With or without renovation projects – town is solvent
Pelzer Mayor Will Ragland will submit a $2.66 million budget for 2025-26 to Council for the second time on Oct. 14.
As presented the budget includes $1 million each for the Community Building and Hospital renovation projects along with a Historic renovation consulting tax credit application fee of $14,122 and $31,500 for the projects.
There have recently been questions raised about the financial status of the Town should the Town proceed on the two renovation projects.
During a vote at the Sept. 9 meeting, the budget failed to receive a second and was tabled. The budget reflects $2,542,986.40 in revenues and expenses and includes additional Hospitality Revenue and Expenses of $120,500.
“Currently, the Town of Pelzer has continued operating on last year’s budget, passed with a continuing resolution,” Mayor Ragland said. “This current FY26 budget is based on all the information that we currently have. In it, there is $1 million budgeted for the Community Building restoration and $1 million for the hospital restoration.”
Mayor Ragland said he presented the FY26 budget to councilmembers Mike Mathews, Donna Ide, and Eddie Waits during a worksession in September where he discussed each line item, asking for input.
Ragland said the only line items updated for the budget presented in the Sept. council meeting were salaries and benefits for the town’s three employees, reflecting a three percent cost of living raise and the new clerk position, as advised by the council.
The budget also includes the historic consulting fee for the hospital renovation which is the same as in last years budget.
“I received no objection,” he said. “I was surprised that when we went to vote on approving the first reading of our budget, that no one offered a second to my motion in order to discuss it and vote on it. No reason was given, and I still have not heard from any of our three councilmembers as to why they did not even want to discuss or vote on the proposed budget.”
Ragland said, “I look forward to hearing what changes they would like made. The total budget amount is $2,663,486.49. It includes using $1,529,096.32 from the town account, leaving $60,067.43. Hospitality funds, budgeted at $120,500, can also be used towards the renovation of the Community Building. There is also $40,000 in Capital projects/reserve in the General Fund Expenses that don’t have to be spent, and the $1,000,000 budgeted for the Community Building covers any contingency that may be needed for unforeseen expenses for the $937,138 project that was approved.”
“We have the updated contract from Daniel Builders and just need the council’s approval for me to sign it. Then construction can begin in one month,” Ragland said. “We’ve been working on this project for at least three years, and many residents have voiced their desires to see this work completed. We have already invested a great deal of money into this project, already paying for architectural, engineering, and historic consulting services.”
Ragland said, “At the October 14 council meeting, we plan to vote on the Daniel Builders contract, a FY26 Budget, and approve hiring a new clerk.”
The proposed budget as presented includes:
Revenues include: Business Licenses $90,000; Trash Fees $94,000; Franchise Fees $110,000, MASC $95,000; Rental Income (Post Office Parking) $467.04; Rental Income (100 Courtney St) $6700; Rental Income (Gym) $13,000; Hughes Development agreement $2,500; Aid to subdivision $31,500; State Accommadation Tax $450; Town Events $1,000; Planning permits and fees $2,000. Transfer from COVID relief $529,096; Transfer from Town Account $1,529,096. Total revenue $2,542,986 plus Hospitality Tax Revenue $120,500 for a total of $2,663,486.
Expenses include: Salaries (3 employees) $111,451; Benefits $31,663; Salaries Council $4,800, Salary Mayor $2,400; Employee gifts and bonuses $2,000; Sanitation Contract Meridian Waste $90,500; Greenville Water billing for tarash $3,500; Public Safety (Sheriff’s Office) $58,500; Insurance $35,500; Office Expenses $35,500; GovPossible accounting software $3,000; Payroll software $3,000; Travel/training/meals $2,000; Maintenance uniforms $1,000; Accountant fees $13,000; Attorney $12,000; IT $4,500; Wireless locks $350; Advertising/Public Notice $1,000; Postage $700; Duke Energy Street Lights $35,000; Utilities $20,000; Vehicle/Equipment Repairs and Maintenance $6,000; Building Maintenance $6,000; Tools $3,000; Fuel $3,000; Bathroom Supplies $2,000; Community Building renovation $1 million; Historic renovation consulting/tax credit application $14,122 (1/3 left – Already paid $25,744; Hospital renovation $1 million; Historic renovation consulting/tax credit application $31,500; Capital Projects/Reserve $40,000.
Under the budget, the Town has approximately $2.1 million in reserve, $567,273 in the COVID Relief account and $1,529,096 in the Town Reserve account. The Town also has the Hospitality Tax account with a reserve balance of $ 74,000 and total through 2026 of $120,500.
Currently the three town accounts have the following balances: Town Account – $1,603,329.25; Hospitality – $73,976.54; COVID Relief – $567,273.13 for a total of $2,244,578.92.”
If the Town of Pelzer spends the $2 million on the two renovation projects and the associated fees for the Historic renovation consulting/tax credit application ($45,622), the remaining operating budget expenditures will amount to $497,364 which includes a $40,000 Capital Project reserve.
Without the budget transfers for the two renovation projects, projected incoming revenue amounts to $446,617. The difference would be easily covered with the $40,000 Capital Project reserve and Hospitality Tax revenue if needed.
