Town Budget Hearing Thursday, May 21

The Town of James Island will hold a public hearing on its 2015-16 budget on Thursday, May 21 at 7:00.   The first reading on the budget is scheduled for the Thursday meeting.

A copy of the draft budget is here.

There are several important changes in the draft budget from last year.   Most important is $2 million in property tax revenue due to the Town introducing a millage of 35.1.   The budget includes a $2 million property tax credit, which would zero out the property tax on all taxpayers bills next year.

The proposed budget also includes $2,000,000 in expenditure for a fire services contract with the JIPSD.   That payment is conditional on the JIPSD lowering their property tax in the Town by 35.1 mills.  

Since the draft budget was prepared, Trent Kernodle has sued the Town seeking to block the Town from providing  credits against tax bills and instead forcing it to mail settlement checks.   The Town is defending against that suit.

The JIPSD Commission has no clear majority regarding any budget plan, but the initial staff proposal was for a 2 mill tax increase next year.   More troubling were additional millage increases adding up to a 25% property tax increase over the next five years.  

Further, the JIPSD is considering  a shift from two day a week to one day a week garbage service to reduce costs.

I believe that due to the JIPSD Commission's budget problems, the Town should not seek to purchase fire protection from the JIPSD by contract at this time.

However, the proposed tax increases makes tax relief for the people of the Town more important than ever.

I believe that it will be in the best interest of both the Town and the JIPSD for the Town to pursue an agreement to obtain solid waste collection services by contract wit the JIPSD.    The annual payment to the JIPSD would be much less, closer to $1 million as would be the necessary Town millage.  The LOST property tax credit against the Town  millage would reduce the amount taxpayers owe the Town to zero for the next five years.  

Any amendment of the draft budget to reflect these changes will require approval by Town Council.

A second major change in the draft budget is to shift $200,000 from the Town's unencumbered fund balance to a Town Hall Building fund.   I would like to use some or all of that money to purchase  a site for the new Town Hall.   I would like to purchase a portion of JIPSD's Dills Bluff property, but if that is not possible, we are looking at other possible locations.   Any purchase of property will require approval of Council.