By Betsy Finklea
A hearing was held on Thursday in Florence in front of Judge Michael Nettles in reference to a petition for a writ of mandamus and motion for a temporary injunction to require Dillon County Treasurer Jamie Estes to perform her statutory duties and to disburse funds according to the 2017-2018 budget.
The judge issued a ruling that allows the county’s bills to be paid and conduct normal business while protecting the County School Board and Northeastern Technical College until a final hearing can be held.
On Tuesday, July 18, the petition was filed with the Dillon County Clerk of Court’s Office. In the petition, it states that “Defendant Rodney Berry, as Administrator of Dillon County and In His Capacity as Chief Officer of the Dillon County Government, hereby moves this Court for an Order pursuant to Rule 65, SCRCP, granting Berry’s Petition for Writ of Mandamus against the Plaintiff Jamie Estes, Treasurer of Dillon County, mandating Plaintiff to fulfill her statutorily required duties and disburse funds as directed by the Dillon County Council in its budget for 2017-2018. Additionally, Berry moves for an order granting a temporary injunction prohibiting Plaintiff from causing harm to Dillon County as threatened in her attorney’s letter of July 11, 2017, as explained below.
On July 11, 2017, Plaintiff’s attorney sent a letter to Berry stating “the Plaintiff will not disburse any funds pursuant to the budget after Friday, July 14, 2017.” If Plaintiff follows through on this threat, her refusal to perform her obligations as treasurer not only will cause harm to Berry, but also to the citizens of Dillon County who rely on the county government to provide necessary services and perform its daily functions. In support of this Petition, Berry relies on the pleadings, affidavits filed in support of this Petition, any legal memorandum to be submitted in support herewith, and the law of the State of South Carolina.”
Representing the various entities at the hearing were Attorneys Rob Tyson and Will Jordan for Rodney Berry; Attorneys Charles Curry and Janet Byrd for Jamie Estes; Attorney Bruce Davis for the Dillon County Board of Education; and Attorney Charles Boykin for Northeastern Technical College.
Attorney Rob Tyson said a complaint was filed by the treasurer. In the complaint, she questions the validity of the 2017-2018 budget and asks what portion, if any, of the Local Option Sales Tax that she should distribute to the Dillon County Board of Education and what portion, if any, of a two mill tax should be paid to Northeastern Technical College.
Tyson said the county received a letter from Estes’ attorney, Charles Curry, which was the crux of the matter of why they were here. The letter stated that after July 14, the treasurer would not disburse any funds after this date. The letter outlined several options the county has which were acceptable to the treasurer.
The options outlined in the letter included the following: “1. Dillon County can immediately pass a Continuing Resolution authorizing funds to be expended. 2. Dillon County can immediately have First Reading on a new budget and can properly pass a budget within (30) days. The Continuing Resolution will protect the Treasurer until the new budget is passed. 3. Dillon County can immediately file a Petition for Mandamus against the Dillon County Treasurer.”
Tyson said that they filed a writ of mandamus that was straightforward and was seeking to mandate that the treasurer do her job as she is required to do by the statute.
Tyson said that the treasurer in her letter said that she was not going to pay anything anymore. Tyson said her position shifted when she realized that she was not paying payroll.
The treasurer did pay the payroll based on the amounts in the 2017-2018 budget. Tyson said the treasurer refused to pay for other things. Once this was needed to proceed with a real estate closing that is part of an expansion of Harbor Freight Tools. He said when they went to get the money, she refused to write the check. Tyson said they are not sure what she intends to pay or not pay.
“Ordinances are presumed valid,” said Tyson. He said that the treasurer doesn’t get to make the decision of what she is going to pay or not pay.
Tyson said before her day in court to determine if the budget ordinance is valid that she made the decision not to write checks. “She doesn’t have that authority,” said Tyson.
Judge Nettles said that they are asking that the treasurer comply with the budget until the merits of the budget are determined.
Tyson said the county needs to have government services paid such as the power bill, fuel bill, and several others. He said they have no idea what she intends to pay. He said clearly they don’t have another remedy.
Judge Nettles then asked if they were seeking this on an emergency temporary basis.
Tyson said the treasurer acted “unilaterally” on what she was going to pay or not going to pay. He said what Curry sent was just a letter and that Curry should have filed it as an injunction or a motion. He said that just because she doesn’t like the budget doesn’t mean she gets to unilaterally decide what gets paid. He said that clearly the county could be irreparably harmed. He said they are seeking for the treasurer to be the treasurer and do her job.
