Council members voted 11-0 to set the tax rate for the 2004-05 fiscal year at 48.6 mills for county operations, special programs and debt service and 94.2 mills for school district operations and debt service. A $65.5 million county budget and a $129.4 million schools budget were approved earlier this summer.
The tax rate means that the owner of a $200,000 home would pay around $1,142 in property taxes -- $388 for the county's taxes and $753 for the school district. Taxes on a $200,000 home last fiscal year were $1,555, or $512 for the county and $1,043 for the school district. Property taxes paid to municipalities, fire districts and sewer districts are not factored in to these totals.
The recent reassessment of property throughout Beaufort County has left many property owners up in arms. Some properties have increased in value by 300 percent or more since the previous assessment in 1998.
Council members were quick to note that while assessments are generally increasing, the tax rate is declining.
"There is no windfall to the county," said Councilman Mark Generales.
Properties that haven't gained more than about 13 percent to 20 percent of their value since 1998 could even see a tax reduction this year, said county controller Tom Henrikson.
Properties whose assessment increased 50 percent this year would probably face a 15 percent tax increase, Henrikson said. For properties whose values doubled, that would mean a 55 percent tax increase over last year.
County administrator Gary Kubic said before the council voted that he had some concerns about the tax rate approved by the council. His top concern was a bill approved by the state legislature and awaiting action from Gov. Mark Sanford that would cap property reassessments at 20 percent. Sanford has not said whether he would sign the bill.
Kubic said he already had a couple of concerns about the county's finances: The cash reserve fund is running slightly below where it should be, and the county is facing higher-than-expected costs for employee health insurance.
A separate item on the agenda did not meet with council members' approval. The council delayed action on the addition of blast pads at Hilton Head Island Airport. Some residents have criticized the pads -- paved additions of 200 feet to each end of the runway -- as runway extensions that could accommodate larger planes. But airport officials say the extra pavement would be used only in case of emergency.
Councilman Peter Lamb criticized airport officials, saying they "deceived" council members by not clearly explaining the blast pads.
But John Curry, who serves on the aviation board, insisted the blast pads wouldn't work as a part of the regular runway.
"If the runway is ever expanded, those blast pads will have to be torn up," he said.
Council Chairman Weston Newton urged openness as the council sent the issue back to the county's Aviation Advisory Board for more public input.
In other business, the council voted:
Kubic said the plan will save the county up to $1.3 million, although it may require layoffs of four or five employees. The county's human relations and health insurance work will be handled by Tri-State PEO of New York.