Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Amendment topic
No spam. Unsubscribe anytime.
Council approves multi‑fund FY2026 budget amendment, shifts STR fees to per‑bedroom structure
Summary
Hilton Head Island council approved a FY2026 budget amendment using planned $35 million GO bond proceeds for a new fire‑rescue headquarters, several land purchases and CIP roll‑forwards; the ordinance also funds staff and equipment for short‑term rental (STR) enforcement and changes STR permit fees to $150 per bedroom (with a one‑year $250 late fee).
Hilton Head Island’s Town Council on March 10 approved an ordinance amending the fiscal year 2026 budget to roll forward prior‑year appropriations, fund new capital projects and apply proceeds from a planned $35 million general obligation bond. The 7–0 vote implements land purchases, capital improvements and a funding package to administer strengthened short‑term rental regulations.
Town Manager Orlando and staff presenter Ken Berg told the council the town received top ratings from Moody’s, S&P and Fitch tied to the proposed GO bond sale and outlined uses for the proceeds including a new fire‑rescue headquarters, an emergency operations center, and strategic land acquisitions. Staff presented CIP carryforwards and new project appropriations totaling tens of millions, and a list of land purchases funded in part by the Beaufort County Green Space program and tax increment financing. Berg said the town expects to close on up to $35,000,000 in GO bonds in the next month, with roughly $8.377 million earmarked for the new fire‑rescue headquarters and remaining proceeds reserved for land acquisition and future capital projects.
The ordinance also details debt service and special‑revenue bond accounting tied to previously approved beach bonds used for ongoing renourishment work. Finance staff described a Debt Service Fund amendment to cover interest and principal payments related to beach and GO bonds.
On the general fund side, the council approved programmatic funding to support an expanded short‑term rental (STR) compliance program. Staff proposed replacing the flat $250 annual STR license with a $150 per‑bedroom annual permit and adding a $250 late fee for 2026 renewals submitted after May 15 (a one‑year exception returning the deadline to May 1 in 2027). Berg said the town currently licenses 7,368 STR units representing 20,207 bedrooms and that the per‑bedroom fee more equitably scales program revenue to property size and operational impact.
To administer the enhanced STR program, the ordinance funds personnel and equipment: staff described a net increase of dedicated positions (achieved through hires and converting part‑time roles) totaling six new full‑time equivalents for long‑term program administration, plus vehicles, radios, equipment upgrades and communications support. Staff said FY26‑year‑to‑date costs for remainder of the year would total roughly $189,115 for salaries, benefits and overhead, with annual operations and personnel costs estimated at about $893,000 (personnel attrition and overhead factors were explained by staff during the presentation).
During council discussion members asked for clarifications about how citation revenue would be treated (staff confirmed citations issued in the fiscal year would be carried forward), the source mix for land purchases (staff confirmed contributions from county green‑space funds and TIF balances where noted), and the accounting steps to record bond proceeds and debt service. Councilmembers affirmed that STR fee revenues would be restricted to STR program operations.
After public comment (no speakers on the budget item) and further council questions, the council voted to adopt the ordinance, recorded as 7–0. The budget amendment takes effect as provided in the ordinance.
