Homeowners near Upper Rockyford dam might tax themselves to pay for repairs

A group of Richland County homeowners could be the test case for a solution to pay for costly dam repairs after historic rains and flooding damaged dozens of dams across the state last fall.

People who live in the Upper Rockyford Lake neighborhood will go to a county polling place June 21 and vote whether to pay taxes though a special tax district to repair their dam. The steps that neighborhood is taking could lay a path for other communities affected by flood-damaged dams that are privately owned and will not being offered repair money by the county, state or federal government.

At least 23 dams, virtually all of them privately owned, failed in Richland County amid the October deluge.

Along Upper Rockyford Lake in the Forest Acres area, Tom Teuber used to look out onto the lake from his back porch and enjoy the wildlife and scenery, he said.

“This chain of lakes ... they’re like jewels in the crown. They’re lovely places to be in so close to a city center but feel like you’ve got the outdoors,” said Teuber, president of the Upper Rockyford Lake homeowners association.

But since Oct. 5, when the Upper Rockyford dam failed, the neighborhood’s lake has been replaced by a pit of mud, grass and weeds.

And Overcreek Road, which runs atop the broken dam, can’t be repaired until the dam is.

On top of all of that, without the lake, homeowners’ lakeside property values have been cut by a third to a half in most cases, Teuber said. And that could be a detriment to Richland County’s tax revenue stream.

“There are some people who are really ready to do what’s right and get the lakes constructed again so they are, No. 1, safe and safe for a long time,” Teuber said. “Ultimately, we’re not depending on the state of South Carolina or Richland County to bail us out. All we’re asking the county for is a mechanism to make sure that every homeowner in this area pays in equally.”

Assessing a special tax on the 61 properties surrounding the Upper Rockyford Lake, however, would create a repayment mechanism to allow homeowners to secure a loan to pay for the dam repairs and ongoing maintenance. The annual tax would pay off the loan.

“This is a vehicle to hopefully solve a problem that otherwise didn’t have an answer,” said Lawrence Flynn, an attorney representing the Upper Rockyford Lake homeowners association.

Out of 129 registered voters in the proposed district, 52 – or 40 percent – signed a petition asking to hold the referendum.

A simple majority is the margin needed to for the measure to pass.

County Council voted to allow the vote, and the county election office set the date and will staff the polls. Homeowners will pay the election costs. If the majority of homeowners approve it, council will vote to create the special tax district. Council can terminate the district whenever its purpose has been fulfilled.

The cost to repair the Upper Rockyford dam is still not known, though engineers have told The State newspaper that new dams could cost anywhere from $300,000 to $1 million each. Richland County government will not contribute public money to repair private dams, and the state has not set aside any money for dam repairs.

The special tax could either be applied proportionally, as a factor of each property’s value, or as a uniform value for each property. The tax would be capped at $1,500 annually per household if a flat rate is applied.

It would apply only to the 61 homes located inside the defined district boundaries, in this case, homes on Goldbranch, Northshore and Overcreek roads whose property lines touch the lake.

If the question passes, the goal is to have the special assessment included in tax bills that are sent out this fall so that money can start being collected next year.

Two other dam communities – homeowners near Beaver and Cary Lake dams – already have approached Flynn about possibly getting his help to pursue special tax districts to repair their dams as well, he said.

Richland County and state government leaders have supported the special tax district plan in Upper Rockyford and potentially other communities.

Repaired dams will benefit the county as a whole, County Councilman Greg Pearce said. Repairs will access to public roads atop those dams, and restored property values will raise tax values again in those areas, boosting the county’s overall operating revenue.

“Beyond that, it’s just the right thing to do” to allow these communities to form special tax districts, Pearce said. “Government should be there to help the people, and these people are in a pickle.”

But, as the cost to repair the Upper Rockyford dam is still unknown, the duration of the proposed tax district and the amount of money it will ultimately collect is still unknown.

This story was originally published April 20, 2016 at 6:57 PM with the headline "Homeowners near Upper Rockyford dam might tax themselves to pay for repairs."