Town accelerates stormwater master plan and flags major CIP lifts; council eyes corridor funding options

Town staff told Hilton Head Island council they have selected an engineering consultant to begin an island-wide stormwater master plan and said FY26 capital funding includes several stormwater projects already in design or construction.

The finance director reported the CIP includes roughly $6.35 million for 17 stormwater-related projects in FY26; staff said about 80% of that allocation is expected to be spent by the end of the fiscal year. The town manager said the master plan will produce probable costs for public, county and private systems and will help the town plan a long-term funding strategy.

Council also debated transportation priorities. Several members urged advancing safety fixes on William Hilton Parkway and other corridors, noting both safety and capacity concerns. Councilors stressed the difference between projects the town can directly deliver and DOT-managed corridors; staff said some corridor projects will require partnering with the South Carolina Department of Transportation and possibly transferring funds for DOT to manage work.

Why it matters: The stormwater master plan will establish priority fixes and probable costs for drainage and resiliency projects; corridor decisions influence safety, connectivity and economic access for residents and workers.

What's next: Staff will present stormwater master-plan deliverables and cost estimates as soon as they are available; CIP sequencing and funding strategies (including TIF, pay-as-you-go and targeted debt) will be a central focus of the February CIP workshop.