More Good News--HB 3661 Passes House Judiciary Committee

The South Carolina House Judiciary Committee unanimously approved House Bill 3661 yesterday, Wednesday, March 27.    Committee Chair Representative Peter McCoy gave a straightforward explanation of the bill and the situation on James Island.   Please thank Representative McCoy.

The bill was amended to require that any area annexed under this bill that has a bill board, then that bill board must be allowed to remain.   While I don't see this as an especially desirable provision,  It is not a major concern on James Island.

To become law, the bill must pass the full House.   Senator Campsen filed S. 669 which is a companion bill.  It is now at the Senate Judiciary Committee.  This bill must also pass the South Carolina Senate, which is always been more difficult.  Finally, it must be signed by the Governor.

Once the bill becomes law, then the Town can annex unincorporated properties that are directly across areas that have been annexed by the City of Charleston.

The map below shows one example on James Island.  The golden area is the Town of James Island.   The pink area is the City of Charleston.   The City's annexation has entirely surrounded the three unincorporated parcels that are in gray.   If HB 3661 (and S. 669) become law then any of the homeowner in this unincorporated area could petition to annex to the Town.    If Town Council approves, then some or all of these properties would return to the Town.   (All three of these properties were in the Town in 2011.   One of their neighbors annexed to the City of Charleston between 2011 and 2012, which cut them off from the rest of the Town.)

Under current annexation law, the homeowners can annex to the City of Charleston, because they are contiguous (next) to the various pink parcels in the City of Charleston.   They cannot annex the Town of James Island because they are entirely surrounded by parcels in the City of Charleston and so do not touch on any of the gold parcels currently the the Town.    

If HB 3661 becomes law, because the entire Town is within the James Island Public Service District and these three parcels are also in the James Island Public Service District, and further, because the James Island Public Service District has an elected governing board, then they may annex to the Town over the break in the contiguity of the James Island Public Service District created by the City parcels that surround them.

Under both current law and HB 3661, they can remain unincorporated.   So, the change is that rather than having the option of remaining unincorporated or joining the City of Charleston, they would have a third option of joining the Town of James Island.

Island-wide Drainage Delineation

 drainage basin map link

    The Town, with the City of Charleston and Charleston County, commissioned an island-wide drainage delineation.  The key goal was to delineate the major drainage basins on James Island.   This task has been completed.   The Island has been divided into 30 major drainage basins.   There are many sub-basins also delineated. 

      The map includes all of the drainage infrastructure that has been inventoried by each jurisdiction as well as SCDOT.  Unfortunately, there are large areas of James Island that include substantial drainage infrastructure that has not been inventoried.   Charleston County undertook a major effort to inventory drainage infrastructure in the Town and unincorporated area some years ago.   That was one of the many projects funded by the storm water utility that appears on the property tax bills for everyone in the Town and unincorporated area.

      The study is also developing criterion to help elected officials designate basins for more detailed study.   These more detailed studies will be similar to the Signal Point Study that is being managed by Charleston County and paid for by the County and the City of Charleston.   Also, the Wambaw study is to be managed by the City of Charleston and paid for by the City and Charleston County.   It has been in the works for some time and is slated to begin soon.   It will study what we are going to be calling the Central Park Basin. This process will continue basin by basin. 

      We hope that this study will identify severe choke points where small culverts impede to the flow of water causing upstream flooding.  This will provide for projects which can enter the infrastructure pipeline (budgeting, requests for funding, bidding, and construction) as early as this year with some improvements potentially constructed as early as next year.

     The delineation was done by Thomas and Hutton Engineering consultants with Charleston County managing the contract.  The City of Charleston paid approximately 50% of the cost, with the Town and Charleston County each picking up about 1/4 of the expense.   This reflects the total jurisdiction of highland on James Island.

      This is just the first step of a larger process.   It reflects a process that began five years ago when the Town began sponsoring the James Island Storm Water managers meetings.   We hope to see a presentation of the final product at the James Island Intergovernmental Committee meeting soon.  There is a clear consensus among all jurisdictions that we must work together to solve drainage problems on James Island.

Tax Credit Progress

The Pope-Flynn law firm is now working for both the Town of James Island and the James Island Public Service District (JIPSD) on a cost sharing plan. This would allow the Town to pay the JIPSD for services on behalf of its residents and the JIPSD would allow the Town to put a credit against the JIPSD line on the County property tax bill for all taxpayers in the Town.

Our attorney has begun discussions with the Charleston County Auditor. The Auditor was very open to the proposal and believes that credits can appear on October's bill. The Auditor is asking for a review by Charleston County's legal department. In the past, the County's legal department had no objection to placing credits on the bill if they are agreed to by the Town and the JIPSD. The County legal review is continuing.

