SOUTHPORT — Six months after facing a projected $1.4-million budget shortfall, the Southport Board of Aldermen voted on a budget that closed the gap without raising property taxes or dipping into reserves.
READ MORE: Proposed Brunswick County budget won’t have tax change
The Southport Board of Aldermen voted unanimously to adopt their FY25-26 budget a week ahead of their deadline. They approved the budget during a meeting on Monday, June 23.
When Southport’s budget process began in December under different city management, Stuart Turille, Jr.,the city anticipated a deficit of $1.4 million. According to Interim City Manager Noah Saldo, who took over from Turille’s resignation in February, the shortfall was expected due to the city merging its water and sewer service with the county, meaning that revenue could no longer be relied upon. Saldo said in December the full budget picture was not considered when making the original calculation.
After evaluating the budget in the last four months, Saldo said at the end of the current fiscal year, Southport’s revenue will exceed expenses even without the water and sewer fund.
“On its face, there was no budget deficit and then we made further adjustments,” he told Port City Daily Monday.
In addition to reevaluating the budget, Mayor Rich Alt said during a June 12 meeting the city was able to close a large portion of the deficit from funds they received through the state. The city took in $637,647 from the North Carolina Wildlife Resources Commission for the purchase of the Sunny Point property for preservation. In addition, they are set to receive $400,000 in grant funds from the North Carolina Department of Environmental Quality through ARPA dollars.
The budget eliminated the anticipated deficit while also not increasing the property tax rate of 31 cents per $100 valuation, which designates one cent to the capital fund. The aldermen raised the tax rate from 27.5 cents in 2023 to 31 cents in 2024.
Saldo says the city is in “great” financial shape and told Port City Daily, while he doesn’t anticipate raising property taxes in the next fiscal year, the city is continuing to monitor its fiscal measures to avoid changes.
“The financial health of the City of Southport is stronger than ever,” Saldo said in his budget message. “However, we must remain vigilant as we implement this budget, ensuring we are prepared to respond to any shifts in economic conditions.”
Board of aldermen have discussed in previous meetings still needing new revenue sources to ensure its health. One idea floated earlier this month, but has since been tabled, was the addition of paid parking in the city.
Alderman Frank Lai, who wasn’t sold on the program, told Port City Daily last month: “We desperately need the revenue, we have no way to get revenue.”
At the town’s May 30 budget presentation, the aldermen were pleasantly surprised by Saldo’s fiscal conservative output.
“I don’t know how you did it, you created money we didn’t see,” Alderman Robert Carroll said.
The general fund, which is the city’s primary operating fund, will receive a total of $15.1 million to support all city departments excluding electric, which is self-sustaining.
General fund revenues:
- Property tax — $4.9 million
- Sales tax — $2.1 million
- Fees, licences, permits — $3.4 million
- Other taxes — $1.6 million
- State and federal — $930,000
- Other revenues — $1.9 million
The budget will eliminate three full-time positions currently open, ensuring no current employees will lose their jobs. These positions include assistant city manager, permit technician and the combining of the deputy finance director and tax collector into one position.
Though the city is removing positions, the budget message indicates in an effort to support their “most valuable resource” — their employees — a 3% cost of living adjustment (COLA) is included to ensure city wages remain competitive and in line with inflation. A 2% performance-based merit opportunity is also included and will be given to employees based on their individual performance and contributions throughout the year.
The city will have an available capital fund balance of $2.1 million at the close of the 2025 fiscal year. The FY26 budget allocates $840,000 to key infrastructure projects.
Project breakdown:
- Lowe White Bridge improvements — $170,000
- Street resurfacing — $150,000
- Sidewalk improvements — $150,000
- Stormwater improvements — $125,000
- City building repairs — $100,000
- Community building deck replacement — $95,000
- Franklin Square Park improvements — $50,000
There are three general fund fee schedule adjustments that were approved to increase the rental fees at the Southport Community Building, fees for parks and recreation summer program, and filming permits and road closure fees.
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