Tag: Horry County Council

Sun Sets on I-73 Funding

Nearly two years ago Horry County Council voted to remove the sunset provision on the countywide 1.5% hospitality tax that was passed 22 years ago to pay for Ride I projects, in order to provide a long term funding source for construction of Interstate 73 within the county.

Two days ago, the sun set on the I-73 project when Myrtle Beach city council called BS on the county’s right to extend the tax beyond paying off Ride I bonds by unanimously passing first reading of an ordinance to keep all the hospitality tax collected within its corporate limits for its own projects.

Yesterday, word began circulating around the county that North Myrtle Beach and Surfside Beach would soon mirror the Myrtle Beach initiative by voting to keep hospitality tax revenues collected within their respective jurisdictions for their own uses.

Ending the county’s ability to collect a 1.5% hospitality tax countywide will force county council to immediately terminate a financial participation agreement it signed with SCDOT on December 13, 2018, to provide funding for the I-73 project.

It appears county council was seriously misinformed about its ability to continue to collect a 1.5% hospitality tax ad infinitum when it voted to end the sunset provision of the original law. As a result, available county funding for important initiatives may suffer a serious setback because of the greed of a few proponents of the I-73 project and the rush in which they moved to extend county hospitality tax collections.

According to state law, hospitality tax revenue must be spent primarily within the local jurisdiction in which it is collected.

State law allows for local governments to impose up to a 2% hospitality tax with counties able to enact a 1% countywide hospitality tax. However, the county cannot collect more than 1% within the municipalities without permission by the municipality.

Section 6-1-720(A) of state code provides: “A local governing body may impose, by ordinance, a hospitality tax not to exceed two percent…The governing body of a county may not impose a local hospitality tax in excess of one percent within the boundaries of a municipality without the consent, by resolution, of the appropriate municipal governing body.”

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Horry County Council Needs Serious Study of New Solid Waste Management Plan

Horry County Council will hold a workshop Thursday on the new Solid Waste Management Plan (SWMP) being proposed by the Horry County Solid Waste Authority (SWA).

The new plan includes a proposed further expansion of the landfill on Hwy 90 in addition to an already approved expansion that, according to previous projections, was supposed to be accepting waste in 2017 but has not been constructed or needed yet.

Since its creation by Horry County Ordinance 60-90, the SWA has been tasked, “There is a need in Horry County to develop an acceptable alternative method of solid waste disposal and to reduce tonnage of solid waste disposal in sanitary landfills due to the County’s high water table and other geologic characteristics that make utilization and expansion of the existing landfills and development of new landfills especially expensive and difficult.”

Throughout its nearly 30 year existence, the SWA has failed to live up to this task. The latest proposed SWMP clearly demonstrates this failure by planning an expansion on top of an already approved expansion of landfill facilities.

The SWA staff and board members have been pushing for approval of the new SWMP since October 2018 so the authority can go forward to the S. C. Department of Health and Environmental Control with an application for a permit for the newly proposed expansion.

But, rushing approval through council so application can be made to DHEC for approval of a second landfill expansion when one expansion is already approved but not begun seems questionable.

The burying of solid waste is expensive. It becomes even more expensive when proposed expansions are built on top of former landfills which are already closed, which is the basic plan in the approved and proposed expansions.

In addition to construction and daily operations, much of the expense associated with a landfill is the cost requirements of both the state and federal governments to properly close exhausted landfills (closure costs) and to monitor what is happening in the buried waste for 30 years beyond closure (post closure costs).

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Proposed Myrtle Beach Law Should End I-73 Funding

A proposed ordinance by the City of Myrtle Beach regarding collection and distribution of Hospitality Tax should end the I-73 funding agreement between the county and SCDOT that was approved late last year.

In the proposed ordinance, the city declares the 1.5% countywide hospitality tax passed by Horry County in early 1997 to have ended in 2017 when the county voted to extend the law beyond its original sunset provision.

The 1.5% countywide tax was used to pay off Ride I bonds. The last payment on Ride I bonds was made in January 2017, according to county sources.

With that final payment, it appears that the 1.5% countywide tax is no longer allowed by state law. It appears the county did not receive proper legal advice on its ability to remove the sunset provision and continue collecting 1.5% countywide.

