The City of Aiken's roughly $53 million 2015-16 budget has already been passed, but won't officially start until July 1.
For months, Council members sat down with officials, tearing through the budget to save costs, cushion themselves with more revenue in their reserves and find additional money to fund projects that include expanded recreational opportunities and infrastructure improvements.
In the budget, Council members agreed to reduce, or freeze, a number of employee positions in the City, and they made the solid waste account a separate enterprise account, now able to capture its own revenue.
But likely the largest, and most controversial, change to the budget was the addition of the 1 percent hospitality tax - complemented by an economic reinvestment fund - allowing Council to "assist" several new projects and help "spur growth" in the City of Aiken.
The Aiken Standard breaks down the changes to the 2015-16 budget and the City's goals for the upcoming fiscal year.
Budget overview
Although the 2015 Aiken Chamber of Commerce study found a zero growth rate for Aiken was "unlikely" to occur in the near future, the City of Aiken looked at ways to cut its own expenditures and find new revenue in the upcoming budget as a way to avoid a shortfall.
In May, City officials said a concern was a fall in revenue the City hadn't seen since its peak in 2007. Officials project a total loss in revenue at roughly $980,000 since 2007, including another $300,000 funding loss from vehicle taxes and fees from the City's utility fund.
Before Council approved the budget, officials already had stripped about five positions, cut thousands of dollars in systems upgrades and decreased the City's capital purchases. According to the budget, about $301,000 sits in the budget's holding fund, and $869,000 is in the budget's depreciation fund - a $761,000 decrease from the prior fiscal year.
Overall, the budget's general fund expenditures decreased by about $2,000, funds for the Aiken Municipal Airport jumped from about $308,000 to nearly $2 million, and the budget for the Crosland Park neighborhood increased by more than half to $300,000.
Officials stated in the budget that building permits are down compared to the 2013-14 budget by about $50,000; however, property taxes are up by $200,000, and the City's accommodations tax funds have increased 20 percent over last year.
The City expects to generate about $164,800 per year with the millage, or property tax, rate staying at 62 mills.
Hospitality tax fund
To handle revenue brought into the City per year, officials set up separate budgets, including a $700,000 economic reinvestment fund.
The economic reinvestment fund includes revenue to fund an employee to help support and grow new and existing businesses, assist developers, seek grants and attend home and business conferences, according to the budget.
Other expenditures from this fund include $160,000 for business license relief and $285,000 for an enterprise capital reserve, providing new and expanding businesses capital improvement relief, infrastructure help and other needs identified by Council.
Any expenditure of these funds must be approved by Council.
Several months ago, Council also adopted the 1 percent hospitality, which is a tax on the gross proceeds from the sale of prepared meals, food and beverages, which includes meals prepared in grocery stores and purchased in nursing homes, gas stations and restaurants.
City officials estimate that more than 50 percent of the tax will be paid by "tourists" who live outside the city limits, bringing in at least $1.2 million per year.
The use of the collected funds will be divided four ways - $600,000 for business-related investments, $160,000 for business license relief, $110,000 for business vitality and $330,000 for enterprise capital reserves, which includes infrastructure expansion.
Any and all expenditures involving capital projects - construction and professional services, officials said - will go before Council for approval.
At 6 p.m. Monday, Council is expected to prioritize items in the economic reinvestment fund.
Council members also will be expected to prioritize the hospitality tax budget that includes $500,000 for a public/private parking garage. Also, $26,000 will be transferred to assist the Aiken Community Playhouse.
That meeting will be held in the Municipal Building's Council Chambers, 214 Park Ave.
Goals
City Council and officials were able to accomplish several goals included in the 2015-16 budget.
Since the budget's proposal, the Municipal Building has seen upgrades, and legal staff, the tourism supervisor and other employees have moved into the Municipal Building.
Council also recently agreed to purchase about $1.4 million in property for a Northside recreation facility, and plans are underway to begin the work to form a major strategic and comprehensive plan for the city.
Also included in the budget, all City employees will receive a potential 3 percent increase - 1.5 percent for cost-of-living and up to 3 percent for merit increase - for the 2014-15 performance-appraisal period.
Earlier this year, Human Resources Director Alicia Davis said the increases, assuming all employees receive the entire 3 percent, would grow salaries by approximately $467,000.
But City Council and officials still have several other goals they plan to accomplish and move forward before the upcoming fiscal year ends.
Short-term goals include continued work on Northside redevelopment, which includes the demolition and new construction of homes and infrastructure improvements, as well as re-energizing efforts between nonprofit organizations and other volunteers on specific work and construction to be done as part of the Northside's initiative.
Moving forward, the budget states, other goals are to expand existing bicycle paths and pedestrian walkways in the city, support the City's Character First program and, per new City Manager John Klimm, "continue to improve the efficiency and effectiveness of City programs through fiscal responsibility."
Maayan Schechter is the local government reporter with Aiken Standard. Follow her on Twitter @MaayanSchechter.