Bruce Davis, who represents the Dillon County Board of Education, was the next to present. He said the county board was here as a party defendant who sympathizes with the plaintiff.
Davis said that a directive came that the Local Option Sales Tax money that had been divided equally with the Dillon County Board of Education for more than 20 years would no longer be coming and no explanation was give.
Judge Nettles said the county board should initiate a course of action because he didn’t see how he could address that at this point.
Davis said he felt that they were obligated to continue funding this per their agreement. After further discussion, Judge Nettles said he believed this was a “different ballgame,” and there needs to be a lawsuit to address this.
Davis said they were acting on the basis that she feels obligated not to pay this any longer.
Judge Nettles said that this matter was not before the court today and would be heard at a later date and time.
Charles Boykin, who represents Northeastern Technical College, said they were also sympathetic to the treasurer’s position. He said they were in the process of doing research and at some point they would like to address this on the merits and assert the interests of Northeastern Technical College.
Tyson said the budget ordinance is presumed valid so anyone who takes action based on this is protected, and he doesn’t think the treasurer needs protection from liability.
Charles Curry, attorney for Treasurer Jamie Estes, was next to present.
Curry said in 1995, the electorate passed a referendum for a Local Option Sales Tax. He said one of the requirements is that 71 percent goes to reduce property taxes and 29 percent can be paid anyway the county sees fit. However, he said it was advertised and there was an agreement between Dillon County and the Dillon County Board of Education that half of these funds would go to the Board of Education. It was advertised in the newspaper. The people voted in favor of the tax, and it has been paid out ever since. He said then the treasurer gets a letter that effective July 1st she was no longer allowed to pay this money to the Dillon County Board of Education.
Curry said the Board of Education says they are owed this money. The county says that no she can’t pay it. Curry said Estes needs clarification on what to do.
Curry said that if they court declares that mandamus is proper he would like to see that the county board’s half of the L.O.S.T. funds be set aside in a special account until a determination is made. Otherwise the money will be gone, and the County Board of Education would be “out in the cold.”
Tyson said in their mandamus they don’t think this is proper, but they will do what they are ordered to do. Curry said they would also.
Judge Nettles asked if the matter was heard within a month, did he think the money would be gone.
Curry said they had a special project where they needed $1.1 million to fund the project.
Judge Nettles said then the answer is that it could be.
Curry said the last payroll went into last fiscal year and part of this fiscal year.
Curry said the county had $1.2 million before payroll. Payroll is $350,000. He said there was not enough in the account to fund the project. He said even the day prior to the hearing, county officials were trying to get the S.C. Department of Commerce to help with funding. He said even if the judge orders the treasurer to pay the bills that there was not the money there for her to spend. Curry said she “can’t issue a check for money they don’t have.”
Curry said the county had the first reading of the budget by title only which is the method that most counties use.
The next phase is the second reading where they are supposed to have a written ordinance. Curry said he has what they furnished to him and called a second reading, and there was no ordinance there. He said it was a group of figures on how they proposed to spend the money.
Judge Nettles said he felt this goes to the merits. He said he was not equipped to address this at this time. He said that he wanted to put a bandaid on it with no damage to the county or the Board of Education.
Curry said there was a remedy and a writ of mandamus is issued when there is no remedy. He said the county could pass a continuing resolution on the 2016-2017 budget. Judge Nettles said they have chosen not to do it.
Judge Nettles then asked if they perceived the danger to be $1.1 million economic development project.
Curry said the court goes slowly, and he doesn’t want a year to go by, and it not be resolved.
Judge Nettles said they could get a decision quickly.
They discussed about when they could have a final hearing on the merits to resolve the issues. The judge then decided on 45 days. The final hearing will take place September 14 and 15 in Florence.
The judge then discussed that the treasurer should pay the bills that needed to be paid and not allow any huge amounts of money such as those for the Harbor Freight economic development project until the matter is resolved.
Curry said they don’t want to do that. He said this is a very important project to the county, and if they could come up with the funding.
Curry said the Local Option Sales Tax money comes in monthly, and the June money has not yet arrived. He said he would like to see it set aside or held in a trust until the matter is resolved.
More discussion occurred between attorneys and the judge.
Judge Nettles then gave his order. He said the money for the Board of Education and the Technical College should be held in a trust with the treasurer’s office. He said they should live within the bounds of the budget and conduct business as usual until the 14th and 15th.