Cayce to raise property taxes & utilities, but not as much as planned after public uproar

CAYCE — Cayce will raise property taxes and utilities for the 2024-25 fiscal year following a vote at the city’s June 26 budget meeting. Dozens of Cayce residents filled City Hall in anticipation for the vote.

Stating a rise in cost of living, costs and inflation, the city staff have recommended increases to the budget to offset the costs — including property taxes. The increased burden on taxpayers caused residents to speak out, particularly for those on fixed or limited income.

Many residents got up during public comment and mentioned how there needed to be more transparency with council. The talk of raising taxes also sparked conversation because residents felt council did not have enough information to pass the budget — and some council members argued they received notice three months prior.

Filled with debate and disagreements between the council, the meeting encompassed on-the-spot considerations for addressing the public’s concerns for increased rates — but the mayor worried the last-minute catering to residents’ frustrations might harm the relationship between council and city staff, who must make do with slashed budget increases.

The council voted to increase property taxes by 4 mills, going from the previous 58.1 to 62.1. This will increase revenue by $271,656 to go towards the general fund — which includes property taxes, business licenses, hospitality taxes and grants.

Earlier this week, the city distributed a flier stating an increase of $6.67 and $2.67 a month on $250,000 and $100,000 owner-occupied homes, respectively.

But following yesterday’s meeting, when council slashed the rate increase in half, the added costs to property owners would be $40 a year for a $250,000 home and $16 a year for a $100,000 home.

The city will retain the second-lowest property tax rate in Lexington County for a $250,000 owner-occupied home, following the town of Lexington.

The increased burden on taxpayers caused resident opposition, citing the needs of those on fixed or limited income. Residents expressed that council could not keep raising taxes while people in the city continued to struggle financially. The median income in Cayce was $56,976, according to 2022 Census estimates — about $8,000 less than the state median income.

The vote came with intense debate from council on the appropriate measures to find the balance between paying for all of the items on the budget and not having a steep increase in property taxes for constituents.

Among these items included a raise for the lowest salary bands for staff and increases for insurance.

The conversation was vivid between Councilman Hunter Sox and Mayor Elise Partin, who stood at odds on the necessities of the budget allocations. Sox proposed the motion striking the millage from 8 to 4 against the concerns of Partin, who believed the budget should be passed based on the recommendations of staff who requested the funds necessary for their respective departments to carry out their jobs.

“It’s a conservative budget that I’m confident we can make work.” Sox said during the meeting.

Partin called out council for insinuating the proposed budget was padded by staff.

“Our initial FY 2024-2025 budget request included double the millage increase we approved, a 40 percent increase to water and sewer, and a $5 sanitation fee increase,” Sox told The Post and Courier. “ A majority of us fought for reducing those increases while still setting Cayce up for long-term success. In doing so, we were able to shave over $175 in increases annually for the average household in Cayce.”

Effective July 1, there will be a 25 percent increase for water and sewer for all customers; for both inside and outside city limits.

Water and sewer rates would be increasing to less than $9 per month for a household using 3,750 gallons per bill. Rates have not been increased since 2019, but the last three years have have seen costs rise by 50 percent, city staff said during the meeting.

And even with the increases in water and sewer, Cayce would still have the second-lowest water and sewage bill in the region, coming second to West Columbia at $39.70 yearly and ahead of Columbia, $60.83.

The 25 percent increase would be the bare minimum increase staff recommended to meet all cost requirements for the fiscal year.

Partin was frustrated at the last-minute attempts at striking the budget.

She worried council let down many of the city workers that were present at the nearly five-hour long meeting, and from whom she saw visible contempt during budget debate.

With staff budget recommendations calling for an 8 mill increase and 40 percent increase in utility fees, Partin expressed that many staff do not have any room to work with; the budget is the bare minimum for operation.

Partin is also concerned the meeting’s outcome might harm the trust between council and staff. The last council meeting on June 4 should have been where the intricacies of the budget were discussed, Partin argued. She condemned the other council members for wanting to do it on the spot, after thorough advice from staff.

“I loved that the room was majority staff, but that also worries me because they wouldn’t be here if they weren’t worried,” Partin told The Post and Courier. “What we did tonight, I’m just praying we didn’t make a mistake.”