Jul 19, 2022 Town of Hilton Head Finance & Administrative Committee

[1. Call to Order]

[00:00:07]

>> TO CALL THE JULY 19TH 2020 TO FINANCE AND ADMINISTRATIVE COMMITTEE MEETING OF THE TOWN OF HILTON HEAD ISLAND TO ORDER PERSONNEL HAVE COMPLIED WITH FOR YOU.

>> YES, SIR, WE HAVE. THANK YOU. WOULD YOU CALL THE ROLL?

CERTAINLY, SIR. MR. BROWN HERE. >> MR. HAWKINS HERE.

[4. Approval of the Minutes]

THANK YOU. CHRISTA COMMITTEE. WE HAVE MINUTES FROM OUR REGULAR MEETING MAY 17TH 2022. ARE THERE ANY ADDITIONS OR DELETIONS MOVE ADOPTION AS WRITTEN? THANK YOU. SECOND SECOND ALL ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I. I OPPOSE THE SAME.

[5. Appearance by Citizens]

>> YES, SIR. WE DO. OUR FIRST OUR ONE AND ONLY CITIZEN IS MR. HOAGLAND. SKIP HOAGLAND. THANK YOU.

YOU'RE WELCOME, SIR. SKIP HOAGLAND, MIDDLE HARBOR. YOU'RE NOT A COMPLIANCE WITH FOIL, MR. TOM H. LENNOX AS CHAIRMAN OF THE FINANCE COMMITTEE, I BELIEVE YOU OWE THE PUBLIC AN EXPLANATION FOR ADVANCING APPROVAL OF HOSPITALITY TAX MONEYS TO THE SOUTH ISLAND DREDGING ASSOCIATION CDO A REGISTERED SOUTH CAROLINA NONPROFIT IF SEEN AS A LEGITIMATE NONPROFIT ENTITY, WHY ARE THEY EXEMPT FROM APPLYING TO THE TOWN FOR FUNDS THROUGH THE EIGHT TAX PROCESS? THERE WAS A CASE FROM THE EARLY 2000S BEFORE THE UNITED STATES DISTRICT COURT INVOLVING THE HARBOR TOWN YACHT BASIN BOAT SLIP AUDIENCE ASSOCIATION DESCRIBED FROM THE FILING BELOW .

IT WOULD APPEAR THESE PRIVATE PROPERTY OWNERS WERE AT ONE TIME FINANCIALLY RESPONSIBLE FOR MAINTAINING THEIR OWN DREDGING. WHAT PROMPTED THE TOWN TO SUDDENLY START FOOTING PART OF THEIR BILL HARBOR TOWN AS A MEMBER OF A NONPROFIT ORGANIZATION CALLED S ISLAND DREDGING ASSOCIATION WHOSE MEMBERS OWN PROPERTY ADJACENT TO NAVIGABLE WATERS ON HILTON HEAD ISLAND SEE THE CONTRACT IT WOULD SELL SAFE HARBOR TO DREDGE CERTAIN MARINAS AND WATERWAYS ADJACENT TO PROPERTY OF ITS MEMBERS INCLUDING HARBOR TOWN MARINA AT WHICH PLAINTIFFS OWN MEMBERS OWN BOTH SLIPS. COUNSEL WAS RECENTLY PUT ON NOTICE VIA EMAIL FROM THE TOWN CONSULTANT LAWYER CLIFF WHERE HE RELATES A SMALL MINORITY OF SEA PONDS PROPERTY OWNERS HAD TRIED TO PASS ON THESE DREDGING CALLS TO THE SEA

