Mount Pleasant officials flag falling sales tax, schedule budget review as public urges fiscal caution

City finance staff told the Mount Pleasant City Council on Jan. 28 that sales-tax receipts are running below last year and below the amount budgeted, prompting a recommendation to review the adopted budget at the six‑month mark and prepare amendments if the trend continues.

The finance director, Jillian Brooks, told the council overall revenue collection was slightly ahead for property taxes but that sales-tax receipts showed a decline that could produce a shortfall if the trend continued. “If trends stay the same, you would end up being $600,000 less in sales-tax revenue,” Brooks said, showing a 10‑year sales‑tax chart and recommending a close look at expenditures at the midyear review.

The warning followed public comments from residents who said the city should avoid new borrowing while reserves are already under pressure. Steve Bolster, a resident, said he was worried by rumors of an Economic Development Corporation proposal and by the city’s fiscal condition: “The taxpayers cannot handle any more of a burden with poorly thought out proposals,” he said, adding that the city has seen a roughly 15 percent drop in sales tax in the last quarter.

City staff and councilors discussed the timing of receipts — sales tax collections are reported two months behind — and emphasized that some months can be anomalous. City Manager Justin Naha said staff would continue monthly reporting and recommended revisiting the budget in two months and again at the six‑month point to propose any reductions or reallocations.

The council heard that rainy months and late payments can create spikes and dips in the monthly data; staff urged shopping locally and a focus on targeted investments to help businesses. Finance staff also reported the city’s general‑fund reserves have improved in recent months, and staff said the city had raised reserves to about 21 percent of operating budget after earlier concerns about lower levels.

Ending: Council members agreed to monitor receipts closely and requested staff return with a recommended calendar and proposed amendments for review at the midyear point. No formal budget amendments were adopted at the meeting.

Votes at a glance - Approval of meeting minutes (Jan. 7 and Jan. 15, 2025): Motion to approve carried unanimously. (Motion: approve minutes; mover: Council member Hagman; second: Council member Carville; outcome: approved.) - Call general election for May 3, 2025 (mayor, Place 1, Place 2): Motion carried unanimously. (Outcome: approved.) - Accept quarterly investment report (quarter ended 12/31/2024): Motion carried unanimously (motion by Council member Burbell; outcome: approved).