Mount Pleasant considers tax increase

The first property tax increase in 16 years may be necessary to keep the town in good financial shape, a situation that Town Administrator Mac Burdette plans to discuss with Town Council on Tuesday.

Burdette said Friday that a 6.7 percent property tax rate hike or raising the town’s South Carolina Electric & Gas franchise fee to 5 percent is needed to offset declining revenue. The higher tax rate would add $40 to the annual tax bill for a $400,000 home. The increased franchise fee would add $4 to a $200 monthly electric bill. Either of the measures would generate about $1 million more in town revenue, he said.

“We’re very open to all of it. We’re trying to explore our best options,” said Councilman Paul Gawrych.

Burdette said a combination of increased revenue and cost-cutting is necessary to preserve most of the $7.1 million savings account that serves as a financial safety net in the event of emergencies such as a hurricane.

He based his statement on budget projections for fiscal years 2009-2010 through 2011-2012. No tax increase is included in the already-approved budget for the current fiscal year 2008-2009 which began July 1.

Read more in tomorrow's editions of The Post and Courier.