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5/20/08
County Council Presentation: New Developments
Should Pay for the School Facilities They Require
5/23/08
Update: Corrections in red text under the "E-mail to County Attorney
. . ." section below: Planning Director and attorney, Janet Carter's position
has consistently been:
"I
just don't know about schools. The PWID appears to include any public
facility."
Select the item
that you want to read from the table immediately below.
PowerPoint: "New Developments Should Pay for the School Facilities They
Require."
A PowerPoint presentation was made at the May 20 Horry County council meeting
entitled: "New Developments Should Pay for the School Facilities They Require."
To view the PowerPoint presentation, click
here. I believe the presentation is more effective in PowerPoint form, but
if you prefer to read the bulleted list from which the PowerPoint presentation
was prepared, that follows, immediately below:
- Every new home built in
Carolina Station requires more than $9,000 in public facilities.
- The absolute minimum
school portion is more than $7,600 per home.
The rest of us must pay the bulk of this in increased taxes This estimate is
in today’s dollars so the actual cost over the 30 years of the development
will really be much more.
- Taxpayers have to
pay $7,600 for new schools for every home built in Carolina Station
- The estimated number of
homes in Carolina Station is 13,800. The projected Carolina Station
population is 15% of the current total population of Horry
County.
- The majority of
Carolina Station home prices are estimated to be assessed at $375,000
- The bulk of Horry
County residences will be sold at lower prices so the tax revenues they
bring in will be even less than those for Carolina Station.
- So it is not a stretch
to anticipate that
- Taxpayers will have
to pay, at least, in the order of $7,600 for new schools for every new home
built in Horry County.
- The new developments
should pay for this.
- This can be done if
developers agree to put their developments in special tax districts so the
owners in those districts will have to pay the extra taxes to pay their own
way.
- The only current
statute that allows this for Carolina Station is a Public Works Improvement
District
- For other developments
the in-process Residential Improvement District would likely be more
appropriate, because it allows special tax districts to pay for off-site
schools other than those on properties within or right next to the special
tax district.
- In any event, every
new development above 24 acres should be required to enter into a
development agreement where the property owners in the district have to pay
extra taxes for the additional public facilities it requires
- The county can agree to
phase those taxes to go along with the development’s progress, so most of
the taxes will be passed on to sub-developers and final buyers rather than
on an original developer like International Paper.
- International Paper, so
far, has refused to agree to put Carolina Station into a Public Works
Improvement District.
- County staff has done a
great job of negotiating a development agreement where it believes that
International Paper contributions pay for the county public facilities that
Carolina Station will require – except for schools.
- County Council should
however defer approval of the development agreement and the Carolina Station
development until it agrees to putting Carolina Station under a Public Works
Improvement District so that buyers pay for the added school facilities that
Carolina Station will require.
- Only County Council can
do this. All the school system can do is estimate its needs as it does for
reqular school taxes. It can not pass the necessary ordinances to avoid
adding taxes to cover the costs of the newly required school facilities on
the rest of us.
- As we elect county
council to work in our overall best interests, not just to balance the
county budget other than schools, voters should insist that it act as
requested for Carolina Station and act accordingly for all requests for
developments above 24 acres.
- Otherwise the rest
of us have to pay, the bulk of a minimum, $7,600 for new schools for
every home built in Carolina
Station
and elsewhere.
- County Council can
defer Carolina Station approval until International Paper agrees to an
adequate Public Works Improvement District. I plea that you do.
- Are there any questions
or disagreements?
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County Attorney Comments
After the presentation, County Attorney, John Weaver,
said that the county
can not pass an ordinance to collect taxes in a Public Works Improvement
district on behalf of the schools as the presentation requested, although it
collects the regular school taxes for the schools, and although, the Public
Works Improvement Act says it covers public facilities, period. Janet Carter,
also an attorney who is the Director of Planning says she simply does not know.*
Weaver also said after the presentation, as I understood it, that the
International Paper contributions for Carolina Station amounted to only $341 per
home. If this is true, the bulleted presentation item: "County
staff has done a great job of negotiating a development agreement where it
believes that International Paper contributions pay for the county public
facilities that Carolina Station will require – except for schools" is obviously
not true as far as International Paper contributions of $341 per home are
concerned. Those are not even close to the cost of public facilities per home in
Carolina Station -- even excluding schools.
* Attorneys can
argue any side of any issue. Neither John Weaver nor Janet Carter are judges. I
am neither an attorney nor a judge, but I have carefully studied
the “Public Works Improvement Act” statute
and related legislation and believe collecting special taxes on behalf of the
schools using that act is allowed. At worst is not clear that it is not allowed.
Attorney Janet Carter says she doesn't know.
I will seek other
opinions, of course. But, it seems to me that if the state should choose to
challenge the county's right to pass an ordinance to collect taxes in a Public
Works Improvement district on behalf of the school system, the stakes are so
high for the rest of us that possible court costs are incidental. That is what
courts are for -- interpreting possibly ambiguous laws.
I e-mailed the following
to John Weaver yesterday (May 21, 2008).
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E-mail to county attorney John Weaver on allowed
usage of the S.C. “Public
Works Improvement Act” statute
Note the corrections in red text below: Planning Director and attorney,
Janet Carter's position has consistently been -- to quote her March 20
e-mail to me:
"I
just don't know about schools. The PWID appears to include any public
facility."
The background
of this e-mail is the May 20 county council meeting. I have also attached
the PowerPoint presentation that I gave then.
-
In a nutshell, I said that county council could refuse to agree to
developments by developers who would not agree to put the property
owners within those developments into a Public Works Improvement
(special tax) District, PWID, so the developments would have to
pay for the costs of the additional school facilities the developments
required.
