On the agenda: Florence Budget Work Session — FLOCK camera (Apr 30)

BUDGET WORK SESSION OF FLORENCE CITY COUNCIL
THURSDAY, APRIL 30, 2026 – 11:00 A.M.
FRANK E. WILLIS PEE DEE RIVER REGIONAL WATER TREATMENT PLANT
2598 FLORENCE HARLLEE BOULEVARD
FLORENCE, SOUTH CAROLINA

MEMBERS PRESENT
Mayor Lethonia Barnes, Mayor Pro Tempore George Jebaily, Councilman Chaquez T. McCall,
Councilman Bryan A. Braddock, Councilwoman LaShonda NeSmith-Jackson, Councilman J. Lawrence
Smith, II (arrived at 11:15am) and Councilman Zach McKay
ALSO PRESENT
Mr. Scotty Davis, City Manager; Mr. Ronald Scott, City Attorney; Mr. Luke Carter, City Attorney; Mr.
Clint Moore, Assistant City Manager of Development; Mrs. Casey Moore, Municipal Clerk; Ms. Patrice
Rankin, Assistant City Clerk; Chief Angela Greene, Florence Police Department; Captain Stephen
Starling, Florence Police Department; Chief Shannon Tanner, Florence Fire Department; Mr. Jerry
Dudley, Director of Planning; Mr. Michael Hemingway, Director of Utility Planning and Economic
Development; Mr. Joshua Whittington, Director of Utilities; Mrs. Amanda Pope, Director of
Marketing/Communications and Municipal Services; Mrs. Jennifer Krawiec, Director of Human
Resources; Mr. Adam Swindler, Director of Public Works; Mrs. Victoria Nash, Director of Parks,
Recreation and Sports Tourism and Mr. Glenn Bodenheimer, Finance Director
MEDIA PRESENT:
Emmy Ribero with the Morning News was present for the meeting.
A notice of the meeting was sent to the media and individuals requesting a copy of the agenda, informing
them of the date, time and location of this budget work session.
CALL TO ORDER
Mayor Barnes called the April 30, 2026 Budget Work Session of Florence City Council to order at 11:07
a.m.
INVOCATION
Mayor Barnes provided the invocation for the meeting. The Pledge of Allegiance to the American Flag
followed the invocation.
BUDGET WORK SESSION
Mr. Scotty Davis, City Manager, began by introducing the budget philosophy.

Page 1 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
Budget Philosophy:
1. Develop operational budgets within projected available revenues.
2. Focus on goals of the Comprehensive Plan:
o Growth Capacity
o Land Use and Development
o Housing and Neighborhoods
o Transportation
o Economic Development
o Recreation and Amenities
3. Invest strategically in employees by providing adequate pay, benefits, training and technology
resources.
4. Balance reinvestment in the City’s existing infrastructure and facilities with the creation of new
opportunities for investing in the future of the City.
5. Maintain a minimum General Fund balance of at least 30% of the General Fund budget.
6. Maintain sufficient working capital in the utility funds.
The following agenda items will be discussed:
•
•
•
•
•
•
•
•
•
•
•

Budget Totals by Fund
Compensation/Benefits Changes
External Factors
Revenue and Expenditure Assumptions
Water and Sewer Utilities Updates
Water & Sewer Enterprise Fund
Stormwater Utility Enterprise Fund
Water/Sewer & Stormwater Utility Construction Funds
Utilities Equipment Replacement Funds
Community Programs Funding and CDBG Proposed Budget FY 2026-2027
General Fund
Hospitality Special Revenue Fund
BUDGET TOTALS BY FUND

Total for all funds is $157,995,410. The following chart illustrates the proposed FY 2026-27 budgets
listed by fund:
Proposed FY 2026-27 Budgets by Fund
General Fund
$
56,189,480
General Fund Debt Service Fund
694,000
Hospitality Fund
6,867,400
W/S Utilities Enterprise Fund
60,988,000
Stormwater Utility Enterprise Fund
2,128,260
W/S Utilities Construction Fund
28,431,900
Stormwater Utility Construction Fund
658,790
W/S Utilities Equipment Replacement Fund
1,820,000
Stormwater Equipment Replacement Fund
217,580
ALL FUNDS
$
157,995,410

