For the nearly 20 years that I have been involved in James Island politics, outsiders (and newcomers) have been puzzled by the fact that the Town of James Island has never provided fire protection or solid waste collection. They ask, why is there an independent JIPSD? I have always said, it might be a little unusual, but it is our James Island way. There is no need for us to change our organization of governmental services just because that is the way they do it in the City of Charleston. (or up North!)
There are several reasons why the Town needs the JIPSD.
First, there is no practical way for the Town to fund the provision of services to its former residents in the unincorporated area of James Island. The Town cannot levy a property tax in the unincorporated area. Our other revenues depend on the Town's population or are raised in the Town's jurisdiction. As a result it is not practical or reasonable for the Town to provide expensive services to the unincorporated area. That is job of the JIPSD.
Second, the Town is not currently authorized to provide wastewater transportation (sewer.) To do so, we would need to pass a referendum and set up an enterprise fund similar to the Charleston Water System. In other words, we would need to set up something that looks a good bit like the JIPSD. While possible, I don't think that makes much sense. We already have the JIPSD to provide sewer service in our community.
Third, the Town is authorized under state law to provide fire protection and solid waste collection. Having the Town set up a third fire department on James Island or a third solid waste collection service is possible, but it is a recipe for replacing our current wasteful duplication of services with triplication. Who would want that?.
Fourth, if the Town were to manage and fund both its own fire department and solid waste collection, it could use its various existing sources of revenue but it would be necessary to increase our property tax levy. Like in most municipalities, the tax credit on the bill would be less than the amount owed and residents would pay property tax to the Town for the first time. A benefit of that approach would be that the property taxes paid to the Town would likely be less than what is currently paid to the JIPSD. However, it also would likely be necessary for the Town to leave the JIPSD. Given the current makeup of the JIPSD Commission, that could only happen after a protracted and expensive legal battle. Further, it is almost certain that they would seek to compel the Town to continue to pay the JIPSD for fire protection for decades and for solid waste collection for many years. If the Town leaves the JIPSD, then Town voters would no longer have any say in choosing JIPSD Commissioners. If court action by the JIPSD were successful, then the Town would have to pay for our services twice--once to the JIPSD under court order and another time to actually pay for the services. Further, we would pay whatever a JIPSD Commission on which we have no representation wants to charge. It is very likely that this would be much more expensive than what the JIPSD is charging us now, even after a 13% increase. I find this scenario entirely unacceptable.
Fifth, the Town could set up a fire department and solid waste collection service and provide those services to the JIPSD by contract. The JIPSD could continue to collect property tax in the unincorporated area and pay the Town for services provided to the former residents of the Town. Having the Town set up a new fire department and a new solid waste service while the JIPSD closes down its current fire department and solid waste service would be foolish. Most Town residents are happy with our fire department and our solid waste collection. Who is interested in disrupting the fine work done by our fire fighters and sanitation workers? I certainly am not. Therefore, any such plan would only be sensible if the JIPSD were willing to transfer its fire protection and solid waste operations to the Town. That will never happen with the current leadership of the JIPSD. More importantly, in my view, it would be unfair and unreasonable because our former residents in what is now the unincorporated area would not be able to vote for Mayor and Council, and so would have no representation regarding the provision of key services.
Sixth, the JIPSD collects approximately $1 million from the City of Charleston and $100,000 from the City of Folly Beach for it general fund each year. The total amount paid by those Cities will increase by about $250,000 per year with the JIPSD tax hike, with most of the increase going into the PSD debt fund. This is significant sum for the JIPSD. By comparison, the JIPSD will be obtaining about $4 million in property tax from the Town's tax district and $2.5 million from the unincorporated area. This money paid by the two Cities is not based on any voluntary agreement but rather a court order that forces them to pay the amount that the JIPSD would have collected in property tax in certain areas those Cities annexed on James Island. This is because the JIPSD borrowed from the federal government, and the federal government makes those Cities contribute until all of the federal loans are paid back. For the most part, the JIPSD collects money based upon the taxes it would have collected in the annexed area to fund its fire service. If the JIPSD were to transfer its fire department to the Town, it is very likely that the cities of Charleston and Folly Beach would petition the federal courts to allow them to stop making these payments and I believe it is doubtful that the Town could obtain subsidies from its neighboring municipalities. Absent those subsidies, the net cost of fire service would be higher for those of us remaining outside of the City of Charleston and Folly Beach. This would partly (and maybe fully) offset the benefit of the Town's ability to use other sources of revenue to pay for fire protection.
