Town might face '09 tax hikeSlowdown in building means less revenue to run the government, so cost-cutting is under way By Prentiss Findlay (Contact)
The Post and Courier
Friday, July 4, 2008
The first property tax hike in more than a decade might be necessary next year to avoid cutting services and to keep the town in good financial shape, Mount Pleasant Administrator Mac Burdette said Thursday. Burdette said that either a 6.7 percent property tax rate increase or a South Carolina Electric & Gas franchise fee increase, to 5 percent, is needed to offset projected declining revenue in fiscal year 2009-2010, which begins next July 1. The town last raised property taxes 16 years ago. "Just because Mac presents it doesn't mean we're going to approve it. Council has not approved any of that stuff," said Councilman Billy Swails. "We've done a lot of belt-tightening. I don't think we're at the point where we have to raise property taxes," said Councilman Gary Santos. He favors increasing the SCE&G franchise fee instead. "We're very open to all of it. We're trying to explore our best options," Councilman Paul Gawrych said. Meanwhile, the town is taking steps to cut expenses. Burdette is eliminating 40 staff positions through attrition. The town employs more than 500 people. Beginning next July, workers will be asked to absorb more of the cost of health care to save $250,000 annually. Annual pay increases will be cut in half. Eliminating 25 positions by July 1, 2009, will save $1.2 million. Cutting another 15 positions by July 1, 2010 will save $700,000, he said. Burdette wants the town to save $125,000 on fuel costs this fiscal year. Drivers of the town's 250 vehicles will be required to turn off the air conditioning between 9 p.m. and 9 a.m. He estimates that will increase fuel efficiency by three miles per gallon. In-house fleet maintenance is another cost-cutting measure on the table for consideration. Instead of Ford Crown Victorias, the town will purchase new Chevy Impalas for its police department. If approved for fiscal 2009-2010, 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. Burdette predicts the town's tight finances will improve beginning in 2012 because of a combination of significantly less debt and improved growth. Burdette plans to discuss the need for increasing next year's revenue next year at the Town Council meeting Tuesday. He said that a combination of increased revenue and cost-cutting is necessary to preserve most of the $7 million savings account that serves as a financial safety net in the event of emergencies such as a hurricane. Without those measures, the town's savings will be depleted by fiscal year 2011-2012, he said. "Something's got to give. That's the bottom line," he said Thursday. The economic engine that drove town development at such a rapid pace has sputtered. "We've had an incredible run on growth," he said. He forecasts that the next two to three years will be lean ones for the town budget. The economic slowdown has already hit the town hard. It issued 700 residential building permits in 2005, the maximum allowed under a building permit cap instituted to control double-digit growth. It expects to issue about 200 residential building permits this fiscal year, he said. Burdette advocates that the town aggressively encourage investment in the community to increase revenue. To that end, it has established an Office of Community Development and Tourism that will be administered by current staffers. "Growth is not a bad word. It's how you manage it and how you do it," he said. |
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Comments
This article has 17 comment(s)
Posted by whome on July 4, 2008 at 2:08 a.m. (Suggest removal)
"The higher tax rate would add $40 to the annual tax bill for a $400,000 home."
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The problem's going to be that a lot of those $400,000 homes won't be that in a couple of years.
Posted by Perspective on July 4, 2008 at 9:15 a.m. (Suggest removal)
No AC between 9pm and 9am? First, how many employees are actually working during that time? And Second, it sounds like rules are being made that will not really affect those making them.
Maybe you can do like the airlines and charge for extra bagage. The trash collectors can start charging for anything more than one bag of trash. (Of course then you will have garbage dumped behind stores.)
The Fire Department could be required to use less water or put a meter on the hydrant when they hook up. Then they could charge the homeowner for the water. :)
You could have the police stop patroling and only respond to requests. The first neighborhoods cut from the patrol should be those where council members live.
You could sell just one of those Green Spaces. Maybe get your money back from Mark Mason. Now there was a wise expenditure of money.
You could charge to use that street sweeper on private property. How many towns have their own street sweeper? Talk about a waste of gas and money.
You could have about half as many recreation fields.
Maybe stop dontating taxpayer money to Carta and the SPCA. People do not pay local taxes so that their government officials can give it away as they see fit. Tax money should only be used for operating expenses.
Not filling 40 staff positions, but cutting employee raises in half? So you are not filling nearly 10% of the positions within your town, and essentially going to start paying your employees less to take on the additional workload? This sounds like a well thought out plan. I see more vacancies in the future for Mount Pleasant.
Giving employees additional work, cutting employee raises, raising the cost of employee benefits, cutting out things like air condition (in the south). These are sure to make a difference in the caliber employees you have and the services they are willing to provide. Are you planning to remove the word Pleasant from your town name?
Mount Pleasant is just going to become another local municipality with nothing to set it aside from other local towns and cities (except owning its own street sweeper).
Posted by swhfd28 on July 4, 2008 at 9:28 a.m. (Suggest removal)
Cutting off the AC...thats so stupid. Almost like saying turn off my heater when it snows up here in Maine. After living in N. Charleston all my life...you need ac. Dont screw with the employees. They work for city...find other places to cut from the budget.
