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In an effort to balance residents鈥� needs, diversify the economy and serve the hospitality industry, the Myrtle Beach City Council passed the largest budget ever and agreed to a five-year capital improvement plan on Tuesday.

鈥淚 think we鈥檙e all shocked at the numbers,鈥� councilman Gregg Smith said of the $358.2 million budget for fiscal year 2023-24. 鈥淪urely we鈥檇 have a lower budget if we didn鈥檛 have as many businesses that are doing great, as many people that are visiting, as many people coming just spending money.鈥�

The budget, which goes into effect on July 1, does not include a property tax increase but it does include pay raises for the city鈥檚 full-time employees and nine new positions with an eye to fill the more than 100 vacant city jobs. The budget also calls for a bump in monthly water and sewer bills of about 4.6% as well as an increase in the stormwater fee from $9.30 to $11.35 monthly. The new budget also extends parking fees to year-round.

Speaking measuredly, councilman Phil Render questioned the direction of the budget shifting from targeting residents鈥� concerns to a more developer and business centric budget.

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Myrtle Beach leaders on course to pass $358M budget

• By Tom O'Dare info@myhorrynews.com

Mike Lowder joined Render, adding he was concerned about the overall economy and safeguards in the budget.

Mayor Brenda Bethune reminded the council the budget can be changed if needed as the fiscal year progresses.

鈥淲e鈥檙e at a very strong financial position,鈥� she said.

The 2022-23 budget was $292.2 million, slightly more than the previous year鈥檚 budget of 292 million. A decade ago, the 2013-14 budget was less than half the current budget at $158.5 million.

Property taxes have increased five times in the same decade. Four of the increases were three mill hikes and once, last year, was a 10 mill increase. The three mill increases were 2014-15, 2016-17, 2018-19 and 2019-20.

In addition to passing the budget, the council agreed on a five-year capital improvement plan that appropriates $101 million in funding for the first year of the plan as it lists estimates for future projects without obligating the city to spend the money.

Some of the projects in the first year of the plan include $44.5 million on storm water management projects, $2.6 million for improvements at the city鈥檚 police and fire stations, $3.6 million on road work, $5 million to renovate the facade and lobby of the Myrtle Beach Convention Center, $500,000 to the Grand Strand Humane Society and $150,000 for a kayak launch at Thunderbolt Park.

The plan outlines the projects in the Arts and Innovation District with nearly $17.5 million for this year that include $12.7 million for a performing arts theater and $2.2 million for a new city of Myrtle Beach library.

The A&I District plan for the next few years, which is not funded in the budget, increases each year including a library cost of $22.5 million for next year and $19 million for a city hall phase 1 project in fiscal year 2025-26. Fiscal year 2027-28 totals of more than $284 million that includes a children鈥檚 museum, new art museum, parking decks, a new city administration building and a new law enforcement complex.

鈥淢yrtle Beach, for the last 80 years, has done an excellent job building a city for the tourists,鈥� councilman Smith said. 鈥淏ut we have not done such an excellent job building a place for residents. I see the Arts and Innovation District as a place for residents. Tourism, tourists will go there but we鈥檙e not building it for the tourists. We鈥檙e building it to have a place where residents like to go.

鈥淲e鈥檝e got to continue to push for making a place for young people with diverse jobs to want to move here.鈥�

Michelle Shumpert, the city chief financial officer, agreed a spotlight is on the downtown area in the five-year plan, but creating a thriving district is necessary to attract a younger workforce that will diversity the economy.

While Lowder agreed with the overall five-year plan, he said three items allocated for funding this year gave him pause without concrete agreements and numerous uncertainties. The three items Lowder is concerned with are the performing arts theater in the A&I District, the rails to trails project and plans for the Pelicans Ballpark.

The capital improvement plan allocates $12.7 million for performing arts center this year.

And there is a $1 million allocation for the rails to trails project this year. The rails to trails project hinges on a yet-to-be-reached agreement with Horry County, the entity that holds the railroad tracks. The project involves abandoning the tracts and creating a recreational trail from the city鈥檚 train depot to the Intracoastal Waterway.

The Pelicans Ballpark plan allows for $120,000 for this year but balloons to more than $58 million in five years with stadium renovations. The city covers 70% of the cost of the stadium while Horry County covers the remaining 30%. Some county officials have recently questioned remaining in the partnership with the city.

Myrtle Beach City Manager Fox Simons said each of Lowder鈥檚 three concerns require ordinances be brought back to city council with specifics for two readings before any are enacted.

鈥淚t鈥檚 just planning for the future,鈥� councilman Mike Chestnut said.