Town Council - Regular Meeting

Good afternoon. I'd like to call this town council meeting of Tuesday, May 12th, 2026 to order. If you will join me in standing and saying the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. If you'll continue standing while we have Pastor Eddie Patton from Wheat and Terrace Ministries say the invocation today.

Let us pray. Most wise and eternal, we thank you once more again as we have come to this day. We ask father that while we are here that the business that is to be conducted that we would do it in decency and in order. Let all things be done according to your will according to your will. We pray God that humanity shall survive and win even in the debates that you receive glory and honor. We pray for those that are here and those that are on their way. We pray for this town council and the mayor. We ask that you would cover them and keep them as they are making decisions sometimes not wise by all but in consideration of the whole. We ask, believe, and know all of these things. In your most holy name we say, amen.

Amen.

Mr. Orlando, Orlando, do you have any changes on the agenda for today? No, sir. With that being said, is there a motion to adopt? Second. We've got a first and a second. Any discussion? Seeing none, all those in favor signify by raising your right hand. So moved. 70. My pen just broke. Next we have a special meeting in workshop minutes of March 31st, 2026. The regular meeting minutes of April 7th, 2020 26, and the workshop meeting minutes of April 28th, 2026. Is there a motion to approve? Mayor, I have I was not able to be here for April 7. Um, so I'm happy to approve the other two.

If you agree if you agree with it, you can still vote for it. I I don't have any objection. I did listen to the meeting. Okay. I did have a recommended change. Okay. Let's get to the first and second first. Okay. Okay. Who Who had the second? Miss Becker. Miss Toner. Go ahead. Yes. Um, on the meeting minutes for Tuesday, April 7th, under the airport board, it talks about Miss Tunner. And then it says Miss Becker also reported. So, just changed my name. Simple Scrier's error. Yes. Which one do you want to be?

Actually, it wasn't. She She went and expanded off of what you said. Um, I can go back and show you the tape there if you'd like. We can we can talk about that. Okay. I didn't know she talked about situational awareness technology. She did. Yes. Okay. All right. Yeah, I can I can show you the tape. Thank you. Any other discussions on that? All right. Seeing none, all those in favor signify by raising your right hand. Opposed. Six to one. Whatever. Thank you. I was Who was against? Miss Tuner.

I Yeah. Uh next up, we'll hear from Mr. Orlando uh on his manager's report. Mr. Orlando.

Yes. Good afternoon, mayor and town council, members of the public, a few things to share today. We have a few upcoming budget uh related meetings. We have a in addition to today's first reading and public hearing, we have a Thursday, May 14, 5:00 p.m. budget workshop. It covers all funds with the exception of storm water and capital projects. And then on Tuesday, May 19th, 5:00, both here at town council chambers, um the May 19 workshop is to talk through and overview the capital improvement program as well as the storm water utility fund. And then second and final reading planned for uh the June 9th meeting at 3 p.m. You will be seeing, if you haven't already, uh our our launch of our short-term rental awareness campaign. Um, there is a short-term rental one-pager that Bob and team put together. A great job to everybody. It's a one-pager. Um, QR code directing users to our landing page, updated owner operational permit application, fire safety requirements, information on the town's in-house rapid response hotline, and a few others. We also have have a how to be a good neighbor marketing material provided to STR owners um to share with their guests. We will have and you'll soon see it's why I want to tell you this paid summer digital marketing campaign a paid summer digital marketing campaign leveraging geo fencing strategies to reach visitors social media campaign running through the summer across all of our social media channels. the mayor's article um in a June article, full page ads in local publications and then also a direct mail to the more than 7,000 short-term rental owners plus property management companies plus to all of the

residents. So, um those those dollars are in the fisc year 26 budget. They're pledged. It's a tax and short-term rental related dollars. Um, we're doing a lot of this in-house and I, wherever Kelly is sitting in the room, I want to give a a great shout out, a big shout out to Kelly Spanella and the team for putting this together. So, you'll soon see that. Don't be surprised. Uh, Kignney Circle Pocket Park's opened. It opened uh last Friday. Um, if you don't know where it's at, it's located on the northeast quadrant of Kignney Circle and at the Kignney Park or the Kney Plaza Shopping Center. Um, I've had some positive feedback. I've been there myself and I just thank another uh great smaller project brought to life by a by a capital project team and and mayor and council. Thank you for your support in the budget and beyond. We closed the town closed on the Novant Health site p purchase. Um we used to call it the old modern classic motor site. We can now call it the Novant healthcare site. Um they acquired it for $4.34 million. Um it used to be where Modern Classic Motors was. Um the town issued, we issued with your guidance and directive an RFP last well September 24. It was 4.57 acres and the request for proposal sought uh healthc care access and ultimately through that process selected Novant Health. They plan to develop as part of the contract and part of part of the um discussions through the negotiations approximately 25,000 square foot medical office um with a future investment of approximately 15,000 square ft. Um it's intended to provide urgent care, primary care, physical therapy, urology, and and and several other um primary and secondary cares. The project represents considerable healthc care investment including the

land acquisition, construction, equipment, technology, 46 initial jobs with a projection to growth to 86 jobs by 2030. Um, and we're told that the average hourly wage is approximately 45 close to $46 per hour. So, that's a that's a great credit to Mayor and Council, a great credit uh to Novant, and and we appreciate their investment, and a special thank you to Ben Brown and team for advancing that acquisition or the sale. Um, and and the town acquired that property in 2019 with the intention of economic development. Um, and then the town also improved the site and restored the site using Palmetto Electric Utility Tax Credits. It's a grant through Palmetto Electric. Um, and we greatly appreciate Palmetto Electric's uh trust and investment in in this site as well. So, great teamwork all around. The Bryant Road request for qualifications closed on May 6th. Uh, as a reminder, that is for the property that is off Bryant Road um in in the Muddy Creek neighborhood. It's approximately 7 acres. We put a request for qualifications out, seeking a developer partner um to improve some some homes in the neighborhood. We're reviewing the applications, seven good bids um and the next step is to qualify a short list. Mayor Perry, I'll I'll work with you to talk through uh establishing a Bryant Road group of folks very similar to the North Point um group, the North Point Advisory, the North Point development group that I worked with to take a look at bids and help negotiate uh a project to bring back to town council for their review and consideration. Um so stay tuned on that. Uh, and the mayor's youth service awards ceremony is tomorrow, Wednesday, May 13th, 5:00 pm Hilton Head

Beach and Tennis. The program is in its 15th year. So, congratulations to you and to everybody involved, especially the youth volunteers. This year, according to Fedra, who is very excited about this and we appreciate her leadership very much with this program. 179 students who have collectively volunteered over 20,000 hours of service to the community. So that's overwhelming when you really do do the math, how many hours per um and and a real special thank you to Fedra who I believe's working on this been working on this program since the beginning of time. So uh couple more things. Hilton Head Fire Rescue May Carnival. It's at Fire Station 1, Sunday, May 17th, 1 to 4. Chief Fire Station One Shipyard, right? You test me once in a while if I know all the station numbers. Um, but please bring the whole family and join and join us for a a fun day. Food rescue program turns visitor leftovers into meals for local families. This is a timely message. I saw two of these containers, so to speak. Um, one was at Graco, one was at Starbucks. Sponsored by Second Helpings. The post vacation food donation program encourages visitors to drop unopened non-p perishable items in secondhelping donation bins before heading home. Um volunteers collect the food and deliver it to local pantries and soup kitchens. And the by Memorial Day, it's anticipated or or expected that 24 different donation bins will be available across our island. And I I found two of them already. So it's it's we're off to a good start. Our very own office of cultural affairs has begun an update of an economic impact study focusing on the impact of arts and culture on Hilton Head Islands economy. Um look for representatives and

volunteers conducting audience surveys at upcoming cultural events. And then uh almost last, second to last, if you see some art outside our our hall, um Natalie Harvey, thank you for for helping curate that and and working with um folks, but in partnership with the Hilton Head Autobon Society, um sharing local birds and the locations where the photos were taken. And then last but not least, Memorial Day closure. In observance of Memorial Day, our administrative offices will be closed on Monday, May 25th. um will of course be available from emergency services standpoint, but it will be the 33rd annual Memorial Day remembrance ceremony, 9:30 a.m. at Veterans Memorial Park. Hope to see you all there. That concludes my report. Okay, thank you. Next, we'll move on to presentations and recognitions. We have the Beer County School District Character Education Student of the Month, Antonia Aila Veronica from Hilton Head Island School for the Creative Arts. Character trait for the month was self-control. Antonia is here today with her parents, Maria Veronica Salano and Nativ Alvia Nto. You can tell my southern accent is great. Uh along with principal Nikki Lucas. Could you all please come forward? Over here. Over here. That's fine. Stand right here. Nice. So, Buer County School District character education student of the month for March 2026 for Hilton Head Island third grade student. Antonia Avilia Veronica from Hilton Head Island School for the Creative Arts. and Tony is here today with her parents along with principal Mickey Lucas. The character

trait chosen was self-control. The ability to have control over your feelings or actions or oneself in particular one's emotions and desires or the expression of them in one's behavior especially in difficult situations. We don't know anything about that over here at all. I'm just kidding. So this is what was written uh regarding Antonia. I nominate Antonia Ava Veronica. Antonia practices self-control daily in a swarm of others that do not. She resists and ignores classmates that promote chaos during transitions and proceeds to the next session, activity, or class. She sets an example that others should follow as she knows what is expected of her during these transitions. Mrs. Marorrow, congratulations for exhibiting character traits that are essential for success and we all should follow. So, with that being said, I have this for you, which is a certificate and a town coin. Okay. So, here you go. And congratulations. Let's take a picture. Okay. Let's walk right up here and take a picture. Oh, would you guys? Perfect. One, two, three. One, two, three. Perfect. Next up, we'll have Bon Scandal accepting uh for his the ALS um proclamation. So, if I can have Bob right here come on up. Is your son also Kyle attending? Is he going to make it today?

No.

Okay. Okay. So the town of Hilton Head Island ALS awareness month proclamation. Whereas amotrophic lateral sclerosis also commonly known as Larri's disease is a progressive fatal neurogenic disease in which a person's brain loses connection with their muscles slowly reducing a person's ability to walk, talk, eat, and eventually breathe. And thousands of new ALS cases are reported every year. and estimates show that every 90 minutes someone is diagnosed with ALS and someone passes away from ALS and people who have served in the military are more likely to develop ALS and die from this disease than those with no history of military service. And whereas on average patients diagnosed with ALS survive only two to five years from the time of the diagnosis and the exact causes of ALS are unknown and there is no known cure for ALS. And whereas securing access to the new therapies, durable durable medical equipment and communication technologies is of vital importance to people living with ALS and clinical trials play a role in evaluating new treatment enhancing quality of life in fostering assistance and techn assisted technologies for those living with ALS. And whereas the ALS association is the largest philanthropic funer of a for ALS research globally and has committed more than 154 million to support more than 550 projects across the United States and 18 other countries. And the ALS association is committed to make ALS livable and cure it for everyone everywhere. And whereas ALS awareness month provides an opportunity to increase public awareness of the dire circumstances of people living with ALS. acknowledge the terrible impact of this disease has on those individuals and their families and support research to eradicate this disease. Now, I therefore, Alan R. Perry, mayor of the town of Hilton Head Island, do hereby

proclaim May 2026 is ALS aware month awareness month as I call upon all Americans to join in supporting ALS research, advocating for increased funding and standing in solidarity with those affected by this relentless disease. So, I'll provide that for you. I know you want to say a few words. Yes, go ahead. Okay.

Um, thank you. And I I will be quick, but so my wife uh was diagnosed with ALS in Janu March of 2020 and she passed away in uh January of 2022. Um, those that know anything about it, it's a very very difficult disease, but I will say that this was a wonderful community to live in with it. Um the community and the friends here were uh unbelievable to us. And I just want to share a more recent uh example of that. Um a week ago, Sunday, I was going for a walk on the beach and I got down to the end of the the beach mat path and there was a gentleman in a power wheelchair there. So I struck up a conversation with him. Turns out he has ALS. Uh somewhat recently diagnosed. He was visiting the island from Maine. and uh he expressed his appreciation for the support here, the the wonderful beach pats, uh the the veranda overlook for ADA at Islanders Beach Park and the free beach wheelchairs that are made accessible. So wonderful uh support from the town. Uh so we just want to thank for that. And of course he was a visitor, but there are many many people living here on the island with this disease. one in 300 people will get it. Um so uh and then the last thing is uh if you if you see somebody struggling with what may be this or maybe a similar kind of disease um you know a kind word a hello helping hand is probably going to be one of the brightest spots in their day in a very tough day. Okay. So appreciate your support and your kindness and the recognition.

