Horry County Council Budget Retreat – April 10, 2025
Horry County Council Budget Retreat – April 10, 2025
The Horry County Council held its annual budget retreat on Thursday, April 10, 2025, starting at 2:00 PM UTC. The meeting included a mid-year fiscal year 2025 update, a five-year financial forecast, a 10-year capital improvement plan (CIP) and debt service overview, updates from public safety, the Department of Airports, and the Solid Waste Authority, and a detailed presentation of the proposed fiscal year 2026 budget. Council took action on three items: first reading of the FY26 budget ordinance, a budget transfer resolution, and the Fantasy Harbor Admissions Tax District resolution. The first reading passed 11–1; the other two passed unanimously.
Consent Calendar
- No formal consent calendar was listed; the meeting proceeded with presentations and three action items.
Public Comments & Testimony
- No separate public comment period was held during the retreat. The meeting consisted of staff presentations and council discussion.
Discussion Items
- Mid-Year FY25 Update: Chief Financial Officer Shannon Todd reported revenues through February at $330.8 million (69% general fund) and expenditures at $212.3 million (73.8% general fund). Real property tax collections were at 100% of budget, personal property at 90%, and vehicle tax at 78% ($17.5 million). Economic sensitive revenues were trending up (hospitality 1% up 3.24%, hospitality 1.5% up 1.28%, local accommodation tax up 3.95%, state accommodation tax up 6.21%). The general fund is projected to end FY25 with $180.9 million, an increase of $20 million, due to $19 million in excess revenues and $11.5 million in expenditure savings.
- Five-Year Financial Forecast: All funds are relatively neutral in maintaining current service levels. The general fund faces personnel and inflationary pressure but uses vacancy variance and fund balance. Fire apparatus fund is yellow due to fleet age. Road maintenance fund has sufficient recurring revenue. Beach renourishment has sufficient fund balance for the Arcadian Shores match. 911 and waste management funds are monitored for state funding and tipping fee changes.
- Capital Improvement Plan (CIP) and Debt Service: For FY26, funding includes a $30.4 million general obligation bond (public safety training facility phases 2–3, Windy Hill EMS station, half of Presswick Fire/EMS station, and Gore Town Fire Station renovation), a $3.5 million fire bond (other half of Presswick/Gore Town), $12.7 million from road fund, $2.5 million stormwater, $820,000 intergovernmental, $5.6 million general fund, $7.8 million impact fees, and $9.3 million other funds, totaling $72.7 million for FY26. The 10-year CIP totals $555.6 million. Anticipated debt issuances (GO and fire bonds) for FY26–FY35 total just under $256 million, maintaining current debt millage.
- Public Safety Update: Chief Webster highlighted the new Behavioral Services Department, fifth police precinct opening in August, EMS ambulance deployment studies, public safety training facility design, J. Reuben Long Detention Center space needs assessment (with a $62.5 million placeholder in the budget), and ISO 10 fire coverage gaps. He also recognized the response to the Carolina Forest fires, noting no loss of life and no serious structural damage.
- Airport Update: Director presented the fiscal 2026 budget for the Department of Airports. Cost per enplaned passenger (CPE) remains 22% below small hub average for FY23 and 10% lower for reported FY24. Operating revenues projected up 6.5%, expenses up 5.6%, resulting in a net operating loss of ~$2 million offset by non-operating revenues. Terminal expansion and parking lot adding 1,200 spaces are expected to be complete by end of calendar year; T-hangars available May 1.
- Solid Waste Authority: Chairman Danny pitched a ~$150 million landfill project to extend capacity to about 2060 using existing footprint. Tipping fees will increase: $3/ton for municipal solid waste (vs. engineer recommendation of $4) and $12/ton for construction and demolition material due to limited C&D space (about four years remaining). He also discussed tire fee limitations and the need for mandatory recycling to preserve airspace.
- FY26 Budget Overview: Proposed total budget is $869.9 million, up $36 million from FY25. General fund is $303.6 million, up $27 million. No millage increase, no fee increases. Includes 114 new positions (77 public safety, 17 airport, 11 INR, 6 administration, 3 solid waste), a 5% across-the-board raise, Christmas gift increase to $1,150 full-time / $575 part-time, new HEO4 job class, and targeted minimum salary increases (patrol/corrections/deputy sheriff to $60,000; firefighters $50,500; firefighter paramedics $62,500; 911 specialists $47,000; HEO levels from $43,000–$50,000). General fund revenue: property/personal/vehicle tax = 61% (~$184 million), fees/fines = 13% ($38.3M), licenses/permits = 7% ($22.5M), documentary stamps = 3% ($8.7M), other 10% ($30.5M) with $11M use of fund balance. Expenditures include $18 million additional personnel costs, insurance increases (health +4.6%, auto liability +30%, comprehensive/collision +15%), and $2M in cuts to supplies/materials and business/transportation.
