A central topic of discussion was the town’s financial strategy surrounding a bridge loan, which has now been extended to a full ten-year term. This extension is advantageous for the town, allowing it to benefit from accruing interest at favorable rates nearing 5%, a substantial rise from the previous year’s 0.1%. By extending the loan, the town gains financial flexibility, reducing immediate repayment pressures and freeing up savings for other critical projects. This development is part of a broader financial landscape, where funds from the American Rescue Plan Act have shown a negative ending balance due to unearned revenue tied to a grant for the Bay Oaks Recreational campus. These funds will be reclassified as earned once spent, thereby correcting the negative balance.

The council also reviewed the town’s cash flow, noting substantial expenditures in emergency funds and capital expenses. Revenue analysis revealed a loss of $493,000 year-to-date, primarily attributed to hurricane impacts. Despite this, there has been a notable increase in revenue from code enforcement and interest, although parking facility revenue remains down due to pre-season months. On the expense side, a positive variance of $656,000 was reported, largely due to savings in wages from vacancies.

Operational delays, a issue, were highlighted as staffing shortages impact several departments, with Public Works particularly affected. These shortages have necessitated the use of overtime and temporary help, slowing the execution of vital projects. The finance department faces similar delays, affecting the completion of audits and required analyses. Traffic management emerged as a critical concern, especially at the base of the bridge, where state law mandates the use of the sheriff’s department for traffic control, resulting in higher costs compared to using town staff. The council discussed potential solutions, including deploying town personnel for traffic management where feasible.

Challenges in hiring staff were emphasized, affecting multiple departments and underscoring the need for additional personnel to manage beach activities, traffic control, and other essential services. Traffic congestion at critical intersections was discussed, with plans to alleviate some burdens from the sheriff’s department by utilizing town staff.

In reviewing potential revenue sources, the council considered adjusting the pricing of parking spaces, which are currently set at a low annual rate. A program is being developed to better align these rates with the average revenue generated per spot. The financial report concluded with updates on cash management, noting a decrease in interest rates to approximately 4.5% and the completion of redeeming low-rate certificates of deposit.

The audit process was another focal point, with the finance department working diligently to stay on track despite challenges from emergency expenditures and the requirement for a utility rates analysis. A new senior accountant is expected to expedite the audit process, with a deadline set for June 30th. The council expressed optimism about the progress made thus far, noting the crucial support received from state and FEMA resources in their recovery efforts.

Further financial discussions included the approval of a $7,547,185 revenue replacement grant from the state, expected to be received soon. This funding will be used to repay the existing bridge loan, allowing the funds to earn interest until the loan is due in 2035. Additionally, updates were provided on various financial programs, including the state revolving loan program for stormwater projects, which has seen $1.3 million drawn down so far with $8.9 million remaining.

The town hall’s development was also discussed, with $8 million from a state grant allocated for its purchase and renovation. The project nears completion, though recent storms have impacted the timeline, with a target move-in date set for the end of February.