Utility fee hike in budget plan

Charleston City Council moved closer to adopting a difficult budget for 2010 that cuts spending while increasing utility bills throughout the city and cutting municipal employees' paychecks.

The city's property tax rate, and business taxes, would not change.

Several council members called for deeper spending cuts, or the sale of city-owned land, in order to eliminate the tax increase on utility bills, but the majority supported the budget plan Tuesday.

The franchise fee on gas and electric bills would rise from 3 to 5 percent, although city Chief Financial Officer Steve Bedard said SCE&G customers wouldn't see the increase until January of 2011.

"I can't support it," said Councilman Gary White. "It's another way of taxing the consumers."

Mayor Joe Riley said that without the nearly $3.8 million the franchise fee increase is expected to raise, the city would have to make "Draconian service cuts," double the furloughs planned for city employees, postpone opening two recreation centers, eliminate planned purchases of police cars and a firetruck, and other cuts. Or, he said, a property tax increase would be needed.

For the typical homeowner, the franchise fee increase amounts to a few dollars a month. A $150 electric bill would rise by $3, for example. But the fee increase will raise lots of money for the city because large institutions -- many of which don't pay property tax, such as colleges and hospitals -- pay the fee along with their large electric bills.

Councilman Aubry Alexander voted to support the fee increase, but said he'd be happy to change his mind if anyone could cut $3.8 million from the city's budget without harming basic services.

Council members debated the $146.6 million 2010 spending plan for most of four hours Tuesday before approving the second of three required readings, on a split vote.

A final vote is expected at the Dec. 15 council meeting.

Councilmen White, Tim Mallard and William Dudley Gregorie called for deeper spending cuts and, along with Councilman Jimmy Gallant, did not support the budget plan. Gregorie abstained from voting, while the others voted against the budget. Councilman Lou Waring was absent.

Charleston's budget calls for spending roughly what the city spent in 2008, or about $1.3 million less than this year. Health care and other costs have increased since 2008, as has the city's public safety budget, and some revenues have declined, so budget cuts go deeper than they appear.

Charleston's roughly 1,700 employees will lose at least a week's pay, and will get no raises in 2010. The pay loss is from not being paid for at least five scheduled city holidays.

In other business, Councilwoman Deb Morinelli returned to Council Chambers for the first time since June, when she was arrested for drunken driving after an accident. She took a leave of absence from council, pleaded guilty to the DUI charge, and attended a residential treatment facility.

"As usual, I can't keep my mouth shut, so I'm back," Morinelli quipped, before thanking the mayor and council members for their support.

Morinelli's term ends this year and she did not seek re-election, so her District 2 seat will be filled next year by Blake Hallman, winner of the November election.