Dave Spurgin on the Issues: Reeling in haphazard spending

Biggest issue facing Sullivan's Island 

The biggest issue facing the town is the impending financial storm that is quickly bearing down on us. This turmoil was created when we started borrowing large sums of money to pay for projects with absolutely zero plans for how to pay it back.

Let me say this again. In the near future we will be faced with the very real choice of selling more town lots, raising property taxes, or increasing fees across the board—or a combination of all three—to pay back the money we have borrowed.

I have spent hours in recent weeks talking with town staff reviewing town finances. We simply do not generate enough tax revenue to cover any new projects. If our current financial strategies do not change soon, it is just a matter of time before you see your property tax bills increase significantly. The real question then will not be by how much property taxes and fees increase, but how often they increase.

Regardless of how this election turns out, we must immediately implement a comprehensive financial plan that takes into account both long-term and short-term capital needs, and meets our long-term debt obligations. Continuing to spend money on pet projects without thought of how to pay for them must stop.

It would take a minimum increase in the millage rate of 8 points for the next 15 years just to cover our current debt. Not to mention that we will need additional millage rate increases just to balance our budget for cost-of-living allowances each year. We will also need an additional millage rate increase to fund the repairs to the sewer network alone which will increase the millage rate another 7 points. And water bills will stay excessively high through at least 2029.

Some will say that the easiest fix is to simply sell more lots. But do we really want to deplete our asset pool beyond what we already have?

In the last 24 months Town Council has sold 6 lots. In the previous 20 years they sold only 2. It is estimated that we only have 10-14 lots remaining. This is troubling because once the lots are gone, we will have no recourse other than to look to residents to pay for future projects. This will inevitably lead to discussions on raising property taxes, increasing density on the island, and even attempting to pull some of the accreted land out of the trust for lot sales.

I would encourage every resident to call current and prospective councilpersons and ask them about our financial situation. If they cannot give you a succinct answer in three minutes, then I 
question whether they should be on Town Council.

I deeply believe that the people make the best decisions when it comes to government. We just have to step out of the way and let their voices be heard. If given the chance to serve, I will work hard to earn your vote, and more importantly your trust.

Dave Spurgin

Candidate for the 2-year seat on Sullivan's Island Town Council
843-532-2644
davespurgin@yahoo.com