Page 2 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
COMPENSATION AND BENEFITS CHANGES
The following is a summary of FY 2026-27 compensation and benefits.
 Merit increase of 2% for employees meeting expectations and an additional 2% for
exceeding expectations will be effective July 1, 2026.
 Cost of Living increase of 2.7% will be effective January 1, 2027, is included in the
budget.
 Effective January 1, 2027, the City’s Workers’ Compensation premium is projected to
increase 3% ($28,500) for the City.
 The City’s Health Insurance premium is not expected to increase. The City maintained a
load factor of 1 at state rates.
 Retirement System contribution will remain the same:
 SCRS: City contribution is 18.56%
 PORS: City contribution is 21.24%
Note: The above rates assumes that the 1% pension employer contribution credit in the FY 2026
State budget is funded at the same level in the FY 2025 State budget. If this credit is not included
in the state budget, both the SCRS and the PORS contribution will increase by 1%.
Mr. Davis discussed some external factors that will influence the budget as well as some revenue and
expenditure forecasts. Below are external factors influencing the budget.
•
•
•
•
•
•
•
•

Inflation – Average inflation rate for 2025 was 2.7%
Labor Market – Florence County Unemployment Rate is 4.8%
Borrowing Costs
Residential Growth
Economic Uncertainty
Volatility in Sales and Property Tax Revenues
Flexibility for Emergency Response
Avoidance of Structural Budget Deficits

There was a discussion among Council and staff regarding the external factors influencing the budget.
Below are revenue forecasts:
•
•
•
•
•
•
•
•

Property Tax Revenue will remain stable; no proposed millage increase.
The Tax Increment Financing (TIF) bond backstop reduced from $1,100,150 to $500,000 with
Water and Sewer funds
Building permit revenue is up 2.6% from this time last year
Business license revenue is up 4% indicating steady economic conditions
Hospitality revenue is up 2.7%
Water revenue is up 8.5%
Sewer revenue is up 7.8%
Water and sewer rates will increase by 9% for inside customers and 11% for outside customers
for FY2027

Operational and Capital costs will continue to rise as a result of:

Page 3 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
•
•
•
•
•

Wage and benefits inflation
Supply chain constraints
Increased utility costs
Fuel price fluctuations
Materials and supply cost increases

Councilman McCall asked how many years are left on the water rate increases. Mr. Davis said rates will
remain the same next year and then look to drop off in FY 2029-2030.
WATER AND SEWER UTILITIES UPDATES
Mr. Michael Hemingway, Utility Planning and Economic Development Director provided Council with a
water and sewer utilities update, to include water distribution, water production, sewer utility
improvement projects that have been completed and are currently in process.
Mr. Hemingway also provided an update on grants/funding the city has received to address water and
sewer issues. Grants/funding received include: $487,982-South Carolina Rural Infrastructure Authority to
complete the water distribution project for Williamsburg Circle, Grove Park, and Tara Village;
$5,000,000- FY25 South Carolina Budget for the 30-inch water line extension along Freedom Boulevard
by the local delegation; and $500,000- PFAS Study South Carolina State Revolving Loan Fund. Mr.
Hemingway said several grants/funding requests are still pending.
Councilman McCall referenced the installation of SCADA to the groundwater treatment plants and asked
if a demonstration could be shown during a Council meeting to make the public aware of the SCADA
technology that has been implemented to address water quality issues.
There was a discussion among Council and staff regarding the water and sewer updates.
[Recess for lunch: 12:11pm – 12:40pm]
WATER & SEWER UTILITIES CONSTRUCTION FUND
This is the water and sewer utilities construction fund. Total budget for this fund is $29,431,900 and
consists of the items listed below.
FY 2026-27 Water & Sewer
Construction Fund Revenue
Projected Funds on Hand on July 1, 2026
$10,181,900
2025-26 Transfer from W/S Operating Fund
2,100,000
Capital Construction Fund Transfer
5,000,000
Florence County Infrastructure Fund Reimbursement
100,000
ARPA Funds – (Lead & Cooper Compliance)
600,000
South Carolina State Proviso- Freedom Blvd Water Line
3,000,000
Extension
SC Infrastructure Investment Program (SCIIP) Grant
5,500,000
Florence County Economic Development
2,900,00
Projected Interest Earnings
50,000
Total W/S Construction Fund Revenue $29,431,900

