Hilton Head’s $233M budget: What to know about roads, parks and public safety
At a Tuesday meeting The Town Council of Hilton Head Island passed a $233 million budget for the upcoming fiscal year ending June 30, 2027.
The budget offers a peek into the town’s current priorities as it manages public services and infrastructure that residents and tourists help pay for.
Here are the highlights from Tuesday’s discussion.
Island economy is ‘normalizing’, officials say
After a post-COVID boom in tourism, growth and development on Hilton Head, Town Manager Marc Orlando said during the meeting that the island is now in "normalized period of growth.”
In other words, the island’s economy is still growing, but growth has begun to slow down since the post-pandemic spike.
Will property taxes increase?
Property taxes make up about one fifth of Hilton Head’s revenue. The rest comes from business licenses, permits, real estate transfer fees, and on lodging and hospitality.
“We’re not dependent on property taxes,” Council Member Patsy Brison said at the meeting.
Having a diversity of revenue sources allows the town to deliver services and improve public facilities, parks and roads without raising millage rates, a number governments use to calculate property taxes, Brison said.
Since 2023, the millage rate has reduced from 23.1 to 19.4 mills. As property values have increased, homeowners may still see their property tax bills increase even with reduced mills.
Mayor Alan Perry said at the meeting that some of Hilton Head’s “sister communities” are taxing property owners are a rate of 72, 50, or even 108 mills.
New pickleball courts and more
This year, the town has budgeted $55,205,752 towards capital improvements, things like parks, roads, bike paths and more.
Key projects include $8.59 million towards the new pickleball courts at Crossings Park, $4.71 million for a new skate park and pump track at Crossings Park, and $2.4 million for a new park on Marshland Road.
It also includes $9.7 million to enhance roadways, fix aging traffic lights and pave dirt roads.
The town recently completed the paving of Mitchelville Road, Orlando announced at the meeting. That project had been in the works for about 15 years, he said.
Housing fund is growing
Last year, the town council enacted a policy that would allow the town to set aside 5% of the revenue it receives from state lodging taxes each year into the housing fund. For 2027, $619,616 was added to the fund, bringing the fund to $3,211,489.
The fund is used to support various housing projects. Last year, a key use for the fund was to contribute $1 million towards a public-private partnership to build housing for Hilton Head workers.
A key item in the budget this year is the “Muddy Creek Neighborhood Stabilization Plan.” The town has set aside $1.5 million to help improve roads, water, sewer, stormwater, landscaping, and signage for the Muddy Creek neighborhood, located right next to Spanish Wells. This money was first put aside in the 2025 budget.
Town looks to improve public safety
At the meeting, Council Member Tamara Becker thanked the budget team for setting aside money for a public safety assessment.
“We’re all increasingly becoming more and more aware that we have to address public safety issues on the island,” Becker said.
A previous safety assessment looked at creating better security camera system in the Coligny Beach area, and money has been put aside for an additional safety assessment, according to Becker’s comments.
