Seabrook Island ATAX advisory committee holds 2026 revenue projection at $400,000, weighs $4.2M road request and budget requests

The Accommodations Tax Advisory Committee on Seabrook Island met in August 2025 and voted to keep staff—s FY2026 state accommodations tax projection at $400,000 while it reviewed five funding requests and new visitor data.

Town staff member Joe presented the revenue forecast and recommended retaining the $400,000 projection for budgeting. "I've recommended that we keep that at 400,000," he told the committee, noting 2021 saw a spike after COVID and collections have trended lower since 2022. Joe said quarterly distributions show some recovery in early 2025 but the third quarter (the summer quarter) will determine whether the town should raise the projection.

Why it matters: state law directs the first $25,000 of ATAX to the general fund, then 5% of the balance to the general fund, 30% to regional tourism promotion, and 65% to tourism-related expenditures subject to the committee—s recommendations. Staff laid out a working pool of about $243,750 (65% of the balance) plus roughly $14,000 in projected interest, producing about $257,750 the committee can recommend to council.

New visitation data and limits of the tool

Committee members pressed staff on how the town measures rental activity and visitor counts. Joe said the town recently began using a subscription to Placer AI to analyze anonymized cell‑phone data dating back to 2018 and that the tool differentiates residents, employees and visitors who travel more than 50 miles. "Through the anonymized cell phone data the company we're using they can break out permanent residents from visitors from day trippers and what they call employees," he said, and staff reported about 866,000 visits to Seabrook Island over a recent 12‑month period, of which roughly 232,000 were out‑of‑market visitors. Joe cautioned Placer AI is a previous‑activity predictor and may undercount groups without phones or guests staying with owners; he described it as far better than prior proxy measures but not perfect.

Requests under review

The committee heard presentations from five requestors and staff:

- Fleming Open tournament: Maryann Rafield, chair of the Fleming Open at Seabrook Island, asked for $20,000 toward tournament costs in October 2026. She said the event draws roughly 400 players and their families, many of whom stay on the island.

- POA Charleston Symphony concert: Heather, executive director of the property owners association, asked the committee to cover the symphony fee (about $27,500 last year; she estimated $28,000 for 2026). She said the concert attracts nonresident guests and typically increases rentals when it occurs.

- Beach patrol contract: Staff reviewed the Barrier Island Ocean Rescue contract and forecast a likely increase in the next procurement year. Joe said the town currently budgets about $240,000 but is projecting a contract in the $350,000—60,000 range for 2026 and asked the committee to consider $140,000 from state ATAX (with a matching $140,000 town ATAX share and about $80,000 from the county historically). "Our targeted number for the budget right now is 360," he said, adding the request is to preserve the existing level of lifesaving and search‑and‑rescue services, AEDs and watercraft.

- Personnel support (communications/events and code enforcement): Staff proposed using ATAX to pay 50% of the communications and events manager and 25% of a code enforcement officer, a blended ATAX request of about $76,133 to reflect tourism‑related duties tied to events and rental enforcement.

- Seabrook Island Road and drainage project: Staff presented a capital project to raise sections of Seabrook Island Road to a minimum elevation of about 6.75 feet to reduce tidal flooding. Design is advanced, and the state environmental agency and DNR returned review comments related to turtle‑nesting mitigation. Construction estimates have been updated from earlier figures; staff provided a working total near $4.2 million (about $4 million in construction, $1 million in professional services, plus a late irrigation replacement estimate). Staff proposed treating the project as a one‑off capital use of fund balance and requested $350,000 from state ATAX fund balance (and a matching $350,000 from town ATAX fund balance) as part of a multi‑source financing plan. Joe said committee members will be asked to revisit funding if bids come back higher.

Committee process and next steps

The temporary chair reminded members the panel is advisory to town council and that recommendations should balance within the committee—s available ATAX pool (staff calculated a small shortfall of roughly $6,388 if all four recurring requests were funded as presented). Members discussed making balanced recommendations with a conditional note that council or higher revenues could trigger full funding. Staff also said the committee could reconvene if the road project bids require additional financing options, including special source revenue bonds.

What remains unresolved: the committee did not take final formal votes on awards at this meeting; council will receive the committee—s recommendations and is the final decisionmaker. Staff said the town expects the first complete property rental logs (as required by the new short‑term rental ordinance) at business license renewals next April, which will give more precise, property‑level occupancy data to complement Placer AI estimates.

The committee expected to finalize recommendations for council in follow‑up proceedings once members agree on balancing and any conditional uses of fund balance.