Beaufort officials balance city budget with no new fees
Beaufort residents won't be subject to any additional fees or tax costs in the next year under a recommended budget unveiled by city staff Tuesday, though a plan for making money from tax-exempt property is still in the works.
Staff and City Council members did not have time to properly vet discussed public-safety and infrastructure fees that would have affected all property owners, City Manager Bill Prokop said, as staff and council worked to balance a budget that in the beginning carried a projected $700,000 deficit.
The budget was instead balanced at $17.4 million, in part by increasing allowable millage and delaying capital expenses, such as putting off a request for new police patrol cars.
A public hearing on the 2016 fiscal budget and first council vote on the ordinance will be June 9. A second vote will be June 25.
Council members had few questions after hearing budget presentations from individual departments in recent weeks.
"I was concerned a couple of weeks ago; I know we all were," Councilman Philip Cromer said during a work session Tuesday at City Hall. "But it was balanced without sticking it to the property owners."
Instead came seven initiatives for righting the city's financial stalemate in the future, including possible fees for the city's nonprofits.
Under one of the initiatives, staff and council members will meet with some of the area's larger tax-exempt property owners to develop a plan by the end of the calendar year for making money from the properties.
If unsuccessful, staff and a committee of residents will draft a fee structure for council to consider in next year's budget, Prokop said.
He said the city's tax-exempt property is worth more than $320 million and would be worth more than $1 million for the city as taxable property.
The city didn't want a fee for regular residential property, Prokop said, and saw other cities in the state were going a similar direction with tax-exempt property.
"It would be up to one or two councilors to pick an organization and say, 'Hey, we'd like to sit down and talk about a payment in lieu of taxes,' or something" Prokop said. "'What can we come up with that you're paying your fair share -- or a business license or something -- for the services you get from the city?'"
Other initiatives call for re-examining fees for licenses and permits and facilities that have not increased in the past decade.
Under a "Beaufort Pride of Place" initiative, cuts made in spending on "wish list" items will be addressed through money or materials donated to a special fund. Needs include fire and police equipment and personnel, park maintenance and playground equipment, Spanish Moss Trail improvements, lighting upgrades, bike racks, and holiday decorations.
Other initiatives call for freezing Accommodations Tax commitments at their current level for three years, reviewing and streamlining regulatory processes, and engaging employers to retain and grow jobs
"There is some hard work we all have to do in the coming year to set us on a different path," Mayor Billy Keyserling said.
In other business, USC Beaufort chancellor Jane Upshaw requested $125,000 for improvements to the school's Center for the Arts, which could come over several years. The school is requesting $500,000 from Beaufort County Council for the renovations, which Upshaw estimated could cost $1.2 million to $1.8 million. She said the school has about $300,000 in its renovation reserves and that school officials would fund-raise to cover the rest.
Council took no action on a personnel matter in executive session.
Follow reporter Stephen Fastenau at twitter.com/IPBG_Stephen.
This story was originally published May 19, 2015 at 9:32 AM with the headline "Beaufort officials balance city budget with no new fees."