Hilton Head gives final OK to $174m budget. How much will come from the new parking fees?
With the summer season in full swing on Hilton Head Island, it’s easy to see why tourists bring in so much revenue for the town. Beachfront watering holes are filled with visitors paying taxes on cocktails and burgers. Local shops that pay fees and taxes to the own are packed with tourists hunting for souvenirs. And for the first time, visitors are paying to park their cars at some of the island’s beaches.
Where does that money go? Each year, town leaders draft a budget that outlines everything from which parks get built first to how much it costs to ride an ambulance. The town council gave a final approval Tuesday afternoon to the $174.7 million budget for the upcoming fiscal year, which runs from July 1, 2025, to June 30, 2026.
How much money with the new parking fees bring in?
Hilton Head’s new parking fees went into effect in March. Visitors need to pay to park this summer at Alden, Folly Field, Burkes, Islanders, Driessen, and Fish Haul beach parks.
Parking at the popular Coligny beach is currently free, but town officials are considering whether to start charging for parking in this area.
The new program is expected to bring in about $650,000 this coming fiscal year. The town wants to hire a full-time manager for its parking program at $108,000 per year.
Residents can park for free if they apply for a parking pass online.
Will property taxes go up?
The town once again reduced millage rates, which determine the rate at which property gets taxed. The aim is to reduce the impact of property value increases on homeowners.
For a $1 million home on Hilton Head Island, the reduced rate of 19.4 mills would save a homeowner $80 per year than if the current rate of 21.4 mills was carried forward.
According to Redfin, the average home price on Hilton Head increased by 2.7% over the past year.
What else is coming to Hilton Head?
Public funds this year will be used to push the following projects forward:
- Beach Renourishment: Hilton Head’s scenic beaches are slated to get a facelift this summer, a project that will cost a total of $47.5 million. Exactly how that project will be funded is yet to be finalized — town leaders will explore going into debt to fund the vital project at a June 24 meeting. Work is expected to begin in August.
- ‘Pocket Park’: A 0.5-acre ‘pocket park’ situated against the large roundabout near Coligny Beach in expected to break ground this fiscal year, with $900,000 allocated in the proposed budget.
- Historic community parks: Two other public parks are expected to break ground this year: Taylor Family Park, located in the Squire Pope Historic Gullah Neighborhood, and Patterson Family Park, located in the Marshland Historic Gullah Neighborhood.
- Mitchelville Road: The paving of a portion of Mitchelville Road is expected to start this fiscal year.
