Rauch's latest plan would lower the city tax rate by 5 mills, equaling Burton Fire District's millage rate. The tax reduction would save the owner of a $200,000 home in Beaufort about $40 a year.
At the Sept. 14 City Council meeting, Rauch proposed a 2 mill drop, listing estimated savings in the Beaufort Police Department and a telecommunications tax revenue increase as justification. The proposal was defeated 2-2 with council members Frank Glover and Donnie Beer voting against the measure until they had more information, while Councilman Billy Keyserling balked at the lack of hard numbers and abstained from voting. Gary Fordham voted with the mayor.
The Beaufort City Council is required to provide a city tax rate to the county by October.
For tonight's meeting Rauch has prepared a more detailed plan which points to budget savings through allocations for unmade interest payments as well as the telecommunications tax collection increase.
Having a tax rate on par with Burton, Rauch said Monday, means that residents in annexed properties would receive city services while the city would receive an increased tax base.
"(Burton residents) will see they get more services for the same amount of money," said Rauch, who listed subdivisions on Battery Creek and businesses and homes on U.S. 21 in Burton as good matches for the city should they like to annex.
Not listed in the new proposal, however, were the previously mentioned police department savings which, after review, were found to be in the next fiscal year.
When asked if some of his fellow councilmen were prudent to not endorse the tax cut when the cited potential budget savings did not exist, Rauch responded, "Obviously that was not a well-researched presentation, but the savings are there."
Beer described the recent ideas floated by the mayor as "fiscally irresponsible," and is suspicious of the timing, charging them as political maneuvers before November's mayoral election.
"It looks good on his record, according to him," she said Monday.
Beer said many of the savings Rauch cites are conditional and that neither the city's finance director nor the city manager expressed concerns about the tax rate that council approved minutes before Rauch's motion two weeks ago.
Beer also fretted about further straining city employees with new areas to service, should there be annexations.
"Why punish our employees?" she asked, contending city employees are already overworked and rather than keep shaving the tax rate, more money should be diverted to their salaries and new hires.
Council members Keyserling and Fordham both wished to review the proposal further before commenting.
Regardless of tonight's outcome, there is consensus among city officials that tax rates will again need to be adjusted soon should Gov. Mark Sanford sign legislation to set a 20 percent tax cap on increases in property values during reassessments. Should the governor not sign or veto the bill, it will go into effect in January, five days after the beginning of the legislative session.