Friday, July 31, 2015

New Town Hall

The first Town purchased the property on Dills Bluff currently owned by the JIPSD for the site of a James Island Town Hall.   The Town is no longer threatened with losing everything we have built up.   We can finally move forward to achieve a goal set by our first Mayor, Joan Sooy, almost twenty years ago.

I greatly appreciate the past support of our current landlord, Ken Berlinsky.  This is especially true regarding his patience as the Town was closed in 2004, reopened in 2006, closed in 2011, and then reopened in 2012.   However, we are paying nearly $70,000 each year in rent.   I think it is time for us to instead start investing in a permanent home for the Town.

In the summer of 2014, I proposed that the Town and JIPSD build a joint administrative center on the Dills Bluff Property.   My plan was for them to own their part and we to own our part.    It seemed like a common sense, win-win, plan.  We thought that the District Manager, Robert Wise, and even then JIPSD Chairman Donald Hollingsworth, were supportive.     

At the February meeting of Town Council, I announced that it was time for the Town to go forward with building a Town Hall.   It was a major subject of discussion at the Budget Workshop in early March.   Every member of Council seemed supportive.   No member of Council proposed that we abandon or even delay building a Town Hall.   The major point of contention was whether my proposal to be a close neighbor with the JIPSD was feasible or even desirable.   Some members of Council raised concerns about the attitude of some Commissioners.     My view has always been that we should look forward to the next twenty years and realize that Mayors, Members of Council, and Commissioners come and go.   Still, while that was contentious, there was a clear consensus in favor of a new Town Hall.

This spring it became clear that the JIPSD was only interested in having the Town pay them rent.  There is no interest in shared ownership.   I offered to buy 2 acres from the 6.2 acre site.  There was never a clear answer.   So, the Town is looking at alternative sites.

The Town is currently reviewing the qualifications of architect and engineering firms to help us with this project.   I hope that we will be ready to select one at the August Council meeting.

One task for this firm will be a needs assessment.    I have been assuming that the Town Hall will be 25% to 50% larger than our current space.  That would be a new Town Hall that is between 5500 and 7000 square feet.   But that is just an estimate.  We will look at the needs assessment, though affordability is important.   We plan to ask for a design that will allow for additions in the future if needed.

The 2015-16 budget includes $200,000 for a building fund for the new Town Hall.   As the budget wound through the approval process, no member of Council objected, and the budget finally passed second reading at the June meeting.   The budget passed unanimously, including this partial funding for the new Town Hall.

$200,000 is not nearly enough to buy property and construct a new Town Hall.   At the February Council meeting, I explained that I was going to request authorization from Council to sell bonds.    As we began discussions with our bond attorney, we discovered that if the Town sells bonds, then state law requires that we put a bond millage on the tax bill.     My view was that the Town would be required to provide a tax credit against the tax liability created by the bond millage.   And required or not, that certainly is a better option than having Town taxpayers pay additional property tax.   My plan was to provide a tax credit sufficient to zero out any tax that our property owners would otherwise have to pay for the bonds issued to pay for Town Hall.

After further discussion with our attorneys, I determined that lease-purchase is a better option for the Town than bond finance.    Rather that approving the issue bonds and the required millage, Council approved introducing a millage for payment for real estate by lease purchase agreement and maintenance of a reserve.   The Town is required to provide a property tax credit against the tax liability this creates.   Council approved a tax credit large enough to zero out the tax liability for all taxpayers.

I am not concerned that the LOST funds the Town receives will "dry up," but it is possible that the revenues might suffer temporary decreases.   To continue zeroing out the tax bills, the millage might need to be adjusted.   In South Carolina, property tax millage must be passed again each year with the budget.   Not only can the millage be reduced, if Council fails to include it in the annual budget, then it goes away!     There is no doubt that the Town's lease payments will be affordable.  The question is how long will it take before enough lease payments have been made that the new Town Hall is fully paid off.    The sooner that happens, the sooner funds will be freed up for sidewalks and other community improvements.

Friday, July 24, 2015

Report on Special Meeting and Public Hearing

Town Council met on Thursday, July 23 at 6:00.  

There was a public hearing on the proposed budget amendment.   Two people spoke.   The first was  JIPSD Commissioner Kay Kernodle.   She said that she was just speaking to Council (not me.)   She said that the Town should hold several public hearings at several locations on the Island and then have a third reading of the budget amendment ordinance.  

The second speaker was Robin Welch   She said that there were very few people at the public hearing because I kept it secret.   She said that I could try to fool people with my fancy math, but the Town was introducing a new tax.  She said that I had promised never to introduce a tax, but that must have been a lie.   She said that the Town receives $3 million in Local Option Sales Tax money each year. She said that what I wasn't saying is that Mayor Clark sent every taxpayer on James Island a check every year, but that when I was elected the checks stopped.  

There being only two people who signed up to speak, I closed the public hearing.

Council then voted to approve spending $400 to support the James Island Charter High football booster club by paying to have a Town sign on the football field.

Council went into executive session.  Council returned.

Council voted 3-2 to adopt an ordinance providing for procedures to levy and collect a property tax.  There was no discussion.   Stokes, Blank and I voted in favor.   Milliken and Mullinax voted against.

Council voted 3-2 to adopt a budget amendment.   There was no discussion.   Stokes, Blank and I voted in favor.  Milliken and Mullinax voted against.

The budget amendment includes a 20 mil property tax, a tax credit of $2,948,058, expenditures of $840,000 for payment for Town Hall by lease purchase agreement, and $200,000 to maintain a reserve fund.

The amount of the tax credit, $2,948,058 is the amount of revenue the Town has received from the Local Option Sales Tax (LOST) Property Tax Credit Fund since 2012, plus the interest we have earned on that money, plus the amount we expect to get during the 2015-16 fiscal year.