Page 4 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
This is a list of projects that are funded through the Water and Sewer Construction Fund. This fund is
unique in that many of these projects can last several years and the funds can roll over from previous year.
FY 2026-27
W/S Construction Fund Projects
A. Projects Approved in Prior Year Budgets
1. Elevated Tank Inspection and Maintenance
2. Jeffries Creek Beaver Management (SSO Compliance)
3. Waterline Extension Requests – Florence County
4. Interceptor Manhole Upgrades
5. Magna Carta (Charters) Lift Station
6. Asset Management Study (AECOM)
7. The Palms Annexation
B. Projects Approved and Added in FY 2025-2026
1. Freedom Boulevard Water Line Extension
2. Lead and Copper Removal Rule Compliance
3. Mauldin Drive Sewer Improvements
4. GE Water Treatment Plant Rehab
5. Radio Read Large Meter Replacement
6. Hoffmeyer Road Gravity Sewer Upgrade
C. Proposed Projects for FY 2026-27
1. Surface Tank Resilience (Phase I)
2. East Palmetto Elevated Tank
3. Kings Gate Force Main Upgrade
4. South Irby Water Line Upgrade
5. Stadium Drive Water Line Upgrade
D. Other
1. Utility Line Engineering/Legal/Professional Services
2. Reserved for Other Projects
Total W/S Construction Fund Expenses

$

650,000
7,000
100,000
800,000
75,000
200,000
523,000

$

5,000,000
600,000
575,000
1,100,000
133,000
575,000
$ 350,000
6,900,000
750,000
275,000
300,000
$ 150,000
10,368,900
$29,431,900

Mr. Clint Moore, Assistant City Manager of Development, highlighted several of the projects that were
already approved in prior year budgets and also discussed some of the proposed projects.
Councilwoman NeSmith-Jackson asked for clarification on the Radio Read Large Meter Replacement
project. Mr. Moore said historically, the City has had a meter reader come out to read customers meters.
Now, the City has a radio read system that will remotely read the meter and send the data to the Utility
Finance Department. It was also noted that this allows city staff to monitor meters in real time for flow. If
a customer has a leak, city staff is able to see it in real time and contact the customer to inform them. It
provides accurate data that is beneficial and assist city staff with operations.
There was a discussion among Council and staff regarding the Water and Sewer Construction Fund
projects.

Page 5 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
WATER AND SEWER UTILITIES ENTERPRISE FUND
The total Water and Sewer Enterprise Fund is $60,988,000. This chart shows the Water and Sewer
Revenues by Source. Other Revenue comes from reconnection fees, tap fees, etc.
Water and Sewer
Revenues by Source
Water Fees & Charges
Wastewater Fees & Charges
Other Revenue

40.3%
45.4%
14.3%

This chart shows the Water and Sewer Expenses by Department. Included in the non-departmental
accounts is other employee benefits, general insurance/claims, IT expenses and economic development
expenses.
Water & Sewer Expenses
By Department
Utility Finance
Engineering
WW Treatment
Water Production
Distribution Operations
Collection Operations
WW Compliance
WW Maintenance
Debt Service
Non-departmental
Total

