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Hilton Head Island adopts $174.7M FY2026 budget, cuts property tax rate by 2 mills
Summary
The Town Council on May 6 adopted a $174.7 million consolidated FY2026 budget that reduces the property-tax millage by two mills, funds a $47.5 million beach renourishment program and boosts stormwater capital spending; council approved the measure unanimously after a public hearing and brief public comment about meeting times.
The Hilton Head Island Town Council voted unanimously May 6 to adopt a $174.7 million consolidated fiscal year 2026 budget that lowers the town's property-tax millage by two mills and funds a multiyear beach renourishment program. The ordinance passed 7-0 after a public hearing and council discussion.
Town Manager Mark Orlando, who presented the budget, described it as "structurally balanced," saying recurring revenues will support recurring expenditures and staff did not use prior fund balance to cover recurring costs. Orlando highlighted the plan's major figures: a $59,754,000 general fund, a proposed $48,800,000 beach-renourishment allocation and a stormwater utility budget of $11,100,000 with $6.3 million slated for stormwater capital projects. "This budget...is structurally balanced," Orlando said during the presentation.
Councilmembers praised staff analysis and the town's conservative forecasting. Councilmember Turner said the proposal shows the town is "financially secure" and highlighted bond ratings, reserve levels and debt reduction in support of the plan. Councilmember Becker asked staff to schedule an evening budget hearing so working residents can attend; the council directed staff to return with dates for upcoming workshops.
During the hearing, resident Richard Bussey of Indigo Run urged the council to hold at least one budget meeting between 6 and 8 p.m. so full-time working residents can participate, saying, "Approval of the town budget is one of the most important things you do...to deprive residents who work full time an opportunity to be heard is a disgrace." Mayor Alan R. Perry acknowledged the comment and councilmembers agreed to add an evening workshop to the schedule.
The adopted budget reduces the town's property-tax millage from 21.4 to 19.4 and keeps the consolidated plan balanced across six funds. Orlando told the council that the beach renourishment figure is an "opinion of probable cost" at $47.5 million, with bids lower but the town retaining the higher estimate until a contract is negotiated. He also noted a planned schedule of budget workshops and a second reading process prior to final implementation of project specifics.
What comes next: staff will present detailed workshops on the six funds, capital projects and reserve policies in mid-May and early June; the council also discussed potential debt strategies for beach preservation financing later this year.
