‘Off a cliff’: SC cities, towns, counties prep for bottom line coronavirus impacts.
Cities, towns and counties are providing critical services -- from public health information to law enforcement, emergency response and fire service -- during the COVID-19 pandemic. Yet coronavirus could take its toll on those services.
“We were at the point we thought we were going to have a pretty good budget to craft to you,” Lancaster County administrator Steve Willis told Lancaster County Council on Monday night. “And then the revenue went in the toilet, and we’re starting over. We’re trying to just do a sustenance budget and maintain where we are.”
Shops are closed. Restaurant dining rooms are too, along with many places of business throughout this area and the country. Drastic business changes could mean revenue shortfalls for counties if coronavirus continues to shut down commerce.
“We know that we’re not going to have the revenue to do some of the things that we wanted to do,” Willis said.
Lancaster County must have its budget ready by June 30. Already an April meeting on budget issues was postponed.
Willis anticipates a budget with basic modifications this year. Still, there are needs like the 1% increase for the retirement system and 6.7% increase in the state health plan, he said. Willis is hopeful he’ll have a budget to cover county employee increases and insurance.
“Beyond that, we’re going to have to take a real hard look at revenue,” he said. “Property tax revenue I think is going to continue on, but sales tax revenue and fees are probably going off a cliff. It’s still early on, but we’re not optimistic.”
The local government fund from the state could see changes. The state House had a budget with an increase, but conversations with elected leaders has Willis under the impression the state may have to start over.
Lancaster County Councilman Brian Carnes doesn’t anticipate that House budget increase.
“I spoke to Rep. (Brandon) Newton today and he said you probably want to not count that (increase) in your budget,” Carnes said.
York County
Kevin Madden, assistant county manager and treasurer in York County, said he too looks to make budget adjustments as coronavirus impacts various funding sources.
“We’re doing the same thing right now,” he said. “Obviously this is all moving very quickly.”
York County also has its annual budget due June 30. The plan is to cut where possible to get expenses down, then add them back as the financial picture brightens.
“We’re going to put in the budget what we need to operate and serve our citizens,” Madden said.
Two areas in particular that rely on sales tax revenue are Pennies for Progress and hospitality tax. Pennies is a 1% tax used to fund road projects in York County. The most recent Pennies referendum, approved by voters in 2017 with seven years worth of collections starting in May 2018, listed almost $278 million in projects.
Hospitality tax is a 2% charge on prepared food and drink in unincorporated York County. Municipalities often have their own hospitality taxes. All those funds go to projects that promote tourism.
Madden said he doesn’t expect the financial situation for Pennies or other county programs to become dire. He stressed the county is on solid financial footing and residents need not worry about critical services.
“You are not going to see a drop off in any of the services from the county,” Madden said. “Residents should feel confident York County is set up to weather the storm.”
Virtual business, postponements
Alison Alexander, deputy county administrator in Lancaster County, told her council Monday night that plenty changed in the past week. Monday was the first day the county administration building wasn’t open to the public.
“We are strongly urging residents to call or email before they drive to an office,” Alexander said. “Many times they’re going to find that they’re not able to access the office or that services are being provided primarily through appointments, or — in the case of the treasurer, auditor and delinquent tax — through the drive-thru.”
She expects the changes to be in place for a while.
“We foresee this going on until this crisis has passed,” Alexander said. “I do not see allowing the public back in this building anytime soon.”
Municipalities get significant sources of revenue from building or business permits, utility bills — a wide variety of charges. Some costs could continue largely unchanged. Customers still will use water, for instance. Others may not. Cities, towns and counties throughout the area have canceled advisory board and commission meetings. Large commercial projects that generate municipal revenue often require extensive staff review and multiple public meetings.
If those meetings are postponed or canceled, developers may not be allowed to move forward with projects even if they wanted to do so.
Fort Mill, for instance, canceled its March planning commission meeting due to coronavirus concern and lack of a quorum. That agenda had a review of a 4,500-square-foot downtown office building, approval of road names for a new subdivision and a text change on hospitals allowed in a highway commercial zoning district.
Several municipalities announced plans in the past week to do more virtual business, either online or on the phone, through drive-thru or other methods.
“We encourage you to practice social distancing and conduct city business online or by phone,” Rock Hill Mayor John Gettys said in a public announcement video on Tuesday. “From utility service to permit applications, there are a number of ways you can connect with the city.”
Gettys said there is a new chat feature on the customer service page to help, and asked anyone facing financial hardship due to COVID-19 to call account management to make the city aware. Many city business activities, he said, will continue.
“You can submit permit applications, building plans, schedule inspections and even get plans electronically stamped online with our planning and development department,” Gettys said.
Fort Mill is in constant evaluation of policies and procedures. There have been staffing shifts and meetings held remotely. Town leaders don’t anticipate any changes to their budget process, which comes due Oct. 1. The town, like others, has to balance the public business with the safety of staff and residents.
“We are working to place the safety of all employees and our community first,” said Mayor Guynn Savage. “We continue to operate daily to stay in contact with all local, county, state and federal officials for updates and changes. We are practicing social distancing and ask that all do so as well.”
Long-term impact
As public bodies look for answers in the short term, other public funding changes impacted by coronavirus could be long-lasting. Once each decade the U.S. Census Bureau conducts a national census. Data on how many residents live in what parts of the country impact billions of dollars of federal money sent for schools, roads and other key infrastructure.
On March 18, less than a week after the full kickoff for the 2020 census, the bureau suspended field operations through April 1 due to coronavirus concerns. Online activity continues. The bureau announced there could be further schedule changes or delays. Plans are to have census workers begin canvassing areas where residents haven’t yet responded by late May.
Steve Harper, Lancaster County Council chairman, echoed what other elected officials in the area expressed in recent days thanking their various staffs for their adaptation to the coronavirus.
“All the departments are coming together,” Harper said. “Because you know we have to keep running.”
Harper said he doesn’t know the legality of property tax extensions or other methods his council may have in coming months to help citizens of conditions worsen.
“There’s a lot of people right now that don’t have jobs, and we’re going to have to make some concessions as a county,” he said.
This story was originally published March 25, 2020 at 8:33 AM.