$ 3,036,350
1,946,300
9,175,950
7,956,600
4,314,900
2,255,340
595,500
1,095,470
18,638,600
11,972,990
$ 60,988,000

STORMWATER UTILITY ENTERPRISE FUND
The total Stormwater Utility Enterprise fund is $2,128,260.
Stormwater Revenues by Source
Stormwater Fees ($1,674,000)
Other Revenue ($125,600)

94%
6%

Stormwater Expenses by Category
Operations ($908,970)
Debt Service ($537,000)
Nondept./Const. Fund Trf. ($353,630)

50%
25%
20%

Mr. Davis informed Council that the proposed budget includes a $0.75 increase in the stormwater fee per
Equivalent Residential Unit (ERU), with one ERU defined as 1,500 square feet of impervious surface. He
explained that the increase will help maintain the financial stability of the Stormwater Utility Enterprise
Fund, support the completion of additional stormwater projects, and strengthen the City's ability to secure
future financing for capital improvements.

Page 6 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
There was a discussion among Council and staff regarding the Stormwater Utility Enterprise Fund.
STORMWATER UTILITY CONSTRUCTION FUND
This is the Stormwater Utility Construction Fund. Total budget for this fund is $658,790 and consists of
the items listed below. $469,200 will be carried over from the previous year.
FY 2026-27 Stormwater
Construction Fund Revenue
Projected Funds on Hand on July 1, 2025
2025-26 Transfer from Stormwater Operating Fund
Projected Interest Earnings
Total Stormwater Construction Fund Revenue

$ 553,790
100,000
5,000
$ 658,790

This is a list of projects that are funded through the stormwater utility construction fund.
FY 2026-27 Stormwater
Construction Fund Projects
Amount

Projects
1.
2.
3.
4.

Stormwater Operations Division Pipe Projects
NPDES Phase II Compliance
Stormwater Engineering/Legal/Professional Services
Reserved for Other Projects
Total S/W Construction Fund Expenses

$

50,000
50,000
20,000
538,790
$ 658,790

Utilities Equipment Replacement Fund
The Equipment Replacement Fund is a fund to replace utility equipment. This fund allows for the
replacement of equipment when it is needed and does not require that the purchase be deferred. The
General Fund currently does not have a replacement fund for equipment.
W/S Equipment Replacement Fund
Budget by Department
Department
Engineering
Wastewater Treatment Plant
Water Production
Distribution Operations
Collection Operations
W/S Capital Equipment Fund Total

Amount
$ 65,000
850,000
55,000
640,000
180,000
$ 1,820,000

There is $217,580 in the Stormwater Equipment Replacement Fund.

Page 7 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
Stormwater Equipment Replacement Fund
Budget by Department
Department
Stormwater Operations
Stormwater Capital Equipment Fund Total

Amount
$217,580
$217,580

[Break: 1:43pm – 1:52pm.]
Community Programs Funding
The following chart indicates the appropriation requests for FY 2026-27. Community programs were
funded in the amount of $457,500 for the current fiscal year. The City received a total amount of
$907,000 in requests for FY 2026-2027. There are 5 programs that are not funded in the 2025-26 budget.
Appropriation Requests by Agency/Event FY 2026-27
Agency/Project/Event
Boys & Girls Club
Pee Dee Regional Transportation Authority
(PDRTA)
American Red Cross
Keep Florence Beautiful
No One Unsheltered Program
My Brother’s Keeper
Foster Care Clothing Closet
Pee Dee Coalition
Helping Florence Flourish
Florence Regional Airport
G-Lab Legacies
Leatherman Senior Center
Powerful Advocates
Divine Acts of Kindness
Annie Mae Johnson Senior Citizens
Foundation
ITV – It Takes A Village
TOTAL

Funded FY Requested FY
2026
2027
$
$
20,000
268,000
525,000
10,000
75,000
15,000
5,000
10,000
50,000
10,000
10,000
2,000

10,000
*10,000
80,000
40,000
15,000
20,000
20,000
100,000
*10,000
25,000
6,000
5,000
11,000

2,500
$ 457,500

10,000
907,000

$

*Application for FY 2026-2027 not yet
received.
** In addition, Stadium Commission is funded at $11,200, and utilities for
the Boys & Girls Club is funded at $21,000 in other departments’ budgets.

