York County homeowners may see slight tax increase after bond vote

The York County Council on Monday got its first look at the budget for next year, and taxpayers may see a slight rise in the tax rate they pay on their homes come July.

The draft budget for 2016-17 includes a planned increase in the tax rate assessed on property taxes. The change should be a modest one. Estimates in the budget show an $18 increase in the tax rate on an owner-occupied home valued at $100,000. Commercial properties will see a bigger increase, with a property valued at $500,000 owing an extra $135 on next year’s tax bill.

Much of the increase – $12.40 on residential property and $93 on commercial – will go to fund county bonds. Last November, York County voters approved bonding for $89 million worth of new projects to renovate county buildings such as the Moss Justice Center in York and a new Family Court building on Heckle Boulevard in Rock Hill. The County Council separately approved a $19 million bond to build a new county administration building.

In total, the $538.6 million budget is 27 percent larger than the 2015-16 budget, the overwhelming majority of it from an additional $9.4 million in debt service on new capital projects, and $113 million in construction costs, which will be spent over the next several years.

The county manager’s report notes that debt service “will be less than projected for the next three years as the County is required to use the $15.8 million received in premium at closing to pay the bond principal in each of those years. In FY (fiscal year) 2017 the principal amount due is $5.3 million.”

York County could end up cutting some spending elsewhere in the budget. The general fund budget will shrink by $4.39 million from last year; the capital improvement program will spend $11.4 million less next year, reducing the program’s budget more than half; and $13 million less will be spent on the 2003 round of “Pennies for Progress” road projects.

The county manager’s report notes that the tax increase corresponds with a 2.5 percent increase in York County’s population, the sixth largest year-on-year increase in population in South Carolina, according to the county manager’s comments on the proposed budget. That allows York County to raise taxes in line with the state’s tax-cap law Act 388.

Some County Council members said Monday they want to see money budgeted for the York County Forever Commission, a body appointed by the council to promote natural resource conservation, but without funds budgeted by the county.

The county manager’s budget report says the county’s growth rate won’t allow them to budget the requested funds.

“Due to the millage limitations set forth with adoption of Act 388, the current year allowable rate is not sufficient to allow this request to be included in the current recommendation,” the report says.

The new budget, and its tax rates, will come into force July 1 if ultimately approved by county council.

This story was originally published May 2, 2016 at 8:59 PM with the headline "York County homeowners may see slight tax increase after bond vote."