b'5. For services that benet specic users, the County shall establish and collect fees to recover the costs of those services. The CountyCouncil shall determine the appropriate cost recovery level when establishing user fees. Where feasible and desirable, the Countyshall seek to recover full direct and indirect costs. User fees shall be reviewed on a regular basis to calculate their full cost recoveryattainment levels, to compare them to the current fee structure, and to recommend adjustments where necessary.6. The County shall endeavor to reduce its reliance on property tax revenues by revenue diversication, implementation of user fees, andeconomic development. The County shall also strive to minimize the property tax burden on Beaufort County residents.7. In order to maintain a stable level of services, the County shall use an anticipated, conservative, objective, and analytical approachwhen preparing revenue estimates. The process shall include analysis of probable economic changes and resulting impacts onrevenues, historical collection rates, and trends in revenues. This approach should reduce the likelihood of actual revenues fallingshort of budget estimates during the year and should help avoid the need for mid-year service reductions.8. The County shall take immediate corrective actions if at any time during the scal year expenditure and revenue updates are such thatan operating decit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions caninclude a hiring freeze, furloughs, lay-os, forced days o, expenditure reductions, fee increases, or use of fund balance. Expendituredeferrals into the following scal year, short-term loans, or use of one-time revenue sources shall be avoided to balance the budget forrecurring expenditures.9. The tax rate will be set each year in accordance with state law and based on the cost of providing general governmental services andpaying debt service. Consideration will be given to future net revenue requirements for capital improvement projects, operationalexpenditure impacts and programmed debt service.10. Expenditure budgets are reviewed by sta, the County Administrator, and County Council prior to adoption and are continuallymonitored throughout the budget year. Budgeted funds will be spent for the categorical purposes for which they were intended. Theannual operating budget ordinance denes sta authorization for operating budget adjustments. No appropriations of the proceeds of adebt instrument will be made except for the purpose for which such debt instrument was issued. Donations will be spent only towardthe intent for which they were given.11. Annually, the County will update a three-year period forecast (for both revenues and expenditures). This forecast will assist in taking along-term view of the nancial planning of the General Fund and will assist with the preparation of the Countys strategic biennialbudget.II. CAPITAL IMPROVEMENT PROJECTS (CIP) BUDGET1. The County will prioritize all capital improvements in accordance with an adopted capital improvement program (CIP) and SouthCarolina law.2. The County will develop a ve-year plan for capital improvements and review and update the plan at least annually. The Countyconducts a needs assessment and projects are ranked according to priority. The estimated costs and potential funding sources foreach capital project proposal will be identied before it is submitted for approval within the Capital Improvement Program (CIP)budget. The estimated costs will include consideration for ination; the ination rate to be determined annually in the budget processand disclosed in the capital budget. Additional projects can be added to the CIP without ranking, but funding for projects added in thismanner are subject to normal operating budget constraints.3. The County will enact a capital budget every year based on the ve-year capital improvement plan. Future capital expendituresnecessitated by changes in population, changes in real estate development, or changes in economic base will be calculated andincluded in capital budget projections.4. In general, eective maintenance and operations of capital facilities should be given priority over acquisition of new facilities, unless acost/benet analysis indicates to the contrary. In addition, state or federal mandates or new service demands may require acquisitionof new facilities even when maintenance needs are not fully met. The County shall have an on-going 10-year facilities improvementplan to respond to maintenance and operational needs timely.5. TheCountywillcoordinatedevelopmentofthecapitalimprovementbudgetwithdevelopmentoftheoperatingbudget.Futureoperating costs associated with new capital improvements will be projected and included in operating budget forecasts.6. TheCountywillseekintergovernmentalassistancetonancethosecapitalimprovementsthatareconsistentwiththecapitalimprovementplanandCountypriorities,andwhoseoperatingandmaintenancecostshavebeenincludedinoperatingbudgetforecasts.7. TheCountywillmaintainallitsassetsataleveladequatetoprotecttheCountyscapitalinvestmentandtominimizefuturemaintenanceandreplacementcosts.TheCountywillmaintainaccurateinformationonthecondition,lifespanandestimatedreplacement cost of its major physical assets to assist in long term planning.8. The County will identify the estimated costs and potential funding sources for each capital project proposed before it is submitted forapproval.9. The County will attempt to determine the most cost-eective and exible nancing method for all new projects.10. The County will match the nancing of major capital assets to the debt schedules that closely assign payments with the expectedmajor asset life span to insure intergenerational equity.11. The capitalization for xed asset purchases shall be $10,000. Fixed assets will only be capitalized if they have a useful life of at leasttwo years following the date of acquisition.Beaufort County, SC | Budget Book 2024 Page 25'