Page 8 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
The following programs are proposed to be funded from the FY 2027 CDBG budget:
CDBG
My Brother’s Keeper
Leatherman Senior Center
G-Lab Legacies
TOTAL

$ 30,000
10,000
10,000
50,000

EXECUTIVE SESSION
Councilman Smith made a motion to enter into Executive Session for a discussion regarding a proposed
contractual agreement and Councilwoman NeSmith-Jackson seconded the motion.
Council voted unanimously (6-0) to enter into Executive Session at 1:53pm, with Councilman McKay not
being present for the vote.
Councilman McKay made a motion to resume open session and Councilman Smith seconded the motion.
The motion carried. Council resumed open session at 2:27pm.
Mayor Barnes said no action was taken while in Executive Session.
The Community Development Block Grant (CDBG) proposed budget for FY 2026-2027 is $352,512.
CDBG Proposed Budget FY 2026-27
Department
Planning and Administration
Emergency Rehabilitation
Down Payment Assistance
My Brother’s Keeper
Senior Center (Meals on Wheels)
G-Lab Legacies
TOTAL

Amount
$ 70,502
132,010
100,000
30,000
10,000
10,000
$ 352,512

Councilwoman NeSmith-Jackson asked if the City is utilizing all funds allocated for down payment
assistance. Mr. Davis responded yes.
GENERAL FUND
Mr. Davis began a presentation on the General Fund, the largest fund for the city. For the FY 2026-27
General Fund Budget, original expenditure requests were $7,302,983 higher than the original revenue
projections.
Balancing the FY 2026-27
General Fund Budget
Original Revenue
Projections:
$54,534,900

Original Expenditure
Requests:
$61,837,883

Page 9 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
Difference:
$7,302,983
Final FY 2026-27 Balanced Budget
$56,189,480
Actions taken to balance the FY 2026-27 budget include: attrition savings adjustments and extended
hiring timeline, revenue adjustments for growth assumptions, operational funding request adjustments,
capital funding request eliminations and reduction of original planned capital replacement transfers.
Below are the revenue projection adjustments made in balancing the budget.
General Fund Revenue Projection Adjustments Made In
Balancing Proposed FY 2026-27 Budget
Amount
$ 688,940
12,500
360,600
291,330
301,210
$ 1,654,580

Property Taxes
Governmental Reimbursements
Permits and Fees
Reduced Capital Transfers
Interfund Transfers
Total

The proposed budget assumes every position is funded every day of the year. Compensation and benefits
cost reductions are projected at $2,908,163.
General Fund Compensation and Benefits
Cost Reductions Made in Balancing Proposed FY 2026-27 Budget
From 16-week salary & other compensation savings
From positions proposed by not funded
Fire Department Compensation Increases Reduced (5% to
2%)
Police Department Compensation Increases Reduced (5%
to 2%)
No Increase in Health Insurance Premiums
Total

$

1,112,508
1,466,054
150,116
90,223

$

89,262
2,908,163

The below chart illustrates Operational and Capital Funding reductions in balancing the proposed FY
2026-27 budget.
General Fund Operational & Capital Funding Adjustments
Made in Balancing Proposed FY 2026-27 Budget
Department
City Council
Legal Services
City Court
City Manager
Finance & Accounting

$

Operations
24,900
(900)
(1,900)
(12,000)
(3,750)

Capital
$ -

Page 10 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
Human Resources
Community Services
Police
Fire
Beautification & Facilities
Sanitation
Equipment Maintenance
Parks, Recreation, & Tourism
Planning, Research & Development
Building Permits & Inspections
Departmental Subtotal
Non-Departmental
General Insurance/Claims
Community Programs
Non-Departmental
Non-Departmental Subtotal

