b"Transmittal LetterJuly 1, 2023To: Beaufort County Council Members andCitizens of Beaufort County:It is my pleasure to present the County Council approved Fiscal Year 2023-2024 Budget. This budget is the result of acollaboration of eorts among numerous agencies, oces, departments and sta county-wide, and reects the actions takenduring its nal reading on June 12th, 2023. Directives provided by County Council during a budget retreat in February 2023 aswell as various budget meetings with department heads and the executive committee resulted in the following goals:Remain mill neutral or decrease millage due to reassessment and rollback calculation for FY 2024Implement a 3% compensation increase for all Beaufort County Employees eective mid-yearWellness initiatives for long-term reduction in claims expenseCreation of a detailed 3-year Capital Improvements Plan (CIP)Expand programming for children and seniorsAddress deferred facilities needs and capital needsIn addition to appropriations for County operations, this budget authorizes the tax rates for the following entities: Beaufort-Jasper Comp Health, Beaufort Memorial Hospital, the Fire Districts of Bluton, Burton, Daufuskie Island, Ladys Island/St.Helena, and Sheldon, as well as Economic Development, Beaufort County School District, Technical College of theLowcountry, and USC-Beaufort.Fiscal Year 2023-2024 Budget HighlightsGeneral FundThe Countys primary operating fund is called the General Fund. The expenditures housed in this fund encompass mostCounty departments and their operational costs. For FY 2023-2024, budgeted expenditures equal $152,231,098 million,which is an increase of $10,118,693 over the FY 2022-2023 budget of $142,112,405 million. These expendituresincreased for a number of reasons, the largest of which is related to personnel costs. In addition to the 5% cost of livingadjustment provided at the end of scal year 2023 which caused the FY2024 base personnel costs to increase, several newpositions are being added in FY2024 as well as the addition of a payroll contingency line item which will house the county'svacant positions. This has caused the overall increase in personnel expenditures to be $984,033 which includes payroll taxesand fringe benets. This increase accounts for 9.7% of the total General Fund increase over last scal year.Ad Valorem Taxes, consisting of Real Estate and Personal Property Taxes, contribute around 78% of the General Fundrevenues and are projected to increase by approximately 9% due to growth and a sharp incline in real estate values.Fiscal Year General Fund Budgeted Tax Revenues2024 $118,719,3702023 $108,773,146Increase FY2024 over FY2023 $9,946,224At approximately 9%, Charges for Services is the second largest contributor to the General Funds revenues. Fiscal Year2023-2024 is projecting a decrease of $1,155,429 over FY 2022-2023 anticipated revenues largely due to the reduction incollections from County Stamp Fees as the result of a declining real estate market. The remaining revenues contributing to theGeneralFundconsistofIntergovernmental,LicensesandPermits,TransfersIn,FinesandForfeitures,MiscellaneousRevenues and Interest on Investments. The Local Government Fund contribution is the largest source of Intergovernmentalrevenues, the Countys third biggest contributor to overall revenues, which is projecting a 5% increase over last scal year.Special Revenue FundsSpecial Revenue Funds are comprised of revenues that are either legally restricted or committed for specic purposes;examples include charges for services, fees, grants and certain taxes. Beaufort County has numerous Special RevenueFunds, each of which must balance each scal year. That is to say, revenues must equal or exceed expenditures for each fundBeaufort County, SC | Budget Book 2024 Page 7"