Thank you. Next we have bike month. So uh Trey Lo and Bill Zerilla come on up. Oh and Charlie Quig. My apologies. Should have kept on reading with bikewalk Hilton Head. So, the town of Hilton Head Island bike month proclamation. Whereas for more than a century, the bicycle has been an important part of the lives of most Americans. And whereas today, millions of Americans engage in bicycling because it is a viable and environmentally sound form of transportation, an excellent form of fitness, and provides quality family recreation. And whereas bikewalk Hilton Head Island is in conjunction with the town of Hilton Head Island and the Hilton Head Island Blon Chamber of Commerce has promoted bicycling education and awareness through annual bicycle events and the bikewalk ambassador program. And whereas the town of Hilton Head Island is a vacation destination where visitors enjoy bicycling on pathways and the beach. And whereas Hilton Head Island residents increasingly ride bicycles for pleasure, exercise as a means of commuting to and from work. And whereas the League of American Cyclists, the Pamel Cycling Coalition, BikeWalk, HHI, Kicking Asphalt Bike Club, and riders throughout our area are promoting greater public awareness of bicycle operation and safety. And whereas the League of American Bicyclists designated the town of Hilton Head Island as a bicycle friendly community as the gold level at the gold level in 2020 and again in 2024 until 2027. And whereas May 11th to 17, 2026 is bike to work week and May 15, 2026 is bike to work day. Now therefore, I, Alan, our

pier, mayor of the town of Hilton Head Island, hereby proclaim May 2026 as bike month. So congratulations. Thank you. There you go. Congratulations. And now you will say a few words. Okay. Thank you.

I promise to take less than my three minutes aloud. So, uh, but yes, I I just wanted to, um, say a few words about, uh, bicycling in general, and he did cover it. It's been a passion of mine, uh, for many years. And I want you to take it from a guy who has bicycled in northern Italy, the streets of Manhattan, and, uh, downtown Washington DC doing the 200th anniversary celebration. that what I find here is such a unique and valuable asset that we have and I implore you, thank you for the recognition of the bite month, but I implore you to continue to maintain and expand uh this valuable asset for the community and uh rarely do you see so much support for people like that on their own from bikewalk Hilton Head kicking asphalt. there are great clubs and organization. So I think um you know as we're going through the budget make sure that we address that and don't forget about the the importance of bike biking to the residents of Hilton Head.

That's it. Thank you. Let's grab a grab a picture coming up right up front. Up front. Thank you.

All right. Next, we're going to move on to um general reports from town council. And if you don't mind, I'd like to start off with this one for a moment. Um I I don't know about the rest of council, but I imagine so that we've been receiving a lot of communications regarding 229 Marshlin Road and the development that that is looking to go there and there is a national conservancy that is back in that area. Um town council has been working diligently to change the land management ordinance and in the past three and a half four years we have done so in certain areas. We are not done with it. It is one of the reasons why Mr. Orlando has asked that we have a little bit of a pause within some of these meetings so we can enact some of the legislations and ordinances that are about ready to go. Um, this is a delicate area and it needs to be protected. It doesn't need to be overdeveloped. We look very hard at conservation and preservation. In the past four years, we spent about $65 million buying 80 acres of land, taking off over 450 homes, taking off multiple multiple hotels and rooms there. We've been asked to purchase this piece of property from the community from different individuals in the community. To my knowledge, the owner of this piece of property is not interested in selling and therefore we have to abide by the rules and regulations which are set before in front of us. I think that every one of us on on this dis has the same desire to protect this island in a way that it hadn't been in the past and we're moving towards a position where we we'll be in a better position to do just that. Um, so I just wanted to make a statement so that I hope that everybody can hear out there that we are aware of what's going on. We have been in contact with the developers and we are looking to correct the items

that were wronged back in 2014. Mr. Orlando, am I forgetting anything that No, no, sir. Not not that comes to mind, but thank you. Okay. Staff is working on it. Our job is policy, not the operational side. Um, but we are pushing to protect. So with that, any other general? Yes, ma'am. Go ahead.

Just add a couple of words um on that. 229 Marshlin is also known as Driftwood. And so if you haven't heard it in one name, you've likely heard it in another. And this is a project, Mayor, you're absolutely right, that has drawn considerable attention and rightfully so from the residents across the island, but specifically within Indigo Run. Um the town staff has been incredible to work with as we and and the Indigor Run um team and myself have met several times with the developer um to try to create the best community there. one that will protect not only the residents of Indigo Run from the development but even more importantly in this case from what we call a rrookery or the conservity conservancy that you mentioned um the work's not done we continue to talk to them I know that oneonone when I've spoken to the developers we've tried to create a um a good neighbor approach and to look for solutions and opportunities to reduce any type of impact um as I've said to the natural resources there as well as the community. I don't think it's over. I congratulate the town and the staff for being as hardworking towards making um the best improvements to that plan um as will be possible. And so um more to come and um thank you all for your diligence, the emails, the staying on top of things. I know that the community itself has reached out. There's a um there's an environmental study that's going on and comments were due today. So um we'll see what happens next, but I can fully um appreciate what you said that there isn't one person on this council who wants to see anything

detrimental happen in that area. And to the full extent that we have anything that we can do um that's within the limits of what we have authority to we are trying to accomplish that goal. So thank you. Other Miss Bryson

just add a little more information to those comments. I agree with the comments made before. The LMO task force is one of its first items for consideration um or revisions to our wetland protection. And so the the final meeting during this cycle of the element task force will be next Thursday night at 7:00. That'll be short-term rentals and not wetland protection. After that, thank you. It's at 5:00 in this same room. Um and uh then the staff will be working on revisions to those ordinances including wetlands protection. Will come back to the LMO task force and that will move through the process uh before it comes back to town council for adoption. So that's what we're talking about, working on it. I know it's going to take a little bit of time, but it does have our attention. That as well as other items that the LMO task force is reviewing.

Thank you. Other uh general announcements, comments?

I do have one other on different topic knowing that it's bike month u next week. Um a different kind of topic thinking about bicycling. The ride of silence is next Wednesday, May 20th at 7 o'clock. It begins 7 o'clock p.m. It begins at Port Royal Shopping Plaza and goes uh down to about Lmington, turns around and comes back. It is a ride of silence. Um it's done in honor of those cyclists who have lost their lives on roads um throughout our country. It started in 2003 when a um an endurance cyclist was killed in Texas. Um, and our community has been honoring those killed across the nation on bicycles um, for the last several years. Um, I know that Mr. Alfred and I have ridden in that a number of years. Um, I hope to ride again next Wednesday night. It's about a nine mile ride. It is done in silence. We will have a sheriff's uh, escort uh, for safety reasons, but be aware of that. And please remember cyclists whenever you're driving and riding on the roads. Thank you. I just want to confirm the location because on my calendar it says Main Street.

Uh it's at Port Royal Shopping Center in front of Main Street Restaurant. Okay. Okay. Not Main Street. Okay. Yes. Itself in front of Main Street Restaurant. Okay. Yes, sir. Thank you. Appreciate that clarification. That would have been the wrong place. Others. All right. So, I'd like to end on um Sorry. It's called Street Meet Street.

Like to, you know, finish this up on something really exciting. uh really positive. Um the giving of our community is what makes us so special and so great. Not last weekend, the weekend before last, there were about four or five different nonprofit events and a total of about $1.1 million was raised over a 4-day period for various charities on the island. And when we talk about what the character is, that's the character. And that is a very great thing. and the economic development that we do by reinvesting in our community helps us bring the people that are here that allow them to do that to provide those kinds of funds to these different organizations. I don't want to mention them all because I don't want to leave anyone out because I know there were some that I I was not aware of, but to raise $1.2 million in four days amongst different organizations in one community is awesome. So, I just I want to make that recognition to them. So with that being said, we'll move on to uh C committee reports. Low Country Area Transportation Study. Miss Becker,

I do not have a report. We haven't had a meeting since the last. All right, Mr. Alfred, Low Country Council of Governments. No report. Thank you, Miss Toner. Airports board. No report, but I do want to mention we had our ribbon cutting today for the airport. uh phase one is complete and is open and they had managed their project on time on budget with no debt and no uh payment from the town of Hilton Head. So it was a very nice event this morning. Awesome. Thank you. Uh Miss Bryson uh Blue Country Council or Saloko.

Yes, Salco. Um yes, we met on April 28th at 10 a.m. in Hardyville. Um and we discussed on a new business an update from we had a report an update from the executive director of Bufort Jasper Housing Trust uh with a presentation and these are available on the uh town of Hardyville's website under solo or southern low country regional board. Um also um that organization is working on a housing directory. Um they're also addressing home repairs. There's a high demand for home repairs. It's a tough issue based upon the circumstances and the funding available and other issues but I commend that presentation to you on that website. In addition, there was a presentation from the SCORE mentoring program uh which uh is is solely a mentoring program. Their uh website is score.org lowcountry and again that presentation is available on the website. Uh there was also an update from an ebike subcommittee of Silokco. Uh Dan Wood, town council member from Bluffton, put together a group to look at um what other jurisdictions are doing with regard to regulations of ebikes. Um did not come up with a model ordinance, but made some suggestions about how to um have adopt regulations. Mentioned that the town of Hilton Head Island had already adopted some regulations on ebikes. Um a concern is about enforcement and certainly we've had concerns in our community um that is the Hilton Ed Island community about reckless riding. Um some changes are needed to state legislation um and also um a number of jurisdictions the local governments within Selco are going to be having workshops by their local governing boards regarding ebike regulation. Uh the May meeting, the next ma meeting will be May 26 at 10 a.m. in Bluffton. The topics so far are a report from the county's um sales tax committee, also known as the transportation advisory committee. Um

the report from the chair of that committee was made to the county council last night. Um the chair is Lisa Sulk, former mayor of town of Bluffton. She'll be making the report to Saloko at the May meeting. Also a report from a 20-year uh regional planning committee. And those are the uh so far the plan topics for that uh May meeting. And that's my report, sir. Thank you, Mr. Brown. Island Recreation Association.

Thank you, Mr. Mayor's. Usual, lots going on at the Island Wreck. I'll just highlight a few here. There was a family fun day on May 2nd. 97 families came and enjoyed. Uh there's all-American football camp with 150 kids as well as college athletes. Uh youth lacrosse. This is the first season since COVID that we have fielded a team in the Savannah League. Um, Gator football has free conditioning clinics going on on Friday nights. Uh, official practices will start in June. There's an adult cornhole league. Uh, five teams playing at the bank weekly. And lastly, this golf tournament hosted at the Mid Island track on April 25th had 60 participants. Okay,

thank you. next to us on the Buer County Economic Development Corporation. Uh we had our meeting last week and a couple of items that are direct interest to us is um we had asked that they reach out and do some test areas to do some economic development searches uh business recruitment. They ran a campaign from February 10th to March 13th. It was to generate awareness and interest. Um the target prospects were 267 chief operating oper uh officers, operations vice presidents, industries included cyber security, technology, financial services, headquarters, uh hospitality supply chain, life sciences, light manufacturing and medical suppliers. Um the campaign um had 126 unique opens u with an open rate of 82.4%. The benchmark is a 31 to 40% open rate. you know, unique clicks were at 22.2% which the benchmark is 2 to 4%. So that tells you that there was great interest in what is being offered in this area. Um and how companies are looking to move to other spots. Um this was in the New York area. There is one that's going on right now which is is focused in the Tampa area and we'll have those numbers probably come in June, July or August. Um, some of the companies that they they uh were they used in their ads uh were Loheed Martin, um, CS Instruments, Life Sciences, uh, surviving, not just surviving but living. Um, and then the Gay Fish Company out of out of, uh, Buford. Um, so it had strong responses and this is something we'll look to continue to do to see what industries we can attract here to diversify our economy a little bit. So, very positive results on that. Um, let's see. Mr. Brown, Galaguchi Historic Neighborhood Community Development Corporation.

Yes, Mr. Mayor. The CDC will meet on Wednesday, May 20th at 10:00 a.m. The agenda will include discussion regarding the 2026 strategic planning process, consideration of a potential name change associated with the Community Development Act, an executive session for matters related to employee performance and legal matters associated with the community development act. Okay. Thank you, Miss Becker. Community Development and Public Services.

Thank you, Mayor. Um, the Community Development and Public Services Committee met on Tuesday, April 28th, and we conducted interviews for various committees, commissions, and boards where there are vacancies. And um, we will be making those recommendations to the full town council for their review and decision making. the um next our last meeting um on May 11th was cancelled due to a lack of agenda items. Okay. And then Mr. Brown, last finance and administrative committee.

Yes, Mr. Mayor. At this point, the FNA committee will meet on Monday, June 8th at 10:00 a.m. At this point, there's only one agenda item, which is the monthly uh financial update, but I'm sure we will probably find something to add to that agenda. Yes. Yes,

the I believe it is the low low country area transportation study uh will have a public open house on March 28th from 4 to 6 at our local library dealing with an upcoming study of US 278 from I95 all the way to Cine Circle and that that is traffic related. It's not something that will happen in the short term. Uh but it is I think it is important to know that that there will be efforts dealing with the entire corridor there. May 28th, right? Yeah,

May 28th. There are two other meetings as well. If that one's not convenient, I believe it's been posted to the town um the town's website for further information. Yep. All right. Thank you all. Uh, next we'll move on to the public hearing and first reading of the consideration of an ordinance adopting the consolidated budget for the town of Hilton Head Island for fiscal year 2027 ending June 30th, 2027. Mr. Orlando, town manager will be making the presentation. Mr. Orlando, you're up. Thank you.