PLAN'S OWNERS ATTACHED, ACCORDING TO THIS E-MAIL. >> THE PUBLIC ALREADY CONTRIBUTES TO DREDGING COSTS VIA A PORTION OF SEA PONDS, GATE FEES AND THIS DREDGING PROJECT WILL BENEFIT BONAR COVE CREEK, A PRIOR BORDER DREDGING INITIATIVE FROM EARLY 2000 AND 22 HELMED BY STU ROBSON WHO AS MANY OF YOU KNOW OWNS A HOME AT 27 BONAR PARK AND AS A SITTING BEAUFORT COUNTY COUNCILMAN CLIFF CLOSE BY STATING GENERAL TAXPAYER FUNDS SHOULD NOT BE ALLOCATED TO PROJECTS WITH ENGAGED COMMUNITIES THAT BENEFIT A SMALL BUT VOCAL MINORITY WHO KNOWINGLY PURCHASE EXPENSIVE PROPERTY FRONTING WATERWAYS PRONE TO BLOCKAGE. ACCORDING TO THE TOWN E-MAILS JOSH GRUBER, ONE OF THE PRIMARY DRIVERS OF THIS PUBLIC SUBSIDY TO CEDA WOULD SEEK TO SEAT. HAS GRUBER BEEN IN CONTACT WITH ROBIN ABOUT IT? WE KNOW PRIOR E-MAILS TO ROBIN AND GRUBER COMMIT A CABINET COMMUNICATE PROP PRIVATELY OFTEN FINALLY HASN'T THE TOWN PLACED THEMSELVES SQUARELY IN A LEGAL QUAGMIRE BY APPROVING PUBLIC FUNDING FOR PRIVATE PURPOSES? THAT'S ILLEGAL ACCORDING TO THE SUPREME COURT OF SOUTH CAROLINA.

NOT ONLY IS IT AGAINST THE LAW BUT HOW MANY OTHER GATED COMMUNITIES WILL SEEK THE SAME AMOUNT OF FUNDS AND HOW MANY NONPROFITS WILL SEEK TO ASK THE TOWN DIRECTLY FOR FUNDING AS OPPOSED GOING THROUGH THE TAX PROCESS? MR. ATLANTIC? YOU HAVE A HABIT OF ILLEGALLY ISSUING AND ALLOWING THE LEGAL USE OF TAX FUNDS AND WE'VE GOT MANY EXAMPLES INCLUDING THE CHAMBER OF COMMERCE AND OTHER PRIVATE NONPROFITS I GUESS IS YOUR LAST TERM FOR OFFICE AND IT LOOKS LIKE YOU'RE JUST GOING TO DO AS MUCH AS YOU CAN TO KEEP ROBIN TAXPAYERS LEARN. I THINK YOU REALLY NEED TO BE REMOVED FROM PUBLIC OFFICE STAFFS. CHRISTA, DO WE HAVE ANY OTHER CITIZENS REQUESTING AN

APPEARANCE BEFORE THIS COMMITTEE? >> NO, SIR.

THAT CONCLUDES APPEARANCE BY CITIZENS. THANK YOU.

[Items 6a & 6b]

>> WE HAVE FOUR ITEMS OF NEW BUSINESS. THE FIRST PERTAINS TO IMPACT FEES ASSESSED BY BEAUFORT COUNTY AND WE ARE ASKED TO TAKE ACTION ON TWO QUESTIONS.

THE FIRST IS STAFF RECOMMENDS THIS COMMITTEE RECOMMEND TO CHILD COUNCIL THAT IT AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN IEP A WITH BEAUFORT COUNTY FOR THE CONTINUATION OF A

[00:05:02]

>> MEMBERS OF THE COMMITTEE WANTED TO BRIEF TOUCH ON THE SUBJECT OF SCHOOL IMPACT FEES JUST KIND OF LET YOU KNOW WHERE THAT ISSUE STANDS. IT WAS SOMETHING THAT BEAUFORT COUNTY HAD ADOPTED LAST YEAR IN 2020. AND THEN FOLLOWING ITS ADOPTION THE COUNTY RECEIVED A LAWSUIT FROM I BELIEVE AT LEAST ONE OR MORE RESIDENTIAL DEVELOPERS CHALLENGING PORTIONS OF THE ACTION THAT THEY HAD TAKEN IN RESPONSE TO THAT THE COUNTY RESCINDED ITS ORDINANCE TO PUT IN PLACE. SCHOOL IMPACT FEES.