- Service Level and Growth Analysis: Barry Spivey presented population data: Horry County is currently just under 440,000, third largest in the state, projected to exceed 500,000 by 2030 and 600,000 by 2035. The county's growth is driven by migration, not natural increase. Average annual wage in Horry County is just over $45,000 (ranked 37th in state). The county is among three counties projected to grow >30% (2020–2030). Staffing gaps: 220 full-time vacancies (7.4% of workforce), including 40 patrol/corrections/deputy vacancies (>10%), 36 firefighters (9%), 24 HEOs (20–26%), 9 E911 (14%). The presentation included discussion of the local option sales tax (LOST) as a future opportunity: 71% would fund property tax relief (equivalent to ~14.5 mills in FY26), 29% to a county/municipal revenue fund split 50/50. Staff estimated the county would receive $56.5 million for tax credits and ~$20 million in operating revenue. Over 60% of sales tax revenue comes from non-residents. Council discussion strongly supported pursuing LOST.
- Budget Transfer Resolution: Staff requested transfers totaling approximately $3 million from savings (P25 radio infrastructure, EOC, Socastee fire station, body-worn cameras, bond interest) to the public safety training facility; $2.2 million from waste management fund for property purchases; $560,000 for fire rescue additions; $200,000 for animal care clinic design; and $1.5 million from Second Avenue Annex savings to bolster the Privetts Road expansion.
- Fantasy Harbor Admissions Tax District: Remaining funds of ~$460,000 were proposed to be used for pedestrian safety improvements and match funding for bus stops in the Fantasy Harbor district.
Key Outcomes
- First reading of Ordinance 39-2025 (FY26 budget) passed 11–1.
- Budget Transfer Resolution passed unanimously.
- Fantasy Harbor Admissions Tax District Resolution passed unanimously.
- Council directed staff to continue investigating the legal feasibility of a local option sales tax referendum, with potential coordination with municipalities.
- Staff will report back on volunteer compensation comparisons and salary comparisons with other local government entities by second reading.
Notes
- The meeting adjourned without executive session. No minutes were provided; the summary is based on the raw transcript and agenda. Speaker names are approximated from the transcript (e.g., "Barry Spivey" spelled Spavi/Spivey, "Shannon Todd," "Danny" for Solid Waste Authority). Some numeric details were stated verbally and may contain transcription errors.
Meeting Transcript
We're going to go ahead and start on time. If I can get everybody's attention, we'll go ahead and call the county council budget retreat to order. Today is Thursday. If I can get everybody's attention, please. Today is Thursday, April 10th. We're starting the budget retreat on time, so we can finish on time. We do have a lot to do. Let's start the way we always do with the invocation followed by the pledge. If I can get everybody to please stand. Dear Lord, thank you for all the blessings that you have bestowed upon us, especially the biggest blessing of all that we get to live and work here in Ory County and worship you and thank you for all the blessings you've given us. Thank you for the opportunity to do this budget and remind us that we get to do it. We don't have to do it. This is a pleasure to serve everybody that lives and works in Ory County. Give us wisdom and most of all patience as we go through today. And thank you for all the continued guidance that you share with us. In your name we pray. Amen. Attention to the flag. I pledge allegiance to the flag of the United States of America. And to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Thank you. Please be seated. I would just like to make a couple of comments. So when you speak, make sure you push your talk, push the talk button. It's the bottom one on the right. Speaking to your microphone so we can hear you. We want to hear what you got to say. And speaking of what you got to say, the speakers have spent a lot of time, worked very hard to make this uh presentation. So I'd encourage everybody to listen to it and hold your questions to the end more times than not. They will answer your question before they finish, and so we'll just keep moving forward. Um so press the talk, hold your questions to the end. Mr. Barry Spavi will give it overview. Mr. Spivey. Good morning to everyone. I welcome you to this um budget retreat. I wanted to give you a little orientation for the information that you do have in front of you here. You will see that you do have a booklet, uh a notebook with all the particular details of our budget in it, as well as the presentations that we'll be making today so that you can follow along with that. Uh, in addition to that, you will see two additional items uh which are similar to what we have done over the last few years. Uh, there's a summary of the budget and a summary of the capital plan. Uh, this is something that hopefully is helpful to you as you may be out away from your uh office or desk or any of that, and it has a quick summary of all the information that you will be presented today. Uh so it's good reference in that regard. Uh this morning we want to just remind you that this is an informal meeting. We hope this is a discussion and that we have questions and we can answer those questions for you uh in that regard. Uh we will discuss today um a mid-year update where we are at the moment from a fiscal year 2025. We'll look at our five-year financial forecast, the CIP or capital improvement plan and related debt service that are is funding that. Um, public safety will give us an update. We'll have an update from the airport uh as well as the Solid Waste Authority.
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