The Town's draft budget includes $1 million for payment to the JIPSD for fire protection and solid waste collection services. It will be presented to Council tomorrow night. First reading will be in April and second and final reading in May.

If approved by Town Council, this would result in a 30% decrease in the property tax Town homeowners pay to the JIPSD. Compared to the amount paid in 2017, before the JIPSD's 13% property tax increase, the reduction is 21%.

Property taxes that Town homeowners pay to the JIPSD will be 31% lower than what is paid by homeowners in the City of Charleston. (This year homeowners in the Town paid 3% more than homeowners in the City.)

While substantially lower than in the City of Charleston, the property tax burden will be comparable to that in the City of Folly Beach or the Town of Mount Pleasant.

Why is this happening now? Because the JIPSD Commissioners elected in November are willing to cooperate with the Town.

Because property taxes paid to the JIPSD are approximately 50% of the total property tax paid by a Town homeowner, the reduction in the overall property tax will be closer to 15%. The Town will continue to provide a 100% credit against its millage resulting in no net property tax paid to the Town.

The average value of a home in the Town is $280,000. The property tax paid to the JIPSD will be reduced from $721 to $503 for a saving of $218.

While the JIPSD will receive less property tax from the taxpayers in the Town, the payment by the Town to the JIPSD will result in the JIPSD receiving the same total revenue. This proposal will in no way result in reduced services for anyone and it will not result in higher taxes for those in the unincorporated area of the JIPSD.

After discussion between the attorney from Pope/Flynn and the JIPSD's acting General Attorney Michael Timbes, the MOU between the Town and the JIPSD is being abbreviated. I hope that it can be signed soon.

The Town and the JIPSD, working with our joint attorney, must still work out some of the details about the agreement. Still, I am very optimistic that tax relief will come to the homeowners of the Town. There will be tax savings on cars, businesses, boats and all other taxable property.

Good News on HB 3661--Favorable Recommendation

The hearing before the Judiciary Subcommittee went well today.   There was a unanimous favorable recommendation for HB 3661. 

Mayor John Tecklenburg spoke against the bill.   He made a rather odd argument, claiming that the bill would allow the Town to annex areas within the boundary of the City of Charleston.   This is not correct.   The bill would only allow the Town to annex unincorporated territory, which is not within the boundary of the City of Charleston.   Everything within the boundary of the City of Charleston is incorporated by the City of Charleston.   Of course, the bill does allow the Town to annex properties within "donut holes" that are surrounded by the City of Charleston.   Because of the City of Charleston's annexation policies, there are areas that are not within the boundary of the City of Charleston that are entirely surrounded by areas that are within the boundary of the City of Charleston.   It is just one implication of the convoluted boundaries created by annexation policies by the City of Charleston. 

The South Carolina Municipal Association appeared to oppose the bill, but when we contacted them, they said that they did not oppose the bill but simply wanted to amend it so that all municipalities can practice what they called "satellite" annexation.   This means that a City or Town can annex a property some distance from its existing boundary.   They said that HB 3661 is too narrow, only allowing a municipality entirely within a special purpose district with an elected governing body to annex across a break in the contiguity of the special purpose district.    They proposed removing those restrictions, which would remove all requirements for contiguity.    The Town had asked the Municipal Association to continue its past policy of neutrality on the bill.   I suppose they are claiming they haven't opposed this bill but would prefer what they consider an improved version.  In my opinion, their "improvements" would result in a a bill that would never pass.

The Special Purpose District Association of South Carolina stated that they opposed the bill.   Their representative knew nothing about the bill and so could give no explanation of a reason for the opposition.  He just said that he was instructed to oppose the bill.   JIPSD Chair Alan Laughlin is looking into why the association to which the JIPSD belongs opposes the bill.   The JIPSD resolution in support of the bill asked that the Special Purpose District Association support the bill.

The Coastal Conservation League opposed the bill as well.   They proposed amendments that would require that the Town obtain permission from the City of Charleston to annex the areas they have surrounded.  Further, the City of Charleston would have to transfer jurisdiction to the Town for some of the properties they have annexed so that the Town would become contiguous with the unincorporated area.     The City of Charleston and the Town already have the power to adjust their boundary in a way that would make the Town contiguous to unincorporated area.   There is really no point in amending this bill so that it effectively repeats powers that municipalities already have.

In the end, the members of the subcommittee unanimously voted a favorable recommendation.

House Bill 3661 Goes to Judiciary Subcommittee Today--Working to Reunite Our Town

House Bill 3661 will come up before a subcommittee of the South Carolina House of Representatives Judicial Committee today, Wednesday, March 20.   This bill will give the former residents of the Town of James Island an opportunity to return.  Approximately 45% of those who were in the Town in 2011 are currently in the unincorporated area of James Island.   Ever since the Town was reincorporated in 2012 for the fourth and final time, we have worked to give all of our former residents an opportunity to return.

