CONWAY, SC (WBTW) – The coronavirus pandemic is placing budget pressures on local municipalities. Conway City Council approved the city’s 2020-2021 fiscal year budget on Monday but city leaders decided to waive increases in fees due to COVID-19 concerns.
The decision would scale back $1.8 million in funding intended to be collected in increased fees. The ongoing COVID-19 situation has local municipalities on the front lines responding to the pandemic as they look to approve budgets for the fiscal year.
“Its been 14 years in some cases that we have had any increases in some of these types of fees,” William Goldfinch, Conway city councilman said.
City council put the budget together in March before businesses taking a devastating hit. Council explained the importance of the city’s understanding that the rates change with the city’s cost of living. Members agree the unprescedented timing is not the time to introduce a surge to Conway business leaders and residents.
“When you put into consideration timing when you talk into consideration the rate increase amount it definitely factors in and is a big increase to businesses especially with everything else going on,” Devin Parks, Director of Conway Chamber of Commerce said.
A smaller fee consistently raised on a steady basis was discussed by council members. Funds that were set for a hefty increase this fiscal year likely hadn’t seen an increase in five to ten years, council members say.
Among the funds to see rise before the council agreed on the decision to approve the budget without new increases were stormwater funds, public utilities, and building permits.
“We need them but then we also recognize the optics of a 33% increase just doesn’t sound right so I think our plan going forward will be to phase those in over the next few years council,” Goldfinch says.
Goldfinch hopes the city understands increases are essential for improvements. As Conway continues to grow, a steady increase in funds year to year helps keep up with new infrastructure for betterment of the community.
“If a business or organization knows that something is there and they can count on it going up 1.5 percent next year or 2 percent next year or every year after that’s not much different than inflation,” Goldfinch said.
The 2020-2021 budget will go into effect on July 1st. Goldfinch says council can back any date to revisit the budget and amend an ordinance that would waive increases.