$

(1,400)
(4,350)
(44,700)
(7,000)
(57,400)
(71,400)
1,700
17,500
(6,600)
(100)
(167,000)

(26,500)
(1,057,000)
(50,000)
(300,000)
(120,000)
(1,553,500)

$

(16,950)
(429,500)
(620,300)
1,066,750

-

OPERATIONS AND CAPTIAL TOTAL

=

$

$2,787,650

There was a discussion among Council and staff regarding operational and capital funding adjustments
for the General Fund.
This chart outlines the reductions that were necessary to balance the budget. The reductions totaled
$5,648,403 and are detailed below.
Summary of Expenditure Adjustments
To Balance General Fund Budget
Expenditure Increases/(Reductions)
Compensation and Benefits Cost Reductions
Operational Funding Reductions
Eliminated Capital Cost Reductions
Contingency Condition
Reductions to Balance Budget

$

$

Amount
(2,908,163)
(1,234,150)
(1,553,500)
47,410
5,648,403

Mr. Davis spoke of other items of interest in the budget. No millage increase will be proposed for the FY
2026-2027 budget. The budget also will fund a 2.7% cost of living increase, fully fund community
funding initiatives, an additional commercial front loader for Commercial and Recycling Operations for
Sanitation; and a downtown dumpster replacement for Sanitation.
This a recap of how the FY 2026-27 General Fund Budget was balanced. Revenue projections were
adjusted by 1,654,580.
Balancing the FY 2026-27
General Fund Budget - Recap
GF REVENUES
Original Revenue Projections
Revenue Adjustments
FY 2026-27 Adjusted Revenues

+

$54,534,900
1,654,580
$56,189,480

Page 11 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
GF EXPENDITURES
Original Expenditure Projections
Expenditure Reductions
FY 2026-27 Adjusted Expenditures

$61,837,883
- 5,648,403
$56,189,480

The below chart illustrates the millage rate increases from 2009 through 2027.
Millage Rate Increases
Fiscal Year

Amount Raised

2009
2014
2017
2018
2024
2026
2027

0.2 mills
0.8 mills
3.7 mills
0.7 mills
5.0 mills
5.0 mills
0.0 mills

Amount Available
1.7 mills
8.1 mills
3.7 mills
0.9 mills
9.6 mills
11.7 mills
2.9 mills

Value of 1mil: 1mil = $1 per $1,000 of assessed value; Most recent
assessment values are approximately $79M for 4% property and $137M
for 6% property.
General Fund
FY 2026 & 2027 Revenue Budget Comparison

Property Taxes
Business Licenses
Franchise Fees
Govt Reimbursements
Permits and Fees
Fines & Forfeitures
Other Revenues
Interfund Transfers
TOTAL

Original
FY 2026
$ 15,861,100
13,321,500
4,72,400
6,417,400
3,239,500
247,000
1,323,900
7,965,630
$53,148,430

Budget for
FY 2027
$ 17,675,090
15,681,450
4,533,800
6,501,100
3,265,100
220,400
1,443,850
6,868,690
$56,189,480

Change
$ 1,813,990
2,359,950
(238,600)
83,700
25,600
(26,600)
119,950
(1,096,940)
$3,041,050

% Change
11.44%
17.72%
(5.00)%
1.30%
0.79%
(10.77)%
9.06%
(13.77)%
5.72%

This is a comparison between this year’s expenditures budget and last year’s expenditure budget.
General Fund
FY 2026 & 2027 Expenditures
Budget Comparison

