Hilton Head Island proposes budget reducing property tax millage while addressing critical needs

The Town Council of Hilton Head Island convened on May 6, 2025, to discuss key budgetary matters and strategic priorities for the upcoming fiscal year. The meeting highlighted the town's economic trends, budget allocations, and community initiatives.

The session began with an overview of business licenses, noting a total of 14,167 issued, reflecting a slight increase from the previous year. The town reported an excess of $10 million in business license revenue, which is being closely monitored as part of the budget planning process. Additionally, the council addressed the management of short-term rentals, with over 7,000 currently approved.

The discussion then shifted to the strategic plan priorities, which include protecting the island's character, enhancing public safety, supporting economic development, and preserving Gullah Geechee cultural heritage. These priorities will guide budget allocations, with a focus on growth management and infrastructure improvements.

The proposed budget for fiscal year 2026 was presented, totaling approximately $59.75 million for the general fund and $18.86 million for debt service. Significant allocations include $47.5 million for beach renourishment and $30 million for other capital projects. The stormwater utility budget has increased by $2 million, reflecting ongoing environmental initiatives.

Council members noted a reduction in the general fund by 2.7%, while debt service is projected to rise for various reasons. The budget aims to align expenditures with anticipated slower revenue growth post-COVID-19, with a balanced budget of $174.7 million.

A notable point of discussion was the reduction of the property tax millage rate from 21.4 to 19.4 mills, which reflects the town's efforts to manage spending responsibly while maintaining essential services. The council emphasized the importance of fiscal planning and the need to adapt to changing economic conditions.

The meeting concluded with a reminder of the upcoming budget workshop scheduled for May 12, where further details on the budget will be discussed, followed by a final reading of the budget on June 3. The council's commitment to transparency and community engagement remains a priority as they navigate the financial landscape of Hilton Head Island.