The City of Easley City Council adopted its fiscal 2025-26 annual operating budget and amended the measure to designate $399,855 from the city's road fee fund (fund 13) for the Canaan Land/Olive Street roundabout project, council members said during a June special called meeting.

Mayor Talbert opened the meeting at 8:30 a.m. and invited public comment during a second opportunity to speak on the budget. A public speaker raised concerns about the budget's roughly $10 million increase and asked whether the increase represented one-time spending or new recurring costs. The speaker asked, "Are we taking all the peanut butter from the jar so there'll be nothing left to add to the jelly sandwich next year?" and urged clearer disclosures on funding sources.

Why it matters: Council members and staff said much of the increase consists of nonrecurring items drawn from funds accumulated over several years, including a large hospitality fund balance, and therefore does not automatically represent a permanent tax increase or new recurring operating commitment.

City attorney Evan and finance staff explained the composition of the proposed increases in response to questions. Staff said about $5,000,000 would come from the hospitality fund; impact-fee allocations include $1,100,000 for parks and recreation, $100,000 for fire, $188,000 for police and $290,000 for stormwater; other budget movements and previously unbudgeted funds account for additional amounts. Staff identified $984,000 being spent from general fund balance and said transfers between funds add roughly $718,000, producing about $9.3 million in nonrecurring spending the staff described as largely one-time projects.

Staff also addressed questions about the source of part of the fund balance, saying some of the amount derives from federal ARPA-designated "lost revenue" that was held and rolled into fund balance during COVID-19. "That 983,000 we're spending out of fund balance could be ARPA funds," staff said.

Several residents and council members asked about audit timing and financial controls. A resident noted the council was considering the budget before the FY2024 audit was presented and cited prior audit problems, including unreconciled bank statements that required an outside contractor. Councilwoman Davidson and staff said the FY2023 audit had been presented previously and the FY2024 audit was near completion; staff estimated auditors would present results by July or August. Staff said an outside contractor was hired to reconcile outstanding items at a cost of about $15,000.

Amendment and vote: Councilman Justin introduced a budget amendment to allocate about $399,855 from the road fee fund (fund 13) to the Canaan Land/Olive Street roundabout project, specifying that the funds be set aside for that project and that the city administrator communicate availability to the South Carolina Department of Transportation (SCDOT). After discussion about whether the money was already effectively designated within the road-fee fund and concerns about legal or financial unintended consequences, the amendment was revised to strike a provision that would have returned unused money to the general fund and to remove a three-year sunset. The final amendment instead designates the money within the road fee fund as intended for the roundabout.

Council members then voted to adopt Ordinance 2025-06 (the FY2025-26 budget ordinance) as amended. The council approved the budget by show of hands; the transcript records the council adopting the ordinance as amended but does not list a roll-call tally in the public record excerpt.

Discussion versus action: During the meeting, council discussion covered (a) the composition of the $10 million increase and which portions are nonrecurring; (b) whether designating the road-fee funds now would be legally or procedurally necessary to secure state funding; and (c) audit timing and prior reconciliation work. The formal action taken was the council's adoption of the budget ordinance, with the amendment designating $399,855 for the roundabout.

What was not decided or remains open: Staff reminded the council that SCDOT retains responsibility for project scheduling and that the state's commitment (discussed as approximately $1.5 million during remarks) and any timeline remain under SCDOT's control. Council members discussed whether a separate pledge or resolution involving the state senator would be desirable but did not adopt one at the meeting.

Votes at a glance: Ordinance 2025-06, "Adoption of city annual operating budget, fiscal 07/01/2025'06/30/2026," as amended to designate $399,855 from fund 13 (road fee fund) for the Canaan Land/Olive Street roundabout ' Outcome: approved by council (vote by show of hands). Vote tally: not specified in the transcript excerpt; the council adopted the ordinance as amended and directed the attorney to prepare final amendment language.

Next steps: The city attorney will prepare the amended ordinance language for signature, staff will notify SCDOT of the city's designated funds, and the FY2024 audit remains scheduled for presentation when completed (staff estimated July or August).