Port Royal budget comes with tax cut and police pay raises. Growth fueling revenue
Continued housing construction and robust property values are fueling millions in additional property tax revenue in the town of Port Royal where town officials are putting the final touches on a $11.1 million budget for the 2025-26 fiscal year.
The additional revenue is helping the town, in part, provide tax relief to its residents despite considerable cost increases in insurance and added personnel expenses including pay raises for employees including police officers. The budget also includes funding to begin two highly anticipated projects: A new park on the town’s scenic marsh and overhauling Paris Avenue, the main street through the old village.
“I think were going to get a lot of accomplished,” says Town Manager Van Willis.
The additional revenue the town is seeing is coming from a combination of factors including construction of large apartment complexes and single-family home construction. On top of that, Willis says, resale of homes at markedly increased values is adding revenue to the town’s coffers.
“There’s multiple factors that push that growth and revenue,” Willis said.
Here’s five things to know about the town’s taxation and spending plans for the 2025-26 fiscal year.
1. The tax rate is going down
The town’s millage rate, or property tax rate, is going down, from 74 to 72 mills.
“Council wanted to provide some sort of property tax relief,” Willis said, “so they asked us to construct a budget reducing millage by 2 mills.”
2. Growth is generating more revenue
Even with the reduction in the tax rate, the town will collect an additional $600,000 in property tax revenue for a total of $5.7 million, as a result of new homes and businesses that are coming on line — particularly apartments, Willis said.
“These things are now starting to hit the property tax rolls,” Willis said of apartments.
The property tax revenue increase also comes despite a one-year moratorium on apartment construction the town passed in April 2024. The move was fueled by quality of life and environmental concerns and was recently extended another six months. Projects that already were permitted at the time it was passed were not affected and it’s those projects that are now adding revenue in the town’s budget. Willis said the town’s property tax revenues likely would have increased by another $200,000 if the Town Council had not decided to propose reducing the mills.
Infill development — construction of buildings on previously unused land within a developed area — also is brisk and bringing in more funds as well, Willis said.
The rise in Port Royal property values in general is contributing to additional revenues, Willis said. The growth reminds Willis of 2006 when property values “went through the roof” due to speculation about the redevelopment of the South Carolina Ports Authority property on Battery Creek, which today is being redeveloped by Safe Harbor Marinas, Willis said.
“All you have to do is look at listings in Port Royal to get an idea of how things are escalating in terms of values,” Willis said.
3. Employees are getting a raise
The proposed $11.1 million budget is up $956,370 from the current budget. Much of the increase is tied to personnel expenses but insurance of all types also is rising, Willis said.
Still, employees would see a 3% cost-of-living raise if the budget passes. Police would get an additional 2% increase for a total of 5%, the same pay raise they received in the current budget. The additional pay for police is part of an town’s effort “to get us back on par with other agencies,” Willis said.
“Obviously attracting and retaining officers is a challenge in the current environment so we want to make sure we’re doing what we can to level the playing field,” Willis said.
A 2024 survey by the International Association of Chiefs of Police says more than 70% of respondents reported that recruitment is more difficult now than five years ago, with agencies operating at about 91% of authorized staffing levels. About 75% reported making changes to enhance recruitment and retention including salary increases.
The Police Department also is beefing up training and equipment, Willis said.
4. Work will begin on Paris Avenue and Sands Beach park
In August 2023, the town unveiled the largest capital project it would ever undertake, the $16 remake Paris Avenue from Ribaut Road to 7th Street. The project, which will be completed in phases as funding becomes available, will add wider sidewalks and more golf cart parking as part of a design scheme that favors foot traffic and business accessibility for the main street through the old village. Eventually, power lines will be buried and more trees will be planted.
The first phase of that work will begin sometime this year. It will focus on along 450 feet that passes a key attraction, Cypress Wetlands, a popular rookery where alligators and a wide variety of birds. The plan calls for elevating that stretch of road with “brick pavers” and narrowing the lanes. The so-called raised traffic shelf will “calm” traffic” and serve as a natural crosswalk for the thousands of people visiting the wetlands and area businesses.
The project currently is out for bid, Willis said.
Work on a new park along Sands Beach Road will begin this year as well, Willis said.
The sliver of land is sandwiched between the marsh and Sands Beach Road shared by cars, golf carts and pedestrians making their way to Sands Beach, the boat landing and the Henry Robinson Boardwalk. The 2 to 3 acre-park is part of 4.6 acres of land the town received in 2023 as part of a land swap with Safe Harbor Marinas, which is redeveloping the Port of Port Royal waterfront. Some of the features under discussion are additional parking spaces along Sands Beach Road; overlooks with viewing scopes that jut into the marsh; a pavilion; a trail that winds through the length of the park; and benches and picnic tables.
A project to improve the drainage in “the villages below 16th Street, mainly 9th, 10th and 11th streets, also is scheduled for 2025, Willis said.
5. One more vote is needed for final approval
The Town Council has given preliminary approval to the budget. A second reading and final vote is scheduled for June. 11.
This story was originally published May 25, 2025 at 5:00 AM.
