The
Hilton Head Sun
PRSRT STD ECRWSS US POSTAGE PAID BLUFFTON, SC PERMIT NO. 135 POSTAL CUSTOMER
June 4, 2025 • Volume 28, Issue 6 • Complimentary • HiltonHeadSun.com
Hilton Head Town Council advances FY 2026 budget with property tax cut and major investments By Sasha Sweeney Editor As Hilton Head Island prepares for the start of its new fiscal year on July 1st, Town Council is advancing a proposed $174.7 million consolidated budget that aims to reduce the local property tax rate while prioritizing investments in infrastructure, public safety, housing, and cultural preservation. The budget, unanimously approved at first reading on May 6th, includes a rare tax cut alongside major capital project funding and is designed to reflect the town’s broader vision of resilience, sustainability, and equitable growth. A second public hearing and final vote is scheduled for June 3rd. “This budget allows us to move forward on protecting our Island’s character, investing in resilience, and strengthening community services,” said Mayor Alan Perry. “The Town Manager and his staff have done a fantastic job of bringing forward a balanced budget that eases some of the tax burden on our residents, puts shovels in the ground on some big projects, plans for future capital investment and economic growth, and creates some tangible, long-awaited improvements in our land management ordinance. I encourage everyone to do a deep dive into this budget because I think our community will be pleased with how well it positions us for success.”
A 2-Mill Tax Cut, Offset by Revenue Diversification
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The FY 2026 proposal includes a 2-mill reduction in the property tax rate, from 21.4 mills to 19.4 mills, expected to reduce revenue by approximately $2.3 million. Town officials say the reduction will be offset by increased income from diversified sources, including business license fees, hospitality and accommodations taxes, short-term rental fees, and state and federal grants. A newly implemented beach parking program is projected to generate an additional $650,000, earmarked for beach access improvements and operations. “This budget reflects our commitment to renourishing our beaches, breaking ground on major capital improvement projects, improving our public services, and enhancing public safety—while lowering the tax burden for our residents,” Orlando said. “It’s a plan designed to im-
prove quality of life through investments that matter most to our community.”
Strategic Alignment with Long-Term Community Plans The FY 2026 budget is guided by the Town Council’s 2023–2025 Strategic Action Plan, the 2020 Comprehensive Plan, and initiatives discussed during the February 2025 strategic planning workshop. Strategic priorities include: • Protecting the Island’s character through growth management • Reinforcing resilience and upgrading stormwater infrastructure • Supporting economic development and workforce housing
TAX CUT CONT. ON PAGE 3A
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