrally located so it will be more accessible to residents in the northern part of town. Reach Prentiss Findlay at 937-5711 or pfindlay@postandcourier.com. |
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Comments
This article has 10 comment(s)
Posted by moonpie on July 9, 2008 at 6:32 a.m. (Suggest removal)
" franchise fee for South Carolina Electric & Gas customers"
A FRANCHISE FEE? WHAT THE HELL! I'M NOT PAYING IT HOW ABOUT THAT. OH I GUESS I HAVE TO SINCE SCEG IS THE ONLY GAME IN TOWN AND I HAVE TO BUY ELECTRICTY FROM YOU! HOW FREAKING Convienent?
Posted by drp7773 on July 9, 2008 at 8:36 a.m. (Suggest removal)
Can you say backdoor taxes...........these people are sickening, I knew that doggypoopy park was gonna cost more then they were saying......
Posted by ThinkAboutThis on July 9, 2008 at 8:53 a.m. (Suggest removal)
LOL sell the LAND at OK Tire that you paid how much for?
Posted by ThinkAboutThis on July 9, 2008 at 8:56 a.m. (Suggest removal)
You lay off town employees yet buy swamp land?
Posted by bigwhip on July 9, 2008 at 9:11 a.m. (Suggest removal)
This is an upside down bunch.But HH is the mayor over there and his administration has spent, spent, and spent. Now they are looking to make it up somehow. All those council members are afraid to cut the budget.
Posted by grainofsalt on July 9, 2008 at 10:25 a.m. (Suggest removal)
I'm not going to jump to the defense of that bunch sitting on Council, but let's be real about this. True they've spent some money on a few high-profile things (like the OK Tire property), but don't for a minute think the need for a tax increase or franchise fee raise is because this council and mayor are spending so much more than any administration before them. Simply not the case.
The reason the Town's funds are drying up is more simply that less money is coming in. For many years, the Town enjoyed the fees and taxes from constant new home construction. Clearly, that's dried up in the past year - and doesn't look to be improving anytime soon.
I'm frankly surprised that they don't just institute a modest increase in taxes. Our Town taxes are actually not that bad compared to some other areas. Not that I ever want to give the government more of my money, but for continued infrastructure improvements, I wouldn't cry too hard about a modest increase.
Actually, I'd rather have them do small raises every few years or so (if other funding continues to be depressed) rather that what I fear might happen down the road -- they'll hold off so long on raising taxes (for political reasons) that when it becomes inevitable, the raise will be a severe one. Hope I'm wrong about that.
Posted by bigwhip on July 9, 2008 at 10:59 a.m. (Suggest removal)
Hey, G of S, when was the last time you looked at the budget? "Simply" not the case. Wow!! They paid $6 mil for $3 mil worth of dirt so where was this council's financial brain when they have been knowing for YEARS that slowed growth was in front of their very eyes. I think it was in the sweep of '98 that two/three council members said that it was time for belt tightening with the push to better manage growth; slow it down to let infrastructure catch up.
Posted by tc1 on July 9, 2008 at 12:11 p.m. (Suggest removal)
I don't live in MP but no matter where you are it is the same.
WE NEED TO RAISE TAXES because growth is so great.
WE NEED TO RAISE TAXES because growth is stagnant.
WE NEED TO RAISE TAXES because growth is negative.
Posted by grainofsalt on July 9, 2008 at 8:46 p.m. (Suggest removal)
Bigwhip, you're absolutely right about the council sweep a few years back. The push to manage grown and let infrastructure catch up was started with the permit allocation program. I hope they keep it in place for the foreseeable future. We should never have runaway home building like we had in the 1990's.
But this growth control definitely isn't the culprit in the financial pinch the Town is feeling now. The reduction in home building due to permit allocation was planned for and figured into the budget. They've dealt with that since it was started back when. The pinch that's being felt right now is in large part a result of the real estate market being so depressed, in addition to other lesser (though just as important) issues, such as gas prices and increased cost of providing services. The funding from growth (even moderated growth) is slowing enough to hurt.
And no, I'm not in real estate or any related market - which is why I have mixed feelings about this issue. As much as I sympathize with realtors and builders, frankly I'd much rather pay a little more in taxes than hope the real estate market picks up enough to start bringing in the kind of new home fees that would be needed to pick up the slack. I think we've had enough growth. And as services continue to cost more and infrastructure continues to need a source of funds, the money's got to come from somewhere. If it's a choice between having it come from us current residents or bringing in a bunch of new ones to help pay it... I'd rather dip into my pocket a bit. That's all I meant.
Posted by MP on July 9, 2008 at 9:51 p.m. (Suggest removal)
Burdette thinks MP should raise taxes? Doesn't he live up in Awendaw someplace?