Growth rates in Beaufort County’s population and income statistics present a stark contrast to the growth in our property taxes.

From 2000 to 2014 population increased at an annual rate of less than a half percent to 47,585, the median household income grew at under 2 percent to $40,429, and the number of children under 18 years of age has fallen from 10,522 to 10,323. However, taxes collected from local property owners grew from $21.9 million in 2005 to $33.2 million in 2015. While our population numbers have struggled to break even and household incomes trail behind inflation, property tax receipts grew at 4.25 percent annually.

During the last several years, our county has managed its spending in fits and starts ranging from $52 million in 2012 and 2013 to $55.5 million in 2014 with a budgeted $57.5 million for the year ahead. If a scheduled approach to capital spending had been in place, then there would have been less “fall behind and catch up” spending.  If spending decisions had been less politicized, expenditures could have been smoothed to an average near $54.5 million.

The measure of local government solvency is the Unrestricted Funds Balance. There is general agreement that this account should be kept somewhere in the neighborhood of 25 percent of the county’s total expenditures. This metric would indicate that a balance of $14 million would be adequate to support a $54.5 million level of spending. Beaufort County currently holds $26.5 million: an Unrestricted Funds Balance nearing $20 million and an additional unencumbered hospital fund balance of $6.5 million.

In effect, unnecessarily high property taxes have contributed to an excess balance of $12.5 million that is entirely within the discretion of the county commissioners to spend as they choose.  How has that worked out in the past?  Well, we got two less-than-wonderful industrial parks, a bunch of speculative projects that ended in tears, a sewer to nowhere, and a remodeled hospital that went under before the paint could dry on its walls. Within three years, the surpluses had vanished, the budget was in deficit and we got a tax hike.

County commissioners wasted over $10 million on bungled economic development fantasies, but never considered lowering taxes as a spur to prosperity and improving our standard of living.

Next year, the county will receive over $58 million in revenues, of which $34 million will be property taxes. Under a rational spending program all ongoing and regular expenses will be around $55 million. If we do not reduce the level of property taxes being collected, then the amount of money vulnerable to another flood of wasteful spending by local politicians will increase by an additional $3 million.

The budget is flush with cash, and taxpayers deserve a 10-percent reduction in the property tax rate. By making this reduction, we can allow local families to retain $3.5 million each and every year. This is real money that, if not taxed away each December, would help pay winter heating expenses, electric bills and credit card balances.

Warren Smith is a Beaufort County resident.