Hello, Mayor Council. Just making sure this works. Good afternoon. It's my honor to present to you the proposed town of Hilton Head Island fiscal year 27 consolidated budget. What you will see in front of you today and what is in your packets I believe is a comprehensive financial plan that includes both operating and capital priorities aligned with your uh aligned with your directive. Before we start, I do want to give you an overview of some economic conditions that we considered um when preparing our budget for your review and I'll also provide an overview of the budget structure that you'll see this afternoon. So, before I dive into the presentation, as you know, nationally, the economy continues to send mixed signals. It's something Dave and I and the finance team have talked a lot about, as well as me to you. What's apparent is that the costs that most directly impact local government, construction, labor, insurance, contracted services, infrastructure delivery, those remain elevated. Current interest rates affect borrowing costs, capital planning, and private investment decisions. So those are things that we know nationally and and and and obviously the southeast South Carolina and specifically our region as we know continues to experience strong population growth and immigration. And then Hilton Head Island locally remains one of the most desirable coastal communities in the country. So quality of life, natural environment, tourism economy, long-term desiraability continue to attract residents, visitors, and investment. While this growth strengthens our economy and expands our tax base, it also places increasing pressure on infrastructure, environmental systems, workforce availability, and public services. As we evaluated, as as Dave and his team and I um evaluated financial trends, development activity, tourism

performance, operational metrics, long-term obligations, it became clear that Hilton Head Island, as we know, is transitioning from that accelerated post-pandemic economy that we all experienced into a normalized way more normalized period of growth. And so, revenue streams are stabilizing. You will see that in our budget. The numbers tell tell the tale. revenues are stable, operational demands, cost of service delivery internal, externally, right? Internally through us, the staff and through contracted services as well as capital project delivery, those costs as we know are not stabilizing at the same pace. So hence this created the central challenge of this budget that I've tried to put together for your consideration. Um just like past several budgets, the challenge is not identifying our needs. That's easy. It's prioritizing investments responsibly and sustainably that are consistent with our premier coastal community expectations. And so hopefully you see a lot of those priorities jumping out at you through this budget process. So in response, the town has spent the last several years, right? This isn't the first year that we've had this issue. Isn't the first year we've looked at our budget this way. We've taken the last several years prioritizing your goals and objectives as a council and an elected body. And we've also strengthened the town's operational financial position. And I always think that's important to kick off this budget as we end the one prior, right? We've established, you've established a very clear strategic action plan. We have diversified revenues through targeted programs and userbased fees. We have improved services and controlled and many times reduced operating costs. And we've seen that through the past. We've invested in workforce retention, organizational capacity, technology, as well as modernizing our operations. We've strengthened financial reserves. We've achieved AAA bond rating from the rating agencies.

I think I think Ben said AAA triple AAA. Um we have become more disciplined and data informed, right? And how how projects, services, and long-term financial decisions are prioritized and evaluated. And so those are all the things that we're thinking about as we as we prepare a budget, right? It's not just a needs attached with expenditures matched with revenues. So as you review the budget, our intent is that we continue to achieve and advance these past achieve again and advance these past accomplishments, you'll see a budget in a consolidated format. Um, as in past years, general operating fund, the general fund, which supports day-to-day a day-to-day, I should say, debt service. It reflects our financial obligations and credit quality. The CIP program, the capital improvement program fund represents our long-term investment strategy for infrastructure, transportation, facilities, parks, and so on so forth. Storm water utility fund remains critical to flood mitigation, environmental protection, and our long-term storm water resilience. The Gulligi Historic Neighborhood Community Development Corporation Fund supports preservation, reinvestment, and infrastructure improvements in Gulligichichi historic neighborhoods. housing fund advances workforce housing initiatives. And then this year, different than last, and we can talk about this today as well as dive in quite a bit more at at workshop, but this year, different than last, it defines it defines a special revenue fund. And it and and the intent there is that it provides a more defined presentation of all our revenues, right? the special revenue funds to improve the clarity of all revenues aligned with expenditures including targeted fund balance growth at the beginning and at the end of the fiscal year. So you're going to see a different budget this year simply because of that special revenue and the way we've put that in this budget. Each fund as you will see and as in past years they show revenue sources

you uh sources of funds they show expenditure priorities uses of funds operational capital investments as well as outcomes and the outcomes you'll see some highlights and I won't read through them all but you'll see those those highlights because that's intended to show highlights of revenues and use and highlights of expenditures all aligned to our operational priorities as well as your strategic action plan as adopted. I do want to take a moment before I start. I've typically tried to say thank you at the end, but we're always so quick at the end of a presentation. I I do want to be uh meaningful and and and spend a moment to thank our finance director, Dave Bird, for his leadership and stewardship um as our finance leader and and how we've prepared this budget. Um Dave Dave has a great team. John Carpenter and Erica Mader, they're they're they're both here today, so I do want to say a special thank you to them. Um, I want to thank our senior leadership team. Our senior leadership team balanced service delivery expectations. They balanced operational realities and they also took a look at long-term priorities. So, our department heads, our assistant town managers, they've done a great job. A very special thank you to Lisa Staer, our HR director. She's kept our workforce strategy at the forefront of what we're talking about. And I don't just mean the the the the benefit part of it, but just organizational needs, particularly recruitment, retention, capacity, all at the forefront of how we prepared our budget. So, appreciate that a lot. And finally, thank you to you, Mayor Council. You invested time in the strategic planning process that's helped me align a budget with your with your stated clear goals and priorities, as well as for your leadership and engagement up until we get in here today. So, I appreciate that. as we move through the presentation. Dave's Dave's over my right shoulder to my left if if I need him. Um he'll provide additional detail if needed. Um but at mostly Dave will be available and our finance director will be at the table with me as

well as some others um at our workshops this Thursday and Tuesday. So with that, I'll start jumping in. I was looking for this. It's right here. So, as we as we look at our budget, right, I'll take a look at some community factors and I'm going to go fast like I have done in past years. I'm going to give myself a little bit of time. I have an internal clock. Um, but I'm going to go fast. Please slow me down if you want me to go back, but I'm just going to keep going with pace if if no hands come up. Um, Mayor Perry, I'll I'll look to you for some some guidance there. Um, we'll talk about our strategic action plan, we'll talk about our budget, and we'll talk about the process. All right. So, it's always interesting to to put this in a budget presentation, not so much for mayor and council and me, but I think to remind our community of what we're budgeting for, who we're budgeting for, right? 54 square mile town, uh, median age of 59, a household median household income of 95, and a population of of a little more than 38. Um we know from um 24 census that approximately 40,000 jobs are on our island and population by age breakdown you see on the right right side of our screen. Um I won't go through all this. We can slow down and look at this at workshop but as we looked at our budget as I mentioned earlier we've looked at tourism we've looked at health care and wellness we've looked at real estate property management construction and economic infrastructure. And so what we're trying to really understand is that that that web around our economy and we can see some some some great feedback on here whether we're looking at annual tourism whether we're looking at healthc care investment Novant uh Hilton Head Hospital alone but the new Novant the new Bufort Memorial um the Novant investment in multi-family

homes the North Point investment our Bryant Road uh future investment and then also So the real estate and property management construction support second home and retirey markets right generate the demand for real estate um and and a lot of our property taxes and our property tax base is growing because of that. We've seen this before about 35 34,665 housing units half are multif family half single family. One in five of those properties is a short-term rental. We know where our largest employers employees and our largest employers are. Serge Group leading but um Coastal Restaurant, C Pines, Novant, Novant climbing. Uh it's great to see that. Um this is intended to show you that our gross sales and if on finance committee you've seen this before, but our Dave Burden team with the finance committee did a great analysis. The gross sales by fiscal year is is not growing. You can see tourism, restaurant, grocery, retail, calcoms and other are almost stable right across the screen. You can see the far right screen is just simply year-to- date. So nothing's jumping out at us from trends. Nothing's skyrocketing. Nothing's declining. We know that our recent AAA bond rating from all three rating agencies, Moody's, Fitch, S&P, they have said that we have a great uh financial position, growing tax base, nonpropy tax, diverse nonpropy tax revenues, prudent fiscal management, great and strong fund balance. We're highly liquid, great ratios. Um, and so an achievement of of past budget pushing into this. 189 new businesses opened in 25, 64 closed. About 14,600 businesses, half of which

are short-term rentals, half of which are brickandmortar, as I would call it, or or nonshortterm rental. Um, it generates close to $15 million in business license revenue and some prop in a very healthy strong property tax collection. Over the past five years, assessed and market values have increased approximately 32 and a.5%. So, assessed value is on the rise, market value on the rise. We have a strong asset management position. The town owns and controls close to 2,000 total acres in the past five years. The town has acquired through the capital improvement fund. More than 80 acres, so 51.5 million of town funds, 13 and some change of the Buer County green space funds. And that if if you do the math, it eliminates about 450 residential units. You can see up here 193 hotel rooms and and uh more than 50,000 square feet of commercial space. We managed 27 parks, 14 miles of roads, 72 miles of pathways, 24 total town buildings, and we couldn't fit in here how many miles of beach we we manage, but we're moving on from beach for nourishment. We're starting to focus focus up here. Our orc chart remains the same. Um the same organizational structure. Um the headcount remains the same with the exception of the amendments you've made to the FY26 budget to calibrate the employees as as aligned with the new short-term rental program. Um a full-time count of 290 and a part-time count of 16. And you can see on the far right 137 is general and 153 is fire rescue. You did receive some materials over time that those numbers were a bit different. And it was because we had

some temporary employees in the in the mix and we also had seven members of town council counted in the mix. I've removed those for clarity for the presentation through the strategic action plan. What's most important is on the right side the process, right? The comprehensive plan drives the strategic action plan. The strategic action plan drives the annual budget. And we've always talked and we've said if it's in the strategic action plan, let's work to fund it. If it's not in the strategic action plan, don't propose it in the budget. I I'm I'm confident to tell you and I and my position is that those 10 priorities that you see through there through up on the screen from protect island character through managing growth all the way down to parks and recck master plan implementation are are well funded and prioritized in this budget. Our budget goals remain the same. I took a look at these this year, especially with a new team and thought it these these are great, in my opinion, great budget goals. Enhance community amenities, including wreck, leisure, public facilities. Maintain highquality municipal service delivery. Foster a workplace culture of innovation, customer service, employee engagement, invest in transformative capital projects, whether big or small, in my opinion, and long-term infrastructure resilience. protect and elevate the island's ident identity including environmental and cultural assets and also and last but not least um leverage fiscal planning as a tool for progress innovation and and improvement. So remains the same. We're here right here on May 12th. A little bit about the process leading up to today. We did have a CIP a capital improvement project workshop a couple months ago. That CIP as we as we know and as we've talked that CIP workshop helped me identify your priorities for capital projects. It

helped me start really understanding um your directive on use of funds not just project priority but use of funds for particular projects. Um and I think that that workshop this year different than last has paid a a a good dividend as we're preparing our budget this year. So, I think that there's some room to be open-minded and and keep improving that process even for next year. Miss Tunner and I had a sidebar coming into today, and I appreciate I appreciate your your input on that. Um, but we're here on May 12th, Thursday. We're going to workshop this um after public hearing and first reading, we'll workshop general debt, CDC housing, and special revs. And special revs different this year, so I know we'll spend some time on that. Tuesday is capital projects and storm water which are correlated and then June 9th second and final reading in another budget hearing. When we talk consolidated budget, we're we know right we've seen this before. General CAP, debt, storm, gulla, gichchi, CDC, housing. And again, this is new. And I'm going to say that until we get past that section, but the consolidated budget accounts for the rollup of all six funds along with special revenue funds. And it provides a total revenue and expenditure view for the town, not just revenues assigned to the expenditures. And then the unbudgeted revenues are captured in fund balance and then we pull them out and realize what they are in the audit. This is a push forward a comprehensive inclusive complete look at our budget. So I appreciate Dave's Dave's hard work um to get us here in a in a in a little bit of time. I think Dave's song is is his is his power song is we've got a long way to go in a short time to get there. But but he did a good job here. You'll see a budget proposal of 233,284,719. What you will see here and from the

original budget in 26, you won't see special revenues budgeted, but you will see them here. So, what you you will see is 174 711 jumping to 233, but but add that 85 to it to truly understand that net difference. General fund is increasing 12%. Debt service fund, capital improvement fund, storm water utility fund, CDC, Galaguchi historic neighborhood CDC fund and housing fund are all decreasing for different reasons. Um, and you will see the special revenue fund transferred in there. So, we have measured budget over budget and and I'm sure we'll talk a little bit more about this at workshop. We've measured 27 proposed versus 26 amended. And 26 amended we know had some debt in there. And so I think it's just important that that we realize what we're measuring. There's just different ways to look at it. But if you look at the 233 million and change consolidated budget proposal, you will see that 121 million and change comes from operating revenues, property taxes 26 million, business license almost 15. And and I won't read to you every line, but but what should jump out at us is storm water utility fees at 56, local a tax at 7, um state a tax at 124, beach preservation fees at 147, and hospitality tax at 108. What what's important is that these are projected revenues, but they're based on conservative assumptions and they're based on past trends. And so never in history have we over projected revenues. We are still coming in the door at very conservative. Um an example somewhere in general fund you will see permit fees. We we didn't

try to understand the growth of permit fees. We don't want to we don't want to rely too much on permit fees to balance our our operating budget. So we've just left permit fees flat this year. What's really important for town council to see is that these these these revenues that are projected based on trends and in our knowledge um are conservative in nature. The largest jump, right? The largest jump is property tax. its business license and these show 100 because they're now being transferred in into our budget budget revenues. Total use of fund balance. We're proposing to use a fund balance of $35.1 million for one-time uses. You will see that the use of fund balance is very clear. We're using some storm water fund balance, some prior year capital project fund balance, CDC fund balance, and that came from the $5 million grant from the Department of Commerce. Special revenue grants, beach preservation fee. So, in this budget, beach preservation fee um is is proposed to to be used from from from fund balance, excuse me, um for 35.1 million. On top of that, the transfers in 725 and you can see the transfers in and then other finance sources is really proceeds from the firetruck lease. So those those really make up the generated revenues to balance the budget. Um the budget transfers the 725 the budget transfers here. I want to just make sure that we slow down and I show you that those budget transfers at 725 made up of all of those different types of funds that it's clear 16 million 16.6 Six is in general and in general we've transferred hospitality,

beach preservation, state a tax, some storm water for for uh some operating and people um electric franchise and short-term rental fees and and we know about the short-term rental fees as we talked and so so on so forth um along the line. So a very um detailed um but wide array of revenue sources are are building the strength of our budget. If if we only looked at property tax and I try to say this every year, but if we only looked at property tax and business license differently as a very small town with 40,000 people, our budget does not even have the strength at at all that we need. So we've to really understand those transfers in those tourism and and and other other related revenues expenditures. So you will see some of this twice, sometimes even three times, but this is the consolidated budget and then I'll break it down into general storm water and and some other funds. But you will see a salary and benefit 44.4 million. um that's up um it it's up from the 26 original and amended um and and I'll explain that most of that's in general fund and there's a couple salaries in CDC fund and there's several more in storm water you will also see operating um overall our operating costs went down right general fund operating went up but overall our operating is down and and I won't go through everything but you can see where the expenditures 145 5 million operating along with the transfers out to balance. And then when I said we're using fund balance and I don't mean to jump around on us but I'll stop jumping in a slide

or two. When we say the total use of fund balance 35 million as we look at a consolidated this year we see a fund balance surplus of 15.2 to start the year which builds our fund balance even further. So, while we're using fund balance and most of it and some of it H and beach, H tax and beach, we're also growing our fund balance um to start projected 15.2. I'm going to keep going. Any questions yet?

