Here’s how much of a tax hike property owners will see under new North Myrtle Beach budget
An $89 million budget that carries a 7.9 mill tax increase received final approval by North Myrtle Beach officials.
With the coronavirus pandemic resulting in municipalities tightening their budgets, North Myrtle Beach was forced to cut $30.2 million worth of spending that will see a handful of capital projects put on hold. Along with approving the second reading of the 2021 budget on Monday, council in a unanimous decision voted in favor of implementing a 7.9 mill property tax hike.
The current property tax rate is 37.1 mills. The rate will rise to 45 mills on July 1.
This means for someone owning their primary residence in the City of North Myrtle Beach, the 7.9 mill increase means you’ll pay $64 more in property tax on your $200,000 home or $160 more if you own a property worth $500,000. If you own a second home or rental property in North Myrtle Beach, you’ll pay $72 more on your $200,000 property or $180 more for your $500,000 property.
Additionally, the monthly base charge from Grand Strand Water and Sewer authority will increase by 20 percent.
The tax hike comes a year after council approved a budget that reduced its millage rate by 6.1 mill after paying off an eight-year bond used to purchase and construct the 162-acre North Myrtle Beach Park and Sports Complex. But officials say the increase is also necessary to keep operations sustained as the city recovers and navigates the coming months.
Additionally, the increase will aid in funding the land purchase of 96 acres besides the city’s Sports & Tourism Park. While the project is halted, city officials discussed in February during their budget retreat in Pinopolis a $34 million multi-phased plan to expand the park to allow for more adult recreation, youth leagues and sporting events that would bring in more tourism dollars.
This deferral will result in a budget adjustment of $8 million, officials said. During the budget retreat, the city also presented a $119 million budget that was altered due to the ongoing pandemic.
“We had to cut the budget drastically this year due to the affects the coronavirus has had on our community,” Mayor Marilyn Hatley said. “It took a lot of work to change this budget.”
According to City Spokesperson Pat Dowling, North Myrtle Beach lost about $2 million in revenue when the city shut down businesses and accommodations for almost two months. He said the city is projected to lose an additional $6 million over the year.
Additionally, a total of 41 full-time employee positions will be suspended as of July 1. These positions may be reinstated during the year as funding improves and workloads require additional labor. It amounts to a reduction of $2.5 million, according to the budget.
The city also was forced to furlough 186 positions in March due to the coronavirus shutdown.
Furthermore, four major capital projects discussed in February, including the expansion of the Park and Sports Complex, will now be put on hold. Those include a $14 million project to construct the 18th Avenue North ocean outfall, which will be deferred to October 2021, and a multi-million-dollar underground utilities plan in the Cherry Grove area.
A $10 million project to build a roughly 30,000 square-foot Emergency Operations Center and Data Management Center on the west side of the Intracoastal Waterway will also be delayed, resulting in a $2 million budget adjustment.
The new fiscal year begins on July 1.