SO CURRENTLY THERE IS NO REQUEST OF THE TOWN TO TAKE ANY ACTION NOR IS THERE ANY PENDING ACTION BEFORE THE COUNTY WITH REGARDS TO SCHOOL IMPACT FEES. IF YOU HAVE ANY QUESTIONS ON THAT I'LL BE HAPPY TO ANSWER. I WANT TO LET YOU KNOW IN TERMS OF THAT SUBJECT MATTER IT IS EFFECTIVELY DEAD AS FAR AS WE ARE CONCERNED IN TERMS OF HAVING TO TAKE ANY ACTION.

I WOULD LIKE TO NOW KIND OF COVER THE REMAINS IMPACT FEES AND AS THE CHAIRMAN HAD INDICATED THERE ARE SEVERAL WE HAVE HAD A LONG STANDING RELATIONSHIP WITH BEAUFORT COUNTY FOR THE COLLECTION OF SEVERAL DIFFERENT IMPACT FEES.

>> AND IN THE MEMO THAT'S INCLUDED IN YOUR BACKUP, I TRIED TO GO KIND OF FROM LEAST COMPLICATED TO MOST COMPLICATED AND I WILL DO THAT TODAY IN TERMS OF KIND OF PROVIDING A HIGHLIGHT OF THOSE MATTERS. SO THE LEAST COMPLICATED ARE THE LIBRARY IMPACT FEES.

THE TOWN HAS A LIBRARY OF COURSE ON THE NORTH END OF THE ISLAND.

>> IT CONTAINS ITS OWN SERVICE DISTRICT FOR IMPACT FEES WHICH MEANS THAT THE PROJECTS THAT THEY'RE GOING TO DO ARE RELATED TO THAT PARTICULAR PROPERTY. IT'S NOT GOING TO GO TO DO LIBRARIES NORTH OF THE BROAD OR IN OTHER AREAS OF THE COUNTY BASE UPON THE REQUIREMENT WITHIN THE IMPACT FEE ENABLING LEGISLATION THE GOVERNMENT ENTITY THAT PUTS IN PLACE AN IMPACT FEE IS REQUIRED TO UPDATE THOSE FEES PERIODICALLY TO MAKE SURE THAT THE DATA THAT THEY'RE USING IS ACCURATE AND THAT THE FEES THAT ARE BEING CHARGED ARE DIRECTLY RELATED TO THE CAPITAL PROJECTS AND THE ADDITIONAL NEED FOR GROWTH CAPACITY THAT'S BEING CREATED AS PART OF THE IMPACT FEES THEMSELVES. AND SO THE COUNTY THEIR IMPACT FEES HAVE BEEN IN PLACE FOR A SIGNIFICANT PERIOD OF TIME. AND BEGINNING IN 2018 THEY BEGAN THE PROCESS OF CONDUCTING THE STUDIES THAT WOULD THEN BE THE BASIS FOR REVISIONS TO THE IMPACT FEE THAT ARE PENDING BEFORE US. NOW AND ULTIMATELY WITH REGARDS TO LIBRARY IMPACT FEES, WHAT THAT RECOMMENDATION IS IS THAT OUR IMPACT FEES BE UPDATED.

THAT WILL ULTIMATELY REDUCE THE COST OF WHAT IS BEING PAID. AND IT'S OUTLINED IN THE MEMO BUT ESSENTIALLY IT'S GOING FROM RIGHT NOW 553 DOLLARS PER NEW SINGLE FAMILY RESIDENTIAL UNIT AND FIVE HUNDRED AND FIFTY THREE DOLLARS PER NEW MULTIFAMILY HOUSING UNIT IS BEING COLLECTED AT THE TIME THAT A DEVELOPMENT PERMIT IS ISSUED UNDER THE NEW FEE RATE A THERE'S A SLIDING SCALE THAT WOULD BE CREATED BASED UPON SQUARE FOOTAGE OF THE RESIDENCE THAT'S BEING CONSTRUCTED FOR A RESIDENCE THAT IS 1000 SQUARE FEET OR LESS.

