First reading debate centers on spending priorities and Waterfront Park funding
By Delayna Earley
The Island News
The Beaufort City Council advanced first reading of the city’s proposed FY2027 budget during its Tuesday, May 12, meeting following a lengthy discussion that stretched to roughly four hours and featured extensive debate over taxes, infrastructure priorities, public safety funding and future redevelopment costs tied to Henry C. Chambers Waterfront Park.
The proposed consolidated FY2027 budget totals approximately $73.4 million, including more than $26.4 million dedicated to capital expenditures and long-term infrastructure investments.
The proposed budget represents an increase of roughly $266,000 over the city’s adopted FY2026 budget.
City Manager Scott Marshall said the proposal was designed to maintain city services while continuing investments tied to public safety, infrastructure, tourism and economic development without increasing the city’s millage rate.
“The budget represents a disciplined and balanced approach to advancing the city’s priorities while maintaining fiscal stability,” Marshall said during the budget presentation.
Marshall said the proposal advances the city’s broader strategic priorities, including public safety, infrastructure management, economic development, fiscal sustainability and organizational operations.
Budget includes staffing, infrastructure, waterfront funding
The proposed FY2027 budget includes funding for police staffing additions, infrastructure improvements, facility upgrades, drainage and stormwater projects, housing initiatives and continued waterfront investments.
Marshall said the proposal includes three new patrol officer positions and creation of a community response team intended to support proactive policing and neighborhood engagement. The budget also continues funding tied to parks, waterfront access and community programming while including employee cost-of-living and merit increases intended to help the city recruit and retain staff.
The city also proposed introducing two new revenue sources as part of the budget, including a $32 annual vehicle road use fee and a $1,000 annual short-term rental license fee intended to help offset regulatory and operational costs associated with the city’s growing short-term rental market.
The proposed vehicle fee would have generated approximately $325,000 annually to help offset roadway maintenance and street sweeping costs currently funded through the general fund.
The budget additionally included approximately $925,000 in Parks and Tourism Revenue Bond funding connected to engineering work for Waterfront Park’s relieving platform restoration project.
Public comment focuses on taxes, spending priorities
A large portion of public comment focused on concerns over rising costs, budget transparency and long-term spending priorities.
Resident Patrick Canning argued residents needed more detailed financial information before supporting additional fees.
“I would suggest that residents cannot properly evaluate the fee without knowing the full picture,” Canning said during public comment.
Canning also warned council about placing additional financial burdens on residents already struggling with housing costs.
“This $32 per vehicle fee affects homeowners and renters alike, many of whom are already struggling with high housing costs,” Canning said. “It is effectively a tax increase on working families.”
Several residents also questioned whether the city should continue pursuing certain projects and outside funding partnerships while major infrastructure concerns remain unresolved.
During discussion surrounding potential reductions, resident Graham Trask voiced support for redirecting additional resources toward Waterfront Park redevelopment.
“The main priority, if it is possible … the remainder of it needs to be allocated to the downtown waterfront park,” Trask said during public comment.
Resident Mike Markham also questioned how revenue from the pending sale of city-owned property on Boundary Street could potentially factor into future waterfront redevelopment funding discussions.
Several residents and council members additionally questioned whether the proposed City Hall parking acquisition project should move forward while Waterfront Park redevelopment remains unresolved.
Council debates alternatives, priorities
Several portions of the proposed budget shifted significantly throughout the evening as council members debated spending priorities and possible reductions.
Council ultimately voted to remove the proposed vehicle road use fee from the budget and later withdrew the ordinance tied to the proposal.
Council members and residents also discussed possible alternatives to offset the projected revenue loss, including reducing consultant spending, revisiting legal expenditures, staggering police hiring connected to a federal COPS grant and reevaluating several capital projects and outside funding partnerships.
Councilman Josh Scallate repeatedly pushed for additional scrutiny of spending and questioned whether the city should continue moving forward with every proposed capital project simultaneously.
“I think our residents will probably appreciate the fact that they can look at every dollar that is expended,” Scallate said during the discussion.
Debate later shifted heavily toward Waterfront Park redevelopment and whether Beaufort should redirect additional funding toward the project through its existing Tax Increment Financing district.
Marshall cautioned council that legal clarification is still needed regarding portions of the proposed TIF reallocation plan.
“We will execute whatever you would like to do,” Marshall told council. “I just wanted to remind you of those two things.”
Council ultimately voted to redirect more than $1.2 million in proposed TIF expenditures away from several city projects and toward Waterfront Park redevelopment efforts.
Second reading scheduled for June 9
Council ultimately approved first reading of the amended FY2027 budget.
Additional amendments and revisions are expected before final adoption, including continued discussions surrounding Waterfront Park funding, capital priorities and replacement revenue following removal of the vehicle fee.
Second reading of the FY2027 budget is scheduled for June 9.
Delayna Earley, who joined The Island News in 2022, formerly worked as a photojournalist for The Island Packet/The Beaufort Gazette, as well as newspapers in Indiana and Virginia. She can be reached at delayna.theislandnews@gmail.com.