5 things to know about how Hilton Head will spend $96M of your taxes starting in July
The Town of Hilton Head Island won’t raise taxes for the next fiscal year, but its budget is more than $20 million higher than last year’s.
How?
Town Manager Marc Orlando presented his first budget for the town on Tuesday at a Town Council meeting, and he’s changed the way the budget reflects rollover funds — money previously budgeted but not yet spent.
That means the budget, which goes into effect July 1 if it’s approved by the Town Council, accounts for $96.8 million instead of the $75.9 million budget of last year.
Here are five things to know about Hilton Head’s budget and how it affects you:
1. There’s a big increase in project money
The biggest increase in this year’s budget is in the capital improvement project budget, which grew by $22 million. That budget is for parks, roads and other public infrastructure — the money allocated for acquisition, construction, or renovation of major capital facilities.
That doesn’t mean the town has put more money in the fund, though.
Orlando said Tuesday that he rolled over millions of dollars committed to projects in the past that have not yet been completed.
The capital improvement project budget is made up of a variety of fees: Hospitality tax fees, beach preservation fees, tax increment financing district taxes, road usage fees, electric franchise fees, and road and park impact fees.
2. You won’t pay any more in taxes
There are no tax increases or fee increases in this proposed budget, Orlando said.
Last month, Mayor John McCann floated an idea to hold a referendum that would allow voters to choose whether to institute a new tax to pay for workforce housing.
Several council members have called that idea premature, and it doesn’t appear to be included in the upcoming budget.
3. There is $75K budgeted for workforce housing
Orlando pointed out that the town has budgeted $75,000 for workforce housing development.
The town has recently instituted two new workforce housing programs that prioritize renovating empty commercial space to create housing and adding density bonuses to workforce projects.
Orlando said the $75,000 line item isn’t necessarily hard cash. The money could take the form of capacity credits.
4. Hurricane Matthew tax increase ends after this budget
Islanders have been paying five extra mills — a mill is equal to $1 of tax for each $1,000 of assessment — for five years following Hurricane Matthew in 2016.
The disaster recovery taxes have paid for cleanup and restoration around the island.
This upcoming fiscal year is the final year of that extra tax.
5. You can give feedback on the budget
On Tuesday, the Town Council will hold its first official budget workshop. A public hearing will follow.
The budget must be approved twice by the council before it’s adopted.
Bonus: Hilton Head had 2.61M visitors last year
Orlando’s presentation included a mention of Hilton Head’s biggest economic driver: Tourism.
According to information from the Hilton Head Island-Bluffton Chamber of Commerce, 2.61 million people visited the island last year during the coronavirus pandemic.
Here’s the breakdown of how they spent money:
- 44.2% on lodging in hotels or rentals
- 28.3% on food
- 9.8% on shopping
- 3.8% on golf
- 13.9% un-categorized or other