The millage rate proposed. So, I've proposed a budget to you. It should be the highlight, but zero, it's just a given. Zero property tax increase. It's 19.4 four mills, which is the same millillage as calibrated last year, the 5.1 for debt and the 14.3 for general. Our mill value um continues to climb. If you just look at the last few years, right, it was about a million and it's climbing getting up to close to 1.4 million um in in of mill value estimate. This is a property tax bill sample is based on and I wouldn't say that we can find many $500,000 properties anymore, but I left it alone. There's a million-doll property value. We took a look at a 4% tax value and a 6%. And as you look, we've highlighted HHI operations debt and the storm water fee, $150 rate. What you what you will see on here is at a base, it's about 20% of your tax bill. So as we dive into the six funds um and what you see up here is the six funds without the transfers to balance the consolidated you see that general fund increased 12% at 7.2 2 million debt service and I mentioned all this earlier um debt service capital projects storm water CDC and housing is going down and I'll explain the expenditures or the revenues and the expenditures kind of like that.

So we know we call our general fund the operating account right it's financial resources except those expenditures, general government, administrative service, public safety, fire, all are operating, all our department costs and those as well as those one-time project costs that are captured in those departments. um principal sources of revenue as as I mentioned earlier taxes business license local a tax permit fees and so you'll see property taxes transferred into general fund not the full property tax but the ones transferred um increased 8%. Local a tax business license very strong revenues very conservative projections to present to you all a $67.6 $6 million general fund budget of that. The highlight is that you will see traditionally we have in the past I have proposed in and even prior the use of beach preservations fees 1.98 1.98 and in 26 248,000 right remember why it was the year we were we were talking about debt cash um fund balance and especially as we started to look at a 47.5 million project cost for beach reourishment We did not use any funds last year in that regard other than 248 from the beach preservation fee. Debts in place. It's a seven-year note. Um you are all aware of that. We're back to a year of of of a proposal using beach preservation fee. So what I wanted to do is share with you while I know it's in a revenue stream and a look at that portion of revenue. I just think it's it's good to pause for a second how we're using that. We've used it for shore beach trolley facilities.

That's the the staff and their contracts, the janitorial and then some at the beaches. Um facility beach operations and staffing, public safety, boat removal, 25K. Um there's not many boats left. That was a higher number last year. Um we removed close to 11. I think 10 or 11. um fire rescue staffing and outside foundation affiliated agency funding that was an application through finance committee. So I for the most part we talked about this right general fund property taxes local a tax um 8% increase millillage remains the same we assumed a 2% growth local a tax um 8% increase we assumed a 1.5% growth business license we assumed a 1% growth um EMS it's an increase of 425 it's important and and we've had some questions on this lately proposed increase in ambulance fee schedule per town code. The rates need to be set at 150% or above the most recent Medicare fee schedule. So you will see in the budget a a shift from 626 to 660 base fee. We have to it's it's based upon that Medicare fee schedule. Hence the increase. Beach preservation fee. We talked about age tax no change from 26. We're using the same amount. State a tax 11% decrease. I asked Dave and John, they helped me wrap my head around why we're projecting that. Well, the numbers are down. We're seeing state a tax numbers down and and hence 11% decrease in our operating budget for that use. Short-term rental permit fee 3.6 million. That's a planned increase of 1.3. That was based upon a fee we talked about at ordinance and then put in place

post ordinance. You see the expenditures personnel um up 2.7 but a personnel cost of 43 operating 18 um that's up 5.4 um contracted public safety is down um and that has a lot to do with our our our reset franchise fee with Shore Beach. Um, affiliated agencies are up 18.3. That is the proposal straight from finance committee to me and me to you for consideration. That's up 18% $373,000. So a a subtotal of those expenditures from an operating 64 million. And then our transfers transfers CDC fund that is general fund transfer to CDC for full funding of two employees. And then this is a transfer to special revenue to balance the budget and then transfers out fund balance surplus. Even in general fund, we're growing that fund balance. Affiliated agencies, mayor, council, I know this came through committee, but I do think it's just important to put in the presentation so I can show you what the request was and what the finance administrative committee recommendation was. Uh, thank you, Chairman, Councilman Brown, for for your guidance and and directive on these affiliated agencies, especially with our team and and your committee's um, guidance and input. But you can see Island Wreck, um, 1.5, Coastal Discovery, 149, Mitchellville Preservation, same as prior years. Uh you will see some up here that aren't funded this year, but because they were part of 24 and 25 actuals, we've left them on there. LRTA, Palmetto Breeze, um 433, Buer County EDC, the same. Um and Sea

Turtle Patrol, Hilton Head Island, and and new this year, outside Foundation. So, a bit of a climb, but the dollars are in here. And we've used, as I said, outside foundation funds. We've used um beach preservation fee. Everything else coming out a general fund as we need it. And again, expenditures pretty much in the general personnel makes up a a significant portion of them. So the $67.6 $6 million salaries and benefits as as I've shared with you the the personnel cost 64% but it's up and that that funds 282 positions in general fund 153 of those fire rescue 16 part-time um it also includes uh bless you includes a full year of new headcount for those new six members of our team for short-term rentals and they're in different departments and then some part-time part-time support uh continued support nothing new there I have in the budget again presented to you a 4% performance-based increase plus we are getting near the end of a class and comp study we have talked about that and and I have put in the budget um what I believe appropriate dollars I would like to bring that report to finance administrative committee when it's when it's ready and prepared so there's no surprises and I talk I talk with you uh about our findings. We continued to fund the 401k and all the other benefits, the holidays, the police officers retirement, which has to do with our fire rescue, paid time off, buyback option, and some planned overtime for fire rescue. Um I I won't get into all this. You've seen a lot of this in the past, but it's a small increase, but travel, LMO amendments, professional development, events, all the events are still in here, same as last year.

including Crescendo Lantern Parade, 250th anniversary of the Revolutionary War. That is new. There's some extra dollars there. And then the fourth annual Hilton Head Island Jams Songwriter Festival. We are not complete on that contract. I've placed those dollars in the budget. However, I have a thought and I will make a proposal on how we advance that contract this year different than last year. Um the dollars are placed in the budget for for when we're ready to look at it. RBC sponsorship agreement the same way. The dollars are in the budget. I will bring to you the RBC sponsorship agreement direct though. Holiday lighting, matching funds for Elco, um lease payments, firet trucks, ADA assessment, and some public safety department assessment. I'm going to hold off on that. It's $100,000 in that, but I'm going to hold off on that and talk with you once budgets adopted about a few of those things. And I mentioned the waterway, uh, the boats. Um, public safety stipens remain in there for the Buer County Sheriff's Office. There's approximately 15 people and we do a $550 a month stipend. Shore Beach service contract that's helped with the reduction town hall security affiliated agency we mentioned and then some transfers out as I talked about, right? The plan transfer to the general fund for future use, right? Fund balance. So if the the budget increased about four million or excuse me seven million three million approximates going into fund balance. So it's a $4 million approximate general fund increase transfer as well to the Gulligi historic neighborhoods for personnel costs and then transfer the special revenue fund for prior year grants. Um it funds fire rescue their budget while the largest um 24.8 8 million. It funds 153 people, more than 50% of our staff, plus um they're the backbone of this community and and and this organization and our

and I'm I'm proud to to to help them where they need it and I appreciate your support and guidance. public safety 12 full-time employees finance 25 HR funds our small HR team um technology and innovation um and we can talk a little bit more about this in in workshop but I won't go through all those bullet points right now the the balance general fund our operating has only increased a little bit um we've improved our fund balance and we have 4% in here for performance-based and class and comp um additional percentage. So, and I mentioned uh some of these so I'm I'm just jumping over them, right? All the all the events. The budget continues to fund Buer County Channel 110 meetings per year. And what's been great is that we have left some contingency in there to fund special meetings as needed. As soon as I think that we funded all the meetings we need, something pops up and they have been great and the budget has a little bit of room in there for us to fund those extra meetings. So, keep going.

Any questions?

If you got some questions now, go ahead. I I didn't know how we were going to exactly do that because there's so much material that you're going through and it's a lot to consume and you get questions along the way. Plus, you've got workshops coming up. So, I really wasn't quite sure how we wanted to do it for today because we are going to go in more depth at the workshops.

What I what I was thinking on that because I was just thinking about that a minute ago as well. um as we kind of go through some of these that he's got outlined, you know, if you've got questions that can't be answered now that we give them to Dave and the finance team to come back during the the the workshop. But I would ask the questions now. If we can get the answer, that's great. But if there's something we can't, that we can also get it in the workshop. But as we go through these, I'll take any other suggestions. But that's what I think. I have a question. Go ahead.

I wasn't sure if Melinda had a followup to that of just process. Okay. Um I had the same question that um I've had. So with I've got a number of them. I think the one that I'm gonna couple that I'm going to ask about is uh we have a couple of new important um events and they've now become regular events and I'm excited about that. But I do want to make sure that we're tracking the impact to the community. And so, um, one example is the songwriters festival. On all of our events, we always try to look at what is the economic benefit to the community as we're putting money towards um towards them. And so I'd like to see us have that effort undertaken with regard to the um jams songwriter uh festival that we have so that we can um track that appropriately so that later there's no questions asked about why it's such an important event to the island. Um, I think there's a conversation that needs to be had and an understanding of the future and and how we got to where we are with regard to beach shuttle. Um, and there's a request in here for $350,000 for two salaried employees for the CDC. I'd like to better understand that as well. Um I can hear already $174 thou million dollars right

to 233 and the reaction. So I want to understand each of these categories as we're going through so that when we're getting questions um am I not is it not working? All right. Thank you. Um, I can explain. Um I think I'm extremely excited and happy that all the preparation that we've done over the years through budgeting has put us in this very um good position where we have the ratings that we have that we're not looking to increase millage that everything that um we're doing falls within um a budget that's conservative as as you've said and um and I just stated but I also need to explain one number versus the other moving forward and so those details um are important either now or later at some time.

Go right ahead. I if you're all asking um I think Miss Becker's questions and and comments help me because what I'd like to do is take them in and address them at Thursday's workshop and the capital project ones at Tuesday's workshop. Um, I I can answer all of these right now, but I think since it's on your mind, if you if you need the answer right now to consider first reading, I'll answer it. Otherwise, if there are things you want to talk about and that I specify a workshop, I'd be happy to do that, too.

I'm happy to wait for workshop. I just want to make sure everyone knows I'm zooming in. our granddaughter graduates um in Atlanta on the 14th and um there's no way for me to make it from graduation here for the for the meeting, but I will be on Zoom. Okay, Mr. Alfred, I'm curious as to why state a tax funds would decline when local a tax funds are increasing. Okay,

anything else? Um so again it's a lot to consume. Uh especially with the new approach of having a consolidated view. Um I'm very glad to see that we have a consolidated view because our special funds are so important to the operation of our town and to the benefit of our community. Uh but I think it would be helpful to um slow down in that area at the workshop so people can understand how the the items are flowing um

because it is very different and um and I know you and I talked I'd like to sit down with Dave to go through it myself personally uh because

it'll just help to solidify it in my mind. Um, I concur with Councilman Becker's comment. Uh, we need to be able to be put in a position to be able to, um, explain the variance in the overall size of the budget. And there are a lot of moving pieces. Um, and I know you're comparing it to the prior year's budget, but um, you know, the public also is going to be looking at what we spent on an actual basis in prior years. And so having some kind of variance analysis that that gives the largest impacts because you've got debt that we had this year that added $54 million. Um you know and it's not like we're spending all all that debt today. some we spent for the beach reourishment project, but the geo bond, you know, we spent for the purchase of the um fire and rescue headquarters, but we're booking, my words, you know, that money for other purposes moving forward. Um, and we've got the special revenue that we're showing in a in a new and different way. So, um I think it's going to be really important to be able to explain that and and do uh some type of variance analysis. I think it's also um an opportunity to slow down during the workshop to be able to ask some specific questions about areas that um have large um you know, increases or large decreases just so um the town council members understand as as well as the public. Um and so you know I look forward to that time where we can slow down a little bit and and go through that. Um what I like about the changes as well is we are identifying how much we're going to be adding to

fund balances with this. So even though we are bringing in money and we're spending it, we also um budgeting that we're going to add to our fund balances as well. So I think that is a a positive uh change with these um items. Um and that's all my comments for now. Thank you. Thank you. I I would agree with that variance analysis. You know, this being the first year we've done that. I think it it not only helps this year but it will help next year as we come back to understand the previous year. So I just I think that's a really good call. Any other comments? M Pson,

my apologies for my allergy attack. Um I'm looking at in doing that variance analysis is one of the things that I pointed out during our discussions about the budget and that is including the special revenues fund is is the main difference but explaining that because uh in the past we've transferred in as a budget ordinance amendment usually during the spring term and that's when that difference shows up but in comparing the FY2024 actual and FY 2025 actual where special revenues fund is shown. It would be good to explain the difference between those and 2027. Um so um I don't have a page number in my book. I I'm sorry. The title is FY2027 proposed consolidated budget expenditures all funds. That's the page I'm looking at. But I think there um and perhaps some of the explanation there has to do with the capital improvements. Thank you. Yeah, mine doesn't have pages on it.

