North Augusta is 'holding steady'
Mayor Lark Jones described the condition of the City of North Augusta as "holding steady," as he gave local real estate agents an update on the economic climate in the area last week.
However, he did point out that if the capital projects 1-cent sales tax, now up for renewal by referendum, were to go away, City officials would likely be forced to raise taxes - something City Council hasn't done in the last 18 years.
"In my 25 years of government, it is tougher to be in local government right now than it has ever been," he said frankly to the gathering of North Augusta/Belvedere Board of Realtors.
Jones quickly added that North Augusta is "nowhere near in the trouble South Carolina is in" or that the federal government is in.
The local attorney pointed out that two things have happened with the budget crunches of today. "The federal government just printed more money," he quipped. "S.C. government cut the budget to the bone."
As evidence of the larger problem, Jones noted the state is coming close to losing the welcome centers, while the Heritage Corridor centers are closing.
"We're facing things we've never had to deal with before," he declared, saying that the state is being forced to shut down services. "Even the highway patrol doesn't have enough personnel," he said.
As to the state of the city, Jones said the budget for North Augusta government in 2010 is actually less than it was in 2009. "This is the first time in my 25 years," he said. At the same time, Jones pointed out while North Augusta's budget is 2 to 3 percent less that 2009, South Carolina's is 18 percent less.
"Our only sources of revenue are property taxes and business licenses," said Jones, who added that three or four years ago the revenue from business licenses exceeded the revenue from property taxes ... but no more.
He also indicated that expanded services come with increases in tax revenue. "There's been no growth in the last couple of years ... so no expansion of services," said Jones, who listed a hiring freeze (except fire and law enforcement personnel) and no raises as ways the City has held the line.
He praised City employees who, he said, are treating City funds like their own and saved enough in their departments' budgets that, while there were no raises last year, the City was able to give a week's salary as a Christmas bonus.
Jones said property taxes have been relatively flat, with new construction falling by 50 percent or more between 2006 and 2009.
Regarding economic development, Jones said the City has done some things to forward the effort of growth and enticing new businesses. He mentioned the collaboration with Augusta Tomorrow, as well as a recent purchase by the City of the site where the old adult book store stood at the edge of the Fifth Street Bridge. "We bought it for redevelopment ... to make a nice entrance to North Augusta," he said.
Jones admitted much of the effort toward bringing in new businesses involved one-on-one contacts. He said over the last couple of years, he's had serious conversations with Cracker Barrel and Fatz ... "then the economy tanked," he said.
Jones said the new Municipal Center has been very successful.
He commented that Palmetto Parkway has not generated as much use as hoped for.
Jones reported the new North Augusta H.E.A.T. cars are making a difference in the city, and he praised the local Department of Public Safety for winning an award with the design of the new traffic vehicles.
Finally, the mayor listed some of the challenges facing the City of North Augusta:
1. Schools -- "If you want growth, you need two components: good, stable government and good schools," he said, while acknowledging the recent failed school bond referendum wasn't handled as well as it should have been. "North Augusta High School needs improvement, but I wanted to see it stay right where it is," he said.
Jones maintained many voters look at the $14 million per year available to the school board for facilities and think they ought to be doing more with that money.
2. Taxes -- The mayor said the state legislature is looking at reinstating sales tax on groceries. At the same time, he noted the 1-cent sales tax is up for renewal. "If that ever goes away, we would have to raise taxes," said Jones, who said it has been a number of years since the City of North Augusta had to raise taxes. The support for the 1-cent tax, suggested Jones, centers on County Council's desire that all who benefit from government should pay, not just property owners.
3. Business environment -- "Things are stagnant," said Jones. "I don't see that we're in recovery, but [the City] is holding where we are."
4. Federal government -- "The administration in D.C. is not real business-friendly," opined Jones. "Only 7 percent of the cabinet has private sector business experience," he added, pointing to the spectrum of regulations such as health care costs being imposed on small businesses.
As an example he said, "A business with 30 people has had to lay off 10 ... Business has picked up and now they need to hire five, but they're scared of what other regulations are doing to their bottom line ... so 20 are doing the work of 25 ... And even when the economy improves, the raises are not forthcoming."
Jones also noted that, for the first time in a long time, the North Augusta Planning Commission has canceled meetings due to a lack of projects to consider.
Finally, the mayor discussed some prospects for the future, indicating North Augusta is prime for some regional development at I-20 and Exit 5 and along Palmetto Parkway exits. He said, "We need nice motels and hotels." At the same time, he acknowledged that's not happening until "we get a local entrepreneur to see that it doesn't make sense to build on Washington Road."
So many corporate offices, said Jones, "don't recognize that North Augusta is a separate market (from Augusta and Aiken) with separate needs and separate events."