City Council discusses FY 2021-22 general fund budget

NEWBERRY — While the effects of the COVID-19 pandemic were both difficult and trying, the City of Newberry managed a successful fiscal year 2021, City Manager Matt DeWitt told council.

DeWitt presented the city’s budget for the fiscal year 2021-2022 last week and said that while balancing the proposed budget was challenging, the city managed a successful year due, in part, to employees and businesses being creative and courageous despite the difficult hand they were dealt.

“We were optimistic, but also very conservative with this year’s budget,” he said.

The City of Newberry’s proposed budget for the upcoming fiscal year is balanced without any increases in taxes or business license fees.

The proposed general fund budget discussed by council was balanced at $14,399,537, an increase of $4,780,159, or 49.7%, compared to last year. DeWitt said there had been no city millage increase in over 10 years and for that reason, council may choose to explore possible outstanding annexation agreements that may be both viable and beneficial.

“City staff will present findings on annexation opportunities in the coming year for council to consider,” he said.

The general fund revenues, DeWitt said, are projected to be $14,399,537 which represents an increase of $4,780,159 over the current year’s projections.

“Fiscal year 2021 projects were very conservative due to not being sure how it would be effected by COVID-19,” he said. “We do have revenues to cover the increases, and we feel good about our projections.”

DeWitt said it was important to note that any County Transportation Committee funds not secured by staff will not be spent by the city. This is currently projected at $325,000 in the current budget. All capital has also been kept to a minimum in the proposed budget, he said, to rebuild the city’s savings accounts after taking a hit in the current fiscal year.

Another decrease of $100,000 in court fines is scheduled in the coming year as the line item has continued to trend very low the last few years and DeWitt said city staff felt it was unreasonable to continue to budget for revenue that would not be realized by the courts by year’s end.

The Utility Fund transfer, DeWitt said, would remain flat again this year at $1,865,909 and had remained at that level for the ninth straight year.

The total expenditures in the general fund next year are projected to be $10,670,526 as compared to $9,605,107 in fiscal year 2021.

Under the line item of City Council, DeWitt said there was an increase in spending of $23,680 from prior year. Much of this increase is related to a potential message board sign that staff would like to secure heading into the city’s downtown historic district, possibly replacing the old Main Street banner system.

The city used to have a banner system that would allow banners to hang over Main Street to announce different things going on in the downtown area. However, DeWitt said that had to be taken down years ago due to termites compromising the poles and the strain it had put on city utility crews to send bucket trucks to put up and take down banners.

The sign is a concept that could potentially bring something back to allow visitors and residents to know what was going on downtown.

“The downtown merchants are really passionate about having something outside of downtown to bring people into downtown,” he said.

The potential location of the sign would be just before Main Street turns back to one lane. DeWitt said the area was a Duke right-of-way.

Under the line item of City Manager, the budget is proposed to increase by $27,038, partially attributable to a ReSimplifi agreement. DeWitt said that was a tool on the city’s website that aggregates all available business property onto a single page, telling those that are looking at Newberry from the outside, what business properties were currently available.

“That’s a system that we feel like, especially during the pandemic, while people are possibly leaving bigger areas to come to smaller metropolitan areas, that we may be a good fit for some folks,” he said. “We think keeping ReSimplifi on is a good way to make sure that we’re showcasing what we have available.”

The Planning and Development Services budget is planned to decrease by $74,899 next year. DeWitt said due to project timing, the city again had to budget for the Community Development Block Grant (CDBG) demolition project the city is implementing.

“This grant is reimbursable to the city up to the $475,000, minus the city’s 10% match,” DeWitt said.

Other savings under this line item can be attributed to a department head’s retirement towards the end of the current fiscal year.

The police department budget, totaling $1,842,332, is proposed to increase by $176,325 over the prior year, as the city has continued to budget local residency stipends and their sign-on bonus program to help attract already certified officers to the city’s department.

DeWitt said the city was partnering with Enterprise this year to pilot a new attempt at managing fleet vehicles.

“If the pilot is successful, then Enterprise fleet management may be a viable option for fleet management for the city moving forward,” he said.

This year the city will lease five police cars from Enterprise in order to pilot this program.

Under the fire department line item, the budget is projected to be $1,286,974, an increase of $91,999 over the current year’s budget. This increase is reflective of the need for a new roof on Station 21 and work to be completed on the fire training grounds.

City staff that oversees fire recruitment county-wide is half budgeted under this line item as the county has agreed to continue to pay the other half of the position’s salary and benefits and provide the position’s transportation.

The line item of Public Works Administration is proposed to increase next year by $80,106, when compared to the current year. This increase is mainly attributable to updates and additional computer programs for Fuel Master upgrades, CityWorks Fleet implementation and access controls for facility security.

DeWitt said each year they were slowly implementing access control to various city department facilities as they had been beneficial at City Hall and elsewhere around the city.

The Public Works Sanitation department’s overall request has increased by $325,257, due to the need for purchasing a new automated side loaded residential garbage truck.

