James Island council votes to end cost‑sharing agreement with Public Service District, redirecting sales‑tax funds

At a regularly scheduled meeting, the James Island Town Council voted to authorize the mayor to terminate the town's cost‑sharing agreement with the James Island Public Service District (PSD), a measure council members said will allow the town to redirect local option sales‑tax revenue to services and projects for town residents.

Councilman Bowles said the agreement functions as a subsidy that the town has been paying to the PSD and that ending it would let the town spend the money on local priorities. "I characterize the cost sharing agreement as a subsidy or a welfare that we have all been paying to the PSD," he said during the meeting.

The vote to authorize the mayor to end the agreement passed 4 to 1. Council members and several residents debated the financial impact and timing during over an hour of public comment and council deliberation.

Why it matters: The town has been using local option sales‑tax (LOST) revenue under the cost‑sharing arrangement to offset payments to the PSD. Council members said redirecting those funds would let the town pay for drainage repairs, green‑space improvements and a proposed James Island Arts and Cultural Center on land the town owns next to Town Hall. Supporters said using LOST this way can avoid levying a municipal property tax.

Residents and councilors disagreed on the likely household impact. Ron Jerusal, a resident, urged postponement and asked for wider public discussion, saying the change "will cost everyone money in this room." Several longtime residents described confusion about previous credits on tax bills and how the PSD arrangement affected their statements.

Others said the change would allow faster, more local responses to service requests. Councilwoman Mignano said the town would be more transparent and better able to prioritize services if it retained the LOST revenue. "We would be better stewards of this money for your benefits," she said, adding the town could use funds for ditch cleaning, stormwater work and senior services.

Public support for a new arts facility surfaced repeatedly during comment. Sharon Sandstrom, managing and artistic director of the Palmetto Youth Choir, said the choir and other organizers have counted on a dedicated space and that arts programming provides cultural and educational benefits. "I'm thrilled that the town is prioritizing building this new arts and cultural center," Sandstrom said.

Council debate included financial framing and alternatives. Councilman Bowles presented a per‑resident calculation based on the figure discussed in the meeting, saying $1.3 million spread across roughly 12,066 residents would average about $107.74 per resident annually (about $8.98 per month). Other council members proposed phased approaches or partial reductions to soften any immediate tax or rate effects.

Council members emphasized that terminating the agreement does not inherently change PSD millage or PSD rates; it instead ends the town subsidy that has been applied to PSD operations. Several councilors said the town could resume the arrangement later if needed.

The council also discussed transparency and public notice. Multiple residents said they had not seen early public notice about the council's agenda item; council members said the resolution had been posted in accordance with the Freedom of Information Act and that the meeting offered the public an opportunity to speak on the item.

Votes at a glance: - Resolution 2025‑05, authorizing the mayor to terminate the cost‑sharing agreement with the James Island Public Service District: authorized to terminate; outcome recorded as "motion carries 4 to 1." (Motion and second recorded; detailed roll‑call names not specified in the transcript.) - Resolution 2025‑06, authorizing application to legislative funding sources for purchase of a vacuum (vac) truck for Public Works: approved (roll‑call votes recorded as ayes; councilors will pursue grant requests to state legislators). - Ordinance, issuance and sale of general obligation bond 2025: motion to table passed unanimously.

What’s next: Councilors said the termination would give the town flexibility to allocate LOST revenue for town‑run projects, including drainage work and the proposed arts and cultural center. Council members invited residents to continue the conversation, attend PSD meetings to raise concerns about PSD rates and contact council offices with questions. The council directed the mayor and staff to proceed with the administrative steps authorized by the resolution.

Ending note: Several council members and residents urged continued civic engagement as the town determines how to use redirected LOST funds and manages any transition with the PSD.