Local leaders are meeting to talk about how to spend tax dollars. Here’s what we know
It’s budget season, y’all.
Horry County Council goes into its Spring Budget Retreat April 5 and 6, in Conway, from 8 a.m. to 5 p.m, no lunch provided.
The public is more than welcome to attend, but going to a two-day long government retreat may seem like a daunting task. So here is a quick rundown of what the budget retreat does and some issues you might expect to come up.
What is a budget retreat?
The point of this retreat is for county council to sit down with staff and determine how the government’s money will be spent moving forward. There is a November meeting to familiarize everyone with the finances and what issues need addressing. The spring one is to decide which of those issues will get funding and to debate the options available for the fiscal year 2020 budget.
The budget is not decided at these retreats. After the April retreat, Horry County staff will begin to compile the entire budget, which will inform departments of how much funding they get, what enhancements will be granted and what major projects the county will fund.
An underlying issue is to avoid raising yearly tax rates on the residents of Horry. Council will be exploring uses of impact fees, hospitality money and other revenue streams to avoid a tax increase.
A lot of the talk in these retreats will simply be discussion or directives that could be changed before the final budget is approved in May. The completed budget will require three readings to be passed, with the second reading being open to public comment. Adjustments to the budget can still be made during this process.
Public Safety
Earlier in the year, coastal municipalities passed ordinances to start collecting the hospitality fee themselves, instead of Horry getting the money. The problem is, in the summer of 2018, Horry County dedicated its hospitality funding money to constructing I-73 and to paying for public safety.
Public safety is by far the most talked about priority facing Horry County, no matter what happens to the hospitality money. During the 2018 Midterm Election for Horry County Chairman the number of public safety employees and the benefits they receive was a key campaign issue.
No matter what happens with the hospitality money, several Horry County Council members said public safety will be the priority in how it spends the money it still gets from the fee. This includes potentially hiring 30 new firefighters through a federal grant, building new police and fire stations and acquiring better equipment.
One problem is that hospitality money needs to be spent on tourist-related expenses. Horry County staff is expected to present council with how much of the hospitality money could be spent on safety.
A second important issue for public safety is going to be a presentation on the costs of pay scale for public safety instead of the current merit-based system. Council member Cam Crawford asked for the study to be done, and Horry County hired a consultant to complete it before the budget retreat.
Horry County Administrator Chris Eldridge said the council should have a pretty good idea of whether a tax increase would be needed to convert to a pay scale. The study will also include implementing a similar system in other county departments.
Hospitality and roads
A lot is riding on how negotiations go between Horry County Chairman Johnny Gardner and the municipalities over how the hospitality tax will be divided and if I-73 will be funded. Gardner said two weeks ago after a council meeting he hoped these discussions would be public, but City of Myrtle Beach officials prefer they be private.
Despite early claims that I-73 would be dead, local leaders are meeting to see if they can build the road that has been decades in the making. It would be the first interstate into Horry County.
Infrastructure in many ways is connected to public safety funding. The hope is to use hospitality money to fund roads, with public safety being the priority.
Currently, SCDOT and Horry County have a contract to build the portion of I-73 in Horry County with yearly payments in excess of $20 million.
The future of the I-73 contract is in question as it is unclear how much of the hospitality fee Horry will continue to collect, but for now the contract still stands.
Beyond I-73, Horry County could use this money to improve other roads. Still, as council member Dennis DiSabato said, this money could also help build roads in Horry County for the foreseeable future. Council member Paul Prince agreed, adding Highway 9 and other roads Horry citizens use to get to work should be the priority.
The Parks
The Parks and Recreation department appears to be in hot water. Currently, without any action, the department might have to close 30 parks, boat landings and outdoor spaces in the county.
During the fall budget retreat, county council was first presented with the problems in the parks funding. A big driver for expenses for the department comes from the vastness of Horry and the need to keep well-maintained parks in areas all over.
The parks do a lot in Horry County, and both tourists and locals can use the services. One of its offerings include many of the boat landings in Horry County along rivers and waterways.
The options varied from shutting down some recreational opportunities, maintaining status quo or even expanding funding to help get more opportunities, especially in the western part of the county. Obviously, an increased parks budget means the money has to come from somewhere.
Council was presented with options of how to increase the amount of money going to the department. At the time, former council chair Mark Lazarus said this would be a major issue for council to address.
Attorney’s office
This topic came up at the last council meeting before the retreat. At the end of a March 25 special meeting, just ahead of the budget retreat, council member Al Allen said he wanted staff to present options on getting an independent lawyer for county council.
“A discussion item of the county council discussing exploring the idea of hiring our own, independent attorney,” Allen asked.
This would mean a lawyer separate from the county’s staff would be kept on retainer to give council legal advice on its actions, procedures and motions.
The request comes after questions of who Horry County Attorney Arrigo Carotti represents. At a January special meeting of council, Carotti was asked who his client was: the staff, the council or some combination.
As it stands, Carotti’s employment is determined by the administrator to give legal advice to council, commissions, boards and staff. Carotti said his core client was the administrator and the majority of council at any point in time. In addition, he represents Horry County’s departments as long as they’re in compliance with his core client.
A discussion on the matter will most likely include cost of hiring a new attorney and the merits of having independent counsel.
Staffing
After the budget retreat, Horry County staff could lose two of its top four leaders.
Administrator Chris Eldridge is expected to resign his post, pending discussions between county council and his lawyer. Assistant administrator Justin Powell will also be leaving after the budget retreat. He took a job at the South Carolina Department of Transportation.
Gardner said that while it will be a challenge to bring on two new administrative positions, Horry County has talented employees who will help act as interim leaders until new officials are found.
Once Powell and Eldridge leave, there will be interim leaders put in charge. Previously, the search for a new administrator was a nationwide search for Horry’s top, non-elected role.
Have a concern?
Council member Al Allen wanted the retreat to be on a Saturday so more people from the public could come. Once the retreat is over, there is still time to make adjustments to the budget. Here is a list of Horry County Council Members and their phone numbers to speak your concerns.
Johnny Gardner - (843) 855-0848
Harold Worley - (843) 249-1436
Bill Howard - (843) 421-2035
Dennis DiSabato - (843) 421-8522
Gary Loftus - (843) 650-1715
Tyler Servant - (843) 421-7250
Cam Crawford - (843) 504-0905
Orton Bellamy - (843) 855-5267
Johnny Vaught - (843) 602-5241
Paul Prince - (843) 450-3585
Danny Hardee - (843) 340-4426
Al Allen - (843) 602-9243
This story was originally published March 28, 2019 at 11:36 AM.