Page numbers. But anyhow, I think that would be helpful in explaining because in prior years we noticed we and we were asked about big increases, but it had to do with the capital improvements being moved over. And so this time it's the special revenues showing up at a different time of the year. Um, so I think that'd be helpful at our workshop on Tuesday, sorry, Thursday to go through those. Mer,

I just wanted to add um to that that I know from having reviewed this and had any conversations with you that there's an awful lot of good things within this budget that um as you're discussing it and we're moving forward, everyone will hear and so I'm excited to hear about those two. So just wanted to put a positive note on it. Thank you. This this is all this all very helpful. Are may I ask a question sir? Are you comfortable that we explain that at the workshop? Okay. All right. As opposed to right now. Okay. Yes, sir. Yes. I think we understand it, but we want to make sure the public does as well. I

just say since you brought up something good, I just I've done a little research about other municipalities in the area close by and up and down the coast and we are by far at 19 mills 19, you know, little over 19 mills the lowest uh within the areas. You know, um I've seen them as high as 107 mills um in some other areas. you know, North Myrtle Beach just went from 35 to 40 mills and Myrtle Beach is at 75 or right at 75 mills. So to come in at 17 19 mills and be able to do what we do, that just shows a very strong financial organization. Yeah. Thank you. Big picture. Oh, excuse me.

Just a couple more things. Pardon me. The no millage increase, but to continue our good services is incredible. Um, so congratulations on looking at operations um and how to fund that. And as the mayor said, we we are indeed fortunate to have such a diverse source of revenues and that's clearly um seen in um the consolidated budget and especially the transfers in because that's where a lot of those monies come from is our diverse um income stream. So, no millage increase, same level of services, additional uh opportunities in this budget, um and diverse income stream. And let's not forget those positive things,

better services if you add the SDR program. I will say this big picture general fund went up 7 million, 3 million went in fund balance, 4 million went into some operating and some class comp and and personnel. Everything else is a reduction, right? cap projects as a reduction, debts a reduction, everything. Um, it's and and this is an easy explanation to you. Our our budget this year is status quo if we didn't take the big band-aid off with the special reps. So, I I appreciate all all the great feedback so far and we'll talk a lot about it at workshop. I have to remember that the workshop's at 5:00, so I don't show up in the room at 3:00. Just a shout out that that's at 5:00. our CIP program. Um, and and as this presentation is online, I I will say to you, Ben Ben will tell me I shouldn't have backed up later, but it's really important that you take a look at your budget right here. That is without the those those consolidated revenues, the special revenues. You can see what I just shared with you right here of the 72 about three 29 is going into fund balance. The rest of it is on paper right here. So that's why I showed those six funds without those transfers of revenues because we have a different walk as we show you fund balance this year. All right, I'll catch back up here and and the rest of this we know, right? We we we always review prior year projects to carry forward. Um we have a long list more projects than funds. Um we had a capital improvement program workshop that helped considerably not from a dollars standpoint but from a

prioritization standpoint. Um planning commission has reviewed and recommended the priority projects as recommended by us. They recommended forward. Um and so this isn't something you're seeing for the first time. Um nor nor the community planning commission prioritizes first time we're we're looking at a total number of 55.2 million right in the original 77.6 the 124.6 6. That was because of a considerable amount of dollars put in there for land acquisition um as well as the project at um US Post Office for North Point. Will you see a budget proposed to you for $55 million, $4.8 8 million in those those fees and that generated income and the rest of it is transfers in mostly beach h tax fire truck. We're spending the the remaining tiff dollars state a tax electric franchise and storm water utility fee. And so a diversified use of funds it's uh or source of funds, excuse me. um the use of funds in our in our priority programs, beach, path, road, park, facility, storm, water, fleet, and land. You can see that those make up of 53.9 million. And then to balance the budget, the fund balance surplus future use of 1.2 to balance that budget. So, um I will just set the table for workshop. every year we with the with the dollars we have the revenues and the fund balance we have we can't expect that these are always up the measurement the measurement shouldn't be a decrease is negative and a and a and a up is is positive in cap projects we are building a lot of projects um

we are diversified in our funding sources beach fee h tax and you can see up here and I think this is this is very telling um you know beach program is 7.4 million. We use beach fee and h tax. The reason we can't you know greatly improve the park or the let's call it the pathway system beyond we use state. We can't use beach for pathways and so sources of money have to be matched with uses of money. um real estate transfer fee. We have some soft costs in there, but as we know that grows over time when we acquire properties and we amend a budget to capture those funds, and there'll be more of that in the next fiscal year. I'm excited to bring those forward. Before we talk about what we're going to do, let's talk about what we're landing the airplane on. Since the airport uh opening was today, we completed beach reourishment. It's for the most part complete, on time, on budget. Um, we've learned a lot. It was our first time without Scott Liot and really without Steve Riley, uh, renourishing the beach. An amazing thank you to Jeff Netinger, Chris Creed, Sean Gillan, everybody. But we're completing that. Barkerfield soccer, old schoolhouse park pickle ball, Mitchellville Road paving and drainage. Um, acquired property and started the relocation and and and upfit for the fire rescue headquarters for office way. It is on the upstairs in the entire engineering department which is storm water capital projects and transportation um yeah on the on the bottom excuse me. We acquired the remainder of the fleet apparatus fire apparatus fleet and we acquired you you you voted you acquired over 15 acres of land and town property some through the green space and some

direct through through you this year. uh Islanders Beach Park. As soon as we can go postseason, we will improve that. You will see some price movement. We reduced one of the pathways and we we eliminated some of the components of the park as we talked at workshop. Phase one pickle ball crossings park. We have our wetland permit, our federal wetland permit. That was a big lift and a final to-do more or less. Uh DRB, uh if if not already, it'll be approved soon. Um, phase two pump track will also be funded in this budget if if approved. Patterson Park that took a little bit of time. It's taken a little bit of time because there's a wetland permit and an encroachment permit we needed and so we need to either shift the road or impact the wetland and we couldn't we couldn't have it both ways and and great job to the team for helping to figure that out. Patterson Park is funded. We will move those dollars forward though and get started ASAP. North Point Access, Spanish Wells Road, Squire Pope Road, Follyfield Road, Gum Tree Road, vehicle and pedestrian improvement project. Some intersections, as we talked about the gateway corridor plan, um I think get started as fast as we can on that Spanish Wells Road um intersection. That's just my opinion, but there's some soft costs in there that we can talk about post budget approval. And then these roads, not just the intersections, but a but a streetscape, ped safety, um traffic calming approach to all of those streets. It's time. We have our dollars. If the referendum dollars are captured, if the TIFF dollars are captured, there's ways to improve these roads over time. We've put some soft costs to get started on the the heavier lifts and then we've used TIF and some other dollars. Gumree Road as an example. We've we've we've funded that Gumree Road improvement project. Um, with all the dollars we have, Jonesville Barn fire rescue headquarters and the relocation of the emergency op center, Jarvis Creek pump station

and more fire rescue ladder trucks, but we're getting close to the end and these were planned. It's just capturing the lease payments. Um, you should have seen the map Jeff Netinger wanted me to show you. This is not it. It was way busier, but these are our projects. planning, design, construction. And what you have here, and I won't go through these, but I encourage you to look at this and the community look at this. You have a project within a program, right? Beach first. We've identified whether it's maintenance projects, which most of the time is just Derek's doing great work, or a project manager there, we need a vision, a design, and a and a contractor. And so either maintenance or discretionary, we continue to hold this in here at your direction. Roll over, roll forward money from 26 to 277. Example, beach renourishment is not completely done. There's some dollars that'll roll and we'll use that for sand fencing and some others. um if there's new funding requests to roll forward new funding total funding planning commission priority and so that I can be clear and in past um you know if we we put a Patterson Park and we're in the design year to avoid folks wondering if we're constructing in year one we've been very deliberate to put whether in this next fiscal year plan schedule is design andor permitting andor construction Um, and so I'm not going to go through all these projects. I think I highlighted some of the the larger ones. There's there's a lot of projects. If I if I go through all of them, signal system maintenance, mast improvements, the north point site improvements, um, tabby walk entrance relocation, we're in some design, folly field road safety. We are finally at the point and Miss Becker, thank you. um with SC DOT

they have approved a pedestrian improvement plan. It's the first time on our island we have we have proposed a reduction of speed, some raised crosswalks, some better intersections, signage even even signage that tells you how fast you're going on a DOT road, which in the past haven't done. So they DOT has been amazing to work with and and helpful. And so those dollars you will see in here will go quick on those this year. um mentioned Gum Tree Road, Indigor Run Circle Enhancements there. It's almost the LA pretty much the last roundabout that we haven't put something in the middle to create some mass and scale and and and calm traffic as well as an aesthetic improvement. Dirt roads are still in there, mayor council, through the land acquisition manual discussion, we have to talk about right-of-way acquisition, both public and private systems. And so those dirt roads, some of them are getting ready to go, but we need to talk about acquisition differently. Um, and some contingency public art rec center, island wreck. You see that the island wreck has made a proposal of $770,000 crossings park phase one pickle sports arena which is skate park and pump track Patterson Park and so on so forth. You'll see here that there's some roll forward. We're getting closer to the end of Taylor Family Park and we'll roll forward those dollars that are encumbered but unspent in the CIP facility and equipment coastal discovery request for dis for for for those stated uh projects discovery house pavilion so on so forth. Um but for a total of 742,600 it's our asset. It's the town's uh historic asset and uh I appreciate the good work that Rex and the board have

done to take care of the asset and and make those requests for for the reinvestment. Jonesville Horse Barn, Mitchellville Freedom Park this year. I guess this should have been on the front page because we are finally at a point where the parking lot, our portion promised, talked about will be under construction this year at Mitchellville. ADA parking lot, some of those storm water improvements out there. And we were working closely with Amad and and the entire team out there. Fire rescue headquarters, that's the planned additional expenditure to move our emergency operations center into the building. Storm water, let's talk about this at workshop, but a $4.2 million storm water program. um several projects for construction including the nonPUD and and and and PUD maintenance agreements, some pump station repairs as well, fleet, land, and for a total program of 53.9 debt. And for time sake, I'm behind on my internal clock. You will see a a debt of 11.5 million proposed budget. You will see the original 26 of 18. So that's just obvious. We borrowed some dollars, but we've paid down our our our total annual revenue need. And then expenditures 8.6 principal 28 interest. While interest is going up, um the principal payments are higher as well. Um for a total expenditures of 115, we can talk about this at workshop. Millage remains the same. $93 million of debt reduction since 2018, even with borrowed funds and an additional $8.6 million additional I think I said additional twice, but maybe on purpose. um debt reduction plan for 27 the series 25 special obligation for beach press bonds, geo bonds, all of the issuance,

the payments uh interest and principal. Um debt payments offset by revenues will result in an ending debt service fund balance of 2.7. And what you don't see up here is any detail on storm water. They're in the storm water fund. So there you have it. It's a decrease of 196. These are all of our outstanding issues. Um, not for today, but something for the community to always be aware of. But you can see the interest, principal, total. I always take a look at balance after 27 and final payment schedule as we're looking at our budget. But we're getting closer. It's it's it's wild that we're getting closer to some of those out years that seemed further out. But the 28 um and the 28 swoo there was looking for that. So you see the debt that went down right we had 64.5 and 25 we issued new debt 19 million 35 million in 26 fiscal there were callable beach bonds we paid off the beach bonds right we paid off the old project before we funded the new project 7.5 reduction geo bond while we borrowed we we paid off 157 we had 8.6 6 million scheduled debt payments in 26 for an ending balance of 86.7. You'll see no new debt proposed. You see scheduled debt payments and an ending balance of 77. So really since 25 when the 35 go and the 19 beach pres for our beach renourishment project, it the net increase was 13.3 million. So we're getting closer back to where we were in 2024. Stormwater Utility Fund, $7.5 million of projected revenues. The premise, the most of them, 5.6 in utility fees, 1.6 in fund

