Sangaree Connection

I have received news from a source close to the Sangaree Special Tax District Commission indicating that a large shortfall in the Tax District’s budget has been found. In order to make up for the shortfall, our taxes will be raised a significant amount. In addition, the tax district will not be able to acquire the new administration building/fire station that we told you about on the website (see item #2). In fact, Sangaree taxpayers can expect to receive no additional services from the tax hike.

How could this happen? Some of you may remember that a few years ago, the Sangaree Special Tax District lowered our taxes. Berkeley County had found that the tax district had a large amount of money, approximately $1 million, which had built up due to frugal spending by the district. The County Council mandated that the tax district reduce the fund balance. It seems that General Manager Chuck Chears, and then-Commissioner Charlie Davis, recommended to reduce taxes and make up the shortfall with the overage.

The overage is almost all gone and there is not enough tax money to make up the ongoing shortfall. Their solution? To raise Sangaree’s millage from 34 mills to at least 49 to make up the difference. To you and me, this will be an increase in our property taxes of about $50-$150.00.

According to our sources, the shortfall was discovered by accident. The shortfall was found while the commissioners were reviewing the budget for money they could use to fund a new administrative building and fire station. The Sangaree Special Tax District does not do any budget forecasting to estimate the tax district’s future income and expenses. They only look from one year to the next.

Bear in mind, taxes would have needed to be increased in some method as the reduction was paid for from the savings the tax district had accrued. However, as officials only recently found the shortfall, taxes that could have been increased gradually over a 2-3 year period will need to be raised all at once.

I spoke with Mr. Charlie Davis, Berkeley Councilwoman Cathy Davis’ husband, and a Tax District Commissioner when the taxes were originally lowered. According to Mr. Davis, “There isn’t a problem.� Although he acknowledged that taxes will need to be increased and that the building on Farmington can not be purchased.

Mr. Davis stated that the budget shortfall can be attributed in part to the increased garbage collection contract, and that the building on Farmington was too expensive. Mr. Davis also said that he and Tax District Commissioner Marty Richard are investigating cheaper alternatives to that building, and that a building may be financed with bonds that can be repaid at 3% interest.

This is the situation as it stands now. The current budget that Sangaree has submitted to the County is still calling for a millage of 34. Due to scheduling conflicts, the County and the Tax District have yet to meet and find a solution to the current problem and how to prevent it in the future. They have also not discussed if or how they will explain what happened to the residents.

I will keep you posted on developments on this situation as I learn more.