FENWICK ISLAND – The fiscal year 2021 budget will go before the town council for approval after a lengthy review process concluded at the committee level this week.
On Tuesday, Town Manager Terry Tieman presented the Fenwick Island Budget Committee with a total proposed budget of $2,399,802 for fiscal year 2021.
“We had this budget prepared in April and were winding it down and then COVID struck and we realized it’s a whole new ball game,” she said.
The draft spending plan includes an operating budget of $2,259,413 and a capital budget of $140,389.
“The capital budget we cut as much as we could responsibly cut,” Tieman said, “and the same for the operating budget.”
Within the operating budget, property taxes, rental receipt tax and transfers from other funds account for more than 60% of proposed revenues, with a remainder of funds coming from grants, solid waste and building permit fees, business licenses, and administrative and intergovernmental accounts.
Tieman noted revenues from solid waste fees would be consistent with the current fiscal year. However, the town is currently in the process of bidding out solid waste operations.
“I don’t think it will affect fees, but we are in the process of bidding the solid waste contract …,” she said. “We’ve had some issues with the current contractor lately.”
Tieman also told the committee this week the proposed budget had no rate increases. However, she estimates that the town will lose more than $140,000 in revenue as a result of the COVID-19 pandemic. Transfers to the general fund increased $140,060 to account for revenue shortfalls.
“We do expect to be impacted in this budget about 10% to 15%,” she said. “I can tell you from listening to other people that we are the lucky ones … While not great, it could be worse.”
In the coming fiscal year, proposed expenditures include $430,717 for general government, $838,384 for the police department, $349,228 for beach patrol, $387,982 for administration and $253,102 for public works.
“We are a service-driven organization,” Tieman said, “so most of your costs are spent in people.”
Operating expenses include $6,000 for bulletproof vests, $8,936 for insurance, $5,000 for legal services and salary increases for various positions. Tieman, however, noted several planned expenses had been deferred to out years in an effort to balance the budget.
The proposed capital budget for fiscal year 2021 includes $45,000 for town zoning code revisions, $8,500 for an agenda management system, $8,000 for the replacement of concrete steps and ramps at town hall, and $20,000 for cedar shake replacement at town hall, among other things.
“The biggest capital project is the code rewrite,” Tieman said. “It’s the town zoning that’s outdated and in need of revision.”
Committee member Richard Benn said he didn’t support the code rewrite for the coming fiscal year.
“At the minimum it should be put off until next year …,” he said. “It’s a big number in a really tough year.”
Committee member Mark Tingle agreed.
“I don’t see where we need to do a whole code rewrite for $45,000 …,” he said. “I’m not in favor of that.”
Noting the importance of flood mitigation, several committee members also suggested more money be placed in the capital budget to finish pipe and valve replacements within the town’s storm drainage system. The town’s capital planning document includes $5,000 over the course of five years for the project, but officials noted it is estimated to cost $17,000 to complete.
“Let’s do $17,000 and get them done,” Mayor Gene Langan said.
Committee member and Councilwoman Vicki Carmean said she thought the entire capital budget needed to be prioritized.
“I’d rather put together a priority list …,” she said. “There’s no priority there.”
After further discussion, the committee voted 9-3, with Benn, Tingle and Carmean opposed, to accept the proposed budget with an additional $17,000 for pipe and valve replacements.
The town council is expected to vote on the proposed operating and capital improvement budget on June 26.
The fiscal year 2021 budget goes into effect Aug. 1.
