New budget shows hardship of state retirement deficit
By Melissa Rollins, Editor, editor@newsandpress.net
In the last budget work session of the year, held May 23, Darlington City Council members heard just how much the city will be affected by required contributions to the state retirement fund.
“Our additional cost is almost $60,000 for one year,” said City Manager Howard Garland. “I wanted you to see what type of pressure we have been put under by the state because they have a twenty billion dollar deficit in their state retirement.”
Garland said that because of the state deficit, the money is having to be made up elsewhere.
“Places like Darlington and Hartsville, Darlington County, we are having to absorb those costs,” Garland said. “Our state retirement contributions for the next five years will go up one percent each year, on the police side and the regular retirement side. Five years from now our contribution for the SCRS will be 18.56 percent. For the police office it will be 21.24 percent. I can’t wrap my head around that, how much that is going to cost.”
Garland said that he has talked with other city administrations to see how they are absorbing the costs.
“I’ve talked with some other managers and they said they are going to go toward temp employees because temps you don’t have to pay state retirement to,” Garland said. “I have not explored that but I just wanted to give you an idea.”
Increases in the cost to provide insurance also take a large toll on the city’s budget, Garland said.
“Insurance this year, with a 12 percent increase, the general fund hit on that is almost $34,000,” Garland said. “For one employee, full-time, including dental, eye and health insurance, life insurance, it is about $6,980 for one year.”
Another change for the upcoming budget year will be in the Community Promotions spending. In previous years, some organizations have been given line items in the budget under Community Promotions and other funds were given at the discretion of the city manager to support local programs, organizations and events. For the 2017-2018 budget a $7,000 contingency fund is built in with the understanding that each council member will have $1,000 to work with.
“It takes it out of my hands and that way ya’ll can put it to whatever non-profit or community event you want,” Garland said. “I think it is a winner for everybody and if you don’t like it, we can pitch it next year.”
Garland said that the money could be given to one group or to several, however the council members saw fit to distribute it.
“If (two council members) want to support something together they can give $2,000 or if you want to split it, half can go to one group and half to another group,” Garland said. “We will need some type of letter from whatever agency you choose; we’ll treat it like an invoice. Frankly, I am tired of people coming and beating on my door. And then, if I give someone $250, another group will ask why I gave them $250.”
Groups supported through the Community Promotions budget include the Darlington Memorial Cemetery, the Pine Center, Pee Dee Regional Transportation Authority (PDRTA), The Lord Cares, The Council on Aging and the Pee Dee Coalition Against Domestic and Sexual Assault.