By Natalie Caula
ncaula@abcnews4.com
MOUNT PLEASANT, S.C. (WCIV) – A stroll through Mount Pleasant and you'd never guess the country's economic climate had turned grey.
While some towns cut jobs and services, Mount Pleasant's leaders were able to build two parks, maintain the tax rate, and maintain the town's essential services.
Don't assume the town is modest about its success. This upcoming year's proposed budget summary's first line states "it is evident the Town of Mount Pleasant continues to weather the economic downturn well."
Town leaders say they deserve the pat on the back. While other towns turned to their "rainy day funds," Mount Pleasant currently has about $15 million still in a reserve fund.
What's the secret to success behind the town's recession proof practices? Call it a crystal ball. Mayor Billy Swails says they recognized the financial crisis was lurking back in 2007, when he was chairman of the finance committee. He says they met with College of Charleston economics professor Frank Hefner, and based on his advice, took corrective matters.
"I take full credit for all the things that happened," Hefner joked.
Hefner says former town administrator Mac Burdette had brought him in to conduct a 10-year budget forecast. He says it showed the town would run into financial difficulties.
"This was during the boom years," Hefner said. "When a city is growing, like Mount Pleasant, it costs more money."
The forecast led the town to plan ahead as expenditures began to rise. When the financial market collapsed, Hefner said the town took proactive actions to protect itself due to an increase in expenditures, growing pains.
"They took the right actions for a forecast that was gloomy in terms of what revenues were, but the reasons changed as the economy changed," Hefner said.
The town's chief financial officer Charlie Potts says expenditures in 2007 were growing about six percent a year.
"We presented a plan to council to change the way we did business," Potts said. "So we ended up being about a year in front of this."
Most of the town's leaders agree it was both timing and planning that helped Mount Pleasant get through the difficult economic times significantly unscathed. As they look ahead, Potts says the latest census shows a population growth, which will mean more funding from the state. Meanwhile, in January town council was able to unfreeze a handful of positions.
"They were always looking out for what may be around the corner that might affect their budget-making process. I think because of that, they've been able to weather the climate," Hefner said.
Town leaders hope their economic endurance will keep the town moving forward and growing despite the country's ongoing financial failures.
Photo illustration (Brian Troutman/WCIV)
