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North Charleston officials flag thin fund balance, weigh fiscal-year change
Summary
Finance staff told the council the city has collected roughly 11% of the $37 million budgeted for 2025 so far, underscoring the importance of the fund balance and prompting discussion of switching to a calendar-year budget.
Finance staff told the North Charleston City Council finance committee on Oct. 12 that the city budgeted $37,000,000 for 2025 but has received roughly 11% of that amount so far, raising concern about cash timing and the need to protect the city's fund balance.
The warning came as staff explained that city expenses are relatively steady beginning July 1 while about 75% of general revenues arrive in January and February. "If we didn't have [the fund balance], we'd be borrowing money from our employees," the staff speaker said, noting the December report showed a roughly $49,000,000 deficit before property tax collections were posted.
The discussion matters because the timing mismatch can create short-term cash shortages even when annual revenues ultimately cover expenses. Finance staff added that since January the city has "pulled in almost $70,000,000 of property taxes," which offset earlier deficits and is a normal seasonal pattern.
Councilman Skipper raised the idea of shifting the city's fiscal year to a January through December cycle to better align revenue receipts with budgeting. Council members and staff briefly discussed pros and cons: a calendar-year cycle could align business license collections and property-tax receipts with the budget year, but it would not by itself eliminate the need to monitor revenue forecasts.
No formal decision or vote was taken on changing the fiscal year. Staff said the next quarterly report, expected in March, should provide clearer revenue trends and help council members assess whether a calendar-year budget change is warranted.
The finance committee concluded by agreeing to continue monitoring collections and to bring further information back to the council in the March reporting cycle.
