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Charleston plans no 2005 tax increase

Budget includes higher parking fines, permit and inspection fees; spending to rise 6.3 percent
BY DAVID SLADE
Of The Post and Courier Staff

The city of Charleston plans to hire more police officers, give raises to city employees, and absorb large increases in the costs of fuel and employee health care without raising property taxes or business license rates next year.

Under the city's proposed budget for 2005, however, there would be increases in monthly parking garage fees, numerous permit and inspection fees, and fines for parking too long in a residential area or parking in a restricted area, such as a loading zone.

The cost of parking at a meter would not increase.

Mayor Joe Riley said the increase in certain parking fines is aimed at reducing violations rather than raising revenue. Permit and fee increases were designed to bring Charleston's rates in line with neighboring towns and cities, he said.

Charleston's total spending would rise 6.3 percent to $116 million, under the budget Riley described to City Council members this week.

Increasing revenue from the local-option sales tax, business- license sales, franchise taxes and parking operations would finance much of the spending increase.

If the budget is approved, it would mark the fourth consecutive year with no property tax rate increase in Charleston and the 17th year without an increase in the business license fee.

The owner of a house worth $200,000 would continue to pay the city about $553 in property taxes. Local-option sales tax collections help keep the tax rate down, Riley said.Council members are sorting through the details of the inch-thick budget in preparation for their next meeting, when they will vote on the plan.

The city's largest single expense is public safety, which accounts for roughly 40 cents of each dollar the city spends. The city has been steadily increasing the police department ranks, and this year also hired a dozen new firefighters.

With plans to hire five additional police officers in 2005, Charleston will have 368 police officers and 239 firefighters.

Riley noted that the cost of public safety exceeds the amount of money Charleston collects in property taxes.

The budget calls for all city employees to receive a 2.65-percent salary increase next year, plus $400 on the anniversary of their hiring. That two-part system means that lower-paid workers get a larger percentage increase than higher-paid workers, Riley noted.

The city also will increase its contributions to the state- retirement system, spend nearly 12 percent more on employee health insurance costs, and spend $145,000 to put firefighters in the public-safety retirement system rather than the state retirement system, which will mean higher benefits for firefighters.

Riley said it is the city's goal to be an employer of choice for municipal employees, in order to attract the best workers.

City Council is scheduled to vote on the budget Dec. 7 and 21. The Dec. 7 meeting will start at 5 p.m. at the Charleston County Courthouse Judicial Center, 100 Broad St.

David Slade covers the city of Charleston. Contact him at 937-5552 or at dslade@postandcourier.com.


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