-
Gilland responded by opening a question to you: “I have a question
for Mr. Weaver. We are not responsible, within our purview for funding
schools at the county council level because we have our own school
board.”
-
This reminds me of the then chairman of the planning commission
saying the costs of development (then concerning Carolina Station) were
not its responsibility. He said that was the responsibility of county
council.
-
As my elected representatives, I look to county council to do what
it only can -- pass ordinances that divert the taxes for the costs of
school facilities required by new developments from the rest of us to
the developments that require them.
-
Gilland then continued by asking if it was even possible for
county council to take up dollars and give it to the schools (even
though the county does just that in collecting regular taxes for the
schools).
-
You dismissed this possibility, out of hand, saying: “No Ma'am,
you can't do that.”
-
After what I understood you to be saying that International
Paper’s contributions to all the public facilities for Carolina Station
worked out to $341 per house, you reiterated: “We can not do the
schools.”
-
I had understood Carter to tell me the opposite weeks if not
months before.
-
After the meeting you said you did not want to argue the subject
with me that night.
-
But you asked if I meant that the county should construct the
schools and lease them to the school system.
-
I said no, I was referring to using a PWID and Carter had told me
that the PWID could include schools Correction:
That was my misinterpretation of what she had e-mailed me sometime
before when she actually wrote: "I
just don't know about schools. The PWID appears to include any public
facility."
-
I noted that the PWID said “public facilities” without
qualification unlike Impact Fees, IF, that specifically listed the
public facilities it covered
-
You noted an apparent contradiction in that IF fees not naming
schools meant they were not covered, but their not being named in the
PWID meant they were.
-
I don't recall whether I mentioned Residential Improvement
Districts, RIDs.
-
RID is just a bill at this writing, but it specifically names
schools.
-
In any event, I understood you to say that you would look into the
PWID possibility further
-
As RID is not yet law, you may not have studied it, but as it
specifically names schools, one would think that having a PWID including
schools is within the law. (If school facilities can be included within
a RID, why not in a PWID whether schools are specifically called out as
a public facilities or not?)
-
After I talked to you, I went back to Janet Carter saying that her
previously telling me that the PWID includes schools said to me that two
lawyers just had different opinions, neither being a judge
-
She said that she had not said that the PWID did
not include
schools, she did not know. Correction: I miswrote.
My intent was to say as indicated in the strike-through.
-
She said that she was certainly not going to go against her
superior.
-
I asked what she would say if specifically asked before CC, she
said she would say what she was saying then: “she did not know.”
This is totally consistent with what she had
written me in an e-mail: "I
just don't know about schools. The PWID appears to include any public
facility."
-
When I replay my memory of what she specifically said several
weeks ago when I asked if the PWID could include schools, my memory is
that she said, “Well, schools are certainly a public facility.”
As above: the e-mail quote was."The
PWID appears to include any public facility."
-
I interpreted this to mean that the PWID could include schools.
-
Apparently she was just saying that a PWID could possibly include
schools, not that it did.
-
If it “could,” I suggest that county council move forward as if it
does.
-
The statute for the PWID is named the “Public Works Improvement
Act” statute on the state Web site.
-
The RID bill number is H4745 in the state House and the companion
bill number in the state Senate is S1213. The last I checked these are
still works in progress.
-
If after further looking into the matter, you believe that it
could be rationally argued either way whether the PWID covers schools or
not, I would greatly appreciate your putting that on the public record
by saying that in a public council meeting.
-
If it can be argued either way and we don't know for sure how it
would play out in court, whether it is in its “purview” of county
council’s legal responsibilities or not, I believe county council has a
moral responsibility to its constituents to require use of the PWID as I
have recommended. I would plea that it do so.
-
If such is challenged in court, I believe that the school board
would surely agree to pay any possible attendant legal costs.
-
Remember impact fees were deemed effectively unusable in S. C.
until Summerville took the issue all the way to the S. C. supreme
court. The return we are looking at here is much more than is possible
from impact fees – infinitely more from the point of view of schools.
-
We are looking at an absolute rock-bottom cost for school
facilities in Carolina Station alone of $105 M in today’s dollars, the
bulk of which will otherwise be paid by taxpayers other than those in
Carolina Station.
-
Thank you for discussing this with me and further looking into the
situation.
George Edwards
P. S.
1. Barnard’s
objection that developments less than 24 acres would not be be covered is
accurate. As I’m confident that you are aware, a PWID, as any special tax
district, requires the district’s owners agreement (at the time of the
agreement, although it can “pass with the land” thereafter). And state law
only allows development agreements on developments above 24 acres.
The greater than24
acre requirement could also be looked at as a loophole for developers to
just not seek development for any properties greater than 24 acres at a
time. But until we get some true semblance of home rule, through the courts
if necessary, we have to “play with the cards we are dealt,” that is, within
the constraints of S. C. statutes.
On the other hand,
the greater than 24 acre requirement could also be looked at as relief for
the little guy. And, at least, those taxes to pay for the needed school
facilities for the big developments in excess of 24 acres would be diverted
to the developments that require them.
As it is, the rest of
us just pay unjustly for the bulk of the costs of school facilities not
required but for the new developments, for all new developments. Is this
preferable? I don't believe so.
2. Does your question
to me, as to whether I was suggesting the county should construct the
schools and lease them to the school system suggests that something along
that line is unquestionably within the law? Particulars? Wouldn't such just
mean that the school system and so taxpayers outside new developments would
be paying for leases instead of school system bonds? If so, what would be
the benefit?
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