Myrtle Beach might see utility increases under proposed budget. Here’s what else to know
After COVID-19 diminished Myrtle Beach’s revenue, the city looks to adopt a $292 million budget that does not call for a property tax increase but aims to improve the city’s infrastructure and add more police officers and raise city employees’ salary.
Myrtle Beach City Council met last month and discussed the proposed budget during a council meeting.
The budget, which would need to be approved before July 1, does not include rate increases for solid waste, business licenses, recreation, sports tourism and the Myrtle Beach Convention Center.
However, there are proposed rate increases for storm water, cemetery, water and sewer fees.
Storm water fees would have a rate increase of $1.38 per equivalent residential unit, meaning single family residential homes would pay a monthly fee of $7.63 instead of $6.25, which is the current rate. That means every household will pay an annual rate of $91.50, a $16.50 increase from the current annual rate.
Cemetery fees would increase to be closer to market rates. A plot with perpetual care would cost $1,800 and a pet burial with perpetual care would be $480 t0 $540. Other fees associated with burials would also increase.
Water and sewer fees would have a rate increase of 4% to 5%. This means if residential customers have a monthly usage of 6,000 gallons, they would be required to pay $44.25 under the proposed budget, which is $1.96 more than the current rate for that usage amount.
Myrtle Beach’s current connection fee for water is $1,134 and sewer is $1,547 per equivalent residential unit. If the proposed budget is accepted, the fee for water would be $2,303 and sewer would be $2,183.
The budget also calls for adding staff to the Myrtle Beach Fire Department and suggests hiring 10 new police officers, a chief diversity officer and other city positions.
The budget calls for some items to be reinstated after they were cut last year to balance the economic impact of COVID-19. Some of those items include a $1 million holiday bonus, a 3% salary increase for all non-police city employees and a 4% salary increase for the Myrtle Beach Police Department staff. Those salary increases would start in January 2022.
Major proposed budget items:
- $13.3 million for General Pay-Go projects
- $5.9 million for the Historic Boardwalk & Ocean Boulevard projects
- $13 million for Myrtle Beach Air Force Base Redevelopment projects
- $14.4 million for Arts & Innovation District projects
- $7.6 million for Storm Water projects
- $28 million for Water & Sewer projects
A proposed budget of $231.1 million was initially presented to council during the budget retreat last month. But the city’s budget increased due to adjusted utility budgets, $10,000 for hanging baskets, a stimulus adjustment and additional capital projects.
During the height of pandemic-induced shutdowns, Myrtle Beach lost nearly $4 million in revenue from the state accommodation tax, according to reports from the South Carolina Department of Revenue comparing typical tourism-heavy months April through August 2019 to the same months in 2020. The tax is a two-pronged state and local tax generated by hotel and beach house stays that local governments are then allowed to spend on tourism-related services and marketing.
Michelle Shumpert, Myrtle Beach’s chief financial officer, told The Sun News in December the accommodation tax revenue in the city is largely used to fund police and public safety. It’s an important expense, particularly because Myrtle Beach needs a bigger police force than most other cities of similar size to account for the extra people brought in by tourism. Losing a lot of the accommodation tax revenue revealed the vulnerability of an economy based mainly on tourism.
The council must accept a final budget before the new fiscal year begins on July 1. They will meet on Tuesday to decide if it will be accepted.