Current state law allows counties to impose only a 1% countywide hospitality tax. Any more to be collected within municipalities must be approved by the municipality by resolution, which obviously is not going to happen in Myrtle Beach.

Myrtle Beach appears to believe it can collect the entire 2% local hospitality tax allowed by state law for its own use.

However, if the county moves forward to impose a 1% countywide hospitality tax, Myrtle Beach will probably end up with only the same 1% hospitality tax revenue it currently receives. Some legal wrangling between the two governments can be expected before this issue is finally resolved.,

While that legal wrangling is going on and until the county imposes the proper 1% countywide hospitality tax, the county will not be collecting enough funds to fully fund the up to $25 million that is stated in the Financial Participation Agreement it signed with SCDOT on December 13, 2018.

In addition, county council must understand the complete uses it can make of hospitality tax revenue and how much funding it can put toward things like public safety, existing roads and infrastructure, recreation facilities and storm water mitigation.

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SLED Report in Review by Solicitor

The SLED investigation report into allegations of wrongdoing by Horry County Council Chairman Johnny Gardner was delivered to the solicitor’s office late Thursday afternoon, Fifteenth Circuit Solicitor Jimmy Richardson confirmed to Grand Strand Daily today.

Richardson will receive a full briefing from SLED agents before releasing a statement about his conclusions, probably Monday.

The report included videotapes of all interviews conducted by SLED in the investigation, a complete copy of the recording of a November 30, 2018 meeting between Sandy Davis and Sherri Steele of the Myrtle Beach Regional Economic Development Corporation and Gardner and his business partner Luke Barefoot and other items related to the investigation.

According to Richardson, the report was subjected to peer review before its release, which means an agent not involved in the initial investigation checked the report for accuracy in its findings.

The attempt to smear Gardner was initiated by Horry County Administrator Chris Eldridge and Horry County Attorney Arrigo Carotti with a memo sent by Carotti, with the full concurrence of Eldridge, to council members after 6 p.m. December 19, 2018.

Before 6 a.m. December 20, 2018, the memo and a story connecting the words “Gardner” and “extortion” appeared on the website of a Columbia media outlet. The media outlet is the same one that attempted to smear Nikki Haley with allegations of illicit affairs when she was running for governor in 2010.

The less than 12 hours, evening and night hours, is much too tight for anything other than a pre-planned leak of the Carotti memo, labeled “Attorney Client Privileged”, and the accompanying sensationalized story.

Access to the memo was initially limited to the 12 members of council in December 2018 plus Eldridge and Carotti. Who leaked the memo? I can think of only three of the original 14 who could possibly think they would benefit from such a leak.

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Council Votes to Pay Magistrates Retroactive Raise

Horry County Council voted to pay the county magistrates retroactive to FY 2017 for a pay raise that was voted by council but never instituted.

Council voted a three percent pay raise for all county employees beginning FY 2017. The magistrates also received a 3.5% pay raise from the state budget beginning that year.

Despite being included in the county budget to exclude the county three percent raise for the magistrates.

Council member Al Allen questioned how the county got to the point where the magistrates had to threaten to sue the county in order to receive a pay raise approved by county council.

“The public needs to understand how we got here,” Allen said. “Who made that choice?”

Despite the presence of all senior staff at the meeting, not one had the integrity to step up and say they made the decision.

According to several sources inside county government, administrator Chris Eldridge made the decision to exclude the magistrates from the council approved budget pay raise.

Allen made the point that eliminating the magistrates from the pay raise amounted to an amendment to the county budget not approved by council. It takes a three reading budget amendment ordinance passed by an absolute super majority of council (9 yes votes) to amend the budget once it is approved.

Apparently Eldridge believes he can do it by executive fiat.

The magistrates item was not the only pay issue discussed by council.

At the regular meeting two weeks ago, council members Dennis DiSabato and Cam Crawford requested staff to prepare a study to compare the cost of the current merit raise pay policy of the county to a more standard pay scale for public safety employees, such as the one used in other counties throughout the state and in the military.

Instead, assistant administrator Justin Powell and Eldridge briefed council on a study commissioned to compare Horry County employee compensation with 15 similar counties in the region.

