Mt. Pleasant Considering a 2009 Property Tax Increase

Park West Recreation Center Just One Of
The Amenities Offered Mt. Pleasant Residents

According to an article in The Post and Courier Newspaper, the town of Mt. Pleasant is considering a 2009 property tax increase.

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.

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.

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.

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.