Hilton Head council approves first reading of $233.3 million FY2027 consolidated budget

Town Manager Mister Orlando presented the town of Hilton Head Island's proposed consolidated fiscal year 2027 budget at a May 12 public hearing, laying out a $233,284,719 consolidated plan that rolls general, capital, stormwater, housing and newly presented special revenue funds into one view. The council voted on first reading to adopt the ordinance with an amendment to Exhibit E (reserve policy) by a 6'0 vote; Miss Becker opposed the motion.

Orlando told the council the budget reflects conservative revenue assumptions, with no property tax increase (millage held at 19.4 mills) and a general fund proposal of about $67.6 million. He said the consolidated projection includes $86.4 million in special revenue funds and uses approximately $35.1 million of fund balance for primarily one‑time purposes. Major revenue drivers called out were property taxes, business licenses and hospitality taxes; the manager emphasized the presentation shows transfers and fund balance movement to make the consolidated picture clearer.

On the spending side Orlando highlighted personnel and benefits, which account for a substantial share of operating costs, and a capital improvement program focused on beach preservation, stormwater, parks and road and pedestrian projects. He outlined the Novant Health acquisition earlier in the year, a Bryant Road developer qualification process, and several park and roadway projects that appear in the CIP.

Council members pressed for more granular variance analysis and asked staff to slow down the review at workshops so the public can follow the consolidated special revenue presentation. Orlando and finance staff told the council they will present deeper detail at a May 14 budget workshop (general funds and special revenue overview) and a May 19 workshop focused on capital projects and stormwater.

During discussion, councilmembers said they supported continued investment in employee compensation and operational priorities while wanting clearer public explanations for special‑revenue transfers and year‑over‑year variances. After the public hearing closed, Miss Bryson moved to adopt the ordinance on first reading with the Exhibit E amendment; the motion carried 6–1 with Miss Becker voting no.

Next steps: the council scheduled workshops to review the general fund, capital projects and stormwater fund in more detail and will return for a second and final reading on June 9.