Beaufort County ATAX committee recommends $4.19M in grants, forwards lower contingency plan to town council

The Beaufort County Accommodation Tax Advisory Committee on Nov. 7 recommended $4,186,065 in tourism grant awards to send to town council and approved a smaller contingency package if state revenue figures come in lower than the committee’s projection.

Miss Burnett, the town staff presenter for the ATAX program, told the committee that first‑half receipts totaled $5.9 million and that, based on trends and Destination Marketing Organization (DMO) metrics, she estimates total 2024 ATAX revenue at about $12.2 million — roughly an 8% decline from prior years. Burnett reminded the committee that state law requires a 30% allocation to the DMO, which reduces the pool available for grants, and said her working allocation amount for grants is about $3.9 million.

Chair (speaker 2) told members the group’s initial pass of applicants produced about a $350,000 gap between requests and expected revenue. To manage that shortfall the committee reviewed each applicant individually, set placeholder award figures on a first pass, then ran additional “middle‑ground” passes that compared this year’s requests to last year’s council awards.

On motions the committee approved a first‑pass recommendation of $4,186,065 (motion carried by voice/hand raise) and then approved a third‑pass contingency package to present to town council in case actual revenue is lower. The committee asked staff to include language in its submittal explaining that the first pass reflects the committee’s preferred awards if the projected funds materialize and that the alternative pass is a fallback if revenues fall short.

Members discussed trimming larger awards rather than taking small reductions from many small organizations. Committee members repeatedly noted the trade‑off between supporting established, high‑impact cultural and tourism events (which can generate substantial economic impact) and the disproportionate harm that small percentage cuts can have on smaller nonprofit budgets.

The committee placed first‑pass placeholders for dozens of applicants. Examples of first‑pass recommendations included Art League of Hilton Head (placeholder $77,500 after adjustments from earlier passes), Art Center of Coastal Carolina (moved between first and later passes, ultimately supported as a large economic driver), Hilton Head Island Airport (full funding placeholder $150,000), Coastal Discovery Museum ($400,000 placeholder), Shelter Cove Harbor Company/fireworks ($293,800 adjusted upward in later discussion), and Sea Turtle Patrol ($70,000). Several community organizations with low tourism percentages received reduced placeholders or awards limited to maximum reimbursable amounts designated in the application packet.

Public commenters raised timing concerns. Christy Cohen, representing the Darius Rucker Intercollegiate, urged staff and council to avoid holding the council vote as late as Jan. 14 because event organizers must commit to advertising and contracts months in advance.

The committee voted to forward the first‑pass recommendation and the contingency document to town council; the chair will present the committee’s letter and may include the committee’s earlier passes so council sees both the preferred and the fallback packages. The committee directed staff to continue to seek updated Q3 revenue figures from the state before council action and to highlight the public scheduling concerns in its submission.

Next steps: the committee’s recommendations will be included in town staff materials for town council; the council is scheduled to act in January (tentatively Jan. 14), and staff said it will continue to pursue updated revenue numbers from the state before then.