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.

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