2026-10-21 - Ad Hoc Budget Advisory Committee

00:02I will check out our

00:05YouTube to make sure we're good.

00:14>> As long as all the money is coming to

00:16District 9, that's all I care.

00:18>> [laughter]

00:21>> All right, there we go. We're good to

00:22go.

00:28>> Do you want to get us started or do you

00:29want me to get us started?

00:32>> Um

00:34I can I'll get us started with the uh if

00:36everybody could just

00:39join in a moment of silence.

00:50All right, uh welcome to the ad hoc

00:52budget meeting.

00:54Uh and with that, let me have you folks

00:57turn it over to you.

00:58All right, item number two.

01:00>> So today today we are really going over

01:02um fact of life increases, lease

01:04purchase, and our general fund revenues

01:06as they stand right now or

01:08what we're estimating them to be.

01:10Um

01:13fact of life increases over 2026 is

01:17$15.5 million. You can see how that's

01:20made up in that in the column there.

01:23Salaries, those are um

01:26mostly police and fire step increases

01:29that they get throughout the year and

01:30then we've also made some changes to uh

01:33pay grades and things like that so that

01:34makes up most of that number. We've

01:36talked about health care

01:38a lot in terms of the additional cost

01:40for health care.

01:41Workers comp is also coming in uh

01:43higher, rents just because of the

01:46year-to-year increases that we have in

01:48rents,

01:49the percentage increases, and then

01:52we've also talked about property

01:54insurance, how much more that is going

01:57to be, how more expensive, and how we're

01:59over budget this year for insurance. So,

02:01we're

02:03estimating that to be $1.3 million

02:06increase over last year, and then fuel.

02:08We've talked about fuel a lot as well.

02:10So, that's also a $1.3 million increase.

02:14Street lights are also coming over and

02:16over budget. We think there's just more

02:19neighborhoods, and then some of the

02:20agreements they have a

02:22a base amount that we pay in those

02:24agreements are rolling off, so now

02:26they're we're paying the higher prices

02:28for those, and then just other

02:29utilities. And then we have additional

02:31debt next year as well for the West

02:33Ashley office building,

02:35parks and rec,

02:37and then also some property expansion

02:39for municipal

02:40the municipal operations building.

02:44We also have moving costs for the

02:45municipal operations complex. We'll

02:47still be moving in next year, and then

02:50the title and inland flooding

02:51continuation is $2 million in

02:55in 2027.

02:57Any questions on those on those?

03:02>> We have you good there.

03:05>> Uh I mean the the municipal operations,

03:08that's that's the that's the public

03:10service operations building, correct?

03:12Okay.

03:12>> Yeah.

03:13>> Um

03:14>> Oops, sorry.

03:15>> And I guess

03:18I can't remember what was Do we count as

03:21last year as a fact of life increase

03:23just our our reserve for storm related

03:27um

03:29contingencies?

03:31>> Our emergency fund?

03:32>> Yeah.

03:33>> Yes, but we're not increasing that this

03:35year, so it's not a an additional cost.

03:38>> Knock on wood.

03:40Um

03:40>> Well, yes.

03:43>> Yeah, so well, we're going to contribute

03:45the same amount that we did last year.

03:47Okay. So, we're just we're building

03:49more. That's good. All right, thank you.

03:53>> And then our proposed lease lease

03:54purchased um environmental services,

03:57fire, fleet management, information and

03:59technology, golf course, and stormwater

04:01is all our

04:02our 4-year lease purchase.

04:05And the detail to that um environmental

04:07services getting another street sweeper.

04:09They are getting two front loaders, um

04:12two ASLs, a scow, and a knuckle boom.

04:15And the total cost of that is

04:17$2,098,000.

04:19>> Okay.

04:20>> Fire department is replacing one pumper

04:22truck.

