News Release

Hilton Head Island Town Council Adopts Fiscal Year 2024 Budget With No Property Tax Increase

June 6, 2023

Today, the Hilton Head Island Town Council voted 5 - 1 to approve the Town’s fiscal year (FY) 2024 consolidated budget on second and final reading, funding robust investment in the community without increasing property taxes. The fiscal year begins on July 1, 2023, and runs through June 30, 2024.

The $129.95 million budget builds on the Town Council's commitment to promote safe and healthy neighborhoods that foster a strong sense of community and facilitate a thriving business climate. It also reflects Town Council's desire to achieve operational excellence in Town government.

"Through careful planning and priority-based budgeting, we've positioned ourselves to invest funds into revitalizing our Island, energizing our economy, and enhancing our quality of life," said Town Manager Marc Orlando.

Over the last several months, Orlando and the Town Council have collaborated on and developed a balanced budget that funds the Town Council’s Strategic Action Plan initiatives. The budget was unveiled at the May 2 Town Council meeting for first reading and public hearing. Budget workshops were held on May 9 and 11 to further delve into the specific revenue sources and proposed expenditures within each of the budget’s six funds. During these public meetings, Orlando clearly identified the funding sources that made a $10 million increase in the consolidated budget possible without a property tax increase, delineated how these funds will be invested in the community, and showed how those investments tie directly to the Town Council’s Strategic Action Plan initiatives.

"I am delighted that we have successfully adopted a balanced budget. This signifies more than just fiscal discipline and responsibility. It is a testament to our commitment towards safeguarding our Town's future. Balancing our budget ensures that every cent we invest enhances our community's livelihood, supports our public services, and fosters economic growth," said Mayor Alan Perry. "We are committed to working together to ensure that our Town is as resilient as its people and thrives not just today but for generations to come."

The adopted consolidated budget is comprised of six funds:

Capital Projects Fund of $39.9 million funds work that will enhance the quality of life for the community. Priority projects in FY2024 are slated to:

• Pathway Program, $4,810,000, and Roadway Program, $6,204,465 - Improve the safety and function of our corridors through roadway, pathway, and intersection enhancements and beautification.

• Beach Program, $4,556,000 - Further improve the beach experience through enhanced access to the beach, preparation for renourishment in FY2025, and improved parking facilities and controls.
   
• Park Program, $9,129,500 - Revitalize Town parks through investment in sport facilities, leisure amenities and parking. Fields for soccer and baseball, courts for tennis, pickleball and basketball, and improved skating facilities will enhance recreation opportunities for people of all ages. Thoughtful upgrades to playgrounds and picnic areas will provide space for families and friends to gather and enjoy our beautiful Island environment while parking improvements will improve access to and enjoyment of our parks.
   
• Facility & Equipment Program, $6,563,969, and Fleet Program, $8,329,420 - Provide the fleet, facility, and equipment resources needed to serve the community’s needs including replacement of fire apparatus and other public safety equipment.

Stormwater Utility Fund of $5.8 million - Provides resources to protect our Island from flooding, repair and maintain vital stormwater infrastructure, protect watersheds, and sustain our water quality.

Housing Fund of $3.3 million - Provides designated funding to implement the Town Council adopted Workforce Housing Framework, Finding Home, support the launch of the Northpoint Public Private Partnership (P3), fund land acquisition, and pay the Town’s dues in the Beaufort-Jasper Housing Trust. This new fund utilizes unspent FY2023 dollars transferred from Capital Projects, American Rescue Plan Act (ARPA) funds, and the General Fund to address the Island’s workforce housing needs.

Gullah Geechee Historic Neighborhoods Community Development Corporation (GGHNCDC) Fund of $5.3 million - Supports the new GGHNCDC startup and community investment through revitalization of economic opportunity and quality of life for our historic neighborhoods. This new fund is comprised of a $5 million budget appropriation by the South Carolina Department of Commerce, and $343,185 in American Rescue Plan Act (ARPA) funds from Beaufort County.

Debt Service Fund of $17.3 million - Accounts for accumulation of resources for the payment of interest and principal on general long-term debt obligations and special revenue debt obligations. The primary sources of revenue for this fund are property taxes, transfers in of beach preservation fees, hospitality taxes, natural disaster fund and tax increment financing fees.

General Fund of $57.9 million - Accounts for and reports the financial resources for the Town's primary operating fund. This fund enables the Town to match staffing levels with the performance required to deliver results consistent with our core values. The primary sources of revenue for this fund are property taxes, business licenses, local accommodations tax (ATAX) and permit fees.

