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Hilton Head Island, in June, approved a $74 million budget for this fiscal year that reflects a cautious fiscal attitude while setting aside money for big capital projects in the coming year.
The biggest increase from last year’s budget is almost $13 million, which is set aside for a major renourishment project to repair the eroding area of Port Royal Sound at the heel of the island. The town will also spend $1.7 million on drainage improvements.
The town’s operating budget is not increasing this year, town manager Steve Riley said. While health insurance costs rose over the past year, the town is consolidating expenses and saving on staff costs elsewhere, he said.
As the town works to get a grasp on its budget crunch from the recession, other capital projects and construction plans have been pushed back.
Property tax revenue—the town’s main income source—has slipped from a recent high of $709,000 in 2009 down to $692,000 this year.
The town also expects to spend $18 million paying off debts this year. That number has grown steadily over the years as the town has issued more bonds to pay for projects and buy land. More than $3 million is set aside for road improvements