IT WOULD BE ONE HUNDRED AND FIFTY ONE DOLLARS ALL THE WAY UP TO A RESIDENTIAL UNIT THAT'S 4000 SQUARE FEET OR MORE PAYING FOUR HUNDRED AND SEVENTEEN DOLLARS.

EITHER WAY IT'S A REDUCTION BASED UPON WHAT THE PRIOR IMPACT FEES WERE AND STILL WOULD BE UTILIZED SPECIFICALLY FOR THE BENEFIT OF THE LIBRARY ON THE ISLAND IN THE MEMORANDUM IT'S REFERENCED THAT STAFF'S RECOMMENDATION TO THE COMMITTEE AND ULTIMATELY IF YOU AGREE TO COUNCIL CURRENTLY OUR INTERGOVERNMENTAL AGREEMENT WITH THE COUNTY SAYS THAT WE WILL COLLECT THAT IMPACT FEE ON THE COUNTY'S BEHALF AND THAT WE WILL REMIT THAT FEE TO THEM ON A QUARTERLY BASIS AND WE ESSENTIALLY RETAIN A 1 PERCENT ADMINISTRATIVE FEE FOR YOU KNOW, KIND OF OUR COSTS ARE INCURRED IN COLLECTING IT ON THEIR BEHALF BECAUSE OF THE RECOMMENDATIONS THAT WE'RE ULTIMATELY GOING TO MAKE WITH REGARDS TO THE TRANSPORTATION

[00:10:02]

FEES HAVE BEEN PAID. >> JOSH FOR CLARITY THE IMPACT FEES ARE PAID BY THE DEVELOPER OF THE PARTICULAR REAL ESTATE. THEY'RE NOT A CONTINUING TAX, CORRECT?

YEAH. TYPICALLY IT'S ON NEW GROWTH. >> NOW IF YOU HAVE AN EXISTING PROPERTY PARTICULARLY COMMERCIAL PROPERTY AND YOU GO FOR SOMETHING THAT IS SAY FIFTEEN HUNDRED SQUARE FEET TO SOMETHING THAT'S 4000 SQUARE FEET YOU MAY HAVE TO PAY UPON THE DIFFERENCE BECAUSE THE LARGER FOOTPRINT WOULD CREATE MORE DEMAND THAN WHAT WAS PREVIOUSLY ALLOCATED FOR. BUT OTHERWISE YES IT'S IT'S ALMOST USUALLY USED ON NEW DEVELOPMENT. MIKE, THANK YOU. SO THE NEXT IMPACT FEE IS PARKS AND RECREATION IMPACT FEES. AND AGAIN THE COUNTY THAT THE COUNTY AND THE TOWN HAVE HAD SOMEWHAT OF A CONVOLUTED HISTORY. WE HAVE HAD A LONGSTANDING AGREEMENT WITH THE COUNTY TO COLLECT PARKS AND RECREATION RECREATION IMPACT FEES.

HOWEVER, THE SERVICE AREA THAT'S CURRENTLY IN PLACE AND THAT WOULD BE PROPOSED REMAIN IN PLACE UNDER THE COUNTY'S PROPOSAL IS ESSENTIALLY ALL OF THE SOUTH OF THE BROAD AREA.

