Tag: advisory referendum

Crunch Time for County Council and Impact Fees

Tuesday night Horry County Council will vote on third reading of an ordinance to impose impact fees on new construction in the unincorporated areas of the county.
Two and one-half years ago, nearly 75% of the voters said yes to an advisory referendum question asking whether county council should establish impact fees in the county.
Despite passing the first two readings unanimously, third reading passage of the ordinance is not assured.
On the table at third reading of the ordinance is imposition of an impact fee of approximately $6,600 for new single-family homes and varying impact fees for other types of new construction depending on the type.
Numerous sources have told me over the past two weeks the pressure on council members from the development lobby to water down the bill or kill it completely has been intense.
That lobby, composed of large landowners, builders and their associated sub-contractors and the real estate sales industry is pushing the message that impact fees will cause a significant slowdown in construction costing jobs and seriously impacting the local economy as well as making it more difficult in recruiting new businesses to the area.
The real reason for the opposition to impact fees is the builders do not want to pay $6.600 more out of their pockets each time they receive a new building permit. Developers will recover that money when the house is sold because the cost of impact fees will be passed on to the new homeowner, but they don’t want to float that sum for the few months between start of construction and sale in today’s market.
The impact fee will add approximately 2.5% to the cost of the average new home in Horry County. Prices on new homes have risen considerably more than that in the past year simply through market forces of supply and demand and sales of new homes have not slowed down because of the increasing price.
Impact fees in Horry County are not a new concept. Grand Strand Water and Sewer Authority has been collecting impact fees for a number of years. The statement in the county’s Imagine 2040 master plan explaining those fees is simple, “GSWSA collects water and wastewater capacity fees (impact fees) from new customers so that the current customer base does not bear the burden of new growth for both water and wastewater improvements.”
The development lobby used its same arguments when GSWSA imposed impact fees. Those arguments were totally false then and remain totally false now. One only has to drive around the county and view all the new construction projects in various stages of completion to see how false the argument is. GSWSA impact fees have not impacted new construction one iota.

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I-73 Funding, the County’s Hidden Objective in Hospitality Fee Squabble

Hidden beneath an ever rising pile of complaints, answers, motions, injunctions and exhibits in the City of Myrtle Beach v. Horry County lawsuit regarding the 1.5% countywide hospitality fee is the determination of a core group of county council members, county senior staff and special interests to retain sufficient funding for the construction of Interstate 73 in the county.

This has been the objective since April 2017 when former council chairman Mark Lazarus convinced council to remove the sunset provision from the county’s hospitality fee ordinance. Lazarus’ stated purpose at that time was to provide funding for I-73.

The month after Lazarus failed to retain the Republican nomination for council chairman, he conducted a special meeting of council to dedicate the revenue from the 1.5% countywide hospitality fee to the I-73 project.

At that meeting, council approved two resolutions, 82-18 and 84-18. Resolution 82-18 dedicated up to $25 million of the revenue from the countywide hospitality fee to the I-73 project. Lazarus tried for the entire amount of revenue, approximately $43 million, but was argued down by council member Harold Worley who was holding out for $18 million to be dedicated to public safety and infrastructure needs within the county.

However, under county ordinance, all the revenue from the 1.5% hospitality fee collected by the county is placed into a special road fund. Resolution 84-18 directed county staff to prepare an ordinance amendment to allow that revenue to be spent on roads, public safety and infrastructure.

The ordinance amendment dictated by Resolution 84-18 has never been prepared to this day. County staff, with the unspoken agreement of a majority of council, ignored the will of council expressed in Resolution 84-18 so the revenue from hospitality fees cannot be used for public safety and infrastructure other than roads.

During a budget workshop in late November 2018, Lazarus led council in approving entering into a contract with the South Carolina Department of Transportation, called the I-73 Financial Participation Agreement, for the county to commit up to $25 million per year for funding the project.

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Horry County’s Political Schism

One glance at the agenda for Tuesday’s upcoming special meeting and workshop of Horry County Council demonstrates the political schism that exists in local politics.

Council will consider two resolutions that propose advisory referendums on the upcoming November 2018 general election ballot to raise countywide property taxes by 10 mils to fund police, EMS, Sheriff and E911service improvements throughout the county and one to raise property taxes by an additional 9.5 mils in the unincorporated areas of the county to fund fire improvements.

The entire discussion of these two referendums is nothing more than a knee jerk reaction to the defeat of incumbent council chairman Mark Lazarus by Johnny Gardner in the June 2018 Republican Primary for the nomination for council chairman.

One of the reasons Gardner won the nomination was his motto of “First Responders First” and his promise to take care of the additional needs of public safety departments in upcoming county budgets. It must be noted, Gardner never proposed tax increases to fund additional personnel and pay raises for first responders. Rather, he proposed prioritizing the needs of public safety during the budget process with current revenues and funds.

Over the last five years, Lazarus and council have basically ignored the increasing needs of public safety. After the voters made themselves heard by voting Lazarus out in June, it is all of a sudden a council priority necessitating a special meeting.

