County looks at sharp tax rise Economy makes Horry fall short of revenue forecast

Mike Cherney

Nov. 21, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- Horry County Administrator Danny Knight said Thursday that county staff would likely recommend the largest property tax increase allowed under state law for next year's county budget, to offset revenue losses from the lagging economy.

The biggest increase allowed by the state last year was 2.9 mills. Anne Wright, the county's administration director, said that number changes annually. An updated number will be received from the state in a few months, she said.

Any tax increase would have to be approved by the Horry County Council. An increase of 1 mill would add $4 to the tax bill of a home appraised at $100,000, Wright said, and would garner an additional $1.8 million for county coffers.

Current countywide millage is 47.3 mills, and the county's general operating budget is $134 million this fiscal year. The school district and municipalities also charge property taxes, so residents' actual tax bill varies depending on the location.

Council members will start discussing the budget for fiscal year 2010 -- which will run from July 1 to June 30, 2010 -- at a Dec. 5 meeting. The budget must be approved before the beginning of the fiscal year.

The outlook is grim.

"Income's down, and we're affected just like a private business is affected," Knight said.

Revenues related to the real estate industry have been hit the hardest this year. Stamp fees at the county's register of deeds office brought in about $1 million from July through October, down from $1.8 million in the same time last year. The county expected nearly $5 million from the stamps this fiscal year.

Fees from licenses and building permits have garnered $1.6 million through October, down from $2.4 million this time last year.

The county expected $10.1 million in permit and license fees this fiscal year.

To stay in the black, Knight said the county has made cuts -- such as not filling 200 vacant positions. He could recommend that next year's budget also include some staff cuts, he said.

The county still needs to hire officers for a 536-bed expansion to J. Reuben Long Detention Center, the county jail. The four-story tower is expected to be completed in mid-2010, but without a tax increase, Knight said the county would not have enough money to hire the staff for it.

"It's either recommend that, or recommend building it and not opening it," said Knight, noting that he asked for a tax increase last year but the council did not approve it. "They're going to have some pretty tough decisions to make."

County Council Chairwoman Liz Gilland said raising property taxes is always a last resort.

"We have a hard time raising taxes when everybody's fat," she said. "Now that everybody's looking pretty thin, it may even be harder. On the other hand, we're building a jail."

There are some bright spots.

Revenue from a 1 percent sales tax increase for local road projects is actually higher than at this time last year. From May through September, $33.2 million was collected, up from about $31 million last year.

"This is a piece of great news," said Councilman Howard Barnard. "And we need to tell people that."

In addition, plummeting fuel prices have allowed the county to leave a $1.8 million gas contingency built into this year's budget untouched.

If gas costs remain low, Knight said that cash could be used to offset other revenue shortfalls this fiscal year.

Contact MIKE CHERNEY at 444-1765.

Newstex ID: KRTB-0119-29781956