PSD says annexations posing threat

By: SCHUYLER KROPF    
Originally Published on: 12/12/96
Page: B3

    
    
     The James Island Public Service District argued in federal court Wednesday that its future is threatened by continued annexations by the city of Charleston.
    During a full day of testimony surrounding the PSD's lawsuit against the city, officials predicted a bleak outlook if Charleston is allowed to collect fire and trash collection taxes from annexed homes that previously supported the PSD.
    At issue is the loss of a tax base, and who should be allowed to collect taxes, as homeowners annex or are overtaken by governmental jurisdictions.
    Although the PSD is not challenging the city's right to annex homes inside the PSD, they argue that the PSD, not the city of Charleston, should be allowed to collect taxes from those property owners for fire protection and trash collection even after they leave.
    That money is needed, said PSD attorney Trent Kernodle, to help pay the PSD's bond debts or other obligations.
    PSD Fire Chief Charles S. Rhodes and PSD Chairman Nancy Hadley both argued that major financial woes would ensue in the future if the government could not meet obligations as the PSD shrinks.
    But city of Charleston attorney Bill Regan said that once a residence moves into the city, its tax dollars should go to help fund fire protection and other services offered by the city, not to the old government that it used to be under.
    The St. Andrews PSD in West Ashley has tried and failed to take similar court action in the past against the city of Charleston.
    Hadley said last week she believed the PSD was protected from losing that tax money because of a federal statute covering its obligation to pay back federal loans has precedent.
    Judge Falcon Hawkins did not immediately rule on the debate, but wanted to see written arguments from both sides before deciding.

Reproduced from The Post and Courier, Charleston, SC (used with permission)

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