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Hilton Head Island council adopts $233M FY27 budget, taps $20M for capital projects
Summary
Council approved the FY27 consolidated budget at second reading, keeping the millage steady, preserving AAA bond ratings and authorizing roughly $20 million of one-time fund-balance use to accelerate capital projects including roads, stormwater and public safety investments.
The Hilton Head Island Town Council voted to adopt the town's fiscal year 2027 consolidated budget at the June 9 meeting, approving a plan staff described as structurally balanced and aligned with the town's strategic action plan.
Town Manager Mr. Orlando said the FY27 package was priority-based and included no millage increase. Highlights the manager emphasized included a 4% performance-based compensation increase, targeted investments in capital projects and affiliated agencies, and a proposed policy to increase natural-disaster reserves. Orlando also stated the town would use about $20 million of one-time fund balance for capital improvements while maintaining long-term reserves.
Council members praised the improved transparency of the finance presentation and the staff's work in the budget workshops. Council Member Miss Tunner noted that operating expenses have been tightly controlled while capital spending increases in a year of —putting shovels in the ground'. Council Member Miss Bryson said the town's fund balance strategy and the new monthly 'fund-walk' reporting provide better oversight for long-term planning.
Public commenters raised questions about reliance on reserves, the allocation of funds to certain affiliated agencies and whether the town should commission a forensic review. Richard Vusy (Indigo Run) urged clearer explanations of reserve use, staffing allocations to the Gulligichi CDC, and which stormwater projects were delayed or removed. Town manager Orlando responded that the town is not using fund balance to cover recurring operating costs and offered follow-up workshops for detailed inquiries.
The council approved the ordinance at second and final reading after deliberation. Council members framed the vote around a mix of near-term capital priorities and ongoing fiscal discipline; the town's presentation cited maintenance of AAA ratings from major bond agencies as evidence of fiscal health.
What happens next: staff will continue monthly financial reporting and implement the capital projects outlined in the CIP; council directed additional follow-ups and workshops for detailed line-item questions.
Sources: Town budget presentations and public hearing remarks during the June 9, 2026 Town Council meeting.
