Berkeley budget raises pay, not taxes

Supervisor proposes using sales tax revenue for capital projects

MONCKS CORNER — Berkeley County staff proposed a $57.3 million budget Monday that includes a pay increase for employees without raising taxes.

Officials said the estimated expenditures in 2008-09 will represent a 0.7 percent decrease from this year's budget, though they estimate having to use about $1.3 million from the fund balance to balance the budget.

County Finance Director Kace Smith said that even though they're budgeting to use the county's savings, that doesn't mean they will.

Last year, the county estimated it would have to use about $2.7 million of its savings to balance the budget but instead came in $193,000 under budget without using any savings.

The proposal includes a 2.85 percent cost-of-living raise for all employees and a 2 percent increase in merit raises.

Smith and Supervisor Dan Davis also proposed using 29 percent of the county's optional sales tax revenue for a capital improvements plan that will fund the widening of U.S. Highway 17A, the renovation of the jail, and improvements to the Jedburg Road overpass on Interstate 26.

Davis said using the money would allow the county to make much-needed improvements without having to borrow money or raise taxes.

Council pledged a decade ago to use all tax revenue toward property tax relief, but Davis said the revenue from the sales tax grows so much each year — about 10 percent — that taxpayers won't see much of a difference, if at all, in the amount they paid this year.

Councilmen were mostly mum on the issue during the meeting, but the majority said afterward that they have some issues with Davis' proposal, which could lead to a showdown when it comes time to vote on the budget.

Councilman Dennis Fish said using the sales tax revenue represents a tax increase, but he said he doesn't have an alternative solution to funding the capital improvements.

Councilman Tim Callanan said he's for using the tax revenue but he doesn't feel they need to take the entire 29 percent.

Councilmen discussed at length what to do with Cypress Gardens, the county-owned park that in 2008 accrued a $653,000 debt that has not been addressed in last year's or this year's budgets.

Davis said he plans to make a recommendation on that debt later this year. The proposed budget includes ways to decrease the park's annual costs to about $270,000.

Davis said he's committed to keeping the park open. He and councilmen discussed adding some features over time to make the park more educational.

The council meets at 6 tonight in the supervisor's conference room to discuss the proposed Water and Sanitation budget.

Reach Andy Paras at 745-5891 or aparas@postandcourier.com.