City Council
Legal Services
City Court
City Manager’s Office

Original
FY 2026
$ 368,300
204,000
747,550
1,193,200

Budget for
FY 2027
$ 380,700
208,400
775,200
1,278,100

Change

% Change

$ 12,400
4,400
27,650
84,900

3.37
2.16
3.7
7.12

Page 12 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
Finance
Human Resources
Community Services
Police
Fire
Beaut. & Facilities
Sanitation
Equip. Maintenance
Parks, Rec, & Tourism
Planning
Building Inspections
Debt Service
Other Emp. Benefits
General Insur/Claims
Community Programs
Non-Departmental
TOTAL

1,522,650
705,100
705,600
12,765,800
8,963,200
3,397,500
5,751,900
860,150
5,441,800
666,300
571,200
2,474,200
750,600
1,437,100
457,500
4,164,780
$53,148,430

1,479,500
753,700
724,000
12,566,000
9,532,400
3,667,200
6,531,600
870,400
5,983,800
746,350
585,180
2,816,900
907,070
1,683,020
477,500
4,222,460
$56,189,480

(43,150)
48,600
18,400
(199,800)
569,200
269,700
779,700
10,250
542,000
80,050
13,980
342,700
156,470
245,920
20,000
57,680
$3,041,050

(2.83)
6.89
2.61
(1.57)
6.35
7.94
13.56
1.19
9.96
12.01
2.45
13.85
20.85
17.11
4.37
1.38
5.72

HOSPITALITY SPECIAL REVENUE FUND
This is the 2% tax paid on prepared food and beverage purchases in the city. The Hospitality Fund is one
of the city’s growth funds but it is also a restricted fund. South Carolina Code requires any revenue
generated by the hospitality fee must be used exclusively for the following purposes:
➢
➢
➢
➢
➢
➢

Tourism-related buildings including, but not limited to, civic centers, coliseums, and aquariums.
Tourism-related cultural, recreational, or historic facilities.
Beach access and re-nourishment.
Highways, roads, streets, and bridges providing access to tourist destinations.
Advertisements and promotions related to tourism development.
Water and sewer infrastructure to serve tourism-related demand.

However, because at least $900,000 in accommodations taxes are collected annually in Florence County,
State law permits hospitality funds to be spent for operations related to the above stated purposes.
Below is the hospitality fees comparison from FY 2023 to FY 2027. There is a 1.89% increase proposed
for FY 2027.
FY 2023-2027
Hospitality Fees Comparison
Fiscal Year
2023
2024
2025
2026*
2027**

Collections
5,888,694
6,120,314
6,436,056
6,597,838
6,722,400

% Change
10.04
3.93
5.16
2.51
1.89

* 2026 Estimated
** 2027 Budgeted

Page 13 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
The amount projected for FY 2026-27 is $6,867,400.
Hospitality Fees
Interest Earnings
FY 26-27 Hospitality Fund Estimated Revenues

$ 6,722,400
145,900
$ 6,867,400

This is the list of recommended expenditures for the Hospitality Fund for FY 2026-27.
Hospitality Fund Expenditures
Athletic Facilities Operations
Florence Museum
Florence Downtown Development Corporation
Florence Downtown Economic Development Incentives
Florence Downtown Promotions
Sports Complex Debt Service (through November 2035)
Recreation Facility/Gymnasium Debt Service (through June 2034)
Football Field Const./Pearl Moore Gym Expansion Debt Service (through
June 2045)
2016 Special Obligation Bond Debt Service Appropriation (through Dec 2046)
Florence Historic District Street Lighting Operations
Florence Center (Debt Service effective through April 2040)
James Allen Plaza Restroom Facilities
Contingency
FY 26-27 Hospitality Fund Estimated Expenditures

$ 2,200,000
50,000
54,000
12,000
35,000
676,100
314,640
1,097,670
300,000
30,000
1,650,000
9,000
438,990
$ 6,867,400

[Break: 3:49pm – 3:56pm.]
Councilman Smith left the meeting at 3:55pm.
PROJECT UPDATES
Mr. Clint Moore, Assistant City Manager of Development, provided an update on stormwater projects.
This is a list of the City’s current stormwater projects.
Stormwater Projects
Project
St. Anthony/College Park
Sandhurst West
Tarleton Estates
Malden Drive
Cannon Street
Woodland Drive
Rebecca Street
Pennsylvania Street
Dargan and Elm Streets