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County Council to Address Magistrates Pay Dispute

Horry County Council will decide tomorrow night whether to resolve a pay dispute between the county magistrates and the county government.

The dispute dates back to the Fiscal Year 2017 budget which began on July 1, 2016. During budget deliberations nearly three years ago, Horry County Council decided to approve a pay raise of 3% for all county employees.

Magistrates are state constitutionally mandated positions appointed by the governor upon the recommendation of the local legislative delegation. However, they are county employees paid for from the county general fund.

The county receives a portion of magistrate pay each year from the local government fund in the state budget. The local government fund is designed to help counties fund state mandated positions.

Historically, the S. C. General Assembly underfunds the local government fund, which is supposed to be funded according to a specific formula.

According to information received by Grand Strand Daily, the General Assembly mandated an approximately three percent pay raise for county magistrates in its FY 2017 budget and raised appropriations in the local government fund to pay for that raise.  

According to state law, counties cannot reduce the amount they pay employees in state mandated positions when the state gives those employees a raise. By not specifically excluding the magistrates from the county raise of three percent for “all county employees,” the magistrates claim they were entitled to both the county and state raises.

However, the magistrates received only the raise mandated by the state. Despite county council budget discussions and votes, the magistrates were excluded from the county pay raise. According to several sources in county government, administrator Chris Eldridge made the final decision to exclude the magistrates from the county pay raise.

The magistrates are asking the county for a retroactive three percent raise and a lump sum check for nearly three years of missed wages.

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I-73 Votes Ignore Immediate Local Needs

The I-73 participation agreement Horry County signed with SCDOT in December, at the urging of administrator Chris Eldridge and former council chairman Mark Lazarus, ignores local road needs, highlighted by recent flooding issues, for a new road that is years and over one billion unidentified and uncommitted dollars from completion.

When county council adopted Resolution 82-18 in July 2018, it specifically dedicated up to $25 million toward the I-73 project only. With this resolution in place, the county may not use any of this money toward repair or improvements to U.S. 501, S.C 9 or other roads in the county as flooding events since Hurricane Floyd in 1999 have shown to be needed. These funds can be used to improve S.C. 22 as that is part of the I-73 project.

There has been a general rush to dedicate funds for I-73 since right after the June 2018 primaries. Council held a special meeting on July 24, 2018 where Resolution 82-18 was passed which dedicated up to $25 million per year of 1.5% Hospitality Fee revenue to the I-73 project.

Staff immediately began conversations with SCDOT to develop and present the I-73 participation agreement. During the November 28, 2018 fall budget workshop, council approved allowing the administrator to execute the participation agreement with SCDOT. The agreement was executed by administrator Eldridge for the county and Christy Hall, the state Transportation Secretary on December 13, 2018.

At the July 2018 special meeting council also passed Resolution 84-18 directing staff to develop a plan to use $18 million of the 1.5% Hospitality Fee revenue on public safety and other roads. In addition, the resolution directed staff to draft an amendment to Section 19-6(h) of the Horry County Code of Ordinances, which currently requires all of the 1.5% revenue to be deposited in a Special Road Fund. The amendment would allow the $18 million to be used on other state approved tourism related expenses such as public safety, recreation, storm water and other infrastructure improvements.

To date no amendment has been presented to council. The amendment would require a three reading ordinance to become law. In addition, no plan for use of the $18 million has been presented.

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A New Emphasis on Public Safety in Horry County?

Throughout his campaign for election last year, Horry County Council Chairman Johnny Gardner pledged “Public Safety Priority One, Day One.”

By the time Gardner decided to run for chairman last March, county employees in general and public safety personnel in particular were suffering under low pay and demanding working conditions due to understaffing.

These conditions had been allowed to go on under the administration of former chairman Mark Lazarus and county administrator Chris Eldridge. The cry was always that there wasn’t enough money to hire more people or give current employees much in the way of raises.

Recognizing the particular frustrations of public safety employees, the first responders that are most needed when problems arise, Gardner coined his campaign phrase, not as something to say to get elected, but rather as something to do after he was elected.

Now, less than two months into his term of office, it appears that a majority of council members have bought into that philosophy.

