North Myrtle Beach moves forward with property tax increase in latest 2021 budget
North Myrtle Beach officials approved the first reading of a proposed $89 million budget that carries a 7.9 mill tax increase.
With the coronavirus pandemic resulting in municipalities tightening its 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 first reading of the proposed 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. Upon passage, the rate will rise to 45 mills.
“It’s never pleasant to raise taxes,” Mayor Marilyn Hatley said during Monday’s City Council meeting. “I wish we did not have to raise them. But this city has always been good about lowering our taxes.”
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.
The proposed increase 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 has since been slashed due to the ongoing pandemic.
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.
If the proposed budget is approved, 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 work loads require additional labor. It amounts to a budget reduction of $2.5 million, according to the proposed 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.
While Hatley praised staff for considerably lowering and tightening the budget, Councilman Hank Thomas, who expressed trepidation in supporting a tax increase during last week’s budget workshop, said he would reluctantly support it due to the vast amount of capital projects planned.
Councilman Fred Coyne added that tough decisions need to be made right now.
“It’s kind of a double-edged sword,” Coyne said. “We just gotta do it to move forward and set ourselves up for the future.”
Approval of the proposed budget and tax levy will require a second reading. The new budget must be approved by July 1, the start of the new fiscal year. Council will meet again on June 29 at City Hall.
