Friday, June 28, 2019

James Island Public Service District Passes 2019-20 Budget

The James Island Public Service District passed its 2019-20 budget last night on a 5-2 vote.    Commissioner Platt and  Commissioner Kathy Woolsey voted  against.  This was after shortly after the Commissioners defeated the budget 4 to 3, with Commissioners Brown-Crouch and Poston joining Woolsey and Platt to vote against the budget. Repeating the events of last week, when the budget was defeated on first reading, after the defeat on second reading, the motion to adjourn failed with only Commissioners Platt and Brown-Crouch voting in favor.   Then there was a vote to reconsider.   I believe that a vote to reconsider must be made by someone who had voted against the budget, but it was made by Commissioner Clifford who had voted in favor.   The vote to reconsider passed.  I believe only Commissioner Platt opposed.   And then the budget passed.

Earlier, Commissioner Kathy Woolsey proposed a number of amendments   First she tried to limit the increase in sewer rates going into effect in October.   She proposed limiting the increase in the base rate to 27 cents rather than 53 cents per month.  That failed.  Then she tried to roll back last year's 13% property tax increase by 1.2 mils (about 1.5%.)   Each amendment failed.    The only change in the budget that the Commissioners made was to reduce spending on street signs by $5000, leaving that task to the City, County, and Town..

Many of the Commissioners were unhappy with the process.  Commissioner Clifford said "We won't be fooled again."  Commissioner Poston echoed her words.    Most Commissioners believe that the District's staff refused to work with the majority of Commissioners to reduce the budget and at least partially roll back last year's tax increase.

The Chairman, Alan Laughlin, has taken responsibility for keeping the 2018 property tax increase intact, working with the District's staff to keep the majority of Commissioners from reducing property tax.   He has explained that the Commissioners must listen to their staff. 






Monday, June 10, 2019

JIPSD Budget Hearing on June 24 at 6:30

The James Island Public Service District placed an ad in the Post and Courier this morning providing official notice of a public hearing to be held on  Monday, June 24 at 6:30 PM at 1739 Signal Point Road.     The regular meeting of the Commission is at 7:00 PM. 

The Chairman has agreed to call a special meeting of the Commission on Monday, June 17th.  (Likely at 7:00 PM.)   The purpose of the meeting is for a third attempt to pass the budget on first reading.    If that is successful, then second and final reading can be complete at the Commission's regular meeting on June 24th, after the public hearing.   If all goes well, the JIPSD will complete its budget before the beginning of the new fiscal year.

It is difficult to connect the ad to the draft budget distributed to the Commission.   The ad states that the Commission is increasing its government operations expenditure by 10% (fire protection and solid waste)  and its proprietary fund expenditure by an eye-popping 25% (wastewater.)   The total millage of 64.4 is to remain the same.  The budget also includes a modest increase in sewer rates, not included in the ad.

The draft budget appears to show a more modest increase in government operations of 3.8% and wastewater of 4.6%.    Hopefully, the Commissioners can get clarification on the percent increases included in the ad.

On the second day of the Commission's regular meeting in May (Tuesday, May 21,) the Commission passed a motion asking the staff to come back with a budget with a 2 mil property tax decrease.  The Commission then  rejected the budget on first reading by 5 to 1.   At the special meeting on June 3rd, the District Administrator proposed the same budget and in the meeting said he will not propose any cuts in taxes or spending.   The Commission then voted down the same budget they had rejected nearly two weeks earlier on a 6 to 1 vote.

Apparently, the Commission is on its own and will have to come up with amendments to cut spending and taxes or else just adopt what was presented to them by the District Administrator.






Monday, June 3, 2019

JIPSD Commissioners Defeat Budget Second Time 6 to 1

The James Island Public Service District Commission was called to a special meeting by its Chair, Alan Laughlin, on Monday, June 3rd.  He called for the meeting last Thursday, May 30th.  The sole item on the agenda was first reading of the budget.

At their regular meeting on May 20th, the Commissioners had voted down first reading of the budget 5-1.   Chair Laughlin was the sole vote in favor.   Sandy Engelman had left the meeting by that point.  The Commissions had unanimously approved a motion by Vice Chair Kathy Woolsey to return the budget to staff to cut property tax by 2 mils.   (About 3%.).

After the call for the special meeting, several Commissioners asked that the Chairman provide them a copy of the new budget.   He responded that with all they had asked the staff to do, the best he could do is provide the budget at 6:30 PM the night of the meeting.   Many Commissioners noted that this was unacceptable. 

When the Commissioners began arriving at 6:30 PM Monday night, they received the exact same budget that they had rejected two weeks before.   I am sure that many Commissioners wondered why they had come early to review a budget that was unchanged and ready on Thursday when the special meeting was called. 

When the meeting began at 7 PM, the Chair said that he asked the staff to prepare a budget that kept taxes the same.   No property tax increase, but no reduction of last year's 13% tax hike.   The District Administrator then explained that they reviewed the request by the Commissioners to reduce property tax but that it would only be possible if services were reduced or else the unencumbered funds balance were reduced.  (Some of JIPSD's savings were used.)  The new CFO then reviewed a set of letter from the District's bond attorney, financial adviser, and auditor that were interpreted to state that no property tax decrease was possible.

Most Commissioners where not impressed.   The Commissioners voted the budget down 6 to 1, with the Chair, Alan Laughlin voting to retain last year's 13% tax increase.

Vice Chair Kathy Woolsey made a motion to postpone first reading of the budget to June 17, but the Chair ruled her out of order stating that this was not on the agenda and that he was going to adjourn the meeting.   Commissioner Platt seconded the motion to adjournment.   The motion to adjourn passed.   After the meeting was over, Chair Laughlin said that now the Commissioners have made it impossible to pass the budget before the next fiscal year. 

In reality, the actual deadline for second reading and the public hearing is Sunday, June 30th, and the deadline for first reading is Sunday, June 23.   The advertisement for a public hearing on June 30th, is Saturday, June 15th. 

The second reading was scheduled for the Commissioners regular meeting on Monday, June 24th, and a first reading could be scheduled for Monday, June 17th.   Holding the "official" public reading on June 24th requires that the ad appear on Sunday, June 9th.   Apparently, the District Administrator has decided that the first reading is necessary before the ad in the paper.  While some government entities have first reading before the ad, others, like the Town of James Island, do not.