Staff member Amy reports insurance premiums jumped 20–30%; city sees mixed revenue and sets 2027 budget timeline

Staff member Amy presented the Charleston City monthly financial report on May activity and preliminary impacts for the 2027 budget, saying an unexpected rise in insurance costs and timing of prior-year purchase orders are the main reasons several funds are currently over their monthly targets.

“they are 20 to 30% higher,” Amy said of property, auto, marine and tort liability insurance premiums, adding that the city is working with the Insurance Reserve Fund (IRF) to understand increases and is considering soliciting market proposals for coverage. She said higher vehicle counts and related rates have compounded the pressure.

Amy told council that many departmental overages — including Fire, Parks, Police, Traffic and Transportation and Public Service — reflect timing of purchases or rollovers from 2025 purchase orders and are expected to level out over the fiscal year. “They're just slightly over target, which will level out,” she said in response to a council question.

On revenue, Amy said business licenses and permit fees, especially development services, the fire marshal and planning and preservation, are coming in strong. She highlighted Charleston County motor vehicle tax collections as a material contributor to property-tax-related receipts.

Council members asked about a recent state reduction in watercraft taxes. Amy said the reduction will be phased over three years and is expected to affect local collections beginning next year, estimating “around $600,000–$700,000” over that period, adding the figure was provided “if I remember correctly.”

Stormwater revenues are tracking ahead of the city’s internal target after a change in the collection method; Amy said the stormwater target was 12.8 million and current receipts stood at about 15.9 million, noting some receipts may reflect late payments CWS collected for prior years. She said stormwater expenditures remain under target.

The city’s enterprise funds showed mixed results: the municipal ballpark and the golf course are performing better than expected but could face higher summer expenses; revenues at the Old Slave Mart were below target in May but with lower expenses. Amy also noted parking violations are significantly over projections while meter collections lag, in part because the Midtown garage is closed for renovation.

Fuel-price volatility remains a concern. Amy reviewed average gasoline prices over the first half of the year and said a prior, larger estimate of budget impact was revised; as of June 15 staff projected roughly a $46,000 impact but cautioned future movement is uncertain.

Amy closed by outlining the 2027 budget schedule: budget submissions due in July (operating budgets due July 10; new program forms due July 24), departments report out in August–September, the city must deliver the budget to council by Nov. 17, first reading is Dec. 1 and second/third readings are Dec. 15.

Council members praised the concise briefing and had no further requests for action at the meeting. The council did not take any formal votes or adopt midyear budget adjustments during the session.