Hilton Head committee sends affiliated‑agency funding recommendations to town council for FY2026 budget

Hilton Head Island — A Town Council committee reviewed applications from local affiliated agencies on Tuesday and voted to forward funding recommendations to the full council for inclusion in the town manager’s proposed FY2026 budget.

Committee staff presented 11 applications and summarized each applicant’s finances and requested amounts. Following discussion the panel recommended funding for several groups, withheld others pending more information, and directed staff to review memoranda of understanding for multiple partners before the council acts.

Why it matters: The committee’s recommendations would allocate public dollars and ATAX/CIP resources to local nonprofits and services that operate on town property or provide services the town relies on — from parks and museums to transit and sea‑turtle protection. Committee members pressed for clearer financial documentation, up‑to‑date budgets and agreement language before approving some requests.

The committee’s recommendations (as recapped in the meeting record) included:

- Fourteenth Circuit Solicitor — request $168,500: committee recommended no funding for FY2026 after members noted prosecution is generally a state responsibility and the applicant’s last audited statement dated to 2020.

- Beaufort County Economic Development Corporation — request $42,000: committee recommended full funding of $42,000; the applicant’s executive director, John O’Toole, told the committee that a county “1.3 mill” reserve is managed as a drawdown fund and that recorded income may appear lower until funds are drawn for projects.

- Coastal Community Development Corporation (CCDC) — request $750,000: the committee left this request pending and asked staff for more information about project costs, unit counts and available housing funds before making a recommendation.

- Coastal Discovery Museum — request $141,650: committee recommended funding the full request. Staff noted the museum receives multiple town allocations (affiliated agency funding, ATAX and CIP) and that the town provides bookkeeping and management support under an existing MOU; the committee asked staff and the museum to review the MOU and accounting roles.

- Hilton Head Island Recreation Association (Island Rec) — request $1,252,366: committee recommended funding the full request; members described the association as an essential affiliated provider that runs programming on town parks and facilities the town owns.

- Lowcountry Regional Transportation Authority (LRTA, Palmetto Breeze) — request $507,051: after extended discussion about federal grants, local match and a proposed holiday trolley extension, the committee placed a tentative recommendation of $350,000 and asked staff to reconcile timing and match amounts before final council action. LRTA Executive Director Brian Sullivan said the commuter program averages heavy daily usage and that federal grant timing makes year‑to‑year budgeting difficult: “Dedicated funding source most likely through some sort of sales tax referendum,” he told the committee.

- Historic Mitchellville Freedom Park — request $105,000: committee recommended funding the full $105,000. Mitchellville Executive Director Ahmad Ward explained recent capital work and a large state grant and philanthropic support for new park structures.

- Sandalwood Community Food Pantry — request $97,500: committee members supported the organization and a recently approved long‑term lease, but recommended no affiliated‑agency funding for parking‑lot improvements because the lease terms limit town contributions for site improvements.

- Sea Turtle Patrol — request $97,500: committee recommended full funding. The group’s volunteer monitoring and nest protection work takes place on town beaches and committee members described the patrol as providing an environmental service the town would otherwise have to provide.

- Children’s Center — request $80,000: committee did not recommend funding. Members praised the center’s mission but said early‑childhood care is typically funded outside the town’s affiliated‑agency process and is not town‑owned property; the center’s director, Jody Lavette, urged continued collaboration given childcare’s role in local workforce stability.

Committee directions and next steps

The committee voted to forward its compiled recommendations and the staff report to the full Town Council for inclusion in the FY2026 budget first‑reading materials. It also unanimously asked the town manager to develop a policy for funding affiliated agencies, and directed staff to review and update memoranda of understanding where applicable.

Town Manager comments at the meeting noted the suggested allocations can be accommodated within the manager’s current budget planning but cautioned that exact federal grant match amounts and some applicants’ outstanding documentation would need follow‑up before final appropriation.

What committee members said

Adrianna Burnett, a staff presenter, summarized applicant budgets and flagged missing or dated financial statements: “As I’m looking at the information provided, I noticed that the last financial statement provided was from 2020,” she said about one applicant.

On transit funding, LRTA Executive Director Brian Sullivan said federal grant timing complicates planning: “We won’t know our federal grants to match this the town’s fiscal year until next September, October,” and urged a stable local revenue source.

Historic Mitchellville’s executive director described recent capital spending supported by state and foundation grants: “We opened ghost structures in the park…that was a $1.2 million project,” Ahmad Ward said.

Children’s Center Director Jody Lavette framed childcare as an economic necessity for working families: “Without childcare available, people will not be working here on Hilton Head Island,” she said, while council members said they would pursue other avenues to support childcare outside the affiliated‑agency funding stream.

Evidence and follow up

The committee recorded its recommendations on the record and told staff to return with revised MOUs and supplemental financial details, particularly for CCDC and LRTA, before the full council acts. The full Town Council will consider the committee’s recommendations as part of the FY2026 first‑reading budget agenda.

Ending

The committee meeting closed after approving the forwarding motion and a request that the town manager develop a formal policy for affiliated‑agency funding and review existing MOUs with partners. The council’s next scheduled meeting will take up the first reading of the FY2026 budget, at which time the manager’s budget and the committee’s recommendations will appear for council consideration.