Beaufort council splits on $73M budget after last-minute call for cuts sparks drama
A $73 million budget to run the city of Beaufort in 2026 was approved 3-2 by the City Council Tuesday evening. A move by one councilman to cut $77,000 from the budget — including $42,000 earmarked for a regional economic development group that’s already lost funding from one community — caused last-minute drama and a rare split vote following months of dry discussions on numbers and programs.
Here’s the highlights:
▪ The city tax rate is not increasing. The overall millage will remain flat at 73.9 mills. However, the city will collect $370,000 in additional taxes because the value of a single mill is increasing by $5,432 to $131,885 due to the growth in the number and value of properties that have been added or improved since 2025. The amount of taxes paid also depends on the assessed value.
▪ The $270 annual garbage collection fee for residents will not increase despite a $75,000 increase in the city’s contract with its hauler.
▪ Projected increases in business license revenue of $1.1 million, and the additional property taxes due to growth, will help offset a $7.5 million budget increase, according to the city.
▪ $28.5 million will be spent on 15 projects including $21 million in major stormwater drainage fixes at Charles/Craven Street and King Street and Port Republic/Carteret Street; $2.2 million in improvements to Southside and Washington parks and a new park on Boundary Street honoring the 1st South Carolina Volunteers, the first Black troops to fight for the Union; and $250,000 to study the unstable underground infrastructure at Waterfont Park.
▪ Employees are getting a 3% cost-of-living adjustment effective July 1. The city also is planning one-time merit bonuses of up to 2.5%. A compensation study is in the works and may recommend additional increases. To prepare for that possibility, the city is setting aside additional money to implement another 2.7% pay increase should it be necessary.
Just when it seemed like the $73 million budget, which combines eight separate funds, was on track toward easy approval, Councilman Josh Scallate moved to cut $77,000.
It was difficult for him to oppose the budget, said Scallate, but he cited fiscal responsibility and concerns about three spending priorities in his proposed amendment.
The savings, he argued, could be used to reduce taxes or spent on infrastructure.
Scallate’s proposed cuts included $42,000 in the budget set aside for the Beaufort County Economic Development Corp., a not-for-profit funded by local governments that promotes job and business creation in the region. What additional services does the city get from the BCEDC? Scallate asked. City residents are also county residents, Scallate noted, and Beaufort County also contributes to the BCEDC. “I feel like it’s double taxation on municipal residents,” he said.
BCEDC Executive Director John O’Toole watched from the audience. Last week, the town of Port Royal voted to cut its $42,000 contribution to the agency.
Scallate also raised concerns with recent land purchases made by the BCEDC, saying he had concerns about the appraisal used in one purchase. In general, he added, he opposes the purchase of large private parcels of property and removing them from the tax base.
Mayor Phil Cromer, who serves on the BCEDC board of directors, sided with Scallate on cutting the $42,000 for the agency, saying Beaufort County should pick up that amount. The county is the largest contributor to the the BCEDC.
But councilmen Mitch Mitchell, Neil Lipsitz and Mike McFee shot down Scallate’s motion, which also included cutting $30,000 for a downtown master plan and a $5,000 contribution to a statewide nursing retention initiative. Scallate said the city has done enough studies on downtown planning and that the city already works with Beaufort Memorial Hospital on nursing retention. The $5,000, he said, would be better spent on an appreciation dinner for those residents who volunteered over the past year helping the city re-write its development rules.
Mitchell, Lipsitz and McFee then voted to approved the $73 million budget, with Cromer and Scallate voting no.
This story was originally published June 11, 2025 at 10:38 AM.
