Hilton Head Island council adopts FY2027 consolidated budget after public calls for forensic review

Mayor Alan R. Perry presided as the Town Council on June 9 approved the town's FY2027 consolidated budget on its second and final reading, adopting a package that officials described as structurally balanced while using $20 million of fund balance for capital projects.

The adopted consolidated presentation covers six funds totaling $146,861,878 for the core funds and a broader accounting of special revenue activity that officials said sums to roughly $233,284,000. Town Manager (Mister Orlando) told council there will be no millage increase and highlighted a proposed 4% performance-based compensation increase and prioritized capital investments, including stormwater, parks and public safety initiatives.

Why this matters: Council and staff said the proposal aligns with the town's strategic plan and funds multiple capital projects that had been planned for years. Finance staff emphasized that the $20 million is a one-time use of accumulated fund balance earmarked for CIP work, not recurring operating support.

During the public hearing, Indigo Run resident Richard Bussey urged more detailed public answers about how the town uses reserves and whether independent forensic review is warranted. Bussey asked the council to "fully examine these issues, provide clear public answers, and demonstrate to the citizens that meaningful oversight is taking place." He said he remained concerned about reliance on reserves, the town's budgeting method, and questions about funding for the Gullah Geechee CDC.

Resident Skip Hoagland also urged the council to commission a forensic review and to change oversight of town finances; he accused council and staff of corruption and said taxpayers deserve "answers" and oversight.

Town Manager Orlando responded that the town uses a priority‑based budget rather than zero‑based budgeting, reiterated that fund balance has not been used to balance operating budgets, and said the $20 million use is directed to capital projects ("we've used $19,000,000 for capital projects"), not recurring operations. Council members pointed to increased transparency in new reporting and to work in recent budget workshops and CIP reviews.

Council discussion centered on separating operating costs from capital spending, improving transparency about how special revenue funds are shown, and monitoring long‑term reserve targets. Councilmember Hunter said operating expenses have been controlled while capital spending will "put shovels in the ground" for delayed projects. Councilmember Becker said she remained concerned about several items and recorded a dissenting vote.

Vote: The motion to adopt the consolidated budget ordinance was made and seconded during the meeting; the ordinance passed on second and final reading by a 5-1 vote.

Votes at a glance (selected actions from the meeting): - FY2027 consolidated budget ordinance (2nd & final reading): adopted, vote 5-1. - Other agenda resolutions and ordinances (DMO plan, renaming park, wetlands documents, property conveyances): see separate items and council records for vote details.

Next steps: The budget will take effect for the 2027 fiscal year beginning July 1, 2026. Council and staff said ongoing reporting and monthly fund walk projections will offer the public updated information about fund balances and capital expenditures.