Tega Cay City Council Holds Budget Workshop Ahead of Fiscal Year Shift

TEGA CAY, S.C. — The Tega Cay City Council conducted a special budget workshop on July 9 to review proposed departmental expenditures and capital needs in preparation for the upcoming fiscal year. This year’s process is notable for its shift from a fiscal calendar running October 1–September 30 to a July 1–June 30 format, resulting in a transitional nine-month budget for FY 2025–26.

Beach & Swim Center Operations

The workshop began with a detailed discussion of the Beach & Swim Center budget. Projected revenue for the nine-month period is approximately $166,000, with an estimated full-year equivalent of $172,250. Memberships are slightly down this year, with 716 currently enrolled compared to 755 last year, though additional sign-ups are expected in July and August.

Expenditures include personnel costs prorated over 20 pay periods, and line items for facility maintenance and equipment repairs. Notable capital improvements completed include a new pool pump and baby pool features. Potential future needs such as replastering the main pool and overhauling the pool deck were identified. Council also discussed using Hospitality Tax (H-Tax) funds for future capital needs, depending on county-level revenue thresholds.

Events Budget

Council reviewed the city’s events budget, noting steady funding levels supported by H-Tax revenues. While detailed programming discussions were limited, staff emphasized that funding continues to support popular annual events, including July 4 celebrations, fall festivals, and holiday programs. As H-Tax collections grow through commercial development, particularly on Main Street and the upcoming HPK Holdings project, future expansion of event programming may be considered.

Tega Cay Utility Department (TCUD)

The utility budget incorporates a 10% sewer rate increase—passed through from the City of Rock Hill—and accounts for 85 new home connections, aligned with developer forecasts. Revenues are anticipated from impact and tap fees, with irrigation tap revenue expected to rise due to new construction activity.

Personnel expenses include a proposed 3% cost-of-living adjustment and up to 1% merit increases. Two new maintenance technician positions were requested for a total nine-month cost of $94,880.

The utility department also requested capital purchases including replacement and new utility trucks. Council discussed using capital leases for vehicle purchases, citing favorable interest rate differentials that would allow the city to retain cash and earn higher returns.

Stormwater Division

Stormwater management was another key focus. Staff outlined the need for updated equipment to manage growing maintenance and drainage needs across the city. The proposed capital lease plan includes the purchase of a two new dump trucks to improve response times and reduce reliance on contracted services.

Personnel levels remain unchanged for the division, but department leadership emphasized that equipment upgrades would significantly increase efficiency, especially during high-demand periods following heavy rainfall.

Parks and Recreation Equipment

The Parks Department requested two zero-turn mowers—one replacement and one new—to maintain roughly 35–40 acres of city property. With mowing demands rising, especially during peak season, additional equipment was deemed necessary to keep up with maintenance schedules.

A minor discussion arose over the benefits of selecting two sit-down mowers instead of one sit-down and one stand-up model, with concerns over staff fatigue and injury risks.

The Parks and Recreation Department presented a case for a new dump truck as part of the city’s broader capital equipment plan. The Parks Department’s current truck has logged over 135,000 miles and lacks the hauling capacity needed for gravel, landscaping materials, and equipment transport.

Capital Leasing and Fiscal Strategy

City Manager Charlie Funderburk and Finance Director recommended the continued use of short-term capital leases for major equipment and vehicle purchases. With favorable interest rates (estimated around 3.75%) and current city cash reserves earning approximately 4.5% in interest, council members were encouraged to maintain liquidity while meeting operational needs. Capital leases also do not count toward the city’s constitutional debt limit.

Police Department Capital Needs

Police Chief Crosby presented a plan to replace three aging vehicles, all 2016–2017 Ford Explorers, with over 100,000 miles each and ongoing maintenance issues. Two would be outfitted for patrol use and one for administrative use. The total cost, including vehicle purchase and outfitting, is estimated at approximately $196,700.

The department also requested a continued annual replacement of radios due to changes in Motorola support. Council is considering shifting radio replacement to the department’s operational budget rather than capital.

ARPA Funds Oversight

Council members requested improved transparency regarding the use of American Rescue Plan Act (ARPA) funds. While these federal funds are accounted for separately, staff committed to developing a supplemental report that details current balances and intended expenditures, to be shared regularly alongside the city’s financial updates.

Next Steps

A final budget workshop is scheduled for July 23. At that meeting, updated year-end numbers will be provided, and the council will finalize budget allocations ahead of the first reading and public hearing expected in August.

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