Politics

Horry County’s Election Year Budget

Horry County Council’s recent budget workshop provided an interesting view into budget making in an election year.

County employees will receive what is being called a “three percent across the board merit raise.” In a countywide election, the county’s employees can account for thousands of votes including their families and friends.

In addition, ways to fund additional raises for public safety personnel are being considered. Horry County Council Chairman Mark Lazarus has proposed an additional $1 per hour raise for all Level 1, 2 and 3 police officers, Sheriff’s deputies and detention officers, which, if approved, will bring their respective raise amount to nearly 10 percent across the board.

Lazarus also proposed an additional three percent across the board raise (six percent total) for firefighters and EMS personnel.

The proposed public safety raise percentages were billed as necessary for “retention” of personnel, but it is interesting this consideration only seems to come up every four years or so when the council chairman is up for re-election.

Even more interesting is the fact that this increase in the public safety budget will not add any additional personnel despite the growing population of the county, which causes an increased demand for services.

Council member Harold Worley proposed using some of the excess hospitality tax revenue that the county will begin experiencing next year, currently estimated at $40 million per year, for increasing the number of police and fire personnel. County council already passed an ordinance stipulating continued collection of full Hospitality Tax after Ride I bonds are paid off.

Lazarus, who wants to use that money for I-73 construction, was heard to utter “not going to happen” at Worley’s suggestion.

One only has to consider the nearly $12 million of excess Ride II tax collections that recently was used to purchase approximately 3,729 acres of swamp land under the guise of establishing a wetlands mitigation bank in the county. That purchase literally came out of nowhere with little explanation to full council before it was approved.

If council is unwilling to return those excess tax revenues to the citizens who paid them, it certainly seems those excesses would be better spent on items that benefit the largest number of citizens rather than on the wishes of a few at the top of county government. The voices of average citizens need to be heard.

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Primary Filing Opens But Do Campaigns Mean Anything?

Filing opened last Friday for candidates in the upcoming June 12, 2018 Republican and Democrat party primary elections. Filing for candidates will close at noon Friday March 30, 2018.

The biggest name filing for re-election on the first day was Horry County Council Chairman Mark Lazarus.

We will now see three months of campaigning, led by incumbents to convince the voters to continue their time in office.

But, have the incumbents really served the needs of the people or worked for other agendas?

Unfortunately “fake” is the political environment of today. Most politicians occupy a fake reality where they say one thing when campaigning, do another when in office and cry “fake news” and attempt to change the narrative when their duplicity is pointed out. It often works because voters do not have the time or desire to acquaint themselves with the issues and, instead, rely on sound bites for their information.

The few who try to stick to the facts and have a reasonable discussion of the issues are too often defeated because of their honesty.

Four years ago, Lazarus committed to the voters to “Oppose new taxes” on his Lazarusforchair.com website under issues.

This commitment quickly went by the wayside. After being re-elected, Lazarus became the biggest proponent on council for raising taxes with the largest tax increase in Horry County history resulting. Property taxes were raised 7.2 mills and the annual vehicle fee paid to the county was raised from $30 to $50 per vehicle.

To sell the tax increase it was billed as an increase for public safety. Voters bought into this narrative during budget discussions only to be fooled after the tax increase was approved. As councilman Harold Worley said at the time, “Not one penny of the tax increase will go toward putting one extra officer on the street. Response times will not go down nor will community policing increase because of the tax increase.”

Worley was correct in his assessment. What most voters didn’t know was the tax increase was the result of a huge outcry by county employees after County Administrator Chris Eldridge received a large pay increase from council between first and second reading of the budget. A large portion of the “public safety” tax increase went to a pay increase for all county employees, not to improve public safety.

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Gingrich, Myrtle Beach, Oil and Interstates

Horry County – A Fork In The Road

(Ed. Note: This article was published in Alternatives Magazine nearly 20 years ago, four years before Marion Foxworth was the District 3 member for Horry County Council. It is reprinted here with permission from the former owner of Alternatives. It made interesting reading then and is even more so today. Carolina Forest was in the very early stages of changing from a tree farm to the most densely populated area in the unincorporated county. I would contend we have headed down the retirement community fork, with tourism on the wane, as witnessed by controversies over bike weeks and adult entertainment, the decline in golf, amusement parks and other entertainment venues as well as continuing issues with infrastructure and public safety. One only has to look at the history of the last 40 years in St. Augustine, FL to see the trend being repeated in Horry County.)