Being advisory rather than binding referendums, the results will mean nothing. The resolutions were first proposed by council member Tyler Servant at the June 19, 2018 regular meeting of council.

Servant said he was a strong fiscal conservative Republican who opposed tax increases, but proposed allowing the voters to make the decision. A true, fiscal conservative would first look to current revenues and funds to meet these needs and consider tax increases only after every other option has been considered and discarded.

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County Council’s Phony Tax Referendum

Horry County Council is expected to have a discussion next week about placing an advisory referendum on the November 2018 general election ballot regarding tax increases for public safety.

The issue was proposed by council member Tyler Servant at last month’s council meeting. Acknowledging the main topic of the primary election which cost council chairman Mark Lazarus nomination to another term in office, Servant said he was opposed to raising taxes but believed the voters should have a say on whether they wanted to pay higher taxes to increase public safety services in the county.

Council members Dennis DiSabato and Cam Crawford jumped on the bandwagon, acknowledging a need for more public safety personnel and facilities in the county but saying the voters should make the decision.

The discussion will be a waste of time as an advisory referendum will not solve the problem of funding for public safety needs. Regardless of how the referendum is worded and what percentage of the vote it may receive, an advisory binds the council to no action and, furthermore, does not provide permission from voters to raise taxes above the limits of Act 388.

The proposal for a discussion and resolution vote to place the advisory referendum on the ballot appears to be an attempt to divert the discussion from various alternatives for public safety funding to a possible tax increase.

Republican chairman nominee Johnny Gardner, who defeated Lazarus in the June primary voting, never mentioned raising taxes while he campaigned on increasing public safety personnel numbers and pay throughout the county.

Gardner said the current 20 ½ minutes average elapsed time it takes from when a 911 call is answered until a first responder arrives on the scene is unacceptable. Gardner pledged to make public safety funding priority one in the budget process.

At times, when extra sources of tax dollars become available, public safety staffing is never on the radar of most council members and county staff.

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County Council Breaks Budget Promise to Treasurer

When Horry County Treasurer Angie Jones agreed to drop her lawsuit against Horry County Government last month, there was an unwritten understanding that county council would include funding needs for her department in the budget for the coming fiscal year.

Now that understanding not only remains unwritten, but also remains unpassed.

During its third reading of the Horry County budget for Fiscal Year 2018-19 Tuesday night, council defeated, by a 6-6 vote, an amendment including budget enhancements for the Treasurer’s department. The budget amendment also called for additions in the $40,000 range each for the Clerk of Courts, Veterans Affairs and Voter Registration budgets.

Council member Johnny Vaught introduced the amendment, seconded by council member Harold Worley. Council chairman Mark Lazarus spoke strongly in its favor.

According to discussions of the amendment by council members, Jones identified revenue additions and/or savings in the amount of $123,000 for the coming fiscal year. Her request for budget enhancements would have only cost the county $111,000.

Additionally, one position provided in the enhancements would have gone to collection of the nearly $88 million in unpaid property taxes that are owed to the county.

In other words, the county would have made more money from voting for the enhancements than it saves by not voting for them.

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Johnny Gardner’s Campaign Message Spurs County Council Discussion

One week after defeating incumbent Mark Lazarus for the Republican nomination for Horry County Council Chairman, Johnny Gardner’s campaign message is already driving council discussions.

Throughout his campaign Gardner spoke of putting “Public Safety First” and charging fees on new development to help pay for the impact it causes on county goods and services.

During its regular meeting Tuesday night, council approved two resolutions directly tied to those issues.

By an 11-1 margin, council member Tyler Servant opposing, council approved a resolution to encourage the South Carolina General Assembly to amend the current state Impact Fee law to make it more user friendly for local governments struggling to meet the costs associated with new development.

Later in the meeting, Servant introduced a resolution to instruct staff to bring back to council a proposed advisory referendum question to address raising tax millage to fund increased salaries and additional personnel for police and fire/rescue departments as well as an additional police precinct for Carolina Forest.

After discussion, it was agreed to split the issue into two referendum questions, one for police and rescue personnel and another for fire, because of the different ways in which police and rescue personnel are funded in the budget from that used to fund fire personnel.

County Administrator Chris Eldridge was instructed to meet with the the Police and Fire/Rescue chiefs to determine the increased needs in their respective departments to fully meet the county’s public safety requirements.

Council must approve referendum questions by the end of July in order to meet the August 15th deadline to have them included on the November 2018 general election ballot.

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Horry County Council Considering Mental Health Referendum

Horry County Council is considering asking the county’s voters advice on long term funding for Waccamaw Center for Mental Health.

A state created organization, the state has failed in its obligation to provide all the needed funding for the center.

Sen. Ray Cleary (R-Dist.34) spoke to the Horry County Council Administration Committee last Friday outlining a possible referendum question for county voters to consider in the November 2014 general election.

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