CITY OF BEAUFORT FY2023
Budget In Brief
A Summary Look at the 2nd Quarter of the FY22-23 Budget
As we move into fiscal year 2023, the following report represents the activity for the second quarter of the fiscal year in comparison with prior years and budgets on a prorated basis. One thing to note is that revenues are not realized on an equal basis amongst the quarters. In fact, most of the revenues are realized during the later half of the fiscal year. As we review the 2nd quarter activity, I encourage readers to keep the above in mind and look more closely at the actual revenues and expenditures on a historical basis as a gauge on whether the City's financial position is on track in meeting its goals and objectives. The comparative charts are presented for the General Fund, the Parks & Tourism Fund and the Stormwater Fund, which are the three major operational funds of the City.
I encourage readers to drill down into any the following charts and graphs which will lead you to the City's transparency portal, where the reader will find prorated budget comparisons and the ability to filter down into more detail of the City's operations.
FY 2023 2nd Quarter Revenues
Overall revenues for the 2nd quarter of FY23 is $8.1M in comparison with December 2022, presents a $718K increase. Some of the significant changes include a $520K increase in licenses and permits and $215k increase in property taxes along with $360K decrease in intergovernmental as the City received additional grants last year.
FY 2023 2nd Quarter Expenditures
Overall expenditures for the 2nd quarter of $12.3M in comparison with the prior fiscal year at the same period is $948K more than the prior year but in line with the prorated budget through 2nd quarter, indicating planned costs.
FY 2023 2nd Quarter Revenues over (under) Expenditures
The chart summarizes the total revenues less total expenditures for the net change. It is not unusual during the 2nd quarter of each year for the expenditures to be greater than the revenues across all funds as noted when looking at comparative periods in prior years.
Personnel Costs for 2nd Quarter
Personnel costs consist of salary and overtime transactions. Personnel expenses are 44% of FY 2023 budget and therefore less than expected 50% recurring expenses as of December 31st. This could be attributed to personnel vacancies.
Benefit Costs for 2nd Quarter
Benefits represent approximately 35% of the total personnel costs. Benefit expenditures are 40% of FY 2023 budget as of December 31st.
General Fund Overall
The General Fund is the main operating fund of the City and consists of the activity of public works, fire, police, community development, municipal court, city council. city manager, finance, and human resource departments.
Overall, the General Fund's revenues are below expenditures, which is not unusual as compared to historical quarterly activity and appears to be in line with expectations.
General Fund Expenditures by Function
Total general fund expenditures are $9.7M represent 46.3% of the budgeted expenditures for fiscal year 2023 and are about $974K greater than 2nd quarter 2022 and more in line with expenditures prior to the pandemic. General government expenditures are $260K greater than the prior year of which $150K represents property acquisition costs, upfits, and redevelopment incentives. Fire and emergency expenditures are $360k higher than the prior year of which $104k is for an additional debt fire truck payment and $115k in FEMA grant related expenditures that were reimbursed.
General Fund Expenditures by Expense Type
The City's largest expenditure type is personnel and benefits. This expenditure type increased by $268k compared to December 2021 mostly attributable to implementation of the compensation study.
General Fund Revenue Comparison
General Fund revenues are $5.4M and $489k more than 2nd quarter 2022. Licenses & permits makes up most of that increase in revenues with $520k.
Business licenses are $307k higher and building permits are $211k increase than December 2022 as the City is experiencing business and development growth in the area.
Parks & Tourism Fund Overall
The Parks & Tourism Fund reports the activity of the public works division on parks, the proportionate share of police services dedicated to protecting tourists, tourism and tourism related activities and the operations of downtown services including parking, marina, waterfront park and other activities related to maintaining a vibrant downtown.
Overall, the parks and tourism fund revenues are greater than expenditures by $571k. This is $73K higher than 2nd quarter 2022. During the onset of COVID in fiscal year 2020, expenditure activity was slowed to ensure the financial viability of the fund.
Salary and benefit costs allocated to the fund were more closely aligned in fiscal year 2023 to match the level of effort of those personnel who's duties cross functions.
Park & Tourism Revenue Comparison
The overall revenues of the fund are $2.5M and $229K greater than what was reported in the 2nd quarter of fiscal year 2022. Hospitality taxes reports $120K more than the prior fiscal year and accommodations taxes reports slight increase of $5k than the prior year, but overall revenues are 61% of FY23 budget as of December 31st. Both provide strong economic indicators to the vibrancy of tourism in the City returns to and exceeds pre-pandemic levels.
2nd Quarter Expenditures by Function
Parks and Tourism Expenditures are $1.9M and $156k more than the 2nd quarter 2022 and right on target at 49.7% of FY 2023 budget.
2nd Quarter Expenditures by Expense Type
There was an additional $63k in parks and marina improvements compared to 2nd quarter 2022. There was a slight increase in Shrimp Festival operational costs, but they were offset by higher event revenues.
Stormwater Fund Overall
The Stormwater Fund accounts for the operations of the Stormwater division of the Public Works department, overseeing the maintenance of the stormwater system as well as repairs and major enhancements to the system. This fund is supported through stormwater user fees that are applied to property owners annual tax bill.
During fiscal year 2021, stormwater revenue bonds were issued to support the major enhancements to the stormwater system in many of our more prone areas to flooding in the City. The bond proceeds are maintained in the Stormwater Fund and released through transfers to the capital projects fund as project costs are incurred.
2nd Quarter Expenditures
Actual expenditures for the quarter are $182K less than primarily as a result of bond funds that were transferred to the capital projects fund to cover current period costs to the system improvements.
2nd Quarter Revenues
It is not unusual to see minimal revenues in the stormwater fund during the 2nd quarter, as tax bills for the upcoming tax year are not yet paid. Therefore, the revenues planned for the fund are not realized until the 3rd quarter of the fiscal year.