Quite a bit has been said and written about the tremendous growth that we have seen during the last few years.  Both Horry County and the City of Myrtle Beach have undertaken extensive efforts to establish updated comprehensive Masterplans.  The local daily newspaper devoted countless columns to a series entitled ‘Living in a Boom Town’. And most recently, residents have turned out in record numbers in an effort to influence the direction taken by various governing boards and regulatory agencies.

As a lifelong student of public policy and as an observer of the political environment of South Carolina, I have to opine that we are coming upon a very definitive moment in our history.  In short, Myrtle Beach, the Grand Strand and Horry County are at a fork in the road.  Which direction we take will determine the type of community we have for generations to come.  It also will determine how many of us will make a living and support our families.

The Fork in the Road is represented by two extremes.  The fork to the left is one that the direction is dictated by those in power and positions of influence who would have Horry County become ultimately a ‘live-in theme park’.  This option would be marked by a continuation of the tremendous building boom of late.  Pine trees would continue to fall in record numbers.  Our beautiful natural settings would give way to additional growth as our rivers would one day resemble the current ocean front.

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FOR MEANINGFUL DOWNTOWN REDEVELOPMENT, THE PAVILION SITE MUST BE THE ANCHOR

I have been involved with downtown redevelopment in the City of Myrtle Beach for twenty years. As a matter of history, the Pavilion Area Master Plan (PAMP), adopted by the City in 1998, was the guiding document that birthed redevelopment district boundaries, and subsequent actions by the Downtown Redevelopment Corporation and City leaders.  The PAMP identified 5 districts in need of action between 16th Avenue North and 6th Avenue South, and from Broadway and Oak streets to the Atlantic Ocean. 

To date, there have been many accomplishments, mostly in the North Entertainment District.  These include the Boardwalk, SkyWheel, Plyler Park and related private development.  However, we all are acutely aware of the continuing difficulties that exist principally in the 75-acres bordered by 9th Avenue North, the Atlantic Ocean, Kings Highway and 3rd Avenue South, referred to in the PAMP as the Central Amusement District and the South Mixed-Use Area.  In addition, the retail centers along Main Street (The Superblock), Broadway Street and their intersections with US Highway 501, known as the Entry District, have defied new growth as planned.   

In comparing successful new developments throughout Myrtle Beach over the last 20 years — beginning with Broadway At The Beach and the Grissom Parkway corridor, Coastal Grande Mall and outparcels, Market Common, Grande Dunes, and continuing redevelopment of ocean-front resorts, the question that needs to be asked is:  Why haven’t the Central Amusement, South Mixed Use and Entry districts of our downtown experienced the same new development and growth?  There are many reasons: closure of the Pavilion, the Great Recession, changing retail demand, multiple absentee property owners, political will, insufficient public infrastructure, small lots, lack of public safety resources, and the list can go on.

One of the precepts of successful downtown redevelopment is that you start at the center with a major anchor project, and then build outward over time.   We have, by necessity, started at the north end and worked toward the other, only to find ourselves blocked by the middle from reaching the south end.  Why are we stuck in the middle?  …

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North Myrtle Beach Tourism Development Fee Crushed in Vote

The possibility of a Tourism Development Fee in North Myrtle Beach suffered a crushing defeat Tuesday at the polls.

The unofficial tally was 188 Yes votes for the TDF against 3,050 No votes. The results will be certified by the North Myrtle Beach Election Commission Thursday.

Defeat of the TDF is not surprising. What is surprising is the turnout. In the days before the election, I spoke with several seasoned political professionals from Horry County to get their predictions for turnout. They all agreed the number of voters that would go to the polls would range from 750-1,000.

Those predictions were based on past turnout for special elections in Horry County and tempered by the fact that candidates were not on the ballot, just a single referendum question.

To put the numbers more in perspective, a special election in March on a referendum question only drew a total of 3,238 votes. The vote for mayor in the November 2017 city general election saw 3,670 total votes with Mayor Marilyn Hatley winning with 2,765 votes out of 3,670 votes cast. In that same election, councilman Terry White ran unopposed and only gained 2,894 votes.

To call the number of votes cast on this referendum question astounding is to understate it. But, it may also prove to be the high-water mark of politics for the current city council.

