What are the other funds that are part of the consolidated budget?

In addition to the General Fund, the other funds that make up the consolidated budget are:

Parks and Tourism Fund: The Parks and Tourism Fund is funded mostly through local accommodation and hospitality taxes from the hotel and restaurant industries and other fees associated with parks and tourism activity. All businesses serving prepared foods or beverages are required to assess a 2% hospitality tax to their customers. A 3% local accommodations tax is charged by the business on each customer’s nightly stay at lodgings such as hotels, inns, beds and breakfasts, and short-term rentals. A portion of salaries, benefits, and operational costs that support our parks and tourism activity comes out of this fund. These expenditures help to support Beaufort as a thriving tourist destination, and maintain and improve our City’s parks.

Stormwater Fund: Residents and businesses pay an annual stormwater fee which is applied to the annual real property tax bill. This fund helps pay for stormwater infrastructure. It is approximately $135 a year for most residents. A portion of salaries, benefits, and operations costs – all related to stormwater work – is paid from this fund.
State Accommodations Tax Fund: Revenues in this fund come from the State of South Carolina’s 2% Accommodations Tax on nightly rental stays including hotels and short-term rentals within the City. Expenditures are restricted to tourism-related activities and development of workforce housing in accordance with state law. 

Fire Impact Fund: New construction in Beaufort is assessed a fire impact fee once, and this helps to pay for capital equipment and improvements in the Fire Department. The fee is assessed based on the square footage of the home or business. For a 2,300-square-foot home, the fee is $305.43.

TIF II Fund: The Tax Increment Financing District II Fund is used to account for property tax proceeds generated in the TIF II district. These funds are restricted for expenditures and capital improvement projects that benefit the TIF II district, which encompasses portions along Boundary Street and surrounding areas.    
ARPA Fund: The American Rescue Plan Act fund accounts for the activity related to governmental services and projects impacted by the COVID-19 pandemic. The revenue in this fund was derived from federal grants.

Capital Project Fund: The capital project fund accounts for the activity related to capital improvements within the City. These projects are typically related to City infrastructure, and include stormwater drainage projects, streetscape projects, improvements at City parks, and new construction for public purposes. Currently, the City is engaged in a major stormwater drainage project for Downtown and The Point, and is about to undertake substantial improvements in Southside and Washington Street Parks. A streetscape project along Alison Road will be underway in FY2024, and will include many improvements, including putting utility lines underground.

Show All Answers

1. What is a consolidated budget?
2. What is the time frame for the budget?
3. How are budgets approved?
4. What is the General Fund?
5. What are the other funds that are part of the consolidated budget?
6. From what sources does Beaufort derive its revenues?
7. Explain millage and how that works.
8. How does Beaufort pay for its big capital projects?
9. How does Beaufort decide to prioritize capital projects?
10. What kind of debt service does Beaufort maintain?
11. I heard that the City plans to seek revenue bonds to pay for projects at Southside Park and Washington Street Park. Will this increase my property taxes?
12. What is the City’s bond ratings and how does that impact borrowing rates?
13. Does Beaufort maintain reserves?
14. How does Beaufort decide if its salary structure is competitive?
15. How does Beaufort decide on annual raises?