City of Charleston Ad Hoc Budget Committee 10/22/2025

The City of Charleston's Ad Hoc Budget Committee convened to review the September monthly financial reports and discuss preliminary revenue estimates for the 2026 fiscal year. Key topics included departmental expenditures, with most departments under budget except for some timing and repair-related overages covered by reserves or insurance. Healthcare costs are projected to exceed budget by approximately $4 million due to higher claims and utilization. Revenue streams such as property taxes, business licenses, permits, and franchise fees were analyzed, noting some declines in tourism-related fees and cable TV franchise fees. The committee also discussed the impact of local option sales tax credits, particularly disparities between Charleston and Berkeley counties, and the potential need to address these through state legislative efforts. Preliminary 2026 revenue projections show an $18 million increase over 2025, which nearly offsets anticipated cost increases including lease purchases and emergency funds. The committee emphasized the need for careful budget scrutiny, potential fee adjustments, and consideration of new revenue sources such as tourism-related fees to manage a tight budget year. Upcoming meetings will further address department requests, enterprise and tourism funds, and capital improvement plans.