SO IF YOU TAKE THE BROAD RIVER AS A GEOGRAPHIC POINT, ALL OF THOSE AREAS THAT ARE SOUTH OF THE BROAD RIVER ARE WITHIN THIS PARK REACT. PARKS AND RECREATION SERVICE AREA IN THE PRIOR AGREEMENT THAT THE TOWN HAD WITH THE COUNTY THERE WAS EXPLICIT LANGUAGE THAT SAID THE TOWN WOULD COLLECT THE PARKS AND RECREATION IMPACT FEE ON BEHALF OF THE COUNTY BUT WE WOULD RETAIN THOSE FUNDS AND WE WOULD THEN EXPEND THOSE FUNDS FOR THE PARKS THAT ARE LOCATED ON HILTON HEAD ISLAND, THE PARKS THAT ARE ACTUALLY OWNED BY BEAUFORT COUNTY. AND SO IT'S A VERY HYBRID RELATIONSHIP THAT THE COUNTY IS IMPOSING THE IMPACT FEE. WE'RE COLLECTING BUT WE'RE KEEPING IT AND WE'RE EXPANDING IT BECAUSE A LOT OF THE TIMES WE'RE THE ONES DOING MORE OF THE CAPITAL PROJECT PLANNING FOR THOSE PROPERTIES THAN WHAT THE COUNTY DOES. EVEN THOUGH THE COUNTY IS THE

OWNER OF THE PROPERTIES. >> SO RATHER THAN LOOK AT THE UPDATED STUDY AND THE FIGURES AND WHAT WOULD THAT TRANSLATE TO, WE START FROM A POSITION OF THE COUNTIES NOTIFIED US THAT THE LANGUAGE THAT'S IN OUR EXISTING AGREEMENT THAT ALLOWS US TO RETAIN THE FUNDS THAT ARE COLLECTED HERE AND EXPEND THEM HERE, THEY DON'T BELIEVE THAT THAT'S SOMETHING THAT'S ALLOWED UNDER THE NAMING LEGISLATION BECAUSE THE SERVICE AREA COVERS THE ENTIRE SOUTH OF THE BROAD

AREA. >> THEY BELIEVE THAT THE FUNDS COLLECTED EVEN THOUGH THEY COME FROM HILTON HEAD ISLAND SHOULD BE SPENT WITHIN THE ENTIRE SERVICE AREA.

AND SO WE HAD SOME CONCERNS WITH THAT GIVEN WHAT OUR PRIOR RELATIONSHIP WAS AND THE FACT THAT WE BELIEVE THAT THE FUNDS THAT ARE COLLECTED HERE NEEDED TO REMAIN HERE FOR THE BENEFIT OF THE PARKS THAT ARE ON THE ISLAND. SO BECAUSE OF THOSE CONCERNS WHAT WE HAVE BEEN DISCUSSING AND THERE IS A PENDING AGENDA ITEM BEFORE.

COUNCILMAN HARKINS COMMUNITY SERVICES AND PUBLIC SAFETY COMMITTEE FOR MONDAY THE 25TH.

SO A WEEK FROM TODAY WHERE WE WOULD DISCUSS A POTENTIAL LAND SWAP WITH THE COUNTY THERE'S A COUPLE OF PARCELS THAT ARE OWNED BY THE TOWN THAT WE WOULD LOOK AT TRANSFERRING TO THE COUNTY AND IN RETURN THOSE A COUPLE OF PARCELS ARE OWNED BY THE COUNTY.

THAT WOULD BE TRANSFERRED TO THE TOWN SPECIFICALLY SOME OF THE PARKS AND RECREATION PROPERTIES THAT ARE STILL IN THE COUNTY'S NAME. THE THOUGHT IS IF WE FOCUS OUR TIME AND EFFORTS ON ACCOMPLISHING THAT LAND SWAP AND WE ARE ULTIMATELY SUCCESSFUL IN OBTAINING TITLE TO ALL OF THE PARKS AND RECREATION PARCELS THAT ARE ON

THE ISLAND. >> THE TOWN HAS THE LAWFUL AUTHORITY TO DO ITS OWN IMPACT FEE AND WE CAN USE THE INFORMATION FROM THE TISCHLER BY STUDY AS THE BASIS FOR THAT.