Council members Harold Worley and Al Allen,  two of the more senior members of council, have long advocated for better pay and increased staffing for public safety, but they operated as voices in the wilderness as Lazarus, Eldridge and other senior county staff consistently cried ‘no money, no money.’

Current Public Safety Committee Chairman Danny Hardee joined the ‘wilderness chorus’ when he was elected to council two years ago, but it was still only three council members with the remaining nine basically buying into staff propaganda.

However, the situation appeared to change at the regular meeting of council earlier this week when council members Cam Crawford, Dennis DiSabato, Tyler Servant and newly elected Orton Bellamy voiced support for a new study on pay and staffing for public safety personnel.

These are heartening additions as there now is a possibility of at least eight votes supporting proper pay and staffing for public safety.

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The Dirty Tricks Campaign Against Johnny Gardner

We live in a political climate where dirty tricks are used to create rumors to smear those seen as enemies by the rumormongers.

These rumors, lies are what they really are, come in all shapes and sizes, but they have the same thing in common – to discredit the person they are aimed against.

How well they work depends on the gullibility of the audience they are targeted to influence.

Some of the more ridiculous rumors about public figures we have heard include:

Justice Brett Kavanaugh as a young man attended parties where women were routinely gang raped. That one pushed the envelope too far to be believed.

In late 2015 when Donald Trump had established himself as a serious contender for the Republican nomination, a fake story said he told a magazine in 1998 if he ever ran for president it would be as a Republican because “they’re the dumbest group of voters in the country” and that “he could lie and they’d still eat it up.” Rather than hurt him with Republican voters, Trump went on to win the nomination and election.

In the 2000 primary season, John McCain was accused of fathering an illegitimate black child, which was actually a child from Bangladesh that McCain and his wife adopted. This one stuck a bit with South Carolina voters as George Bush came from behind to win the South Carolina primary and go on to be elected president.

Rumors were circulated about Nikki Haley having multiple affairs during the 2010 primary season, which the voters disregarded. In fact, the rumors were so poorly presented that Haley vaulted from fourth place to win the Republican nomination and go on to twice being elected South Carolina Governor.

More recently, Horry County citizens have been presented with a rumor about county council chairman Johnny Gardner. Interestingly, the Columbia website that played a prominent part in publishing a leaked memo about the fictitious plot from county attorney Arrigo Carotti, written in conjunction with administrator Chris Eldridge, was the same website that played a prominent part in the Haley rumors.

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Horry County’s Flawed I-73 Agreement

The Financial Participation Agreement between Horry County and the South Carolina Department of Transportation, approved by Horry County Council November 28, 2018, appears to have many flaws not discussed before a resolution was passed allowing Horry County Administrator Chris Eldridge to sign the agreement.

Generally the agreement provides that Horry County will provide up to $25 million per year from Hospitality Fee revenues to fund the construction of I-73 within Horry County (the Project) and SCDOT will oversee the project from design through construction.

The written agreement states, “SCDOT shall provide an Annual Work Plan to the county on the activities proposed by March 31 that the county shall approve prior to June 30 before commencing work in the succeeding fiscal year.”

I find the use of the word “shall” interesting here in that it means a strong assertion or intention of something happening. Are we to take it to mean the county intends to approve the work plan prior to each June 30th? Does this mean county council really has much of a choice in the decision?

At least a half dozen times during the over one hour discussion about the project and the agreement county council members were told by then council chairman Mark Lazarus and/or county staff members, predominantly administrator Chris Eldridge and attorney Arrigo Carotti, that no money could be spent on the project without prior approval from county council.

To support those statements, Carotti quoted to council the first sentence of Section III (D) of the agreement which reads, “SCDOT shall not enter into a construction contract without the County’s prior approval based on considerations that the contract provide a meaningful connection to the proposed I-73 corridor in part or in its entirety.”

What Carotti did not quote were the next two sentences of Section III (D) which read, “The County’s prior approval shall not be required to enter into contract agreements for improvements to SC-22, provided the cost thereof does not exceed the estimates provided in the Annual Work Plan. Nor shall the County’s prior approval be required for any right-of-way acquisition agreement or consultant agreement for work of the Project provided the cost thereof does not exceed the estimates provided in the Annual Work Plan.”

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