04:23Already been approved by council because

04:25of the lead times that we have uh for

04:27fire trucks. So, it's just falling into

04:30the 2027 lease purchase. And air 101

04:34replacement, um they're also replacing

04:36another

04:37another vehicle. They're not sure if

04:38it's going to be an engine or a tender.

04:40So, but they're the same cost. So,

04:42they'll they're deciding out which one

04:43they will be replacing. And then light

04:46vehicle trucks um just for fire ops,

04:49emergency management, fire marshal, fire

04:52training.

04:54Total cost of that is $3.5 million.

04:58Fleet management, we have an aerial

05:00truck, which is the bucket trucks for

05:03TNT, just some regular trucks. Most of

05:06these are just replacing deadline

05:07vehicles, a wood chipper for parks, and

05:10then two vans.

05:12For $1 million.

05:14And then information technology, this is

05:16just our normal PC replacements, the

05:18police MDTs, and then the fire MDTs and

05:20laptops. I mean, iPads, sorry. For $1.5

05:24million.

05:27And then golf course is getting a bunker

05:30raker, a sod cutter, and a top dresser

05:32for $103,000.

05:35And stormwater a vac truck, you know, we

05:38replace a vac truck every year.

05:41So, in total, it's $8.9 million.

05:44Um the the service will be $1.2 million.

05:46And and see in the general fund. And

05:49then you can just see the cost by

05:50department.

05:51>> [clears throat]

05:57>> Any questions on that?

06:00>> Good here. We're good.

06:02>> We're moving on to our 3-year lease

06:04purchase, which is always just police.

06:06Um

06:06and they're getting their 30-mark patrol

06:08cars, which we do every year.

06:11Sorry, my light goes off. Um unmarked

06:13cars, pursuit, two motorcycles, five

06:16trucks, one SUV, and a special

06:18operations truck. And that's

06:202.5 million dollars. The debt service

06:22would be 300 almost 345,000 dollars.

06:29So, in total

06:32the total lease purchase amount is 11.4

06:34million. Total debt service is 1.5.

06:37We're actually a little bit under where

06:39we were in 2026.

06:41And some of that's interest.

06:43We

06:44projected 5% last year. We're doing 4

06:46and 1/2% this year.

06:50Any questions on lease purchase?

06:55Okay.

06:57Um general fund revenue assumptions

07:00for property taxes, we are

07:03um estimating a 10% or projecting a 10%

07:07vehicle growth rate and a 12 for

07:08Charleston County and 12% for Berkeley

07:11County.

07:134% for real property in Charleston

07:15County, 10% in

07:18uh Berkeley County. And then our tax

07:20credit factor

07:22we're we're setting at 0.00085

07:26in Charleston County and 0.00045

07:28in Berkeley County. And just for

07:30reference, our

07:32what we budgeted this year for

07:34Charleston County is 0.0083

07:37and 0.00037

07:39for Berkeley County. So, both of those

07:41have increased a little bit, which is

07:42good. And the total amount of loss

07:44credited is 3.9 million for

07:47Charleston County and 4.3

07:50for Berkeley County.

07:52Any questions on that?

07:56Okay. Um local option sales tax,

07:59Charleston County

08:01projecting through 34.9 million,

08:03Berkeley County 4.3 for a total of 39.2

08:06million.

08:13And just so you know, it's based on 7

08:15months of revenue because there's a lag

08:16time in when we we we receive those

08:19revenues. Business licenses, we budgeted

08:2161. Almost 7 in 2026. We've done really,

08:26really well with business licenses, so

08:28we're being a little bit more aggressive

08:29in our projection for 27 at 67.3 million

08:33dollars.

08:35And then we give by ordinance 2% to the

08:37general fund. So, the total

08:39to the general fund will be 66 million

08:41dollars.

08:46>> I I got a question.

08:47>> Okay.