BUT WE CAN ESSENTIALLY ACHIEVE THE SAME RESULT WHICH IS IF WE WANTED TO WE COULD COLLECT AN IMPACT FEE FROM DEVELOPMENT OCCURRING HERE ON THE ISLAND AND USE IT FOR THE EXCLUSIVE BENEFIT OF THE PARKS THAT ARE LOCATED ON THE ISLAND. AND SO THE RECOMMENDATION THAT'S BEFORE YOU AND THE STAFF MEMO IS TO DO JUST THAT PURSUE THE LAND SWAP WITH THE COUNTY WHERE WE WOULD RECEIVE TITLE TO THOSE PARCELS AND AFTER WE'VE RECEIVED TITLE TO THE PARCELS WE CAN HAVE A DISCUSSION ABOUT WHETHER THE TOWN WOULD WANT TO CONSIDER IMPOSING ITS OWN PARKS AND RECREATION IMPACT FEE AND NO COUNTY AND NO COUNTY FEE, NO THE LAST FEE IS THE

[00:15:01]

MOVE ON TODAY. >> YEAH ABSOLUTELY. >> PLEASE.

SO YOU SAY IN ALL PARKS CORRECT . JUST SO IF THERE'S JOINT OWNERSHIP BETWEEN US AND THE COUNTY THAT WOULD FALL WITHIN THAT LIST.

YEAH. SO RIGHT. >> RIGHT NOW OUR GOAL WOULD BE TO ELIMINATE ANY KIND OF JOINT OWNERSHIP FOR RECREATIONAL PROPERTIES.

WE WOULD OBTAIN SOLE OWNERSHIP AS THE TOWN AND THAT WAY IF WE PUT IN PLACE AN IMPACT FEE WE

CAN EXPEND THOSE FUNDS JUST ON OUR PROPERTIES. >> AND THE INTERPRETATION OF THE LEGISLATION THE COUNTY THING IS NOT ANYMORE. WE'VE HAD THE SAME

INTERPRETATION OF HOW WE'VE LOOKED AT IT. >> I KNOW THE TOWN ATTORNEYS HERE IN WE'D LIKE TO SPEAK ON THAT IF HE IF HE DESIRES. BUT OUR THOUGHT WAS RATHER THAN CHALLENGE THEM ON THEIR INTERPRETATION IF THIS WAS SUCCESS WELL THEN WE WOULD ACCOMPLISH THE SAME OBJECTIVE WITHOUT NECESSARILY HAVING TO HAVE THAT FIGHT OVER WHETHER OR

NOT THEIR INTERPRETATION IS OR IS NOT CORRECT. >> SO WHAT IS WAS THE STATUS OF THE CURRENT IMPACT PHASE WITHOUT ANY CHANGES BEING MADE HERE TODAY AND WITH THE CURRENT OWNERSHIP? WE'RE JUST KIND OF IN A LIMBO OF WHERE WE ARE NOW.

SO ENDING APPROVAL OF THE TRANSFER WHICH DEGREE I ASSUME HAS A GOOD CHANCE OF PASSAGE?

>> YEP. SO WE'VE HAD IMPACT FEES IN PLACE FOR SUBSTANTIAL AT LEAST SINCE THE LATE 90S. WE'VE HAD IMPACT FEES IN PLACE BUT BECAUSE THE TIMING HAS GOTTEN SO STALE THE COUNTY HAS BASICALLY SAID WE'RE EITHER GOING TO UPDATE THESE FEES WITH NEW INFORMATION OR WE'RE GOING TO RESCIND THESE FEES AND WE'RE NOT GOING TO COLLECT THEM.

BUT THAT I WOULD SAY THE WOULD PROBABLY NOT CONTINUE WITH THE STATUS QUO OF THE CURRENT FEES . THEY'RE GONNA DO ONE OR THE OTHER AND THAT'S WHERE THEY'VE ASKED US THAT PREPARED A RECOMMENDATION. THEY'VE PREPARED A REPORT.

