News Release

Town Council Adopts Fiscal Year 2025 Budget with No Property Tax Increase

June 5, 2024

The Hilton Head Island Town Council voted 5-1 on Tuesday, June 4, 2024 to approve the Town's $166.9 million consolidated budget for fiscal year (FY) 2025 on the second and final reading, funding priorities aimed at enhancing the quality of life for its residents. The fiscal year begins on July 1, 2024, and runs through June 30, 2025. 

"Through collaboration, organizational planning, and a commitment to our Town, we appreciate the Town Council’s adoption of a budget that serves the interest of our community. This budget encompasses the Town Council’s top 15 Strategic Action Plan priorities," said Town Manager Marc Orlando. "Remarkably, a high point of this budget is our ability to continue reducing our debt burden, which is attributed to our strong economic base and solid management of our resources."

The budget keeps Hilton Head Island millage rates low - currently at 21.4 mill - while advancing the Town Council's priorities of beach renourishment, growth management, workforce housing, solutions for traffic and transportation, infrastructure enhancements, economic development, resiliency, recreation, and public safety.

The consolidated budget comprises six funds:

General Fund of $60.9 million includes the Town’s basic operations, public safety and affiliated agency funding. It is primarily supported with revenue from property taxes, business licenses, local accommodations tax (ATAX) and permit fees. Funds are earmarked for:

• Fire Rescue operations, including professional development and fleet management, repairs, and maintenance.
• Continued support for Sewer Connection and Home Safety and Repair Programs.
• The Short-term Rental Program, Town code compliance, beach operations and public safety operations.
• Affiliated agencies including:
  1. Island Recreation Association - $1.167 million
  2. Heritage Classic Foundation - $400,000
  3. Lowcountry Rural Transportation Authority (Palmetto Breeze) - $253,595
  4. University of South Carolina Beaufort Event Management / Ambassadors - $235,000
  5. 14th Circuit Solicitor - $168,500
  6. Coastal Discovery Museum - $107,700
  7. Historic Mitchelville’s Executive Director - $105,000
  8. Beaufort County Economic Development Corporation - $40,000
  9. Sea Turtle Patrol HHI - $73,480
• Workforce housing and land acquisition priorities.
• Increases in Town Council salaries by 15 percent to account for inflation and converts meeting reimbursements to monthly stipends. The last salary increase occurred in 2012.
• Tuition reimbursement and professional development for Town staff including customer service, hospitality, cultural awareness, and leadership development training.
• Suports Town personnel operating costs across all Departments.
• The hiring of seasonal staff supporting beach operations, maintenance, short-term rental permit program, and internships.
• Enhanced landscaping, lighting, solid waste and recycling, Town-wide litter portal and Town park maintenance.
• The Hilton Head Island Jam 2024 Songwriters Festival, holiday celebrations and Town events.

Capital Projects Fund of $74.4 million supports work that will enhance the quality of life for the community. Priority programs slated in FY2025 are:

• Pathway Program, $5.5 million to construct new segments on Jonesville Road, William Hilton Parkway, Dunnagan’s Alley, and Cordillo Parkway at Pope Avenue.
• Roadway Program, $10.3 million to improve the safety and function of our corridors through dirt road acquisition and paving; enhancements to roadways including William Hilton Parkway and Main Street; and landscape, lighting, and safety enhancements.
• Beach Program, $21.6 million to further improve the beach experience through beach park maintenance and improvements, and the start of beach renourishment in FY2025.
• Park Program: $19.8 million to implement new master plans for Mid-Island, Chaplin, Crossings, Chaplin Linear, Patterson, Taylor, Barker, and Ford Shell Ring parks.
• Facility & Equipment Program: $8.4 million for Town Hall facility enhancements, other Town facility enhancements, Coastal Discovery Museum, Mitchelville Freedom Park, IT equipment and software, security cameras and connectivity, and Fire/Medical systems and replacements.
• Fleet Program, $7.3 million to provide the fleet, facility, and equipment resources needed to serve the community’s needs, including replacing fire ladder trucks and other public safety equipment.
• Land Acquisition & Administration, $250,000 for surveys, appraisals, legal fees, demolition, and cleanup of Jonesville Road property.
• Stormwater, $1.2 million for permitting and construction of new infrastructure and other improvements for stormwater capital improvement projects at Gum Tree Road, the Jarvis Creek outfall, Moonshell Road ditch, Wexford Debris System, Main Street drainage, Palmetto Hall outfall, and the Howell Tract.

Stormwater Utility Fund of $7.5 million provides resources to protect our Island from flooding, protect watersheds, and sustain our water quality. Priorities for FY2025 are:

• Resiliency planning.
• Routine and corrective maintenance of vital stormwater infrastructure.

Housing Fund of $4 million provides funding to implement the Town Council adopted Workforce Housing Framework, Finding Home, including:

• The launch of the Northpoint Public Private Partnership (P3).
• Funding for the Muddy Creek neighborhood stabilization initiative.
• Funding for the Bryant Road Public-Private Partnership and related infrastructure improvements.
• Support for the Town’s partnership in the Beaufort-Jasper Housing Trust.

Debt Service Fund of $16.7 million accounts for accumulation of resources (property taxes, transfers in of beach preservation fees, hospitality taxes, natural disaster fund and tax increment financing fees) to pay interest and principal on general long-term debt obligations and special revenue debt obligations. The fund:

• Includes $12.6 million to further reduce Town debt.
• Maintains the current 5.5 debt service millage rate to help keep property taxes low.
• Establishes a mid-Island tax increment finance district.

Gullah Geechee Historic Neighborhoods Community Development Corporation Fund of $3.4 million supports the continuing operation of the organization and community investment through revitalization of economic opportunity and quality of life for our historic neighborhoods. Approved by the organization’s board, the budget:

• Includes funds for loans for small business development.
• Provides funds for loans for neighborhood and community development.
• Provides capital outlay for land/easement acquisitions and public infrastructure.

"The budget supports our policies and programs and will help us to continue delivering high-quality public services for our residents, businesses, workforce and visitors. On behalf of the Town Council, I thank our Town Manager and Town staff for the work they did to prepare this budget that will contribute to the prosperity of Hilton Head Island," said Mayor Alan Perry.

The FY2025 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/FY2025/. The community is encouraged to follow the Town on Facebook, YouTube, and LinkedIn for updates on budgeted strategies.