In recent years, many developed a mistrust for their government. They came to believe that decisions were made secretly and information about important issues was withheld.

To ensure the highest level of transparency in City Government, we are working diligently to make sure citizens know as much as possible, as quickly as possible, about what happens within and outside of our City Council chambers.

As you know, I ‘ve been writing about timely topics, like the budget, funding activities in the Waterfront Park, staffing changes and the way we do business, most recently outsourcing the collection of garbage, recycling and yard debris.

News reports have indicated we are taking a comprehensive look at ways to make the city website more user friendly and to keep it more current.

When studying the website the other day, I reviewed a feature I am sure most people do now know about, but may want to preview. It is a state of the art financial reporting system and goes well beyond the level of transparency most would expect from the relatively small budget of a relatively small city.

The City’s Financial Dashboard is a one page document, found under the Finance Department link. It provides an overview and details about the city’s financial status. The dashboard reports year to date (YTD) revenues, expenses and the the city’s fund balance. Furthermore, it outlines department by department spending and how it matches budget allocations. And finally it shows, per resident revenue and expense. The Financial Dashboard is updated monthly.

During this time of economic uncertainty, it is critical we stay on top of financial issues and this is a good way to take a look on an ongoing basis.

I applaud the City Manager and his financial team and urge you to take a look to appreciate a new transparency in The City of Beaufort. Furthermore, you might have some questions.

Below I have attached the May 2009 City of Beaufort Financial Dashboard. To get a clearer image and look for past and future months, go to www.cityofbeaufort.org, click the under Departments on the left side of your screen and then click the Finance Department.

You can go directly to the Dashboard by clicking:

http://www.cityofbeaufort.org/client_resources/finance/dash%20board.pdf

Please do not hesitate to be in touch with questions about the new Dashboard or any other City matter.

Billy Keyserling

While City Council debates many issues and sets numerous policies throughout the year, the City’s guiding document is the City Manager’s Annual Budget.  The Manager’s proposed budget is scrutinized by Council and the pubic in the spring and goes into effect at the beginning of the Fiscal Year, which starts in the summer.

City Council passed our FY 2010 Budget last Tuesday at our regularly scheduled Council Meeting. Prior to final passage we had a public hearing and two open to the public (like all of our meetings) workshops. Furthermore the proposed budget was posted on the City’s website for public comment.

Notwithstanding the opportunity presented to participate in the process, few citizens came to the plate and it appears that few citizens really understand the City’s financial reality or the budget.  Accordingly, I am writing this short explanation.

During the current budget (FY 2009), revenue fell short of projections by about 8%, which required the City Manager to cut costs and Council to amend last year’s budget by reducing expenses by about ten percent to ensure a balanced budget at year’s end.

Next year’s (FY2010) revenues are projected to continue to fall by about 12%. To ensure the best quality front line services (police, fire, public works and friendly customer service) expenses will only be cut by 8% with the difference made up by using some of the fund balance (unspent money at the end of every year over many years, referred to by some as a rainy day fund) to ensure a balanced budget.  Hence, there will be no tax increase for City Operations.  There are no big new projects on the horizon. We will not reduce service levels on the front line.

The Capital Improvements side of the budget is a different story. When the previous City Council sought the most efficient and least costly way to structure debt for the new Municipal Center, they were guided by a referendum that established a separate line item for debt, very much like the school district and county have done over the years.  This makes borrowing less expensive because it allocates all of the money from the new dedicated stream of income to pay off debt.  It is called a “debt mil” and you will see it as a new item on the tax bill you receive in the fall.  Based on available data, the debt mil will be set at 15.99, which results in an overall city tax “increase” of about 30% (of the overall city property tax bill) or about $ 64 per $100,000 of property value.

We tried to find a way to minimize this increase by using some cash that was reserved for the complex but saved when we decided not to spend all of it on firehouse renovations. Regrettably, the City’s option to use this cash is severely restricted by Federal Tax Law.  In order to obtain funds at the lowest interest rate possible, the Bonds were issued as tax-exempt. The City cannot now take any actions that would cause the Internal Revenue Service to revoke the tax-exempt status of these Bonds.  After thinking about and working on this for more than six months, I am resigned that there is no way to lessen this tax increase.

As we move into next year, it is going to be necessary for the City to become much more entrepreneurial.  We must find ways to incentivize the right kind of growth such as infill development where streets and utilities are in place and where the cost of providing service goes down rather than up.  We must establish partnerships with other governments, educational institutions and other public and private entities to ensure we grow in the right way even during the economic downturn. By sharing a common vision and shepherding scarce resources we will get the job done.

Please never hesitate to be in touch with your City Council and staff when you have questions about your government. We are here to serve you and do the best possible job we can managing your resources and delivering services to the place we all call home.