IF WE WOULD WANT TO AGREE TO WHAT WE CAN TO GO ALONG WITH THE UPDATED INFORMATION.

BUT AGAIN BECAUSE OF THE CONCERNS ABOUT COLLECTING THE FEES FROM DEVELOPMENT ON THE ISLAND AND SPENDING THOSE FEES FOR IMPROVEMENTS OFF THE ISLAND ,WE'RE NOT RECOMMENDING THAT PATH AT THIS TIME. I THINK IT'D BE GREAT IF WE CAN GET ALL OF THE PARKS THAT ARE ON THE ISLAND TO BE OWNED BY THE ISLAND SO THAT WE MAINTAIN THEM TO OUR STANDARD.

>> ABSOLUTELY. AND OBVIOUSLY THESE ISSUES ARE NOT MUTUALLY EXCLUSIVE OF EACH OTHER IF WE GO DOWN THAT PATH AND WE'RE SUCCESSFUL GREAT. THAT SOLVES THIS THIS ISSUE.

IF WE GO DOWN THAT PATH AND WE'RE NOT SUCCESSFUL, WE CAN ALWAYS COME BACK TO THIS TOUR AND THE FACT THAT THEY'RE HAPPENING FAIRLY CONTEMPORANEOUSLY WITH EACH OTHER MEANS THERE SHOULDN'T BE ANY ISSUES WITH THAT. SO IT'S SET IN ANOTHER WAY.

IF THE COUNTY PROCEEDED THE WAY THEY'VE SHARED THEN WE HAVE THE POTENTIAL OF A DILUTION

OF REVENUE. >> THAT'S OUR CONCERN. YES.

AND YOU KNOW THEIR ARGUMENT AND THIS DOES I THINK RESONATE MORE WITH THE TRANSPORTATION IMPACT FEES THAN IT DOES IN PARKS AND REC AND RECREATION. THEIR POINT IS THE RESIDENTS OF HILTON HEAD ISLAND HAVE THE USE AND ENJOYMENT OF RECREATIONAL FACILITIES THAT ARE OFF THE ISLAND AND OUR COUNTER THAT WAS YES. WHILE THEY MAY HAVE THAT USE, THEY DON'T MAKE A LOT OF USE OF THOSE FACILITIES WE TYPICALLY HAVE HERE WHAT MEETS THEIR NEEDS AND SO THAT'S WHY WE WANT TO FOCUS ON KEEPING THOSE FUNDING HERE FOR THOSE PROPERTIES BECAUSE THEN THE RECREATIONAL PROPERTIES THAT ARE IN BLUFFTON AND IN THE UNINCORPORATED PORTIONS OF THE COUNTY WE DON'T BELIEVE ARE HEAVILY UTILIZED BY HILTON HEAD RESIDENTS. THANK YOU. ALL RIGHT.

IN TERMS OF TRANSPORTATION IMPACT FEES, AGAIN WE'VE HAD A LONGSTANDING INTERGOVERNMENTAL AGREEMENT WITH BEAUFORT COUNTY TO COLLECT TRANSPORTATION IMPACT FEES AND THOSE FEES HAVE BEEN HISTORICALLY SPENT ON INFRASTRUCTURE PROJECTS THAT ARE LOCATED BOTH ON THE ISLAND

AND OFF THE ISLAND. >> AND PART OF THE JUSTIFICATION WITH THAT IS WHILE WE DON'T NECESSARILY USE THE RECREATIONAL AMENITIES, IT'S HARD TO ARGUE THAT HILTON HEAD ISLAND RESIDENTS DON'T USE THE ROADWAYS THAT ARE LOCATED OFF THE ISLAND BECAUSE ESSENTIALLY YOU HAVE TO USE THOSE TO BE ABLE TO GET HERE. AND SO THAT'S PART OF WHERE OUR RELATIONSHIP EXISTS NOW IS THAT THOSE FEES ARE COLLECTED BOTH ON THE ISLAND AND OFF THE ISLAND. AND THEN AS INFRASTRUCTURE PROJECTS COME UP WITH IN THE ENTIRE SOUTH OF THE BROAD AREA ,THOSE FEES ARE USED TO HELP PAY FOR THOSE PROJECTS.

