North Myrtle Beach council adopts $190.2 million FY2027 budget, raises millage from 45 to 50

North Myrtle Beach— The City Council voted June 5 to adopt a $190.2 million budget for fiscal year 2027 and to set the citymillage at 50 mills, a five-mill increase from the current 45-mill rate.

City manager Ryan, who introduced the plan, said the budget consolidates previously separated enterprise and special funds into five major funds to simplify reporting and reduce reliance on tourism-driven revenues for core services. "This comprehensive framework positions us to successfully deliver major community projects," he said, explaining the shift was intended to stabilize funding for public safety, public works and other ongoing operations.

Why it matters: Council and staff said the change is intended to keep recurring operations funded by stable revenues such as property taxes and business license fees rather than by economically sensitive hospitality and accommodations taxes. The budget funds capital priorities including an Aquatic & Fitness Center expansion, the opening of Fire Station 7 in 2027, Champions Boulevard widening and fleet and asset replacements that city officials said have been deferred.

Key budget points: The proposal totals $190,200,000 across all funds, a 5.4% increase over FY2026. The proposed general fund is a 3.9% increase and includes a 4% cost-of-living adjustment for full-time employees, four new general-fund positions, and a projected 16% rise in the city's health-insurance contribution. City staff estimated the household impact of combined utility and fee changes and the millage increase at roughly $18.75 per month for an owner-occupied $500,000 home under the examples presented.

Financing and debt: Council advanced several financing measures connected to the budget. Members approved first readings of a limited obligation bond ordinance authorizing accommodations-tax-backed bonds not to exceed $18,000,000 to finance the planned Aquatic & Fitness Center expansion and approved reimbursement and lease-purchase resolutions to allow limited early spending and financing for vehicles and equipment. Council members noted that final borrowing would follow further review, bond-market steps and completion of outstanding audits.

Public reaction and council debate: During the public hearing, residents pressed the council on long-standing stormwater and outfall problems in the Barefoot neighborhood and repeatedly asked for a coordinated, multi-party solution. Rick Rush, a Barefoot resident, said the neighborhood has tracked drainage problems for seven years and called for a meeting with all stakeholders. Dana Brown told the council she opposes the millage increase "and before, in my opinion, we raise any taxes, I would like to see a forensic audit." City manager Ryan and staff responded that the new independent auditors and new finance leadership have reviewed records and, to date, have found accounting errors and reporting omissions rather than evidence of fraud.

Next steps: Council approved first readings and then voted to set the levy and adopt the FY2027 budget by voice. Staff said the city expects to finalize and issue the FY2024 audit by the end of the week and to complete outstanding FY2025 and FY2026 audit work by fall; bond transactions and any final lending commitments will follow those audit steps and further council approvals.

— Reporting for the City of North Myrtle Beach by the meeting transcript; quotes and figures taken from presentations by City manager Ryan and consultant Marcy Kotov.