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Hilton Head Council reviews $53.9 million CIP, sets June 9 public hearing on budget
Summary
At a May 19 workshop, town staff presented a proposed FY27 capital improvement program totaling about $53.9 million and a consolidated all-funds budget; staff and council discussed funding sources, reserve policy adjustments and a second/final reading and public hearing set for June 9.
Town staff presented a proposed FY27 capital improvement program (CIP) and consolidated all-funds budget to the Hilton Head Island Town Council at a workshop on May 19, describing how the plan would be paid for and how it affects the town’s fund balance.
Mark Orlando, who led the presentation, said the town’s CIP funding sources total roughly $55.2 million while the proposed CIP program is about $53.9 million. "What we've done is we've added the carry forward to the new funding for that total," Orlando said, noting $12.1 million in carryforward and $41,785,000 in new FY27 requests.
The proposal breaks projects into portfolios—beach, pathway, roadway, park, facilities, stormwater, fleet, and land acquisitions—with major investments identified for Islanders Beach Park, roadway corridors and stormwater projects. Orlando also listed recently completed projects, including beach renourishment and the Mitchellville Road paving and drainage improvements.
Finance Director Dave Byrd presented the consolidated, all-funds view, explaining that the new format models transfers in and out across special revenue funds to provide an apples-to-apples comparison with prior years. Byrd said the approach shows a projected reserve increase and better transparency about which funds are being used for CIP items. "We're coming down in expense, you know, a year-over-year perspective," Byrd said while noting policy-driven reserve calibrations.
Councilmembers asked for clarification about fund balances and how one-time versus recurring funds are being used. Staff said the capital fund balance is projected at roughly $24–24.5 million by the end of FY27 and that some funds (for example certain liquor permit fees and impact fees) are intentionally rolled into fund balance for future use. The proposal assumes use of about $19 million of fund balance along with a mix of TIF, GO bond proceeds and special-revenue sources.
The workshop packet and presentation materials list specific line items and phases (planning, design, permitting, construction). Orlando said some items are design-only for FY27 and that the town will defer work that lacks acceptable funding or capacity. The council also asked staff to ensure that reserve-policy changes are reflected in the ordinance that will come back for action.
Next steps: staff said it will return June 9 for a second and final reading and a public hearing on the FY27 budget.
