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Council hears FY2024 budget-variance report and updates on capital projects
Summary
City finance staff told council on Jan. 13 that FY2024 expenditures slightly exceeded the adopted general-fund budget while revenues exceeded estimates by about $2 million, and described several capital projects and their funding sources.
City finance staff presented the audited FY2024 budget-variance report to council on Jan. 13, saying overall general-fund expenditures exceeded the adopted budget by about $95,000 while revenues exceeded expectations by roughly $2 million.
City staff explained several reasons for variances: unbudgeted professional services and classification-and-compensation adjustments increased administration costs; a clerical budgeting error left fire services contract increases underfunded by about $126,000; and capital outlay overruns were largely tied to the Old Stone and Cherry Road reconstruction project, which had funding from Sea Grant and the university but included about $300,000 in city costs that were not budgeted.
Staff also referenced new Governmental Accounting Standards Board (GASB) guidance on leases and subscription-based IT agreements, which can require recognizing an asset and related debt-service-like obligations and created debt-service variances staff had not budgeted in FY2024.
In other funds, the Community Development Fund recorded activity tied to a HUD grant and an unbudgeted property purchase (the grant offset the purchase), and hospitality-tax and hospitality-fee funds recorded activity tied to bond financing for capital projects. Staff said hospitality bond proceeds were used for projects including the Nettles Park addition, Clemson Park redevelopment and Green Crescent Trail connections; professional fees and debt service associated with the bond were not included in the FY2024 adopted budget.
Staff noted capital outlay at Dawson Park included additional costs for new restroom construction. The tourism (state accommodations) fund increased grant allocations in part because the fund received more state reimbursement than anticipated.
Staff concluded that despite the small net expenditure overrun, the city’s overall revenue position left it with a stronger net result for FY2024. Council asked clarifying questions; staff said documentation and line‑item detail are available in the audited financial statements.