Posted by jsteph10 on July 4, 2008 at 9:45 a.m. (Suggest removal)
I always thought that the front loader that drives around looking for trash with the dump truck following it was a waste of fuel. Those things traverse every street in the town looking for trash to pick up.
Is there not a way for those drivers to have a list of where to go?
Posted by RTC on July 4, 2008 at 9:51 a.m. (Suggest removal)
I hope they aren't talking about the police officers having to cut off their a/c. Wearing those heavy vests and dark uniforms makes them sweat as it is.
Who else works those hours besides emergency personnel?
Switching from Crown Vics to Impalas would be a smart move though.
How about not allowing personal use of town issued cars?
Better yet, don't give everybody and their brother a car.
Just because growth has slowed down they want to stick it to the citizens.
Too bad, we already pay high enough taxes.
Posted by mcdian on July 4, 2008 at 10:14 a.m. (Suggest removal)
Just one more cost of illegal aliens invading South Carolina.
Posted by charlestonscman on July 4, 2008 at 10:19 a.m. (Suggest removal)
No AC for employees, small pay increases and less service due to lower revenue. How much did the town spend trying to get that property at Shem Creek? How much for the dog park at the new river front park? I can give them places to cut if they need it.
Posted by moonpie on July 4, 2008 at 10:38 a.m. (Suggest removal)
You stopped growth some years ago and then the realestate market went south in a hurry, you allowed for over building, and you keep spending like the money is growing on trees. Guess what this is what happens when you over spend and cut revenue!
"perspective" brought up some great points.
Posted by KidYendor on July 4, 2008 at 10:42 a.m. (Suggest removal)
This is what happens when sales in taverns and restaurants decrease because of government smoking bans. This is what happened when video poker was outlawed, revenues decreased as small businesses closed and income reduced and purchases and hirings declined. The people that don't like things complain and then everyone foots the resulting bill and I do mean everyone.
Posted by RTC on July 4, 2008 at 10:43 a.m. (Suggest removal)
Someone mentioned those "claws" that follow the trash trucks. People have been piling their trash in the streets, because those guys will take half of your lawn with the trash. Doesn't help that they rachetjaw on cellphones while operating those huge things. Sometimes two of them will come on my street at one time, and we only have a short cul-de-sac. Accidents waiting to happen.
My other pet peeve is town employees driving around aimlessly, as if they are just bored.
Leave the police and fire depts. alone and focus on these people. They are the ones wasting fuel. I don't want to see the police cut back on their patrols, as they are making a difference in curbing crime.
Another thing they could do is to start charging people, like my neighbor, who call animal control and the police for every little thing that annoys them.
These employees have better things to do than to cater to bitchy women who have nothing else to do with their lives.
I bet if she and others that abuse the system were fined then the number of calls would reduce drastically.
Okay, it's the 4th of July, enough ranting for one day.
Everyone, please have a safe and happy holiday.
Posted by Thomas1776 on July 4, 2008 at 10:44 a.m. (Suggest removal)
Mt. Pleasant representatives needs your money to buy investment land. You're a nobody to them. Your government does not belong to you. You must pay or face the legal consequences.
Posted by jefferymaier on July 4, 2008 at 12:09 p.m. (Suggest removal)
Raising the franchise fee is raising taxes. The franchise fee is encluded on each electric bill.
Posted by GG on July 4, 2008 at 12:22 p.m. (Suggest removal)
Thomas1776 - At times I have wanted to reach into the computer and strangle you but your comment today is spot on. That's exacly how this group of MP muggs make me feel. They're a bunch of old elitist farts.
Posted by carolinafireman on July 4, 2008 at 12:27 p.m. (Suggest removal)
The council members refuse to raise taxes because they fear they wont get re elected if they do. The firefighters were only given a (2.5%) raise, and that's really only 2% percent with a christmas bonus. I think it's time we vote all of the overpayed egotystical council members out of office and put somebody in who'snot afraid to raise taxes. As of now the police department has put two officers in each car and the fire dept. was told not to cmplain about man power. If council had voted to raise taxes slowly when they stopped the growth they wouldn't be gowing bankrupt in the next few years, which is going to cause alot of great firefighters to leave mt. pleasant and go elsewhere because there are dept.s out there starting a brand new firefighter with no experience at more than a firefighter of 4 or 5 years makes in mt. pleasant. The police dept. has 10 openings was told that they were not aloud to fill those positions. I say we vote on a tax raise and vote santos, swails and any body else that votes down the raise out of office.
Posted by PalmettoHawk on July 4, 2008 at 5:58 p.m. (Suggest removal)
The new Mount Pleasant City slogan, "The beatings will cease when morale improves."
Posted by wpc3iop on July 7, 2008 at 9:04 a.m. (Suggest removal)
Don't worry...the Mount Pleasant PD is on the job! These REOs (Revenue Enhacement Officers) will save the day by writing more speeding and seat belt tickets...my wife, who has been driving for over 30 years, got her first ticket recently. She is not known for a sharp tongue but said that the REO who stopped her was a "pompous little prick"...Great work MPPD!!!
Posted by bigwhip on July 7, 2008 at 1:54 p.m. (Suggest removal)
The town paid $6 mil for $3 mil worth of dirt and now they want to talk about a tax increase. HH's administration has taken the "town without a tax increase in years" to the brink of taxation. That's how they do it in Columbia, HH's learning days.