FY2024 Consolidated Budget Highlights

• Fully funds Town Council's Strategic Action Plan priorities.
• Increased Fund Balances due to prior year unspent funds as well as Fund Balance Policy improvements.
• Reduced various line-item expenditure budgets through careful analysis of year over year spending.
• Funding for Sewer Connection and Home Safety and Repair Programs.
• Enhanced revenues due to $10 million in grants during the past 18 months including: $1 million in SC Department of Labor, Licensing, and Regulation/Division of Fire and Life Safety one-time funding, $5 million SC Department of Commerce appropriation, $500,000 in Good Neighbor Funds from Beaufort County American Rescue Plan Act, a $150,000 SC Department of Natural Resources/Federal Emergency Management Agency Flood Mitigation Assistance Grant, a $393,700 Department of Homeland Security/Federal Emergency Management Agency Assistance to Firefighters Grant, a $56,250 SC Emergency Management Division/Federal Emergency Management Agency Building Resilient Infrastructure and Communities Grant and $691,073 in Housing and Urban Development Community Development Block Grant funds.
• Addition of 14 full-time positions including an Assistant Finance Director, a Marketing and Engagement Director, a Beach Facilities Technician, Grounds Crew, 2 Construction Project Managers, 2 Firefighters, a Fire Rescue Communications and Marketing Administrator, a Fire Inspector, a Mechanic, an Emergency Medical Services Lieutenant, a Stormwater Utility Maintenance Administrator, and a Stormwater Utility Inspector. Funding for these positions comes from property taxes, businesses license fees, short-term rental permit fees, beach preservation fees, accommodation taxes, Emergency Medical Services fees, and stormwater utility fees (SWU).
• Funding for several part-time and seasonal employees in Fire Rescue Operations, Office of Cultural Affairs, Communications, Community Development, Technology and Innovation, and Facilities Management.
• Business licenses increased $1.8 million and will be used for business license operating and personnel costs, website enhancements and support, online portal payment program, Office of Cultural Affairs programming, general maintenance of Island pathways, open space, and roadways.
• Funding for Comprehensive Land Management Ordinance code amendments.
• Funding for Island-wide illustrative master plan, conditions and trends completion, district planning, future land use map and comprehensive plan amendments.
• Permitting and plan review process improvements.
• Funding for the Town's 360/40 Celebration and Music Festival.
• Continued Public Safety enhancements including the addition of Flock safety cameras and trail cameras.
• Continued salary adjustments to remain competitive in the public and private sectors, including but not limited to Fire Rescue adjustments effective late FY2022, full year FY2023 and beyond (FY2024 first full year budgeted).
• Prioritization on Marketing and Communications including expanding social media presence for Fire Rescue.
• Continued expansion of Christmas and Holiday lighting throughout the Island.
• A total of $2.364 million in funds for affiliated agencies including $1.124 million for Island Recreation Association, $102,432 for Coastal Discovery Museum, $105,000 for Mitchelville Executive Director, $238,985 for University of South Carolina Beaufort Event Management/Ambassadors, $277,842 for Lowcountry Rural Transportation Authority (Palmetto Breeze), $168,500 for 14th Circuit Solicitor, $40,000 for Beaufort County EDC, and $307,469 for Heritage Classic Foundation.
• Enhancements to community events such as Crescendo, Lantern Parade, Earth Day, Tree and Menorah Lighting.
• Increased funding for park maintenance, road maintenance, landscape maintenance and corridor safety enhancements.
• Focus on beach operations, including additional beach facility staff and resources to enhance the beach appearance and experience.
• Transfer of $1 million to the land acquisition fund balance for future to-be-determined land purchases.
• Stormwater utility fund programmed for routine maintenance, corrective maintenance, and capital projects.
• Capital Improvement Projects funding for park program, fleet program, facilities and equipment program, roadway program, pathway program, and beach program.
• Debt reduction of $61.8 million over four years: FY2021 - $15 million / FY2022 - $15 million / FY2023 - $16 million / FY2024 - $15.8 million.
• The Town continues to improve its financial position and capacity by steadily decreasing debt, increasing reserves, and increasing assessed values.

The FY2024 consolidated budget, video recordings of the budget meetings and workshops, and presentation files from each meeting are available on the Town’s website at hiltonheadislandsc.gov/budget/FY2024/. The community is encouraged to follow the Town on Facebook, YouTube, and LinkedIn for updates on budgeted strategies.