News Release

Town Manager Presents Proposed Consolidated Budget for Fiscal Year 2025 With No Tax Increase

May 7, 2024

The Hilton Head Island Town Council, in a 5-2 vote, passed the first reading of the Town's proposed consolidated fiscal year (FY) 2025 budget at its May 7 Town Council meeting.

During the meeting, Town Manager Marc Orlando presented a budget that maintains low millage rates for Hilton Head Island while advancing Town Council's priorities of growth management, workforce housing, infrastructure improvements, economic development, resiliency, recreation, and public safety.

"The Town of Hilton Head Island has benefited from economic strength and revenue growth, bolstering our public services. Our position allows us to present a consolidated budget that supports our Strategic Action Plan and focuses our resources on community priorities and customer service," said Town Manager Marc Orlando.

State law requires all municipalities to adopt an annual budget before July 1 of each year. The Town’s $166.9 million proposed consolidated budget is comprised of six funds:  

• General Fund - $60.9 million
• Capital Projects Fund - $74.3 million
• Stormwater Utility Fund - $7.5 million
• Debt Service Fund - $16.7 million
• Housing Fund - $4 million
• Gullah Geechee Historic Neighborhoods Community Development Corporation Fund - $3.4 million

Despite the absence of a tax increase, the proposed budget is $20 million more than the current FY2024 budget of $146.9 million. "This larger budget reflects our investments in our prioritized capital improvement projects islandwide, including beach renourishment, the expansion of our parks network, ongoing support for workforce housing initiatives, and preservation efforts aimed at safeguarding Hilton Head Island's natural environment," Orlando said.

Residents and stakeholders will benefit from enhanced services in the coming fiscal year while enjoying a low tax rate. "This focused budget allows the Town to be innovative as we implement our priorities and make impactful investments in our staff and community infrastructure including our beach, parks, roads, housing, public safety and other services that benefit our residents, businesses, and visitors," said Mayor Alan Perry.

The proposed budget:

• Maintains the current property tax millage rate of 21.4 mills. 
   
• Provides a targeted investment of $74.3 million for the Town's comprehensive Capital Improvement Program (CIP):
  • Beach Program including beach renourishment - $21.6 million
  • Park Program - $19.8 million
  • Roadway Program - $10.3 million
  • Pathway Program - $5.5 million
  • Facility and Equipment Program - $8.4 million
  • Fleet Program - $7.3 million
  • Land Acquisition and Administration - $250,000
     
• Supports Fire Rescue operations, including professional development and Townwide fleet management, repairs, and maintenance.
   
• Supports the Short-term Rental Program, Town community code compliance, beach operations and public safety operations.
   
• Includes no new full-time or part-time positions and eliminates four positions.
   
• Includes a merit increase of up to 4% as part of a benefit package for Town employees.
   
• Funds the hiring of seasonal staff supporting beach operations, maintenance, the short-term rental permit program, and internships.
   
• Provides continued funding for workforce housing and land acquisition priorities.
   
• Provides continued funding for the Sewer Connection and Home Safety and Repair Programs.
   
• Allocates $2.55 million in funds for the following affiliated agencies:
  • Island Recreation Association - $1.167 million
  • Heritage Classic Foundation - $400,000
  • Lowcountry Rural Transportation Authority (Palmetto Breeze) - $253,595
  • University of South Carolina Beaufort Event Management / Ambassadors - $235,000
  • 14th Circuit Solicitor - $168,500
  • Coastal Discovery Museum - $107,700
  • Historic Mitchelville’s Executive Director - $105,000
  • Beaufort County Economic Development Corporation - $40,000
  •  Sea Turtle Patrol HHI - $73,480
     
• Supports the Hilton Head Island Jam 2024 Songwriters Festival, holiday celebrations and Town events.

Follow the Town’s Budget Process

Tuesday's presentation was the first in the FY2025 budget public review process. The proposed consolidated budget executive summary and presentation are available on the Town's website at hiltonheadislandsc.gov. In addition, the public is encouraged to follow the Town on Facebook, YouTube, and LinkedIn for additional budget updates.

The Town Council will have budget workshops at 1 pm on Tuesday, May 14, and Thursday, May 16. Both are open to the public. A public hearing and second reading of the proposed budget is scheduled for 3 pm on Tuesday, June 4. At all these sessions, residents and stakeholders may share feedback on the budget during the public comment portion of the meeting. The public can view the meetings on the Town's YouTube channel and the Beaufort County Channel.