Hilton Head Island Approves Record Budget for Infrastructure

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Beautiful beaches and parks in Hilton Head Island with community members engaged in planning.

News Summary

Hilton Head Island has approved a $174.7 million budget for the upcoming fiscal year, focusing on enhancing infrastructure, including parks and beach renourishment. The budget also includes a decrease in property tax rates and significant investments in capital improvement projects. While construction of new pickleball courts is delayed, funds will be allocated for planning and design. Town officials emphasize community engagement as they work to balance improvements with the island’s character and financial relief for residents.

Hilton Head Island has officially approved a record $174.7 million budget for the 2025 fiscal year, set to run from July 1, 2025, to June 30, 2026. The budget aims to enhance the island’s infrastructure with new parks, beach renourishment projects, and additional town staffing.

Among the notable expansions planned, the budget allocates funds for the renourishment of beaches with an earmarked $16.5 million under the Capital Projects Fund. Additionally, the construction of three new public parks is anticipated to commence within the year, with one park expected to be about half the size of a football field. However, plans for the construction of 18 proposed pickleball courts at Crossings Park will not occur within the next fiscal year. Instead, planning, designs, and permitting for the courts and two new baseball fields will proceed, albeit without actual construction this year.

The budget also reflects a decrease in the property tax rate from 21.4 mills to 19.4 mills, which is intended to provide some relief to property owners as the town undertakes substantial capital improvement projects. This fiscal year, capital improvements will comprise $74.3 million, accounting for approximately 44.6% of the total budget. This figure marks a notable increase of $19 million over the previous fiscal year’s capital improvement program, demonstrating a significant investment in the island’s infrastructure.

The General Fund, which is crucial for funding public safety and basic town operations, is set at $60.9 million. Additionally, the Stormwater Utility Fund will maintain a budget of $7.5 million focused on flood protection efforts and sustainable watershed management. The Housing Fund, which supports the Workforce Housing Framework, is allocated $4 million, and the Debt Service Fund remains at $16.7 million to ensure the town meets its financial obligations. Furthermore, the budget includes a $3.4 million allocation to the Gullah Geechee Historic Neighborhoods Community Development Corporation Fund aimed at community investment and revitalization initiatives.

Town Manager Marc Orlando remarked on how the budget aligns with the Town Council’s Strategic Action Plan and the 2020 Comprehensive Plan, ensuring that the town’s key objectives remain a priority. The emphasis in this budget on community improvements, character preservation, and infrastructure development underscores a commitment to enhancing the quality of life for residents and visitors alike.

During discussions about the budget, town council members encouraged greater community engagement, inviting residents to participate in upcoming meetings to provide feedback and insights. Mayor Alan Perry emphasized the importance of protecting the island’s character while making necessary improvements. However, Councilwoman Tamara Becker raised concerns over funding allocations and suggested re-evaluating the millage rate to further assist residents financially.

As the fiscal year approaches, the approved budget illustrates Hilton Head Island’s commitment to sustainable growth alongside community enhancement initiatives, paving the way for continued investment in its infrastructure and services.

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