GEORGETOWN, S.C. —  The financial crisis facing the City of Georgetown is going to force city leaders to make some very tough decisions as the 2010-11 budget process gets underway in the next few weeks.

Everything — including benefits for city workers and retirees — is being studied in an effort to save money and create new sources of revenue.

At a series of meetings last week, City Administrator Chris Eldridge, City Finance Director Jessica Miller and her assistant Walt Ackerman met with city council members individually to discuss the most recent audit, which will be released publicly Feb. 18.

As reported Friday, USC law professor Jay Bender, who specializes in Freedom of Speech issues, said the meetings should have been advertised.

Mayor Jack Scoville disagrees with Bender’s opinion that the sessions should have been labeled  committee meetings because “no recommendations or anything else” will be made as a result of the sessions.

The Times was allowed to attend when Council members Peggy Wayne, Rudolph Bradley and Brenda Barber met separately with Eldridge, Miller and Ackerman.

Employee benefits

Eldridge said he expects “there will be a lot of push-back from employees” because of some of the proposals he may have to make during the upcoming budget-creating cycle.

He said the city currently spends about $1100 monthly to cover the health insurance  costs of employees whose families are on the policy. Of that, the worker pays about $300.

“Some governments don’t give the option of covering families. We cover it all,” Miller said. “Our employees have very rich plans. We have to start looking at the benefits.”

Delicate budgets

One thing that was revealed during the meetings is how tight the budgets are in many of the city’s departments.

Miller said the Water Utilities Department is about is barely breaking even but “any hiccup” could cause big problems.

For example, Miller said if International Paper decides to turn off the car wash it offers for free, it would cost the city as much as $40,000 annually in water sales.

The drive-through car wash, next to the paper mill, has been used by mill workers and others for decades.

The biggest hit to the water department was the closing of ArcelorMittal-Georgetown — the steel mill— last year.

Ackerman said the water that was used by the plant accounted for about one-third of the annual water sales by the city.

Miller said the city is now paying for mistakes made when the water department was being created. She said no plans were made to expand outside the city limits and  now other water utilities such as the Georgetown County Water and Sewer District are providing service everywhere except in the city.

“Now we are really locked into our territory,” Miller said.

The city — which can generate up to  has tried to work out deals to sell water to GCWSD or other water companies but those attempts have been unsuccessful.

Housing woes

Wayne said one of her major concerns is the housing developments the city approved in recent years that remain vacant.

With names like Craven’s Grant, The Oaks at Winyah Bay and South Island Plantation, these gated communities were supposed to be pouring cash into the city’s economy by now

Instead, the sit nearly empty, some tangled up in legal lawsuits or foreclosure issues.

Wayne called The Oaks — one of the developments which is located near her Maryville home — “a very expensive dog walk” because it is undeveloped and where many residents go to walk and exercise.

Miller said having the developments sitting empty “is a major concern” for the city.

About council agreeing to allow the developments, Wayne said she feels council “got screwed by ST.”

She later said ST stood for Steve Thomas, the city’s former administrator who recommended approval of the developments.

“I was concerned last year when I saw the outrageous prices (the developers) were asking for the lots. This ain’t the beach,” Wayne said.

She also said she does not want to see anymore low income housing in the city limits.

“I think we need developers to build affordable housing people can afford to buy,” she said, adding she feels the city has its “fair share” of low income housing.

By Scott Harper

sharper@gtowntimes.com