The Beaufort County Finance Committee discussed a proposed 4.8% increase to the county’s fiscal year 2025 (FY25) budget at their October 28 meeting. This increase would add approximately $7.5M to the overall budget aimed at addressing pressing needs in vehicle and equipment acquisition and expanding hangar capacity at the Beaufort Executive Airport. Both fleet services and airport officials characterized the needs as immediate and pressing, but they were not included in the original FY25 budget.
$3.3 Million for Fleet Services
$3.3 million was requested (p.28) by Fleet Services to purchase 36 new vehicles and equipment for Fleet Services. Included in the list are two ambulances, bucket trucks, SUVs, passenger vans, and several other vehicles. The report from Fleet Services itemizes each new vehicle and the current county asset it will replace. During original budget discussions, various funding options were considered, including a leasing model presented by Enterprise. However, after analyzing the financial implications, county staff recommended an outright purchase to avoid the higher long-term costs and reduced flexibility associated with leasing.
The Finance Committee was presented with three funding options, and went with the staff recommendation favoring full funding from the General Fund balance. While requiring a larger upfront investment, this option is projected to be the most cost-effective over time.
During the discussion by the Finance Committee, the committee members asked multiple questions about the source of the funding and ultimately why the funding was not being included in the upcoming bond or in the original FY 25 budget. Interim County CFO gave multiple explanations, but ultimately said that it was due to an “error in funding”.
This $3.3M addition to the FY25 budget made it through a first reading by the full County Council at their November 12 meeting. Even after multiple attempts by the finance department to explain the need for this budget addition, the reason why this request was not previously funded still remains unclear.
$4.3 Million for Hangar Expansion at Beaufort Executive Airport
The second major project proposed is a $4.3 million investment to expand hangar facilities at the Beaufort Executive Airport (ARW). (p.28) The airport officials’ report states that the airport has been operating at 100% hangar capacity for over a decade and currently has a 68-person waiting list. The expansion aims to capture lost revenue from aircraft owners who currently store their planes in neighboring counties. The full cost of the proposed projects is actually just over $7M, but ARPA funds and a pending grant application would leave $4.3M to be paid for by Beaufort County taxpayers.
The hangar development project includes:
New Facilities: Construction of various hangar types, including box hangars and T-hangars.
Economic Impact: Additional hangars are expected to generate $218,400 annually in rental revenue, with further growth anticipated as more high-value aircraft base operations in Beaufort County.
Return on Investment: Expanding capacity will not only boost airport revenue but also increase personal property tax income for the county.
To fund this project, the committee is considering three options:
- Full Funding from the General Fund: Recommended by staff as the most favorable option, this would cover the $4.3 million cost and waive $712,750 in existing airport debt to the General Fund.
- Structured Loan: A loan from the General Fund with favorable terms would allow the airport to repay the $4.3 million investment.
- General Obligation (GO) Bond: A bond issuance of $5.02 million to cover the project cost and existing airport debt. This option would spread the financial impact over 30 years but at a higher total cost.
The Finance Committee asked questions, again trying to understand how the airport project got to the point of asking for a large amount of taxpayer money to move forward. Councilman York Glover pressed county officials about their estimate that the proposed buildings would generate an annual revenue of $218,400 and cost a total of $7M. Ultimately Councilman Glover’s line of questioning pushed the airport hangar project request to a later meeting for further discussion by the Finance Committee.
Balancing Needs and Long-Term Planning
The Finance Committee emphasized the importance of balancing immediate needs with long-term financial health. For the Fleet Services project, direct purchasing ensures that the county avoids the pitfalls of leasing contracts and aligns with its maintenance capabilities. The hangar expansion at Beaufort Executive Airport promises a strategic investment to support economic growth and meet demand from local aircraft owners, but the Finance Committee does not seem convinced that the upfront costs really constitute a wise investment.
Public feedback and final decisions on these funding proposals will play a crucial role in reshaping the FY25 budget. Hopefully, the taxpayers will not have to bear the cost of any more “error[s] in funding”.
Stay tuned to the Beaufort Insider for updates as the FY25 budget discussions unfold.
Now there’s proof positive that the Engineering Dept isn’t the only place we have problems with the County! Please tell me who serves on the Finance Committee with York Glover. If I ever smelled a RAT, it’s with this proposal. Did anybody ask for a list of every vehicle they propose to replace, to include the year, mileage, and dept. making the request? And when was the ’25 budget passed? And WHY was there no request for these items in original budget requests? How could it have so quickly become an “immediate and pressing need” when it was even mentioned before? And why would the Committee take such a proposal to the full Council when it sounds like the staff gave them a lot of BS, but settled on “error in funding” and they bought it??? Give us a break! Stop with the “grant” and other sources for funding and tell the truth. And while you’re at it, tell the taxpayers what you’ll be paying for interest on a GO Bond for 5 million + dollars. We’re long overdue to hold the feet to the fire of our Council members, and to have our new County Administrator tell the staff that some of these proposals they’re throwing out to Council will not be allowed because the deception can be smelled from afar. We elect a Council to see that this sort of thing doesn’t happen and we shouldn’t have to ride shot-gun on their every move! Yes, I’m mad as H___ because I cannot abide corruption and/or disingenuous activity at any level. Sure hope the FULL COUNCIL has given it some thought and asked a few questions before they pass it on 2nd reading!
I’m concerned with the pressing need to enhance the executive airport. If the issue has been going on for over a decade, it can wait to be budgeted for next year. People’s private planes are not serving the rest of the community. Vehicles that serve the community , such as the bucket trucks and ambulances, are considered to be a real need .
This subject is on tap for a BIG discussion this Thursday night on Beaufort County’s House of Cards on Facebook YouTube and simulcasting on Big Patriot Radio.com
We have questions as well…..one is, “What cuts in the budget are Council members prepared to make for this added tax request”? Also, “Why didn’t any Council members suggest creative financing based on the 68 (supposedly) people who are on a waiting list”? We have some suggestions and ideas and REALLY want to hear from you at 7p EDT!!