Mount Pleasant council approves 2025–26 budget and a 10.4% effective property tax-rate increase after debate over pay raises and cuts

The Mount Pleasant City Council approved the city’s fiscal 2025–26 budget and raised the property tax rate after a public hearing and extended discussion about salary increases, sales-tax shortfalls and internal cuts.

On Sept. 16 the council voted to adopt ordinance 2025‑17 (the 2025–26 budget) and ordinance 2025‑18 setting the city’s tax rate at 0.366042 per $100 of assessed value — an effective tax-rate increase the city characterized as 10.4%. The budget vote passed 4–1. Council members later ratified the tax revenue increase (ordinance 2025‑19) by the same 4–1 margin. The investment policy (Resolution 2025‑13) and a two‑year chemicals procurement award (Chemical Bid 9‑2025) were approved unanimously.

Why the change: City staff told the council the budget must address a multiyear gap driven mainly by lower-than-expected sales tax and rising debt service. Finance staff reported that full-year sales tax closed about $544,000 below the adopted budget for the year; staff said the general fund showed a year‑to‑date surplus of roughly $657,000 and the utility fund a surplus near $1.23 million, but that revenue trends and debt payments required action.

Competing pay-and-budget proposals: City management presented three compensation options labeled A, B and C. Option B (the city manager’s operational preference) would have paid a 3% cost-of-living adjustment for most employees, advanced eligible employees one step in their salary grade, and restructured longevity pay to a graduated lump-sum plan; staff said Option B could fund a permanent…