balance. Our rate, while high in the region, we perform and outperform any other uh utility, municipality. Um and and we're proud of it. We've made some adjustments this year. I think that we're leaner in our operating. um not I think that I'm proposing a budget that's leaner, but you will see that salaries and benefits went down and we took those dollars and that's why you see a little bit of general fund increase. We funded what we used to fund with storm water in general fund. What does that do? It frees up dollars in storm water for future considerations. I'd rather invest in projects than and try to have the general fund help fund more folks operating down and that's travel that's training those things and and you'll see monitoring POA systems CIP storm water program transfers out um to CIP and 375 transferred out um that's for people and some street sweeping There's six folks in our stormwater team. Sometimes I think there's 20, but there's six. And they have a great leader and Jeff and a and a great dedicated team. And I'll mention a little bit a lot of bit about this already in and and we can talk at this about this more in the workshop. This is their program. Um, I think it's important it's important to Jeff that I that I mentioned they're in the storm water utility water quality business, right? Water quality, LMO compliance, state permitting, MS4 permitting, routine maintenance, pump station maintenance, monitoring, corrective maintenance. We are diversified across the island. I think we've we've done a good job showing you the complexity of this program. Um, at past workshops, there's a reserve policy that right now

there's a $5 million reserve. My recommendation is to reduce that to $3 million this year. One, it's a it's a one-year operating, but at the end of the day, it also reflects future spending, right? So, if we have a 5 million reserve, that means instead of three, it's two more million dollars that we could be investing. And I feel comfortable and confident that a three million reserve is is appropriate. And we will adjust this um every year based upon any addition of new fixed assets. So, um, and then on top of that, on top of the 3 million, the fund balance reserve after use, right after after reserve is still another $1.1 million. Golagichi Historic Neighborhood CDC. Um, nothing new to us. It's a it's a nonprofit um established by town council with appointments to the board and the board has proposed the budget that we see here today. Uh the focus of the corporation as we know is to enhance the quality of life for community residents in the Galagichi historic neighborhoods and the primary source of revenue are state and county grants and I would also say general fund to support the the budget. In past years, the general fund supported one employee and this year proposed as I propose the budget, it's it's it's funding both employees. But you see the revenues, the use of fund balance from the grant, um some investment income, fund, a planned fund raise, a memory matters lease back for a portion of the year and that will be attached to salary and then a transfer from from general fund um and operating. So salaries and benefits are up. I've explained that there's two people uh and and you can see their proposed use operating professional services grants and incentives

capital outlay land acquisition plan. So that comes from fund balance and then some contingency. I mentioned this there's no sense in this but we can talk about this at workshop. housing fund used to fund and account for the costs associated with development implementation of the strategies related to our workforce housing program. Um and then sources of revenue are either transfers from state and or prior year fund balance. And so revenues this year transfer from state a tax and use of fund balance from past year. Um, we've been focused on North Point this past year. That didn't that didn't pull any dollars out of this except capital improvement for the the street through the post office and the million dollars of of developer agreement um align dollars um that that we know about from from past years. And those you can see right here the million dollars from from ARPA. So planned expenditures this year finally um the Muddy Creek projects those are capital projects the Bryant Road public private partnership I let you know about the status of that um today in my town manager report for Jasper housing trust dues and a fund balance uh increase of $619,000 Muddy Creek this the 1.5 million I'm I'm I'm proud to say that we finally know what we're planning on doing out there. Um, storm water maintenance, ditch clearing, new sidewalks, multiple crosswalks, neighborhood identification, some way finding um, and lighting at crosswalks. Next steps, concept drawings, meet with the residents, get

some feedback and review, and the beginning engineering design, permitting, implementation this year. So, it's it's a million and a half dollars. It it it will go a long way with the planned expenditures. Those real I'd say uh on the ground improvements to sidewalks, crosswalks, lighting, some some investment out there. And then we also have your marked a million dollars towards that Bryant Road public private partnership agreement that we'll talk about soon. So the special revenues, we can talk about this at a workshop, but the the proposed special revenues and fund budget revenues 86.422 422 million and the use of them is simply transfers out into the different funds I just talked about and then an increase in fund balance in the special revenues are a tax. So I think that is important. You can see state a tax $ 122.4 4 million and excuse me, too many clicks. And and we've seen this before. We've showed you the required to the DMO, the supplemental we haven't done in in in several years. The H tax grants to the community, the 30% required to the DMO, how we've used it, and how we're proposing it in the CIP, $5.4 4 million proposal in this capital improvement program where in past years it was zero. Um general fund 3.1 um and fund balance you will see at the end of all of those planned revenues and and proposed expenditures a fund balance

of a little more than six million. This gives a clearer breakdown um of the ATA tax state a tax general fund 3.1 there's some transfers of that as I mentioned to housing CIP 5.4 before and then housing fund I mentioned and then special revenue fund a tax grants and DMO those special revenues pay for those grants and or proposed reserve policies forgive me this is in your packet this is online and what I will do is I will go to the next slide which is the calibrated what we have preferred this this shouldn't look like this in the budget because there's some things in here that aren't as clear as as as we need them to be for you. So, what I'd like to do is as soon as this presentation is over, put this deck online. There's about three slides missing early on and then this will change. But I just want to put this as is online and and Dave, if somebody can write on here, delete and use this because what you'll vote on tonight first reading would need an amendment to include this as part of the ordinance or as part of your your your consideration. But you'll see general fund fund balance increase from 40 right now that we have to a 50 basement a minimum. And that anything above 55, right now our 55 max, as you've put in place past years, anything above the 55 transfers automatically at the end of every year to the to the disaster fund. So right now that natural disa Dave, we should call that natural disaster fund because right now we don't have a source of revenue to grow our natural disasters, right? Remember some years ago was 20, we moved it to 36 with a lot of work and I'd like to keep moving that up. And I think that a revenue source is

everything above that 55 in the general fund. Um storm water rem reduced to three million capital projects. This is that that sale of of the new Novant healthc care site. The town council designates reserves of 4.3 for economic development. That source of money is is proceeds real estate transfer fee. leave leave alone beach preservation fee. So it was 20, we moved it um well it was 12, then we moved it to 20 and we're proposing this year a minimum of 40. Um and then that minimum will increase about $3 million a year for a target of 60 million minimum by the end of 2033. Plan projected on track. And then last but not least, this this should be called the natural disaster fund balance. Excuse me. Natural disasters is just tying that anything over 55 down to a funding stream for for our natural disasters to grow that account. So um you can see projected reserve fund balance at the end of the fiscal um planned and and I would say encumbered 135,767 not and again probably for workshop based upon our beach preservation revenue right beach preservation fees investment income expenditures including transfers this year to general general CIP to build Islanders Beach Park transfers the debt for the beach renourishment fund for seven years. That's the project life cycle. Um last time it was a 10-year debt with a 7-year project cycle. We've aligned that even

with that a net change in fund balance of 42. So an ending fund balance of 42.8 projected a little bit of capital project over time. Right? And and again, this is projected. We can spend more, we can spend less, but I imagine we're going to spend some when we're done, Islanders. But with a capital project in 29, a lot of maintenance and years between, and another project in 23, at least on paper projected, we will have $105 million in the beach preservation fee planned. And in in our account and fund balance by the end of the term of our current debt on beach preservation, the seven years. So, congratulations to you. We we have some decisions and you have some policy decisions. and I have some recommendations o over time. I hope I'm here in 2033 to see this come to fruition and build some more projects other than Islanders. But but I I think the message here for fund balance is that is a strong source of funds. The reason we're using some operating is it's freeing up some of these other dollars that are building those other funds. We can't have all our dollars in the beach preservation fund balance. We have to have some dollars in the fund balance for other funds. So

let me ask a question. Uh Mr. manager, before you go too far ahead, can you back up, I guess, two slides to the revised uh reserve policy and um focusing in on the 4,341,500 town council designates reserves for economic development. I am totally in favor of us recognizing uh funding for economic development, but I guess I'm just I'm I'm just curious to know how we're wording this. Is this saying that we're going to put 4.3 aside as a reserve and that's our baseline or are we going to be able to spend against that 4.3? Because if something comes up this year that we feel are important for us to spend dollars on, does that mean we can't go into that? Is that the way we're reading this?

We'll be more clear. Okay. Way I read that is that's to use because we didn't establish a a minimum. And if we establish a minimum, if we said, oh, town council designates a 43 minimum, that we're going to keep that in there. This just you designate the reserve for economic development. So, we'll be really clear on that. Please. Thank you. Yes. Uh, that was a great question be because the intent wasn't to put it aside and have it sit there. The intent was to put it aside, capture that money from the sale of the property and then uh make sure that it's saved so that we can use it for on purpose for some opportunities. So that makes sense.

Expand a little bit further for business recruitment retention uh but also make the statement that it's not for the economic development corporation. we're talking about for us to have in

Yes, I would concur with that and thank you for going back to this slide because there have been a couple of changes to the proposed uh fund balance strategy and I didn't know if we were going to talk about that tonight or we were going to talk about it in the workshop. Um but the ch there were two changes and there were some changes that I had requested. The first on the general fund, it said that you would automatically transfer any amount over 55 to the disaster fund. And my question was, well, if we know that we have un we have encumbered um contracts that we're going to carry forward, if we moved all the money over, then we'd have to go back and borrow, you know, find money to pay for the encumbered. So we added something to say that the encumbered amount that wasn't spent in the current year will be saved and then any excess over that would move over to natural disaster.

So I hope that makes sense uh to you. And then the second change as was associated with the beach preservation fee because it said something along the line of Oh, I have the old um that you I'll go right there.

The old the old wording was basically uh whatever you have is your minimum. And I said, well, what happens if you have an event and now you're down to $10 million? Uh and so now we've Thank you for changing that. so that uh we're making sure that we are continuing to increase that reserve along with um the recognition of what is going to be needed for beach nourishment in the future. And what and this is a new proposal um but what you saw with the slide a couple slides later was that we'll be you know um the plan is for how much is coming in we'll be able to meet that minimum moving forward. Uh so that that's a change as well because you didn't have an opportunity to see that.

Understand? Yeah. To to make a little sense of that one I'll go backwards. The beach preservation was 12. We worked together to increase it to 20. And then this year where it says instead of ending fund balance, that was an oversight on my end talking with Dave on my part, it's intended to not dip below a certain line, not just be ending fund balance. That's that's first and foremost. Second, over time, we've changed fund balance in general fund to be a certain percentage of expenditure. used to be 35 then we went to 40 then we are now proposing 50. So even with general fund going up that fund balance of a minimum basement call it 50 and a maximum of 55 in the past that it it was it was off to me. It was a basement of 35 and a ceiling well above. And that's a long way to go in between. And so we've tightened it up 50 to 55 and then a transfer from trying to provide some clarity to Miss Tunner's great point. Anything over the 55, if it's encumbered, right, if there's a contract, we keep it. If it's not it, it's now a source of funds in the natural disaster fund to grow that fund because as we know that used to be 20 and it stayed 20 for a long time. We increased it 16 million. It's important that we continue to grow that. So

I just wanted to say that these are the types of policies that have put us in the position that this town finds itself in with AAA ratings etc. Um, and I am proud um, from 2018 you saw it to have been part of of have this having this build the way it is. But I'm even more proud, Mark, of the job that you and your staff have done and the councils have done to improve and improve and improve and continue to put us in this good financial position. So, congratulations to y'all and thank you for the opportunity to see this happen. Mr. President,

yes. Just to give the town attorney a heads up, when we have our motion, because there is a revision to the reserve policy on exhibit E, we're going to need to know exactly how to word that motion to adopt this ordinance with that change to it's um pardon me, page four of exhibit E, where is I'm comparing that table in front of us on the screen to what's printed out in the exhibi um p in the exhibit to the ordinance exhibit Page four is what we're changing. And in light of that, because of the question that Mr. Brown raised and Miss Tunner agreed with, and I agree as well, do we need to have in that I guess it's a green column a proposed minimum balance policy for those funds for economic development or do we leave that blank? Anyhow, we've got to figure out what to do on first reading for that. Um perhaps we leave it blank at this point for first reading and then we come up with whatever appropriate language changes need to be for second reading. It's also a legal question.

I would propose this because I think it's it's the intent as well as the way I read it is clear. If we need to clarify it, let's do that administratively and before second reading. But I would use this as the ba as the new base for that exhibit as part of your your your recommendation. That's my recommendation. That's okay with my colleagues. I just want to ask the question of how do we do that? Yeah, I just I would expand a little bit more on that that new fund that's been created for business recruitment. Um it's it's new. We have set those policies. In my my opinion, it's there to be spent to track and drive and then come up with that policy as we start to address some other items down the road.

So I guess then the question is should it be a part of the reserve policy? I mean, we need to somehow show where it is. Um, and that we're saving it for those kind of projects. So, I don't know. Well, couldn't you do that just by moving that number over to the column to the left where it's the projected fund balance, but there's no uh restricted no minimum minimum. No minimum. Maybe put a zero for right minimum right at this time. No number. Yeah.

And we've left it I'm sorry I didn't interrupt. We've left it in capital projects because it's land. The proceeds were land. I would imagine a land acquisition may have to do with that. So, it's it's it's your that's how we've proposed it. Okay. Okay. So, can we restate? Yeah. I'm not restating. I'm Can someone restate? That's why I asked the town attorney to have a heads up because after the public hearing or some point, we're going to get to the vote on the first reading. What I'm hearing is a discussion of the policy of how to use the money

as well as how to display it on here. So, there's like two topics. What would you recommend? Keep it up like this right now. Yeah. Because at the end of the day, Yes, sir. At the end of the day, this is a $4.3 million land proceed from a modern classic motor site from Novant and and when it was acquired, you wanted to keep those dollars for future economic development. It is simply in your fund right now. Using it is a policy decision. Saving it can be a line in your fund balance reserve policy to provide clarity of where the dollars are and why they're there and that they shouldn't be used for something else. I believe that does that.

