Hilton Head council calls into question $2 million in budget requests

As the Town of Hilton Head Island struggles to balance its upcoming 2018 budget, a handful of outside agencies are asking for increased funding totaling more than $2 million.

The Hilton Head Island Town Council used a more critical than usual eye when reviewing the requests during a budget workshop Tuesday. In many cases, they demanded more information be provided.

Several items saw more intense discussion, including about a $1 million increase for the Beaufort County Sheriff’s Office to provide services on the island along with a $1 million request from the Island Recreation Association for outfitting its future home, which is currently under construction.

“It is important for all applicants to understand that we are struggling in our own budgets because of the hurricane,” David Ames, town council member, said. “Extraordinary requests this year may have to be adjusted because of that.”

The town is proposing a series of tax and fee increases to balance its projected $86 million budget for 2018, which starts July 1. Staff has said hurricane recovery costs will make it difficult to balance the budget without the increases.

Beaufort County officials have asked that the town pay $4.4 million — $1 million more than last year — for police protection in 2018. Officials have said the the town hasn’t been paying its share since the contract started in 1984.

“I can’t tell you what exactly we are funding,” Mayor David Bennett said. “I suspect a portion of our property taxes are being utilized to fund these services.”

Town manager Steve Riley said the town historically has paid a lower cost for police services because property taxes were taken into account.

“Today we are 49 percent of the tax base of the county budget,” Riley said. “These police services through the Sheriff’s Office were a way to recapture or get a little back from the county.”

Council member Bill Harkins also questioned the increase.

“If the seven us own a business and are investors and you owned 49 percent, another 10 percent and someone five percent and etc. — at the end of the year, we expect you to be paying 49 percent because you own 49 percent,” Harkins said.

An increase in funding to outfit a $12 million facility for the Island Recreation Association also received criticism from council members Tuesday.

Kim Likins said the request for $1 million in extra funding covers items the town thought it was already paying for in the nearly $13 million it is spending to construct the building.

“If I already voted to spend this money, then why is it showing up again?” Likins asked.

Likins also said it was her understanding the association would be raising 10 percent of costs for the facility.

Association executive director Frank Soule said a campaign for funds has started for the project.

The Town Council will continue budget discussions during its regular meeting at 6 p.m. May 16 at Town Hall.

This story was originally published May 9, 2017 at 9:21 PM with the headline "Hilton Head council calls into question $2 million in budget requests."