Lake City Council Approves Controversial Budget with Job Cuts

Lake City, October 17, 2025

News Summary

The Lake City City Council has voted to adopt a budget that includes significant job cuts to address a $3.9 million revenue shortfall. Approved with a narrow margin, the budget will eliminate 21 city jobs, while the city implements measures to improve financial stability. The budget also includes modifications to water and sewer rates, and new fees for services provided to non-residents. City officials have stressed the urgency of restoring financial health amid these ongoing challenges.

Lake City – The Lake City City Council has voted 4-3 to approve a controversial budget on October 14, 2025, which includes significant job cuts in an effort to address the city’s ongoing financial crisis. The budget is part of a strategy to overcome a $3.9 million revenue shortfall that has persisted over recent years.

The approved budget will result in the elimination of 21 city jobs, including key positions such as the assistant administrator and the human resources/payroll manager. Notably, 19 of these positions were vacant prior to the budget approval, alleviating some immediate workforce impact but nonetheless marking a significant reduction in city staff.

City officials have emphasized that Lake City currently lacks reserve funds to operate effectively and have expressed their commitment to restoring financial stability. The situation has been compounded by the city’s failure to complete its annual audit, which has led to the loss of over $100,000 in state funding each month due to withheld revenues.

To better understand the severity of the financial situation, it is important to note that Lake City is also undergoing a forensic audit alongside its annual audit to address the financial instability that has persisted. In light of this, the city plans to implement cuts exceeding $2 million, which will include strategies like the sale of city-owned properties and changes to employee health insurance providers.

One of the significant adjustments in this budget is the modification of water and sewer rates. Starting with the new fiscal year, rates will apply to the first 2,500 gallons of water used, with additional hydrant rental fees imposed on residents outside the city limits. Additionally, the city will double fees for out-of-city non-residential services and adjust other relevant non-residential rates.

To address immediate financial concerns, Lake City has secured a tax anticipation note and a general obligation bond, with limitations set at $600,000 and $1 million respectively. These measures aim to bridge the financial gap while the city grapples with overdue maintenance on essential services, which has already necessitated external support, including garbage trucks loaned from the city of Florence.

The city is set to welcome Malik Whitaker as the new City Administrator on October 16, following Steven Thompson’s tenure as interim administrator. Whitaker’s leadership will be critical as the city navigates these budget cuts and works towards financial recovery.

Key Budget Features

• Budget voted on October 14, 2025, with 4-3 approval
• $3.9 million revenue shortfall addressed
• Elimination of 21 city jobs; 19 were already vacant
• Over $2 million in budget cuts
• New water and sewer rates effective from proposed budget
• Doubling of out-of-city non-residential fees
• Secured tax anticipation note and general obligation bond

Background Context

Lake City has faced financial challenges in recent years, primarily due to an inability to effectively manage its budget and revenues. These difficulties have prompted the need for drastic measures, including job cuts and increased fees for city services. The failure to complete timely audits has further hampered the city’s ability to secure funding and maintain essential services.

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Additional Resources

• WPDE: Lake City Budget Cuts
• Wikipedia: Lake City, South Carolina
• Post and Courier: Lake City Budget Approved
• Google Search: Lake City budget crisis
• WMBF News: Lake City Approves Budget
• Encyclopedia Britannica: Budget
• WBTW News: Lake City Approves $10M Budget
• Google News: Lake City budget cuts

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