Surfside Beach unveils ‘bare bones’ budget with $1.6M decrease following COVID-19 shutdown
Surfside Beach unveiled its proposed fiscal 2021 budget that appears to take a conservative approach in ensuring the town maintains its bottom line after losing nearly $1 million following a roughly two-month shutdown caused by the coronavirus pandemic.
The town’s $6.8 million proposed budget is about a $1.6 million decrease over the previous year, but will see no increase in property taxes or fees. With a significant depletion in revenue nearing $800,000, the budget looks to strip capital expenditures, stall state retirement and cost-of-living adjustments, and decrease salaries and benefits among town employees with a $361,000 reduction across all departments.
“We approached budget planning from a very conservative point of view,” Councilwoman Cindy Keating said following Wednesday’s Town Council budget workshop. “We will reevaluate some of our revenue assumptions in September once we see how our rental season performs.”
The proposed budget also includes a slight decrease in staffing, Financial Director Diana King said. While the furloughed employees have returned to work, with the exception of about five workers, a handful of positions have been eliminated, including three administrative positions and two support jobs in the police department, Keating said.
In early April, Mayor Bob Hellyer announced about 41 town employees were furloughed due to the town’s lack of revenue caused by the coronavirus. Hellyer had said the closing of businesses and restrictions on travel affected the town’s revenue source, resulting in necessary cuts needing to be made to maintain recurring costs and spending.
King added that while there will be no hires made until the budget is reevaluated later on, she’s hoping by next January the town’s revenue source will return to normal.
Few department increases are noted in the proposed budget, including a $27,000 increase in liability and vehicle insurance for the police department and a $44,000 hike in public works due to the cost of new streetlights. Storm water operations will also increase $22,600. The fire department will see a $300 decrease in spending.
Town Administrator Dennis Pieper explained that the town is currently working with a “bare bones” budget that resulted in each department making as many cuts as they could afford from their budgets.
“Nobody knows what the real revenues are going to look like,” Pieper said. “We need to be focused and prepared that six months from now we can go back in and add some more capital. This is as bare bones as you can get.”
Pieper advised officials to review all funds in December and adjust each department as necessary, pending no further shut downs. King added that any revenue made during the summertime could hopefully supplement any funds lost when hotels and restaurants were forced to shutter in March and April to curb the spread of COVID-19.
Currently, King said any revenue stemming from hospitality, accommodations, business licenses, permits, parking and other fees are roughly $750,000 less than last year.
“At least this didn’t happen to us in July or August,” Hellyer said.
With limited funds currently available, construction of the Surfside Pier was also a concern among officials. The town currently has bids out to reconstruct the pier that was partially destroyed during Hurricane Matthew in 2016.
“The budget is of a concern because we have limited funds available to support the project,” Keating said. “If the bids return with values in excess of the FEMA grants and money the town has set aside, we may need to take a hard look at other choices.”
Furthermore, to reduce spending, council members during their regularly scheduled meeting on Tuesday, voted 4-3 to cancel any Fourth of July festivities this year. According to King, the fireworks show and other events would normally cost the town about $15,000.
The proposed budget will be subject to two readings upon approval. The new budget must be approved by July 1, the start of the new fiscal year.
This story was originally published May 27, 2020 at 5:29 PM.
