Hilton Head Island adopts $174.7 million FY 2026 budget, lowers property millage

The Hilton Head Island Town Council on May 6 adopted a consolidated fiscal year 2026 budget of $174,700,000 and approved lowering the town property millage from 21.4 to 19.4 mills, Town Manager Mark Orlando told the council during a public hearing and presentation earlier in the meeting.

The budget, Orlando said, is "structurally balanced," meaning recurring revenues are intended to cover recurring expenditures without drawing on prior-year fund balance. The plan allocates funds across six major town funds and highlights a major capital program this year: beach renourishment with an opinion of probable cost of $47,500,000. Orlando also told council the capital program includes $77.7 million in CIP projects overall.

Why it matters: The budget both reduces property tax rates and sets aside money for a high-cost beach renourishment project that the town expects to fund from a mix of cash and possible debt. It also increases several reserve minimums and preserves operating funding for public safety, stormwater, and housing initiatives.

Major figures and changes - Consolidated budget total: $174,700,000 (all six funds). - General fund proposed: $59,754,000 (a 4.46% decrease year over year). - Debt service fund:…