Myrtle Beach is coming in under budget -- in expenses but also in income.
And while the bumpy economy is to blame for most revenue decreases, some also came from a decrease in fines issued during the annual May motorcycle rallies.
But despite less money from some sources, the city has still been able to add more than $668,000 to its general fund balance, which is used to cover city operating expenses while the city awaits revenue.
"To be able to augment your fund balance in the worst economy in 70 years is outstanding," Councilman Phil Render told city budget director Michael Shelton on Tuesday as Shelton presented the Myrtle Beach City Council with a budget update at the morning workshop.
The city came in $1.5 million under budget on expenditures from the general fund, which Shelton attributed to the city's various departments being conservative.
"They knew it was going to be a bad year," Shelton said.
But the city's economic recovery is uneven – better in the hospitality industry and nonexistent in real estate – he said.
The city tries to keep between 15 percent and 20 percent of its budgeted $58.7 million in expenses in the fund balance so it doesn't have to turn to bank loans to cover everyday expenses.
But at the recession's nadir, in the middle of the 2009-10 fiscal year, the city drew down on the fund balance to 13.5 percent of its expenditures, or to about $7.9 million, and is now building back up.
"That's part of our management strategy," Shelton said, "to keep a prudent amount so we don't have to borrow. Some cities did that and when they went to borrow, they found there was no money available."
The additional revenue going into the fund balance puts it at $8.6 million, up from the $7.9 million that had been budgeted.
One revenue stream that has dropped off so far this year is money generated through police and court fines – more than $500,000.
Council members asked Shelton why he thinks the city is seeing that dip.
"We have changed the nature of the month of May, and historically, May and June were when we collected the bulk of our fines," Shelton said.
He said before 2010, the city would sometimes collect as much as 60 percent of its entire year's worth of fines and forfeitures during May and June. In 2007, for example, the city collected $2.4 million in fines and forfeitures, and $1 million of that came in during June.
In 2010, after the city passed ordinances to quell the effects of the two large motorcycle rallies, Myrtle Beach collected $1.8 million in fines and forfeitures, but those collections came in throughout the year, rather than any one large amount in any one month, Shelton said.
However, there are other reasons for the decrease, including a push for more pre-trial intervention for first-time offenders, city attorney Tom Ellenburg said.
The city budgeted itself to collect $ 49,221,054 in revenues from various sources, and has so far taken in $47,700,241, which is 97 percent of what was budgeted. That 3 percent equals $1,520,813.
Laser pointer sales
At the morning workshop, council members also indicated they would unanimously pass an ordinance banning laser pointers from being sold to or possessed by anyone younger than 18. There was little discussion, other than to say they had received no feedback from anyone for or against the proposed ordinance.
The ordinance gained final approval at the afternoon meeting. The new city law is effective immediately. Violators will be charged with a misdemeanor, which carries a fine of up to $500 and/or 30 days in jail.
Council members cited safety concerns about people pointing the lasers at airplanes as they come into Myrtle Beach International Airport and discussed an incident in which a laser pointer was pointed at a search and rescue helicopter that was on duty, as well as complaints from tourists who are more annoyed than scared by the laser pointers.
The Federal Aviation Administration has started a big nationwide push to ban laser pointers as the number of incidents in which the potentially harmful lights are being shone into airplane cockpits has risen dramatically. The latest models of the gree laser pointers are far more powerful than older ones, and can extend their beams for miles in some cases. They can also cause retinal damage.
Planning commission goals
In addition, council members talked about goals with the Myrtle Beach Planning Commission, which offered a presentation to get feedback from the city.
The commission's newest chairman, architect Derrick Mozingo, told the council members he and the commission have some ideas in mind, but wanted to know whether the council thinks they are worthy goals.
"We don't want to waste our time working on issues if you don't buy into them," he said.
The commission's goals are all based on the latest city comprehensive plan, which passed last year.
They include:
• Informational trips to other cities for both commission and council members, to learn how other tourism-centered cities have solved such issues as public transportation, community appearance and land use;
• Community education efforts about sustainability and the development of green-building standards for the city;
• Finding ways to encourage businesses to use existing vacant buildings rather than building anew;
• Revamping the city's tree-protection ordinance;
• Creating master plans for the Superblock/Five Points/ Broadway area of downtown, for the former Myrtle Square Mall, for North Ocean Boulevard in the area known as "The Golden Mile," and for the U.S. 501 corridor;
• And tackling parking issues, including those in The Golden Mile, where residents have long complained about tourists parking at or near their homes.
Councilman Wayne Gray said he isn't interested in changing the city's tree ordinance, but Councilwoman Susan Grissom Means and Mayor John Rhodes said they are. Councilmen Randal Wallace, Michael Chestnut and Mike Lowder all agreed they would like the commission to work in issues on South Kings Highway, including redevelopment and traffic.
Although council members said they might not agree with the commission on every issue it brings to them, the discussion matters.
"To me, these goals represent a vision," Rhodes said, "and without that, everything just stays the same."