The result is exactly what, I believe, North Myrtle Beach city council members wanted from the beginning, a resounding repudiation of the TDF in a referendum vote to take that issue out of the political discussion once and for all. Several council members were quite outspoken with op-eds and social media during the campaign about their opposition to the TDF.

In my opinion, a presentation about the TDF by Mike Mahaney at the Tidewater Homeowners Association on February 19, 2018, one that I personally attended, hinted at other, one could say even better, options for the city than the TDF. The entire North Myrtle Beach city council attended the meeting after the city issued a notice three days before that there was no city council meeting February 19th.

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NMB TDF Vote Today

North Myrtle Beach voters will go to the polls tomorrow to decide whether a Tourism Development Fee will be instituted in the city.

I support the decision of the North Myrtle Beach City Council to allow this decision to be left up to the voters. Additionally, I support statements from council that, if passed, only the minimum TDF revenue required by law would be used for owner-occupied property tax relief with the majority of that revenue used to benefit all the citizens of the city with improved infrastructure.

The TDF was introduced to the state and this area in 2009. Since that time, it has been my opinion the TDF is used in Myrtle Beach to benefit the Myrtle Beach Area Chamber of Commerce, certain large business owners in that city and residents who live in high end homes.

The North Myrtle Beach approach is significantly different. The city is demonstrating it is not Myrtle Beach in the way TDF funds will be used if the referendum passes.

Since the recent North Myrtle Beach city council budget retreat, it appears city residents are in for some type of tax increase. A property tax increase of 2-3 mills was discussed by council at the retreat.

During presentations about the TDF, City Manager Mike Mahaney discussed the need to find a funding source to address parking problems around the city because public safety people are being tied up dealing with parking problems when they could be better utilized performing other duties.

If the TDF passes, city revenue from the fee could be the funding source for addressing parking problems, which would also benefit public safety by freeing personnel for other needs. Revenue for marketing North Myrtle Beach would be used to promote the North Myrtle Beach brand in order to maintain a strong economy in the city.

Mahaney said one mill of property tax brings in revenue of $375,000 to the city. Three mills, therefore, would bring the city an additional $1,125,000 in revenue for parking and other infrastructure.

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The Choice for North Myrtle Beach Voters

Voters in North Myrtle Beach have a choice on Tuesday when they go to the polls to vote on whether or not to approve a Tourism Development Fee in the city.

Interestingly, the choice is not between voting the TDF up or down, although that will be decided. The real choice is how voters want to pay for infrastructure and other improvement needs in the city and who should be doing the paying.

From recent discussions at the North Myrtle Beach City Council budget retreat, it appears some type of revenue increase is in the offing for North Myrtle Beach residents.

According to information I have received, the North Myrtle Beach City Council discussed a property tax increase of 2-3 mills during their budget retreat earlier in the week.

A property tax increase would be paid only by the property owners in the city. The TDF would be paid by everybody, tourists included, who makes purchases in the city.

The TDF has the added advantage of providing revenue for targeted marketing of the North Myrtle Beach brand (cleaner, safer, family oriented) to tourists who are the lifeblood of the economy in the city.

I attended a meeting of the Tidewater HOA recently where the North Myrtle Beach City Manager made a presentation on the TDF.

Part of the presentation showed pictures demonstrating the need for more parking facilities in the city, an infrastructure improvement that increased revenue to the city will fund, according to statements by council. In addition, road improvements and continued staffing of public safety personnel were discussed as needs.

Another part of the presentation compared revenue increases available from the TDF versus the possibilities from something called the Municipal Tax Reform Act, which is only at best a vague hope to at worst a pipe dream in the minds of city council.

The Municipal Tax Reform Act is a bill that has been stuck in committee in the S.C. Senate for over a year and has no hope of passage in this legislative year or the near future. (You can see more on this in other articles I have written about the referendum.)

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County Adds to Flames in Treasurer Lawsuit

Horry County Government threw more gasoline on the fire it has created with the Horry County Treasurer’s Office with a new filing in court Friday on the Treasurer lawsuit filed by Angie Jones.

The new filing is an amended answer and amended counterclaims associated with the original lawsuit against Horry County Government and Administrator Chris Eldridge, which was filed in November 2017.

One of the new complaints by Horry County is that Jones has refused to provide detailed information about her budget request for the next fiscal year to the Horry County Assistant Administrator Justin Powell.

The counterclaim states, “The Horry County budgeting process is handled by Horry County Council and administered by the Horry County Administrator.”