Judiciary Committee Chair Peter McCoy is shepherding this bill through the South Carolina House.  Representative McCoy lives in the Town and represents nearly all Town residents in the South Carolina House.  He also represents many of those who live in the unincorporated area of James Island.  Please thank him if you get a chance.

In other news, Senator Chip Campsen has filed companion legislation, Senate Bill 669.  Senator Campsen represents the area of James Island south of Fort Johnson Road in the South Carolina Senate.   That includes Secessionville, the Grimball Road Community, the Battery Island Community, the Sol Legare Community and Oak Island.  Please thank him for helping give residents of those neighborhoods an opportunity to rejoin the Town.

If the bill becomes law, then the Town will be able to annex properties that would be contiguous (next) to the Town if it wasn't for an area of James Island that the City of Charleston has annexed.   Entire neighborhoods can annex if the neighborhood would be contiguous to the Town if it weren't for areas annexed by the City of Charleston.   For example, Laurel Park, Azalea Park, the Grimball Road Community, or Secessionville are separated from areas in the Town by areas annexed by the City of Charleston.  To return to the Town, 25% of the registered voters in the neighborhood would have to sign an annexation petition.  That would trigger an annexation election.  If the majority of those voting chose to rejoin the Town, then the neighborhood would be returned.   Step by step, this process would allow the Town to be reunited.

The Town has made progress in this legislative session because the James Island Public Service District (JIPSD) Commission voted for a resolution in favor of HB 3661.  The view in Columbia was that the JIPSD Commission was opposed to the effort to give the former residents of the Town an opportunity to return.  They considered that relevant because the bill allows the Town to annex properties that are in the JIPSD.    But after the change in the JIPSD Commission last November, we have been able to make progress in Columbia.

The City of Charleston's lobbyist in Columbia reported to Representative McCoy that Mayor Tecklenburg plans to attend the judiciary subcommittee meeting to oppose the bill.  The Coastal Conservation League is also working against the bill. 

The Coastal Conservation League has claimed that the bill would allow the City of North Charleston to annex areas in West Ashley by jumping over a narrow strip of area annexed by the City of Charleston near Highway 61.   They say that this is because the City of North Charleston and the parcels in West Ashley are in the Charleston County Parks and Recreation Commission and the Charleston County Airport Authority.    As has been pointed out to representatives of the Coastal Conservation League (repeatedly,) this is not correct because the bill only applies to municipalities that are entirely within a special purpose district, and the City of North Charleston extends into Dorchester County and is not entirely within either of those special purpose districts.  Further, the bill only applies to special purpose districts with elected governing bodies.   Both of those special purpose districts have boards appointed by the Charleston County Legislative Delegation.   Finally, the bill only provides for annexation across breaks in the contiguity of a special purpose district, and there are no breaks in the contiguity of those special purpose districts. 

The City of Charleston's effort to prevent the City of North Charleston from annexing areas in West Ashley failed in circuit court because the judge ruled that the City of Charleston lacked standing to challenge the annexations.   The City of Charleston plans to appeal that decision.   Regardless of how that turns out, the situation on James Island is very different.   The Town is entirely included in the James Island Public Service District (JIPSD) and the JIPSD has an elected governing body.  Areas that the City of Charleston has annexed on James Island have been removed from the JIPSD.   The City has created breaks in the contiguity of the JIPSD.  The bill would allow the Town to annex properties across those breaks. 

The bottom line is that the City of Charleston has surrounded areas of James Island and under current law, it has the exclusive right to annex in the areas that have been surrounded.   If it does not choose to annex the areas, then they will remain unincorporated.   However, every legislative session bills have been filed that will allow a municipality that has fully surrounded an area to annex it regardless of the wishes of the voters or property owners of the area.   I have asked Representative McCoy to block that legislation multiple times since I have been Mayor.   If passed, that legislation would allow the City to force those who were in the Town to become part of the City of Charleston.

Since people in all of those areas can annex to the City of Charleston already, HB 3661 and SB 479 also gives people in those areas the option to annex to the Town of James Island.  Of course, they can also remain unincorporated.   I think it is a fair and reasonable approach.

Town Hall Paid Off

The Town finished paying off our new Town Hall this week.  The Town had borrowed $3.2 million for the new Town Hall.   On Wednesday, the Town signed the trust agreement to defease our remaining outstanding bonds.  The Town is legally debt-free and owns Town Hall free and clear.   Going forward, the Town is no long paying rent and has no more debt payments.