City Dealing With Economic Challenges

Despite challenges, the City of Easley's future looks bright, especially compared to other cities in South Carolina.

Mayor Larry Bagwell delivered that message during his annual State of the City address Thursday afternoon.

Bagwell delivered the address as part of an Easley Chamber of Commerce "Third Thursday" luncheon.

“The City of Easley is in pretty good financial shape,” Bagwell said. “It's in great shape compared to what I hear throughout the state.”

Easley's fund balance remains strong at 32 percent, or about $4 million in reserves, Bagwell said.

“We never know when something big is going to happen,” he said. “We feel like as long as we keep 25-30 percent in reserve, we're going to be in good shape.”

Since 2009, the city has lost about $1.5 million in revenue, a figure that includes decreased tax revenue from Fort Hill Natural Gas Authority and a loss in aid from the state.

“What has the city down to offset this?” Bagwell asked. “We've cut personnel. We've not hired when people leave, we've put a freeze on the hiring.”

The city remains a “donor city” - one that sends more money to Columbia than it gets back from the state, Bagwell said.

City Administrator Fox Simons said that money is primarily court fines.

“City of Easley police officers will pull over a motorist for a stop sign or whatever, the city court will then adjudicate your ticket, city attorney may get involved, ” Simons said. “The State of South Carolina does absolutely nothing with this ticket.”

Say your fine is $1,092

“The City of Easley gets about $250,” Simons said. “(The city) does all the work, the State of South Carolina gets all the rest.”

He said the spread “gets bigger and bigger and bigger.”

“There's talk in Columbia this year to adjust this even more, not in the city's favor,” Simons said. “They keep dumping more and more and not giving us the resources to deal with it. It's a little bothersome to me when they telling us to do more and more and they don't give you the resources to do it. They restrict our hands on a lot of things.”

For example – annexation.

Simons spoke of the gold-purchasing business and landscaping business on Highway 123 near the Publix and Home Depot.

“That's in the county,” he said. “That's not even in the city of Easley. Easley police officers ride by there 25 times a day easily, but if they call 911, Pickens County Sheriff's Office has to respond.”

The Easley campus of Tri-County Technical College has the same problem, Simons said.

“We are unable to annex those properties,” he said. “The State of South Carolina will not allow us to do it.”

He said the donor city gap will close somewhat in Fiscal Year 2013, but not much.

“This year, the state gave a one-time payment of $30 million to the local government fund, which is where this source of money comes from,” Simons said. “That has to be divvied up between all the cities and towns in the state. Our share was $60,000.”

Simons asked Chamber members to speak to their legislators about the issue.

“They keep talking about home and keeping government local and local and local, but they have a hard time walking the walk,” Simons said.

In order to increase revenue, the city is levying a 1.6 franchise fee on Easley Combined Utilities.

“You're going to get a bill in April,” Bagwell said. “On this bill, it will show a franchise fee.”

The city has the right to charge a franchise fee of up to five percent.

The city has been charging a 3.4 percent franchise fee, Bagwell said.

Bagwell says the additional 1.6 percent franchise fee will generate an estimated additional $500,000 annually.

Bagwell says the city has not raised taxes in recent years, though he realizes residents will view the franchise fee as a tax increase.

“We will feel like it's the time to do it,” he said, adding that he sees reduced funds allocations from the state continuing in the future.

Simons said the city has dipped into its fund balance, reducing it from $4.5 million.

“You just can't keep doing that,” Simons said. “You guys are in business, you know that. Something's got to give.”

Despite the loss of funds, the city has not reduced services, Bagwell said.

“Our services are the same,” he said, adding that the reason for that is that city employees are dedicated workers.

Easley residents pay $135 in taxes for a $150,000 home, Simons said.

“It's very affordable to live in the City of Easley,” he said.

Easley residents receive a “hell of a deal” for their tax dollars, he said.

“If you live in the county, you're paying $30 a month just for garbage pickup,” Simons said. “You're paying about $360 a year just for garbage pickup. You get that with your $135 a year in the city of Easley. You get three minute police time versus 20 minutes in Pickens County for the Sheriff's Office, depending on the call. Tell me where else you can get a deal like that.”

Bagwell said fire department response times average between 3-5 minutes within city limits.

Crime has gone up a little since last year's address, Bagwell said. He said he believes shoplifting accounts for most of the increase.

Bagwell is confident the city will continue to weather economic storms.

“I don't know where you can find a better place to live,” Bagwell said.