08:48>> Uh

08:49when you say we're being more aggressive

08:50on business licenses, are that that's

08:53just following up on delinquent accounts

08:56or that's

08:57>> No, I'm just saying in the projection

08:59we're not

09:00we're um our projection's a little bit

09:02higher than it has been in the past just

09:03because we've been doing really well in

09:05business licenses, so we're comfortable

09:07with increasing that a little bit more

09:09than we typically would.

09:10>> Yes, it's it's based on revenue.

09:12>> It's

09:13Okay, so it's just all right, well,

09:14that's good. So, forecast forecasting

09:16aggressiveness.

09:20>> Franchise fees, uh electric and gas at

09:225. I'm sorry, 15.9, cable TV revenue

09:26reduced again because every year it goes

09:28it just continues to decrease. So, the

09:31total would be 16.677

09:34million.

09:40>> Building permits, um

09:44budgeted 2.8 in 2026, we're increasing

09:47that to 2.9 million in 27 and plan

09:51review we're increasing a little bit by

09:521.95 million for a total of 4.8.

10:00Any questions there?

10:02>> Why I mean we just think there were

10:06we think they're going to be less

10:08building permits than last year?

10:09>> Well, yes, so we're never sure in terms

10:12of the number but also how elastic this

10:15revenue is, so we tend to be a little

10:16bit more conservative with it.

10:21>> Good.

10:23>> Um other permits and fees, planning

10:26preservation, we're um

10:29projecting at 1.1 million, traffic and

10:31transportation at 5.15, and fire at

10:34600,000 for a total of 2.2. That again

10:38is just being a little conservative with

10:40the elasticity of the revenues.

10:47And then this is the summary of

10:48everything. Um

10:50total change is $15 million from 2026 to

10:54the good.

11:04>> Any questions on that? Wait.

11:07Mhm.

11:07>> Um Councilmember Craig is on now as

11:09well.

11:09>> Okay. Good.

11:13>> All right. So and just in summary

11:16I'm s-

11:17Go ahead. I'm sorry.

11:18>> No, it's good.

11:19>> Okay. Factor of life increases as we

11:22when we looked at them 5 15.5 million

11:25are projected increase in revenue is 15

11:27million, so we're off about $500,000.

11:31Our new program requests are 25.2

11:34million and we're looking at base budget

11:36requests now.

11:39And just a note that this is not include

11:41any transfers in from parking or tourism

11:43funds yet. This is strictly all general

11:45fund.

11:49Any questions?

11:52>> The big gap.

11:54>> Mhm.

11:57So, for now it's just our uh but what's

12:00next? Um October 28th we'll go over next

12:04Wednesday we'll go over tourism budgets,

12:05enterprise funds, and stormwater fund.

12:08And then we will have a final review of

12:10recommendations on November 4th. We

12:12typically have a full

12:14um

12:15council budget workshop. We're trying to

12:17schedule that with

12:19the clerk's office and then we'll go

12:21over the capital improvement plan on

12:22November 30th.

12:28And then these are just the dates.

12:34And that is all I have.

12:39>> All right, so we'll we'll we'll wrap up

12:41the revenues in the next meeting and we

12:44can we can look at an aggregate with

12:46what you just showed plus the

12:49um tourism budgets, enterprise funds,

12:52etc. Stormwater, correct?

12:54>> Yes.

12:56>> Okay.

12:57And then we'll be looking at

13:00on the 4th

13:03total revenue, total

13:06um recommendations for

13:09expenditures

13:10>> Mhm.

13:11>> and then that'll be what takes us into

13:13the workshop, right?

13:14>> Right, which that workshop should be

13:16what the budget what our proposed budget

13:18is. And then we have to give the um

13:21the budget to council the following

13:23week.

13:24>> Got it. Okay.

13:27All right, Any other questions from

13:31Councilman Tinkler or Councilman Boyd?

13:34Craig.

13:36>> I'm good. Thank you.

13:38>> [clears throat]

13:40>> All right, guys. Certainly appreciate

13:42it. Thanks for joining and thanks Amy

13:44for putting this together.