Status
Completed
Completed
Completed
Surveying and Engineering phase – will need to
review budget
On hold- portions of work within Pennsylvania
Street
Working with Florence County
On hold (2 years) – easement related
Under construction
Engineering to begin Spring 2026

Cost
$
85,000
120,000
113,000
1,900,000
337,000
450,000
440,000
5,800,000
125,000

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FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
Cheves Street (underpass)
Wisteria Drive
Cedar and McQueen Street
N Church and Oakland
Master Plan

Engineering to begin Spring 2026
Engineering Spring 2025
Under construction
Permitting, bid – Jan/Feb 2026
Complete – City Council action

225,000
350,000
5,900,000
3,000,000
550,000

Mr. Moore provided an update regarding CPST III following the November 2020 referendum. It was
noted that the bond was issued in the summer of 2021, with the City of Florence receiving $40,000,000.
Engineering firms were also selected during the summer of 2021, and approximately 170 total
roadways/projects were identified as part of the program. Mr. Moore said that there are actually 181
projects involved. Of those projects, 42% are complete, 12% are currently under construction, 18% are in
the design/permitting phase, and the remaining 28% have yet to begin.
There was a discussion among Council and staff regarding the CPST III referendum and projects.
Mr. Moore reported that approximately $280,000 remains in the II Penny Sales Tax Program, which
Florence County Council has reallocated to the Interstate 20/Interstate 95 Enhancement Project for
landscaping, lighting, and gateway signage improvements.
Mr. Moore also updated Council on several ongoing projects, including the Carolina Theater renovation,
349 W. Evans Street, and the Rental Uniform Property. Phase I of the Carolina Theater renovation has
been completed, with Phase II underway and overall completion anticipated by August 2026. Renovations
at 349 W. Evans Street will create two commercial retail incubator spaces and are expected to be
completed by May 2026. The City is continuing efforts to obtain ownership of the Rental Uniform
Property, which may be used for evidence storage, Public Works and Utilities operations, other City
divisions, and a future fire station site.
Mr. Moore informed Council that the CPST IV referendum is scheduled for November 2028, with project
submissions to Florence County anticipated in 2027. Potential projects under the referendum include
groundwater treatment plant rehabilitation, sewer interceptor improvements, water line rehabilitation, the
Florence-Timmonsville Interceptor, a fire station and equipment, road and corridor improvements, trail
improvements, and stormwater projects.
There was a discussion among Council and staff regarding the CPST program and proposed projects.
Councilman McCall requested that Council receive a progress report on the City’s Comprehensive Plan.
FLOCK SAFE CITIES PROPOSAL
Captain Stephen Starling provided an update on the FLOCK Safe Cities proposal. Captain Starling
acknowledged that this information was initially shared in November, and the initial cost of the contract
was approximately $500,000. The contract flexibility consists of renegotiation opportunities in Years 3
and 6. The contract may be canceled at any time, but a 30.44% discount repayment is required if the
contract is canceled early. Captain Starling provided an overview of the included enhancements and
capabilities and the equipment and infrastructure offered in the contract.
Ms. Angela Greene, Police Chief, spoke on the success of FLOCK cameras with the Florence Police
Department, as well as throughout the country. Chief Greene and Captain Starling shared their excitement
for potentially implementing this program, and how it would benefit the community.

Page 15 of 16

FLORENCE CITY COUNCIL
WORK SESSION – APRIL 30, 2026
There was a discussion among Council and staff regarding the FLOCK Safe Cities proposal.
ADJOURN
Without objection, the Budget Work Session of Florence City Council was adjourned at 4:58p.m.
Dated this 8th day of June, 2026.
Respectfully submitted:
Casey C. Moore
Municipal Clerk

Page 16 of 16