Bluffton residents will have to pay a new fee and higher stormwater costs. Here’s why
Bluffton residents will soon have to pay a new fee on vehicle license tags and will see a 17% hike in stormwater fees due to the coronavirus pandemic.
Tuesday evening, Bluffton Town Council approved a condensed budget for fiscal year 2021 Tuesday evening that anticipates an 8.3% decline in revenue compared to the current year’s budget — to $34.2 million from $37.3 million. To keep a balanced budget, the town is cutting a previously planned 5% raise for town employees, reducing spending on town projects and instituting a hiring freeze on two open positions.
The budget was approved by four of the five council members. Council member Dan Wood voted against it.
Wood did not return a call for comment Wednesday about his vote.
Unlike the federal government, which can run a deficit, local governments like Bluffton must maintain a balanced budget even when expecting a revenue shortfall. This means either cutting spending or raising taxes and fees. Bluffton is planning to do some of both.
Bluffton’s approval comes as Beaufort County is debating its upcoming budget. In April, the county announced that it expects its revenue to decline between 10% and 20% in the coming year due to the coronavirus pandemic.
Revenue decline
Although Bluffton officials expect a significant drop in revenue, leaders are anticipating an increase in revenue from property taxes and licenses and permits, which make up more than half of the town’s overall revenue.
Bluffton’s reliance on building and development and the growth the town has experienced in recent years will likely boost the amount generated from property taxes this upcoming year.
However, officials are expecting the coronavirus pandemic to hurt revenue across the board:
▪ Grants and entitlements: 55.4% decline
▪ Intergovernmental fund: 49.6% decline
▪ Service revenues: 36% decline
▪ Fees and fines: 4.3% decline
▪ Miscellaneous revenue: 79.4% decline
Overall, the town is anticipating a loss of $3 million in the next fiscal year due to the pandemic.
Increased fees
Due to the loss in revenue, Bluffton leaders approved several cuts to expenditures and fee increases in the upcoming budget.
The cuts include all cost-of-living and merit salary increases for employees, a freeze on two open positions and a ban on staff or council travel, in South Carolina or out of state, except for Municipal Association of South Carolina events.
Despite the freeze on open positions, the town is planning to “expand” its public safety program by hiring a full-time emergency manager and two traffic police officers. The hiring of the two officers is contingent upon the town receiving a grant, according to a news release about the budget.
A new $25 fee on vehicle license tags will be imposed on Bluffton residents. The revenue generated from the fee will pay for right-of-way maintenance, public transportation, streetlight installation, road signage, traffic enforcement and road safety enhancements, according to Town Manager Marc Orlando’s budget proposal.
The town also approved an increase to residents’ stormwater fees to $115 per single-family home from $98 per home. This fee increase puts Bluffton more in line with the $150 stormwater fee paid by Hilton Head Island residents. The additional fee will be added to residents’ property taxes.
As part of the budget, the town approved a National Pollutant Discharge Elimination System (NPDES) plan with stormwater review and drainage inspection fees paid by builders and developers. The town expects these fees to generate $365,000 this upcoming year, according to Orlando’s budget.
The projected $2 million generated from the stormwater fees and the inspection fees will be allocated to the town’s stormwater fund.