Expenditures for the Parks, Recreation and Tourism department are projected to increase by $336,067, with the main fluctuation being the scheduled upgrades to Wise Street Park. DeWitt said the city hopes to receive a Land and Water Conservation Fund (LWCF) grant to reimburse these expenses, but the funds must be spent upfront, prior to reimbursement.

Under the line item of Employee Fringe Benefits, the proposed budget is anticipated to increase $206,579 from the current year, stemming from the city’s share of employee insurance rising to $190,000.

Debt Service will total $182,041 next year which will be a decrease of $70,512. This expenditure category is the account that pays for the city’s lease purchases.

The Special Funds line item of the State Accommodations Tax Fund is projected to experience an increase in revenue of $25,000 as compared to the prior year, for a total of $125,000. Of that amount, $30,000 will be transferred to the General Fund Revenue in accordance with state statutes, $30,000 will be transferred to the Tourism Fund and the remaining $65,000 will be awarded to local groups to promote tourism through the local accommodations tax application in fiscal year 2022. This distribution formula, DeWitt said, is set for municipalities by the state of South Carolina.

Expenditures in the upcoming year for the Japanese Gardens fund are projected to be $5,000, more than doubling the normal yearly request. City staff will finish upgrades to the pond system prior to the next fiscal year, DeWitt said. The added funds requested will be used for additional appropriate plantings and upgrades around the park’s grounds.

DeWitt said some individuals had come forward wishing to make donations of plants and some materials for the gardens for the city that would be very beneficial.

“We’re appreciative to the citizens that have reached out and offered to help us with the Japanese Gardens,” he said.

Mayor Foster Senn asked about the possibility of fish in the ponds, DeWitt said there was money in the budget for goldfish for the ponds. Coy were not chosen as they can be temperamental to different temperatures and environments, he said.

In the Special Funds line item of the Local Hospitality and Accommodations Fund, the source of funding is the 2% tax levied on the sale of food and beverage and the 3% tax levied on lodging and accommodations in the city.

DeWitt said for the upcoming fiscal year, staff anticipated receiving approximately $849,844 or a $92,213 increase from prior year. This account shows an increase due to business trending positively following the effects of the COVID-19 pandemic.

The revenue received through the local hospitality and accommodations fund is transferred to other funds for promoting tourism. The proposed budget anticipates the following monies to be transferred to the following funds: the Newberry Opera House ($326,344), Parks Recreation and Tourism Special Events ($100,000) and the Firehouse Conference Center ($125,000) will receive the majority of these funds.

Under the line item of Streetscape Fund, which historically funds Main Street improvements, are expenditures proposed to decrease by $14,000. DeWitt said the budget proposed to bring back some of the city’s former façade grants. Four façade grants, with a maximum match of $9,000 each, are proposed to be awarded in fiscal year 2022 for downtown Newberry.

The city’s Tourism Fund represents the budget for all City of Newberry marketing and promotion initiatives as well as the Firehouse Conference Center operations. Revenue in this line item is projected to be $251,515 with a decrease in expenses of $135,924 in the upcoming year. The main change is due to a debt service going away on the NFCC and the moving of advertising to another more appropriate budget line item.

The Parks Recreation and Tourism Special Events Fund provides revenue to support the various events the city provides each year. DeWitt said that next year $174,150 will be available to host the planned events within the city. This account is projected to increase by $67,250 in the coming year, attributable to moving the city’s advertising expenses from the NFCC budget to this more appropriate place holder, as city advertising is mainly used to advertise the city’s various events throughout the state.

Under the line item of the Community Housing Development Fund, which allocates funding for special projects, the budget is projected to contain funding for continued development of Wise Street Park ($175,000) and continued support of the city’s relationship with Retail Strategies ($25,000).

The total budget for this fund is projected to be $300,454, or a decrease of $125,000 from the prior year. This is directly attributed to the finishing of the Newberry Recreation Complex’s components from the prior year, which were outlined in the city’s initial 2017 Capital Project Sales Tax request.

The Oakland Tennis Complex budget contains revenue projections of $102,721 in the upcoming year. On the expenditures side, personnel will consist of one tennis pro and several part-time interns from Newberry College, leading expenses at the tennis facility to cost $102,721 in fiscal year 2022. Newberry College will continue to fund this facility, DeWitt said at roughly $26,000 annually. Capital will consist of the resurfacing of courts in the upcoming fiscal year at $24,000.

The recreation complex budget for fiscal year 2022 is proposed to total $279,329, or a reduction of $684,055 from the previous year. This reduction is a direct reflection of wrapping up many of the park’s major projects in the current year.

DeWitt said there is half of an additional staff member requested in the recreation budget. As the complex nears full opening, part-time staff will be needed to be sure it is maintained and run effectively, ensuring a good experience is had by all visitors.

Proposed for the upcoming fiscal year is a 3% Cost of Living Adjustment for all employees at the request of City Council.

DeWitt thanked council for their consideration when reviewing the upcoming budget and said staff looked forward to the upcoming year with great anticipation of it being another exceptional year for the City of Newberry.

The first reading of the budget will be conducted by city council on Tuesday, June 8 at 7 p.m.