I trust you. Yeah. And we can clarify that. We we'll fix that sentence before workshop and before a second and final. But the use of it, y'all can you can pull it out of your fun balance and use it through the year as we need to. I would and and then maybe during this year at some point we can have a discussion about what the policy is. This is a way to put it in the budget and to save it for that. I think that's something the finance committee could do. There you go. Mr. Bird smile if he's got it.

Okay, I'm smiling, too, cuz if Dave's smiling, I'm smiling. I can't see him back there. So, thanks for telling me. Uh, total operating revenue 125.5 million transfers in 72. And we can look at this in the in the workshop and and operating expense transfers out to balance a fund balance growth surplus of 15.2 and a net fund balance use of 19.8 balances our budget 233.284719 proposal and again we will explain the 85.3 million um or I should say the 86.422 422 million of special revenue funds in our in our budget.

Okay, thank you. A lot of information. Um, any other comments from council before I That was a great great first look. Thanks Dave and company. Really great job. I appreciate the method in which you put this together. She put this together. Okay, you can point if you want. Um, but it it was a great job. Thanks. And thank you to you. Thank you, mayor and counsel. Seeing that we don't have other comments at this point in time, I'll go ahead and open up for uh the public hearing for public comments. Does anybody wish to speak on this? We got three minutes. Yes. Just give me one moment to get this pulled up. Um, Matt Lewis, you can go ahead and pardon.

Matt Lewis, that was on the next I might have put it wrong on the request. That was for the next item. Item 8A is what I have you under. I'm sorry. It's for 9A. 9A. Okay. Skip Hogland,

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Most year end audits are selected and managed by town staff and and and managers and lawyers. Standard financial audits that rely on records of Mr. Hogland. Time up. Yes. I didn't I timed that exactly at two minutes. I can't speak. I'm sorry I didn't finish yet. Chester Williams, I'd like to hand this to the uh to the uh clerk if I may. This will this is a uh explain everything. I'll pass. Okay. Richard Bizzy.

Good afternoon, Richard Busy. Indigo Run. I've had a a brief opportunity to look at the 144 pages of this budget. Uh certainly um was impressed with today's presentation by Mr. Orlando. I've come up with a series of questions. I'll send these uh either later today or tomorrow uh to the council as well as to Mr. Orlando. What I did is look at huge increases and/or decreases in the line item budget on both the revenue side and the expense side and came up with a limited number of questions. Um grants 83% reduction in revenue side. Why? Uh Sunday liquor permit fees were down uh in the budget 70% another why. Investment income up 279%. Another why stormwater fund down 73%. Why to that? Debt service fund uh down 98%. Contracted public safety down 14%. What I'm confused about that issue is that I understand, you know, the town has been in litigation with the sheriff's department. We are charged x amount of money. Apparently, we're not paying it. We're setting it aside. Uh so I'm not clear at all as to what's going on with so-called contracted public safety. Impact fees uh were down 83%. beach parking fees as you all remember quite an issue last year quite a bit of discussion uh and you were talking about you're going to take a look you know a year later as to what the you you know argued endlessly about what the fee should be what the day should be and yet I've heard no discussion whatsoever in the aftermath as to you know was it done

the right way or not uh $2.3 million for the Mitchellville Freedom Park what Is that for? And this is 2026. We are promoted as a worldclass resort. And I hear about dirt roads. Are you kidding me? As far as I'm concerned, we shouldn't have any dirt roads. We're a worldclass resort, right? And is this zerobased budgeting used or do you simply add on or subtract from your budget from last year? North Point. I thought the town's contribution was the land and about $1 million. And on page 78, it show, excuse me, it shows $2.8 million for North Point. Gulligichi Historic Neighborhood Community Development Fund. On page 115, it shows salary and benefits at 359,000, a 69% increase, and that's for a staff of two. And finally, I just want to make one final comment. It is admirable that the proposed budget does not include any increase in the mill rate. That of course is only, as you all know, half the equation. If the mill rate remains the same and the fair market value of your property increased, your taxes are going up. Your taxes are going up.

That's all we have for that item. Would anybody else like to speak on this? Seeing none, the public hearing is closed. Now, do we have a motion?

Uh, mayor, I'll try to make the motion. I move to adopt on first reading an ordinance to raise revenues, provide for expenditures, and adopt a consolidated budget for the town of Hilton Head Island, South Carolina for the fiscal year ending June 30, 2027 to establish a property tax levy to establish various funds to establish a policy for acquisition of rights away and easements and providing for severability and effective date with the amendment to page four of exhibit E attached to the ordinance as shown to the town council on the screen tonight. Is there a second? Second.

Did I do it? Okay, Mr. Town attorney. Thumbs up from the town manager. Okay, Mr. Acceptable. Thank you. All right, other discussions from council. Mr. Brown.

Yeah. Um, I want to first thank uh, Mr. Orlando for his efforts and his team. Um, and I want to make sure that the the public is understanding that this is this is a joint effort to get us to this point. And I guess I'm I'm going to show my age a little bit here, but I can remember first readings of these budgets. It'd be sort of horse trading going on up here. Um but the the whole effort behind getting us to this point as we can see there very limited questions from those on the dis obviously this is the first time that the public has seen it. So I would expect that there would be questions there that we can spend our time and energy addressing versus time and energy on this dis trying to quote unquote horse trade like I've seen in the past. Um so I I commend you on your your efforts there. Um Mr. Mayor, it looked like one of the first slides showed the median age on Hilton Head coming down just a tick. Okay.

So, I want to plug that and make sure we understand the excitement behind that. Um, obviously there's a lot of discussion around the change with the special revenues being budgeted. Okay. And um, yes, we've seen it a couple times. I think we are getting to some level of comfort with it, but the community, however, I'm not quite sure that they're there yet. Um, so I'm just gently encouraging us to maybe lead with that at workshop so that we get out in front of it, okay, versus trying to explain it along the way. Um, and um, the only other thing that, um, I would add is that, um, Mr. Mr. Land, you didn't spend a whole lot of time with this, but I do appreciate the fact that you're putting your people as a part of a priority in this budget with an increase as well as a study. Okay. Um, Hilton is a great place. Um, the the CIP in particular, I mean, if you you look back a couple years at what our burn rate was and where we are today, I mean, that's because of our people, right? Um, so we have to take care of our people. We have to put them first and foremost. uh we're only as good as the people that are working for this town. So that's important that we keep that um center to our discussion. So again, great job. Thank you.

Thank you, sir, very much. M

um I would again thank you for going through this. I know it was a lot to cover uh a lot of content and I look forward to the workshops where we'll have an opportunity to um you know ask some more questions and um you know be able to educate the public more in regards to to this because it is a lot to consume. Um so I appreciate that and and knowing that um you know we want to ensure that the uh process moves forward um with our first reading here today with the opportunity for further discussion and second reading uh coming up later this month. Thank you Mr. Offford. Any comments? No.

Well again I I think I've said thank you but um I'm impressed. Um, there's a lot of good in here and and Councilman Brown, you're you're right. The budget presentation over the years has evolved into something that is very clear, very transparent. Um, I hope that everyone is paying attention and online and looking it over as well. Um, there are questions that I have. There's new information in a revised. Um, and I think that those for me are going to keep me from giving my approval today, but I look forward to the workshop and further discussions and seeing where we end up at the end. But, um, it has nothing to do with not respecting the process and the work that's been done so far. And, um, lots and lots of good things in here. So, thank you, M.

Bryson.

Yes. Uh, thank you, Mr. Orlando, for the presentation and your staff as well. Well done. Um, always very informative. Lots and lots of detail. I commend that to the public. Uh, for those who like to look at the detail um to to to um study it online. The points that I would make again no millillage increase um same or increased services. I call them additional opportunities and my colleague Mr. Desone remind me that there indeed some additional services provided. Uh again the diverse revenue stream. Uh I would uh point out especially since it's bike month um to the CIP included an exhibit B to the ordinance uh to a continued investment in our pathway program money carried forward and new money as well. Um especially in the Forest Beach area, some pathways that need some attention there. um affiliated agencies, our partners um who work with us. Um especially more funding for Island Wreck um and Coastal Discovery Museum. That's the largest increase that's found in section six of the ordinance. The reserve policy. We just spent some time talking about that exhibit E which has um helped us with our triple AAA I like that triple AAA bond ratings. Um also in the notes um that you have provided us with today that some of the increase in the bond ratings is due to our improved resilience planning which is important because in prior years uh well before this council took its seat. Um there were some comments by rating agencies about not paying attention to resilience that you should be doing. And for that note to say that we have improved our resilience planning which also assisted um with our bond ratings as well as our conservative uh fiscal policy and our reserves. Um so this budget reflects all that. Um and I look forward to more discussion at the workshop and input and

questions from the public. Thank you. Mr. Desmond, any comments? Uh nothing much more additional other than just to reiterate uh this new look is um refreshing and thank you Dave and your girl Nick what's her name? Erica. Erica your girl employee I'm sorry next to you. Thank you very much.

Yeah. All I'm going to add is, you know, you you've provided a a budget that bud the team has provided a budget that um benefits the town, benefits the community, benefits our guests. And um you know, I agree with a lot of the comments over here today. And um again, it has raised to another level, continually raised the bar, the transparency aspect, and I think you know Dave and team has done a wonderful job on that. So that's where we're going and that's what we need to continue to do with everything. So we have a motion on the table by Miss Bryson, seconded by Mr. Desma for consideration of an ordinance adopting the cons consolidated municipal budget for the town of Hilton Head alpha for fiscal year 2027 ending June 30th 2027 with the changes of using the 2027 proposed revised policy exhibit E page 4. Did I get that right Mr. Colchane? Thank you. So all those in favor please signify by raising your right hand. Opposed motion passes six to one. Miss Becker opposed. So next we move on consent agenda n item 9A. Item 9 was approved as a pending doctrine of the first reading on April 7th, 2026. There have been no changes since approval. Is there a motion to approve the consent agenda?

So second. We have a first and a second. Is there anybody signed up to speak on this item? Yes, sir. It looks like Matt Lewis.

Hi Matt Lewis. um five Aelia Street. I just wanted to thank everybody uh especially the the town uh folks that have helped us all the all the town people from the beginning of last year when we started this process. Um we we reached out, they responded quickly. Uh, Miss Becker was was wonderful in helping us and uh, the different committees that have have been uh, hearing this have have all agreed that this is a good thing for our neighborhood. Uh, our neighbors believe it's a good thing for our neighborhood and we totally support it and we hope you do today too. Thank you. Thank you. So, we have a motion.

Mr. Williams. Oh, I'm sorry. I thought we were I'm sorry, Mr. Williams.

Okay. Anybody else? Thank you. So, we have a motion by Miss Becker, second by Miss Bryson for the consideration of an ordinance to amend title 16 of the municipal code for the town of Hilton Head Island management ordinance to amend the overlays zoning district standards for the holiday homes neighborhood character overlay district to include the following. Section 16-3-106 J to modify and add standards related to setbacks, buffers, impervious coverage, floor area ratio, parking, building height, and minimum lot size and provide for severability and effective date. This is the second reading. All those in favor signify by raising your right hand. Opposed as 6 to one, Mr. Brown opposing. Next, we'll move on to new business. We'll have a uh consideration of a resolution the town of Hilton Head Island Town Council approving rental locations proposed by Shore Beach Service for 2026 beach season. This item was discussed in the community service development and public services committee held on February 9th, 2026 and March 9th, 2026. The committee voted to forward the resolution to town council for consideration and approval. Mr. Ben Brown.

Good afternoon, Mr. Mayor, council, Mr. Manager. Each year, the town council, pursuant to the uh non-exclusive franchise agreement between Shore Beach Services, is asked to approve the quantity and locations of all the rental equipment. the chairs and the umbrellas. The resolution in front of you today is the exact same quantity as the 2025 season and almost the same location. There's a very slight shift by the Hilton and the Dunes House in Palter Dunes slightly shifting the equip the rental equipment closer to the Dunes House boardwalk. But this came to committee twice. The reason it came back to committee was based on feedback from folks from the Islands Club. Uh what their question and concern was is they wanted to maintain the same amount of equipment in the exact same location near Islanders Beach as the 2025 season, working closely with staff as well as Shore Beach Services. That's exactly what the resolution in front of you does today. Thank you for your consideration.

Thank you. Do we have a motion to approve? So move. Second first and second. Anybody signed up to speak on this one, Kim? Mr. Williams.

Anybody else? No. Any discussion from council? Okay. Seeing none, we've got a consideration of a resolution of the town of Hilton Allentown Council approving rental locations provided proposed by Shore Beach Services for 2026 beach season. Motion was made by Miss Becker, seconded by Mr. Alfred. All those in favor signify by raising your right hand. So moved 70. Finally, under new business, we have a consideration of a resolution authorizing the town manager to execute and deliver form ABL 956 to the South Carolina Department of Revenue in connection with an application for an alcoholic beverage license filed by New York City NYC shelter LLC DBA Chop House 119. Miss Stone. Mr. Mayor, Town Council, thank you for the opportunity to be here this afternoon. Um, this is an administrative um request from a business owner that uh their license um lapsed between the time that they uh received their first and the the time that this occurred. There was a change in the South Carolina law that requires um that a community with a playground in the area within 300 feet of that business give permission or wave the right to um to require them not to have that license.

