Fenwick Reports Strong Fiscal Year Start

FENWICK ISLAND – The Town of Fenwick Island reported a strong start to its fiscal year.

In a meeting of the Fenwick Island Town Council last Friday, Councilman Bill Rymer, treasurer, presented officials with the treasurer’s report of account balances. He noted the town reported a strong start to fiscal year 2024, which began on Aug. 1.

“As of August 31, the town’s overall cash balance was $5.08 million, which is approximately $360,000 higher than the balance as of a month ago,” he said. “Overall, we had a good first month of our new fiscal year.”

Rymer told the council last week the town typically starts its fiscal year strong, as property taxes and other annual billings occur in August, and money is collected in August and September. He said as of Aug. 31, revenues and expenses were in line with budget expectations.

The treasurer’s report highlights a beginning cash balance of $4.7 million on Aug. 1 and an ending cash balance of $5.08 million on Aug. 31. Rymer also noted that real estate transfer tax revenues continue to outpace revenue projections.

“It’s been a very strong start to the year related to RTT, that’s the real estate transfer tax,” he said. “In August, the town reported revenues of $148,000 from RTT as compared to the annual budget of $225,000. So the real estate market remains really strong. It’s stronger than what we were expecting back in April and May.”

Rymer pointed out that 66% of projected RTT revenues had already been collected for the fiscal year.

“This start suggests that we will beat the RTT budget for the full year, since we’re two-thirds of the way there,” he said, “as long as there’s an inventory of houses to be sold.”

With no further discussion, the council voted 7-0 to accept the treasurer’s report.

In June, the town council approved a $2 million-plus budget for fiscal year 2024.

The spending plan features $2.2 million in total revenues and $2.6 million in total expenses. Officials note the $495,000 operating loss would be funded through real estate transfer tax and general operating reserves. As of Aug. 31, RTT reserves totaled $1.68 million.

“Historically, our operating shortfalls have come from RTT funds …,” Rymer said in June. “The upcoming budget will be a combination of RTT and funds that are in the general reserve, which grew over the last couple of years because operations have done better than expected.”

Officials note that the town has operated at a loss for several years.

“We’ve been operating at an operating loss of greater than $250,000 for as long as I can remember …,” Councilman Richard Benn, budget and finance committee member, said at the time. “It’s always been a significant number.”

About The Author: Bethany Hooper

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Bethany Hooper has been with The Dispatch since 2016. She currently covers various general stories. Hooper graduated from Stephen Decatur High School in 2012 and the University of Maryland in 2016, where she completed double majors in journalism and economics.