Members of North Augusta City Council received their first briefing for the fiscal year 2023 budget plan during their Sept. 26 study session.
Based on current estimates, the budget plan calls for a property tax increase of 1.5 mills; however, some council members suggested raising the tax by 2.0 mills.
Mayor Briton Williams said the decision to hold the first briefing in council chambers was to allow the discussion to be livestreamed. In the past, it was held in the council board room.
In this first presentation, the proposed total consolidated budget for FY2023 is just under $50.5 million. That compares to the current fiscal year budget of just over $48.7 million.
City Administrator Jim Clifford highlighted some of the items driving the increase, including an 18% increase in the South Carolina Public Employee Benefit Authority (PEBA) insurance the city is required to pay. The results are an unforeseen increase of $296,000 dollars.
Human Resources Director J.D. McCauley said the 18% increase is the city’s share of the insurance premium for health, dental and vision.
“We had for 2022 1.6 million dollars that we were paying for premiums and projected if everyone selects the same coverage, which open enrollments in October so we have a variable there who’s going to self-select due to some of the changes forecasted, for 2023 it would be 1.9 million,” he said.
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Other items are increases in the anticipated cost of unleaded and diesel fuel and a 4% cost of living adjustment for all city employees.
Clifford said those three increases impact multiple budgets within the overall plan.
“So, the general fund, the sanitation fund, the stormwater utility fund and the utility O&M fund, because we have personnel across all of those funds, as well as fuel costs associated with all those funds,” he said. “So, when we talk about the PEBA hit, if you will, to the budget, it’s not just across the general funding, it interweaves all of the budgets, that are kind of our operating budgets here and our budget lines.”
The plan also covers salaries and other costs associated with hiring four new employees, including a code enforcement officer for the Planning and Development department.
It also includes contributions to seven community organizations, including the North Augusta Arts Council and The RECing Crew. The groups had requested a total of $133,585. The proposed budget provides a total of $30,600.
The proposal has assorted revenue enhancements, such as an increase in the membership fee for Riverview Park. Currently, city residents pay $75 for an individual membership and $175 for families for an annual membership. It increases to $80 for an individual and $185 for families. Non-city residents pay an individual fee of $125 and $350 for families annually. That climbs to $135 for an individual and $370 for families.
An increase is also proposed for the city’s garbage collection fees.
“As we move forward, North Augusta residents will still be able to receive the curbside solid waste and recycling pickup,” said assistant administrator Rachelle Moody. “The increase is about $1.77 per month for solid waste and recycling pickup curbside. In future meetings, including in the next few weeks, we plan to have a study session where we’ll talk in a little bit more in depth about what the future of solid waste and recycling.”
No increases are recommended for water fees or wastewater fees.
Clifford then turned his attention to the millage rate.
“We’re requesting a 1.5 mil property tax increase in this fiscal year in 2023,” he said. “If you take a roughly $200,000 home, the tax increase will be $12 a year for the citizens. The cost on vehicles for brand new vehicles, not older vehicles, would be approximately $3 to $3.25 for ‘21 or ‘22 model year.”
North Augusta last had a tax millage rate increase in 2018.
Councilman Bob Brooks addressed the proposed millage rate increase saying he felt the increase should be two mills with the additional half-millage committed to capital projects.
Councilwoman Pat Carpenter said she believed the city should have raised the millage rate by small steps over the past 25 years.
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“We brag for 25 years at no increase, which that was a good pat on the back. But in my heart sometime instead of getting ourselves in trouble, you know, gradually go up a little bit that really doesn’t hurt people, but yet provide so much more for the city,” she said.
Councilman Eric Presnell was next to give his support to the two mill increase.
“As much as we don’t like it, I think most people will understand,” he said. “I had a conversation with somebody I used to coach with. He said, ‘Look, Eric, if it’s got to go up, because we live in a great place,’ but you know, we need extra money to fix the fields, the sports equipment, Greenway, all of these things. I know, it’s not a popular idea. But especially with inflation, and some of the things we’re seeing, I can support what Bob and Pat are doing as well.”
The staff was instructed to use the higher mill in order to meet the Sept. 29 deadline to publish information about the public hearing, which must include the size of the proposed increase. Williams pointed out that does not commit council to that rate until there’s a final vote on the budget.
Williams said the first public hearing on the budget will be held on Oct. 17. It will be expanded to a one-hour hearing rather than 30 minutes as they have been in the past.
Dana Lynn McIntyre is a general assignment reporter for The Augusta Press. Reach her at dana@theaugustapress.com
