Are taxes going up in Port Royal? 9 things to know about the town’s 2022 budget
Employees are getting a raise, improvements are coming to Paris Avenue and sewer service is expanding, but taxes aren’t going up.
That’s a sampling of items in the Town of Port Royal’s proposed 2022 budget.
Town Manager Van Willis said revenue from building permits, property taxes and other sources was better than expected, resulting in a $356,000 increase in the $7.5 million general fund budget, which pays for most of the town’s basic services.
Despite the high cost of materials, construction never really slowed down during the COVID-19 pandemic, Willis noted.
“We’re rebounding pretty well,” Willis said.
Here are nine things to know about the 2022 Port Royal budget and what it means to you.
TAXES ARE NOT GOING UP
Willis said 74 mills are budgeted, the same as 2021.
A mill is the rate of tax used to calculate property taxes. One mill is equal to one thousandth of a dollar per $1 of assessed property value. If a council approves a tax of 90 mills, then the taxpayer will pay $90 per $1,000 of assessed property value. The value of a mill varies across South Carolina. Willis said a mill equals about $60,000 in Port Royal, compared to about $900,000 in Bluffton.
COVID TAKES, COVID GIVES
To balance the 2021 general fund budget, the town used $300,000 in reserves because of anticipated revenue shortfalls due to COVID-19. With revenues rebounding, a transfer won’t be necessary in 2022, Willis said. The city, which has no debt, also is expected to get about $5 million in federal COVID-19 aid. That funding is not included in the general fund projections. The town is still working on how to spend the money.
SALARIES ARE INCREASING
A 2% cost-of-living adjustment for employees will add $78,000 to the budget. The projected cost-of-living adjustment for Social Security benefits is 1.3%. Willis said he is recommending 2% due to the commitment of town employees during the COVID-19 pandemic.
CONTRACT WITH COUNTY PUBLIC DEFENDER UNCERTAIN
The town contracts with Beaufort County for public defender services. Willis says the town is not using a third of the volume it is paying for, but the county is requesting additional funding. The town is required to fund a public defender and could contract with a private attorney. Willis has budgeted $50,000 as a placeholder until the issue is resolved.
2 BIG PROJECTS ON THE BOOKS
Two big capital projects are budgeted: Expansion of sewer in the Royal Palms neighborhood ($1 million) and roadway improvements to Paris Avenue, including planters and lights ($800,000). Federal Community Development Block Grants are paying for most of the work except a $75,000 local match.
POLICE ARE GETTING NEW VEHICLES
A $195,000 increase in the police department budget is proposed, most of it going to personnel costs and new vehicle leases. The city is getting rid of four Dodge Chargers and replacing them with Ford Explorers and adding one vehicle.
NEW SIDEWALK IS COMING
A fewer thousand linear feet of new sidewalk are planned, with the largest project on London Avenue and 12th Street around Port Royal Elementary.
SHRIMP DOCK FUND IS BEING CLOSED OUT
On May 12, Town Council members voted 5-0 to suspend shrimp processing during the next fiscal year, beginning at midnight June 30. Net losses have totaled between $300,000 and $400,000, Willis said. He’s budgeted about $10,000 in a shrimp dock enterprise fund in 2022 as that fund is closed out, with the goal of avoiding additional losses, Willis said.
YOU CAN STILL COMMENT ON THE BUDGET
The Town Council has given preliminary approval of the budget, but final action won’t come until after a public hearing on June 2. The budget will be posted on the town’s website prior to that meeting, Willis said.
This story was originally published May 27, 2021 at 12:00 AM.
