Charleston council opens push to renegotiate Saint Andrews public-service agreement, urges legal options

Charleston City Council members on Sept. 9 discussed long-running questions about annexations from the Saint Andrews Public Service District (PSD), heard detailed service and cost comparisons from city staff, and directed the city attorney to explore legal options related to the city’s financial agreement with the PSD.

The discussion grew out of councilman John Waring’s presentation on the city’s outreach to homeowners considering annexation. “Our millage rate is lower than the millage rate of the public service district,” said Molly Connor, annexation director for the City of Charleston, explaining part of the city’s outreach pitch. Council members and department heads described differences in tax rates, water and sewer costs, and capital investment planned for West Ashley.

Council members said the public often receives inconsistent information about annexation and that the city has an interest in ensuring residents have accurate facts. Council tasked the legal department to return with a strategy for the existing financial arrangement with Saint Andrews PSD and to explore options consistent with state law to change future contractual relationships.

Why it matters: Many West Ashley properties are “inset” islands of PSD or county jurisdiction inside the municipal footprint. Council members said that confusion about which government provides services leads to poorer customer experience and, they argued, higher costs for some residents. Council members framed the effort as a push for transparency and better governance rather than forced annexation.

What council heard and asked: Annexation director Molly Connor described her work encouraging households to petition to join the city, and said that after petitioning some residents are approached by the PSD with information that “may not be true.” Police Chief Chido Walker, Fire Chief Curia and Charleston Water System (CWS) director Mike Seia each described the scope of the city’s services that accompany annexation.

Charleston Water System numbers presented by Seia included a general statement that CWS rates inside the city are “almost 40% lower” than outside-city rates and example annual savings estimates for customers who would annex: about $300 a year for very low-use households, roughly $600 a year for an average household, and about $1,800 a year for high-usage households. Seia also outlined planned capital spending in West Ashley: approximately $200 million in water- and wastewater-related projects over the next few years, including a major West Ashley transmission main extension and large wastewater replacements and pump-station projects.

Council’s legal direction: Assistant city attorney Louise Copeland (City Attorney’s Office) reviewed the current agreement framework required by state statute and confirmed the city had previously provided notice seeking renegotiation in February 2024. Council voted to task the legal department to “come back with a strategy to terminate this agreement” and to explore options consistent with state law for future contractual relationships with the PSD. The transcript records the direction but does not show a detailed legal plan or any immediate termination action.

Outcome and next steps: Council deferred an executive-session discussion until later in the meeting, later convened and returned with actions. Council accepted that legal will prepare options and to seek amounts owed by the PSD under the existing agreement. No ordinance or termination was voted at the Sept. 9 public session; the legal department was asked to return with recommendations.

Context: Council members repeatedly stressed that annexation remains voluntary and that the city is not forcing annexation. Several council members characterized PSDs as legacy entities whose continued existence can create governance inefficiencies. The city attorney reminded the council that state statute governs financial arrangements between cities and PSDs and sets notice and renegotiation timelines.

Ending: The council’s request to legal moves the annexation/PSD question from an informational presentation to the next phase of formal review. Any change in the interlocal financial arrangement will require follow-up work by the legal department and, likely, additional council action.