Town manager proposes $166.94 million FY2025 budget; $16.5 million cited for beach renourishment

Town Manager Mark presented a consolidated FY2025 budget of $166,936,866 at a May 14 workshop, telling the council the proposal increases total spending by about $19.9 million from the prior year and that roughly $16.5 million of that increase is tied to the town’s beach renourishment effort. The manager said construction will not begin in FY25 but the town expects to have the project permitted, bid and ready to mobilize during the fiscal year.

Mark said the proposed budget emphasizes conservative revenue projections and relies substantially on transfers and prior‑year carryforwards to pay for one‑time capital and programmatic work. “We’re transferring in a little more than $19,000,000,” he said, and later discussed $11.6 million in prior‑year funds programmed for specific projects. He described principal revenue sources for the general fund as property taxes, local accommodations taxes, business licensing and a mix of transfers and intergovernmental income.

The manager presented a general fund operating request of about $60.9 million and said personnel and benefit costs increase in part because the budget includes a 4% performance‑based pay pool and higher employer medical premiums. He told council the town’s full‑time headcount is proposed at 281 with 17 part‑time staff and said some positions were added since 2021 to respond to visitor‑driven service demand (including fire‑rescue and code enforcement staffing changes).

Councilors asked for more detail on several revenue lines, including how property tax reassessment and conversion of primary homes to higher assessment classes (such as short‑term rentals) affect growth. Mark asked staff to prepare a three‑to‑five‑year cross‑reference to show how property classification changes and short‑term rental registrations have contributed to assessed value changes and to consult Beaufort County records where needed.

On tourism‑related revenues, Mark noted the town’s ATAX and hospitality receipts have grown in recent years but cautioned some lines have peaked and projections for FY25 are more compressed than in the record‑high years. He recommended council consider a written ATAX distribution policy to manage future fluctuations and to clarify the town’s approach to DMO distributions and ATAX grants.

The workshop covered other funds as well: a $7.5 million stormwater program (see separate report), debt service projections and a newly budgeted housing fund that proposes $4 million in resources for neighborhood stabilization, a $1 million Northpointe partnership and soft costs for housing initiatives. Mark also introduced the newly formed Gullah Geechee Historic Neighborhoods Community Development Corporation and said $5 million in grant funding remains in that nonprofit’s proposed startup budget.

The manager said the next step is a Thursday workshop on capital projects and that council will consider the second and final reading of the budget on June 4. This workshop was for discussion only; no final budget vote was taken at the May 14 meeting.