An email from Jones to Powell states, “I will deal directly with council in regards to my budget needs …”

From the above two quotes, it would appear that Jones is adhering to the provisions in state law. She is a countywide elected official elected by the people to run the Treasurer’s Office. The administrator is appointed by Horry County Council to administrate policies decided by vote of council for the departments that council has control over.

A South Carolina Attorney General’s Opinion dated October 26, 2007 states, “With reference to budgetary matters, while it’s true that the council exercises totally the budgetary authority of a county and can decrease, increase, or otherwise alter appropriations for county offices, nevertheless, it cannot so decrease the appropriations of an elected official’s office so as to prevent the proper functioning thereof.

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Fourth Circuit to Hear Oral Arguments in Skydive Myrtle Beach Appeal

A complaint brought by Skydive Myrtle Beach against Horry County Department of Airports has been tentatively scheduled for oral arguments before the U.S. Fourth Circuit Court of Appeals in Richmond, VA May 8-10, 2018.

See extract of official electronic notification here:

A quick recap of the case:

In early 2014, shortly after Skydive Myrtle Beach (SDMB) reported to the FAA of discriminatory actions against it by the Horry County Department of Airports (HCDA), HCDA and other Horry County officials apparently decided they wanted to eliminate SDMB from operating in Horry County.

Tandem skydiving is a recognized and approved use of publicly supported airport facilities by the Federal Aviation Administration. It is illegal for an airport that accepts publicly funded grants, as HCDA does annually, to discriminate against one type of approved aviation activity, say helicopter operations, over another – tandem skydiving.

In 2014, HCDA began circulating stories about alleged safety violations committed by SDMB while it was operating out of Grand Strand Airport.

In October 2015, Horry County government ultimately evicted SDMB from Grand Strand Airport using a 73 page FAA Director’s Determination as justification. It is the findings in the FAA Director’s Determination that is on appeal before the Fourth Circuit.

Much of the Director’s Determination report was based on 112 safety violations allegedly committed by SDMB and quite unofficially and sloppily documented by HCDA and its tower operator at Grand Strand Airport, Robinson Aviation.

On at least three occasions since the Director’s Determination was published, the FAA has admitted in email correspondence regarding Freedom of Information Act requests that it has no documentation with respect to investigations, fines or other actions taken by HCDA on the alleged 112 violations.

Likewise, Horry County Attorney Arrigo Carotti wrote in an email response to FOIA requests seeking information on the 112 alleged violations that, “These records are provided in an abundance of caution, in that each may or may not demonstrate violation by Skydive Myrtle Beach of Horry County Department of Airports Minimum Standards, as that assessment has not been undertaken.”

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North Myrtle Beach and Tourism

The beaches and the upcoming Tourism Development Fee referendum in North Myrtle Beach have hit the pages of local media recently.

The beaches must be protected from the potential dangers of offshore drilling and they must be routinely renourished in order to keep tourism viable in the city, according to recent articles.

Many arguments against the TDF were enumerated in a recent op-ed by a North Myrtle Beach resident. Unfortunately, the writer was arguing against the example of how Myrtle Beach has chosen to implement the TDF rather than how it can be positively applied in North Myrtle Beach.

There is no question that tourism is the lifeblood of all the coastal communities along the Grand Strand. In many ways, North Myrtle Beach has set an example that the others should strive to follow.

The business community has done a good job of advertising with its own dollars, promoting the North Myrtle Beach brand as a safe, clean, family friendly location.

The city has added to this effort by providing quality public safety services, stormwater outfalls to keep bacteria levels near the beaches low and other infrastructure that benefits both local citizens and tourists alike.

Properly used, the TDF, if approved, could be used to supplement these private and public efforts to keep the city competitive in the family friendly tourism market.

According to state law, from the second year onward, the TDF revenues can be split 80% for out of area tourism marketing and 20% to the city for property tax relief and/or tourism related public safety, infrastructure and other similar projects. The decision on the split and how the city portion is spent rests solely with the city council.

It was proposed in the above mentioned op-ed that it would be nice to be able to apply all of the revenue from the one percent fee totally to public safety, infrastructure and the like.

In fact, this was attempted by a bill submitted by Sen. Greg Hembree last year (S.426). Called the Municipal Tax Relief Act, this bill proposed a one-cent sales tax on all taxable purchases in the city that would go to city coffers to offset some of the demands on property tax revenues.

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