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Hilton Head Island council approves first reading to amend FY2025 budget, including carryforwards for pumps, fire trucks and storm repairs
Summary
On a unanimous 7–0 vote the Town Council approved first reading of an ordinance amending the FY2025 budget to carry forward prior‑year appropriations and add funds for capital projects, emergency stormwater repairs and affiliated agency commitments; staff identified multiple funding sources including hospitality tax, stormwater utility and TIF balances.
The Hilton Head Island Town Council on Oct. 1 approved on first reading a budget‑amendment ordinance to roll forward prior‑year appropriations and allocate funds for capital projects, stormwater repairs and affiliated agency commitments.
Town staff presented three headline amounts: about $1.6 million for carryforwards in the general fund, roughly $8.5 million for the capital improvement program (CIP) and about $1.6 million for the stormwater utility fund. Staff summarized specific carryforwards including $118,950 for facilities maintenance, $403,596 for community planning contracts, and $1.1 million intended for two affiliated agencies (listed in the staff presentation as Coastal Community Development Corporation — $600,000 — and Hilton Head Regional Habitat for Humanity — $500,000). The motion to approve first reading passed 7–0.
Staff detailed work tied to those sums. The Lawton pump station overhaul — a multi‑year project that began in 2021 — was described as substantially complete with the last of three new pumps installed Sept. 4, 2024; staff said they are carrying forward remaining contractor payments. Fire‑truck procurement remains a multi‑year program: some trucks have been delivered, additional ladder trucks were budgeted, and staff said hospitality tax revenue is the identified source for those vehicles. Council discussed lease versus cash purchase options and the longer manufacturing lead times for both pumps (about 10 months to a year) and fire trucks (in some cases multiple years).
Council also heard about emergent stormwater repairs tied to Tropical Storm Debbie. Staff and a council member cited two critical drainage failures — a collapsed 42‑inch pipe in Shipyard and a partial collapse in Spanish Wells — and staff identified approximately $615,010 in costs associated with repairs to those two locations. Staff said the town will pursue FEMA reimbursement for eligible costs but must fund the immediate repairs from stormwater reserves.
Staff additionally described a proposed land acquisition from available TIF balances; the presentation listed the property cost as $2,975,000 (presented across multiple lines in the staff report) and noted that the town’s available TIF balance of roughly $3.5 million would be largely consumed by the purchase; staff said the TIF balance must be used by the end of the fiscal year. Council members asked for clearer accounting and flagged that additional budget amendments might be required as storm damage is quantified.
The ordinance was advanced on first reading; final adoption will require a subsequent vote. Staff was directed to provide clarifications requested by council (detailed pond lists, POA agreement status, exact corrected ordinance numbers and any typographical fixes) and to proceed with FEMA documentation for possible reimbursement of storm repairs.