The property tax credit will zero out the property tax liability for all property taxpayers in the Town.   I asked Council to approve this because I believe that it is in the best interest of the Town to deal with LOST tax funds as do the majority of municipalities--by providing a tax credit against our own tax millage.

The millage will appear on the tax bill as will the amount of the tax credit.  However, the amount of tax collected will be zero.    Here is a copy of what the tax bill will look like.  (Most of the figures are from last year, but I updated the figures to show the increase in the JIPSD millage.   Changes in any other taxes on the bill for this year aren't shown.   The Assistant County Auditor verified that what the Town Council has approved will be reflected on the tax bill more or less as is shown.)

While the Town will not be causing any increase in anyone's property tax, I am disappointed that we have not been able to reduce property taxes.   I asked the JIPSD to reduce rather than increase their property tax in the Town and allow the Town to pay them for solid waste collection services by contract.   Unfortunately, the Town's proposal was never even brought up for a vote.

I have not given up, but I have given up for the 2015 tax year.   It is my assessment that there is little hope for a tax cut until after the JIPSD elections in November 2016, and that means the 2017 tax year.   At that time, hopefully there will be some new JIPSD Commissioners who will agree to reduce the taxes they impose on the Town and receive payment for solid waste collection services from the Town by contract.

Since the majority of JIPSD Commissioners refused to take the Town's money for solid waste collection services and prefer to increase the taxes they charge, what should the Town do with the money we would have spent to pay for solid waste collection?   I have agreed with other members of Council that it is in the best interest of the Town to no longer continue to accumulate LOST funds as we have for the last three years, but instead use the $840,000 that we expect to receive during the 2015-16 fiscal year to construct a new Town Hall.  I expect that the Town will do about the same thing for the 2016 tax year--making further progress in paying off Town Hall.

I hope that in 2017, I will be able to find a  majority of Town Council and JIPSD Commissioners that will adopt a plan to reduce the property tax the JIPSD imposes and allow the Town to pay for solid waste collection by contract.

There is a bit more to the story.

After close of business on Wednesday evening, our Town Attorney received an email from one of the out-of-town attorneys helping Trent Kernodle with his lawsuit against the Town.   The email said that if the Town did not postpone its vote on the budget amendment, they would seek a temporary injunction blocking the Town from spending or crediting any LOST funds until their lawsuit is resolved.   (With appeals, this could be several years.)   They insisted that the Town respond by 10:00 AM Thursday morning.   Of course, we refused.  Neither our Town Attorney nor I could agree to postpone a meeting and public hearing that was already scheduled or commit Council to vote to postpone consideration of an ordinance.

Kernodle has filed his temporary injunction.  There will be a hearing before a judge within the next few weeks.   This legal tactic was expected.

And that is why Trent Kernodle's wife and employee, Kay Kernodle, was at our meeting asking Council to hold more public hearings and have a third reading.  Robin Welch, daughter and employee of former JIPSD Commissioner Rod Welch, was there to help.  Rod Welch, along with Sandi and David Engelman, are all helping Kernodle sue the Town.

I think they are desperate to block the Town from providing a tax credit against its own millage exactly as do most municipalities in South Carolina.

Robin Welch, especially, made an effort to round up a crowd to show up to the public hearing.   Well, her sister showed up. 

The point of the suit is to force the Town to "mail the checks."   As Trent Kernodle said at the Mayoral debate, getting a check from the Town is just like Christmas.   He didn't win the election, but he and his political backers still think they can run the Town by lawsuit.

In my opinion, the majority of JIPSD Commissioners are refusing to work with the Town on property tax relief because they support Kernodle.   It is the same reason they refused to sell the Dills Bluff Property for the new library.  It is my understanding that Kernodle told them not to sell, and his backers on the Commission do what he says.

I am disappointed that the Town was unable to get the JIPSD to agree to a plan to reduce taxes, but  I want to assure everyone that the Town isn't increasing anyone's taxes.   Again, I hope that by 2017 the Town will have fought off the Kernodle legal attack and we will have new JIPSD Commissioners who will work with the Town to reduce your taxes.

Saturday, July 11, 2015

Proposed Budget Amendment

I have asked Town Council to levy a 20 mil property tax for 2015 and provide a $2,948,058 tax credit.   It passed first reading at the July 9 meeting. 

I have scheduled a special meeting of Town Council and a public hearing for July 23 at 6:00.    Second and final reading is scheduled at that time.

If the budget amendment passes, there will be no additional tax collected by the Town.  The Town millage and tax credit will appear on the tax bill mailed by the County Auditor this fall.   The amount billed and paid by Town taxpayers to the County Treasurer on behalf of the Town will be zero.  

Here is an  example of what the 2015 tax bill would look like.

The budget amendment also includes $840,000 to pay for a new Town Hall by a lease purchase agreement and $200,000 to maintain a reserve fund.

If you have any concerns or questions please email me at mayorwoolsey@gmail.com or call me at 697-7020.

Thursday, July 2, 2015

Town Council Meeting on July 9

Town Council is meeting on the second Thursday of July rather than our usual third Thursday because of the Municipal Association of South Carolina meetings.

Confederate Flag on Statehouse Grounds

The victims of the horrible crime at Mother Emmanuel AME have now been laid to rest, including Tywanza Sanders, who was a graduate of our own James Island Charter High School.   

The members of the South Carolina Legislature who represent James Island have all stated their support for removing the confederate flag from the statehouse grounds  

I have written Senator Campsen, Senator Thurmond, Representative McCoy and Representative Stavrinakis to share my personal support for their considered judgment.  

The Town does not fly any confederate flag, however, I anticipate such flags will  be flown from time to time at special events recognizing its role during an important period of the history of our Island.