Any are there any questions on this? Okay. Do we have a motion? Some move. Is there a second? Anybody signed up to speak on this agenda item? Kim, Mr. Williams, no comment. Oh, I should start saying besides Mr. Williams, right? Comments from council.

I do have a question because I thought I heard two different things. You know, I was surprised that this was coming up uh because this is an established restaurant who has alcohol on their menu. So, I heard you say lapse and then I heard you say new requirements. So, did the the license lapse or does this mean that every time there's a renewal with this new law, we have to do an exception? I'm just trying to understand

a few things. Um, so the uh the business owner's license lapsed in this case and between the time that they got their original license and the time that it lapsed, the South Carolina state law changed and there is a requirement that was put into place that if there's a playground, a church or something else in the vicinity um that the uh the owner of that church or uh playground wave the distance requirement. And so this is the first time that this has come. Um it it could happen again in the event that someone uh you know a restaurant changes hands, bar changes hands, that sort of thing. Um but at this point this is the only one that we have have gotten and um the one that we are reacting to now to um enable the business to continue operations.

Okay. Thank you. That answers that question. Okay. Any other questions or comments? Mr. Yes. I um it's kind of difficult to talk about but um it's my understanding that this is a waiver of uh from the party who owns a playground and that being the town. So I I'm I'm I understand the business. I understand it it's been operating before and selling alcohol. U but because it's a town playground, I'm I'm I'm bothered by this. So, I'm not sure I can support a waiver of the town because we own the playground

in many cases. And in in this one, if I may, um, Mr. Orlando, the uh the uses of that area were laid out in the agreement that was made with the developer at the time that it was um put into place and this was one of the uses that was covered by that. So this is a a very strange situation. Um but because of the new regulation at the state level, it does require us to affirmatively wave that distance requirement.

So let me ask you this. So if there's a new establishment that goes in next door to this, does this mean the town would recommend denial? Um, if there is a new business that has that wants to get a um alcohol beverage license and they're within 300 feet of one of our parking lots, that would be a decision that you all would make. 300 ft of a parking lot or excuse me, of the of the of the business. I don't know what I was thinking of the parking lots for, but although there's others,

the ones that had their license in place prior to the change of state law don't have to go back and get their uh get this waiver from us. If there's a new business or a change in ownership, it's my understanding that at that point there would be um the requirement that we wave the distance requirement and this is authorizing the Yeah, I mean I this could be uh huge especially in a resort community. Um the town owns a lot of property and there are a lot of establishments that would be um it would only be with our playgrounds though. Only the playgrounds.

The playgrounds. Yes, sir. It doesn't it it's not the playgrounds meaning parks. The playgrounds within the park. Unless I have misinterpreted that. Okay. I don't think you have. Thank Thank you. U yes there is a form. Do you have the attachment to form?

So it's defined as play playground not park. I'm sorry. Is it playground not park? Because I'm thinking you got calligy park. It is playground. Playground. Yes. Okay. Remind us what the distance is. 300 ft. 300 ft. And what is the distance between this establishment and our the town's playground? Uh, I'm trying to get it down. Miss Gam, if you could help with us scrolling this down, please.

Okay. Uh, it is uh 300 ft of a playground, church, or school. That was the other one that I um forgot. I do not have the measurement between uh the chop house 119 and the playground, but it is within 300 ft. It's probably pretty close to that. Just I still have to get this. What do you consider the pocket park? Is it a playground? A playground. The pocket park is I would not consider a playground. Is that what you ask? You wouldn't consider it. But who makes that consideration? I think. Huh? The state. The state. So, we have all of our properties delineated as whether they're playgrounds or not.

I think the question is there def is there a definition of a playground that we can rely on. Like I said, this could be you. I have no issue with this. I think those are good questions though. Yeah. What's at Shelvo Park? I mean, there is a playground there, a defined facility that qualifies. So, let me ask you. So, let me hypothetically, and I don't want to belabver this, but let me hypothetically ask you something. Say we put a swing set in at the pocket park and it now becomes a playground. So, every new establishment in Calgney would have to come to the town. Yes, sir. That's my understanding. So, maybe we don't put a a swing in that park.

Just saying. I'm just Mr. Orlando, I think it's important, right? This is a surprise to us because I asked as as I traditionally do when I see something like this that I haven't seen before. I say, "What did we do last time?" And last time it it wasn't needed because this form and this state requirement for a waiver only came to fruition after those businesses were located, including Chop House and including um Poseidon. Poseidon I think more than 300, but then also um French Bakery.

Yes. Um but if you read it personally appeared before me being sworn so on so forth that the above name church playground/school and that such church so this is churches this is playgrounds and schools do not have any objections to the issuance of a liquor by the drink license at the above. So this is new to us. This is this business has been in here been located here before. This is a new form. It's a new state law, state requirement asking us to do this. We've taken a quick look. Um, there aren't that many, we don't have that many playgrounds across the street in in a mixeduse commercial plaza serving liquor by the drink. But this has to be a case-byase basis. We'd have some decisions to make in the future. Move the playground or allow the business or wave the requirement. So, we're just trying to look at this as one. We know it could be it could be scaled, but it's churches. It's I I define the playground as as the obvious definition. Curtis, I I'll lean on Mr. Col Train to see if there's a specific rule. A swing set doesn't always mean playground at least to the state and we can find that. And so we I guess

what I would like to ask is that for further there be further review because one consideration that or concern that comes up is events in the park next to a playground when there's a liquor license. So I just ask that we take a look at that and get back to us down the road. Not looking for any directive right now, but I I believe you're meaning and an on the temporary temporary on the temporary license just to be sure. Island wreck and whomever else serving serving drinks um at an event. Those are we will absolutely read that and get back to you.

Okay. And another question that comes to mind just for further consider review and thought is you had mentioned Angie in your um opening that this that Shelter Cove has within it these types of uses in our agreement. So is there a conflict there if we were if someone were to ever to say no? I'm not inclined to do so, but I'm just asking if that presents a problem somewhere down the line. And it's not a question to be answered now, but just something for thought. The idea of perhaps having to move playgrounds may become very real.

Other questions? Go ahead.

I I certainly have more questions about this. Appears other members of the council do. I wonder if we should put this off till we can get an answer to questions. There's another way to address this. Um at and those of you who know my background, my mom had a daycare center for years. Um you know, I I was a camp counselor. I you know, worked with kids a lot during my life. Um, and and I know there's a reason that the state legislature would say or or the regulatory agency says we don't want to have an alcohol and someone selling alcohol across from a school playground, a church which often has a daycare center or playground. There's a reason for that because children are close by. Um, and and so it's troubling to me. There's a reason for this and I don't want us to just say because it's been there before and we have a playground we have to say yes. I think we ought to really think about this. I'm not prepared to vote in favor of it and my suggestion is we continue this till we can look at more information.

Yeah. So what's what's the business doing right now? I'll answer that. Yeah. They are waiting patiently and probably with some angst to receive their liquor license. I will call it a restatement, but since it lapsed, they had to apply for new for for different reasons. Um it it it lapsed. They they are they are waiting to reopen with the investment that they've made. So I' I'd like to Sorry. They they may be open intermittently. Yeah, I'm I'm not sure. I believe that they serving they have to

comply with they they may be serving food intermittently, but I don't know the logistics of of their business, but I do know that they're not fully operational.

Yeah, I I I'd like to understand the why from the state perspective. However, however, I'm not sure that their why has taken in consideration our conditions. I mean, families come to Hilton Head, they go to Harbortown, and there's a hut right next to the playground that's serving alcohol. I It's just a thing. And to Mr. Desimon's point, in our resort area, that's it's it's a thing. Okay. Um, so you know, I'm okay with getting more information so we can better understand it and I don't know, then we can maybe have a discussion around if this state's legislation is something that we want to bother our delegation about. Okay? Because it's a it's a surprise to a area that is generating a lot of the tax dollars. Okay? So I I I think there's warrant to us having further discussion about it. Um but at the same time I don't want to hold anybody's business up particularly if they've been doing business all along. That's just um

Mr. Orlando I'd like to uh make a recommendation that um after this it gets sent um for discussion to finance administrative committee just for discussions not this particular one but the overall reaching state aspect so that we can get more information and have it come through there. Yes sir. Not the specific, however, not the specific in general generalization. Yes.

And can I add to that discussion for when you're putting together y'all's thoughts and certainly we'll be listening. It says twice in here. I I'm curious as to where it says the town owned. Well, never mind. Never mind. Just it's fine. Just the form says agent. The state law says governing body. It's not the clearest form. I feel like I'm in office form. Yep. Any other questions, comments?

All right. So, we've got a motion by Miss Becker, second by Mr. Desmond for consideration of a resolution authorizing the town manager to execute and deliver form ABL 956 to South Carolina Department of Revenue in connection with the application of alcoholic beverage license filed by NYCP Shelter LLC, DBA, Chop House 119. All those in favor signify by raising your right hand. Opposed. Six to one. Miss Bryson opposes.

Thank you. So next we'll move on to public comment on non-aggenda items. Item section of the public comment section 2-5-70 of the towns code limits each person to one three-minute comment when addressing council. At the end of your three minutes, you're asked to conclude your comments. Please maintain a decorum suitable for the meeting and refrain from using any profane, abusive, or obscene language. If you have any materials you'd like to give the town council, please give them to the town clerk after you are finished speaking. Kim, do we have anybody signed up to speak? We have Mr. Williams. Fortunately, I'll pass. Okay. And we have Mr. Hogland. If you don't mind, I'm gonna set my timer because I can't hear. I don't want to go over my three minutes. Okay.

Uh Skip Hogland, Windmill Harbor. Excuse my hat again. 50-year resident running for honest watchdog mayor. I'm here today because the taxpayers of this town are not getting answers and that needs to change. So, let's get straight to it. Who gave the legal opinion that a tax funds can be used the way they are being used today? Name the lawyers, produced a written opinion, or admit it doesn't exist. Who told this council it was legal to spend taxpayers money on 600,000 to dredge Harbortown, 500,000 for Heritage Golf sponsorship, millions to fund the Chamber of Commerce, and a taxpayer funded legal fees for a private lawsuit by lawyer Greg Alfred. Because if there's no valid legal opinion, then these are not mistakes. These are known violations. Why were multi-year, multi-million dollar DMO chamber contracts approved that violate federal tax laws? South Carolina a tax code, South Carolina constitutional law that clearly prohibits public money being used for private uh purposes uh benefit and profits. Why is a taxfunded chamber and other nonprofit organizations operating like private businesses, selling ads, no business license, generating revenue, tax evasion, and refusing to disclose where this money goes? Where are the full financial records? Where are the profit reports? Where's the transparency required by law? What did town council Why did town officials use tax money to join the chamber and attend the chamber ball party? This is a direct conflict of interest. Public funds should never be used for private memberships. Why are foyer requests violated, denied, and incomplete? Transparency is not optional. It's the law, Mr. Perry. Why are town lawyers drafting and approving illegal contracts that benefit private entities while taxpayers pay for it? Who is overseeing them? Why are the legal fees out of control? The lawyers are

committing malpractice, criminal contract fraud, and they should be sued. This is simple to stop. Follow the money, show the documents, name the people responsible. If you cannot do that, then you are not governing. You are protecting a system that is broken. I'm calling for immediate action, full public disclosure of all financial records, all legal opinions released to the public, independent CPA, City Doge oversight of budgets and year-end audits, a complete review of all a tax and DMO contracts and laws. The taxpayers are watching and this is not going away. Last, Mr. Perry said he saw millions of tax use of receipts and invoices by the chamber with Bill Miles, including in Canada. Where are they, Mr. Perry? This is criminal fraud and Alex Brown must be removed from the finance committee and replaced by a CPA. How will you respond when you and you're under oath and you all go into depositions and risk of criminal perjury? That's where this is headed if you don't fix it. You people have to wake up. You've got to stop it.

Thank you, Mr. Hogland. That's all I have. That's all. Okay, Mr. Orlando, do we have any need to go into executive session? Yes, Mayor Perry. as shown on the town council agenda item 12A um items 1 through 5. Sir, thank you. Do I have a motion to go in executive session? So move. Second. All those in favor signify by raising your right hand. So moved. We're in executive session.

All right. Can I have a motion to come out of executive session? Second. We've got a first and second. All those in favor signify by raising your right hand. We are out of executive session. Mr. Brown, do we have any action? Uh, yes, sir. Uh, I move to approve a resolution authorizing the execution and delivery of a contract for the purchasing of real property containing 83 acres total 51 acres of high ground on US Highway 278 on Hilton 8 Island, South Carolina and the completion of the transaction described in the contract. Have a second on that motion. Second. First and second. Any discussion?

Seeing none. All those in favor signify by raising your right hand. So move 70. Mr. Mayor, I also move to approve a resolution authorizing the execution and delivery of a contract for the purchase of real property containing 1.396 acres and 737 acres of high ground more or less on squab road on Hilton Head Island, South Carolina for the completion of the transaction described in the contract. You have a second. Second. Got a first and a second. Any discussion? I'm just glad we're not p purchasing any low ground today. That's just all I got to say. Exactly. So, no other discussion. All those in favor signify by raising your right hand. So moved. 70. Any other business, Mr. Brown?

That's it, sir. All right. Motion to adjurnn. We're adjourned.