NORTH MYRTLE BEACH, SC (WBTW) – North Myrtle Beach city council members and other leaders will discuss a potential property tax increase during the two-day budget retreat.

City leaders will travel to the Santee Cooper’s Wampee Conference Center in Pinopolis for the fiscal year 2019 budget retreat planned for Monday and Tuesday. The city’s fiscal year runs July 1 – June 30.

The proposed budget is $96.2 million, roughly $8 million less than the 2018 budget.

The city says the retreat may include discussion on three main topics, among other agenda items. Those three items include:

  • A potential property tax increase of between 1 and 2 mills
  • Proposed adjustment to business license fees
  • Proposed adjustment to the sewer base fee and volume charge

The city reports a potential property tax increase is needed for “capital improvement projects, a state retirement system-mandated $260,000 increase in the city’s contribution for police and fire retirement funding for FY (fiscal year) 2019, increases in health insurance, and apparent imbalances in police, fire and other pay categories as compared to other municipalities.”

North Myrtle Beach reports city residents pay a property tax of 41.3 mills, the lowest in Horry County and one of the lowest in the state, according to city leaders. Officials argues that an increase of one or two mills would still allow North Myrtle Beach residents to live under the lowest property tax rates in the county.

According to the city, 1-mill of property tax equals about $375,000 in revenue. A 1-mill property tax increase on a $350,000 home would amount to an increase of $14 annually and a 2-mill property tax increase on the same home would increase the owner’s taxes by $28 annually.

North Myrtle Beach also plans to discuss increasing the business license fees to generate revenue for the city. Officials say the city has not adjusted its business license fees since 1986. Leaders have proposed increasing the rate by 25% of the difference between North Myrtle Beach and Myrtle Beach business license fees.

The city gives an example on its Facebook page:

In the “Building, Auto Parts & Clothing” business license category, the current Myrtle Beach base rate is $105 and the current North Myrtle Beach base rate is $35. The difference between the two rates is $70. 25% of $70=$17.50. Thus, the proposed North Myrtle Beach base rate for this category would be adjusted from $35 to a proposed $52.50, still lower than the Myrtle Beach base rate of $105.

A third cost increase the city will discuss is the sewer base fee and volume charge. Leaders say an increase is needed to “bring sewage revenue in line with sewage expenses.”

For about 12,660 of the city’s sewer customers, the base rate on a ¾-inch meter would go from $6.32 to a proposed $8.00, plus a 7-cent increase per gallon for 10,000 gallons. The total proposed adjustment would be about $2.38 for the first 10,000 gallons, the city reports. Larger meter sizes would have a greater increase in costs.

The city notes that sewer projects and improvements are needed, to include: rehabilitation of the Cherry Grove Water Tank ($1.2 million), improvements to the wastewater treatment plant ($875,000), and sewer pump replacements ($300,000).

A detailed schedule of the budget retreat, as well as more information on future projects within the city, can be found on the North Myrtle Beach Facebook page.