With Beaufort rebounding from COVID-19, 10 things to know about $23.8 million budget
City Manager Bill Prokop is optimistic Beaufort’s economy will strongly rebound in the coming fiscal year in the wake of the challenges the city faced because of COVID-19.
With vaccines readily available, and hospitalizations, down, Prokop sounded an optimistic tone Tuesday night when he unveiled his proposed $23.8 million operating budget for 2022 to the City Council.
The spending and revenue blueprint is a $746,937, or 3.24%, increase over the current budget. It includes a slight tax decrease, an increase in the garbage fee, no new debt and the expectation that the city will receive additional COVID-19 relief and tourism revenue. Mayor Stephen Murray called it a reasonable and conservative budget, considering the economic situation caused by the pandemic.
Tourists are returning to the city, Prokop noted, while Marine Corps Recruit Depot is allowing families to attend graduation ceremonies again at Parris Island. Both will positively affect the economy, Prokop said, along with some large developments in the works.
“This past year has proven just how resilient our community and our municipal team is,” Prokop said.
The 2022 fiscal year begins July 1 and ends June 30, 2022.
Here are 10 things to know about Beaufort’s budget and how it affects you:
1. YOU’LL PAY LESS IN TAXES
A slight decrease in property taxes of 1.1 mills is proposed in the budget. The size of the decrease depends on individual property values, but the owner of a $250,000 home would see a reduction of $11 in the city portion of their tax bill, Finance Director Kathy Todd said.
2. YOU’LL PAY MORE FOR GARBAGE COLLECTION
A $3.80 monthly increase in garbage collection, to $20 from $16.20, is proposed. The city hires a garbage contractor to pick up refuse. Todd said the city has not raised rates in seven years. The amount of money the city gets would remain at 7% of the total fees collected. The city went out for bids to get a new garbage contract. Bids are being analyzed.
3. BUILDERS ARE NOW PAYING FIRE IMPACT FEES
The fees went into effect Jan. 1 and had generated $7,900 through April. Active development projects are expected to generate $119,363 in 2022. One $110,000 fire truck is budgeted annually out of the Fire Impact Fund. Builders pay the fees, a one-time charge, for new construction.
4. THE CITY IS GETTING $5 MILLION in COVID AID
Prokop said the city will receive $5 million in federal COVID-19 relief funding over the next several months. The city is creating a separate fund for the money, and the City Council must approve expenditures. Prokop noted the money can be used for stormwater projects.
5. SALES TAX REVENUE IS REBOUNDING
Although COVID-19 hit the hotel and restaurant industries hard, the amount of money the city is collecting in taxes shows they are rebounding. March revenues from the 2% hospitality sales tax was up 50 percent over last year. March revenues from the 3% accommodations tax was up 60 percent. Those revenues account for $2.8 million out of a 3.3 million Park and Tourism Budget, which funds the Parks Department, police activity in support of parks and tourism, marina operations, Waterfront Park operations, and parking and downtown operations.
6. THE CITY IS BUILDING A NEW BOARDWALK
Included in the budget is a $650,000 boardwalk between downtown and Whitehall across the Beaufort River. The largest building item in the budget is a $1.9 million streetscape and stormwater project on Allison Road near its intersection with Ribaut.
7. $20,000 COULD BE SPENT ON SALES TAX ‘EDUCATION’
Beaufort County voters will decide Nov. 2 whether they approve of a 1% local-option sales tax on all taxable purchases countywide. Prokop has set aside $20,000 in the city manager’s budget to cover the cost of an educational campaign in case it should pass.
8. RESERVES USED TO BALANCE MAIN FUND
The general fund is the main operating fund of the city and its primary sources of revenue is property taxes. The proposed general fund budget is $18.4 million, a $378,144 increase. The city will use $340,986 in reserves to balance the fund. The goal this year is to hold the fund balance, or unassigned funds, at 28 percent of the entire fund, including a 3 percent reserve for emergencies. Prokop called the fund balance the “true bellwether of a municipality’s health and decision-making,” particularly in a community subject to regular hurricanes and flood.
9. TAXABLE VALUE IS UP
The city’s estimated taxable assessed value is $104.6 million, an $8.6 or 8.9% increase.
10. THERE’S STILL TIME FOR YOU TO COMMENT
A public hearing and first reading of the budget ordinance are scheduled June 8. The second and final reading of the budget ordinance is June 22. Public comments can be made in person or through the Zoom link posted at the top of each CIty Council agenda. You can review the budget at https://www.cityofbeaufort.org/162/Budgets.
This story was originally published May 20, 2021 at 12:00 AM.