Some, but not all, of the reasons above only apply if there remain unincorporated areas on James Island. The unincorporated areas on James Island can shrink and even disappear though annexation by the City of Charleston, the City of Folly Beach, or the Town of James Island. Since all of the unincorporated areas of James Island were in the Town at one time or other, I think of our efforts at annexation as "reuniting the Town." If the Town's efforts were successful (or if the City of Charleston or Folly Beach were to annex all of the former areas of the Town,) then many of the reasons why the JIPSD is necessary would disappear. It might be that some associated with the JIPSD do no more than pay lip service to allowing the Town's former residents an opportunity to vote to return because they see leaving residents in the unincorporated area as insurance for the continued independence of the JIPSD.
If the unincorporated area were to disappear one way or another, ideally, by having the Town reunited, this would simply mean that the boundaries of the Town and the JIPSD would be the same. The JIPSD would still remain independent, collect property taxes and provide fire collection and solid waste services, as well as collect sewer bills and provide wastewater transportation. The Town would continue to provide code enforcement, do building inspections, fund the Island Sheriff's Patrol, pave roads and build sidewalks, improve drainage, provide street lighting, and do planning and zoning, but now in what we hope would be an expanded area that includes all parts of James Island that have not already been annexed into the City of Charleston or the City of Folly Beach.
While shifting some services such as solid waste collection or fire protection to Town management would become more feasible if the unincorporated area disappeared, that doesn't mean it would be desirable. In my view, the only way to do so without a costly legal battle would be for the voters of the JIPSD (which would then be the same as the voters of the Town) to elect PSD Commissioners who agreed with a new approach to organizing services on James Island. However, in my opinion, if we elected JIPSD Commissioners who were willing to work with the Town, then why would we need to make these sort of changes? Why not continue with our traditional James Island way?
Aside from an apparent lack of support by the JIPSD for our efforts to reunite the Town, the second problem is their refusal to accept the Town's financial help. While JIPSD property taxes are currently lower than in the City of Charleston, the millage is higher than for the Town of Mount Pleasant or the City of Folly Beach. Worse, the JIPSD's long run fiscal plan shows another 12% increase in property tax within five years. (While shown on the JIPSD's budget, those increases are not legally binding and will only be levied if approved by the Commissioners in the future.)
If the Town and the JIPSD had the same boundaries, it would be a relatively simple matter for the JIPSD to lower its property millage and sell the Town services on our residents' behalf. It is almost certain that the JIPSD wants to collect property tax for fire protection so that they can maximize the amount of revenue they can obtain from the Cities of Charleston and Folly Beach. However, the Town's proposal for a tax credit on the County tax bill against JIPSD property tax would not interfere with the JIPSD's millage at all and it could also be applied to Town residents immediately while we continue to seek to reunify the Town and so provide tax relief along with other Town services to our former residents in the unincorporated area.
And now you know why four of the JIPSD Commissioners signed a letter filled with hate and abuse in response to the Town's offer of help. They cannot imagine that I would consider all of these possibilities if I didn't have a secret plan to take over the JIPSD.
There is no such plan. I just think that a responsible leader needs to understand the alternatives.
There is no such plan. I just think that a responsible leader needs to understand the alternatives.
If the Town were reunited and we could use the Town's other sources of revenue to reduce the JIPSD property tax burden, then I would be more than satisfied. Future Mayors and Councils and Commissions can deal with the long run organization of service delivery on James Island. However, it is my belief and desire that any proposal for change be fully transparent and that candidates supporting such changes openly advocate them when running for Mayor, Council, or Commission, so that the voters of James Island have the final say.
As I have said before, should the Town and JIPSD be joined? Perhaps. But it is up to the people of James Island.
As I have said before, should the Town and JIPSD be joined? Perhaps. But it is up to the people of James Island.
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