AND AGAIN WHAT'S DRIVING THIS IS THE NEED TO UPDATE THOSE FEES.

PART OF OUR CONCERN WHEN WE LOOKED UPDATING THOSE FEES IS A COUPLE OF DIFFERENT DIFFICULT DECISIONS. ONE, IF YOU TAKE ALL OF THE SEA IP PROJECTS THAT ARE IDENTIFIED

[00:20:04]

THAT NUMBER GROWS TO BE A VERY SIGNIFICANT NUMBER. AND SO WHEN YOU LOOK AT THAT APPORTIONING THAT ON A PER NEW RESIDENTIAL OR MULTI-FAMILY UNIT BASIS, THAT NUMBER BECOMES FAIRLY SIGNIFICANT. SO ONE WE HAD A CONCERN WITH THAT JUST BECAUSE IN THE AGGREGATE IT WOULD BE DIFFICULT I THINK TO JUSTIFY THAT LARGE OF AN INCREASE IN THE IMPACT FEES. BUT THE ALTERNATIVE IS THEN YOU HAVE TO RANK AND PRIORITIZE WHICH PROJECTS WILL GO INTO THAT LIST AND WHICH PROJECTS WON'T GO INTO THAT LIST.

AND OBVIOUSLY THAT CAN BE A VERY COMPLICATED PROCESS. SO KNOWING WHERE WE'RE AT WITH THIS KNOWING THE COUNTY'S DESIRE TO UPDATE THE IMPACT FEES BUT TO DO SO IN A TIMELY MANNER WE CAME UP WITH A SUGGESTION OF RATHER THAN AGREEING TO THE IMPACT FEES THAT THE COUNTY HAS PROPOSED. WHAT WE WOULD DO IS AGREE THAT WE WILL NOT ISSUE A DEVELOPMENT

PERMIT UNLESS THE COUNTIES IMPACT FEES HAVE BEEN PAID. >> AND AGAIN THOSE SERVICE AREAS COVER BOTH NOR ARE BOTH ON THE ISLAND AND OFF THE ISLAND.

>> AND SO IN THE VOLUMINOUS AMOUNT OF MATERIALS THAT WERE IN YOUR BACKUP TODAY THERE WAS A SPREADSHEET THAT LISTED WHAT THOSE PROJECTS WERE. AND YOU CAN SEE THAT IT'S A FAIRLY HEALTHY BALANCE IN MANY DIFFERENT AREAS. SO WHERE THAT WOULD LEAVE US IS BASICALLY AGREEING THAT WE WILL SAY YOU MR. DEVELOPER, YOU NEED TO GO PAY THE COUNTY THE IMPACT FEES THAT THEY'VE ADOPTED. AND ONCE YOU'VE SHOWN US THAT RECEIPT, WE WILL THEN ISSUE A DEVELOPMENT PERMIT. BUT WE WOULD NOT BE AN ACTUAL PART OF THE IMPACT FEE PROCESS ITSELF AS WE WOULD NOT SIGN INTO AN IJA FOR THAT PURPOSE. AND I CAN TELL YOU THAT THE TOWN OF BLUFFTON APPEARS TO BE GOING IN THAT SAME DIRECTION AS WELL AND THEY'VE ALREADY INTRODUCED THIS AND KIND OF HAD AN INITIAL ROUND OF DISCUSSIONS ABOUT IMPLEMENTING THIS PARTICULAR SOLUTION. AND AGAIN I GO BACK TO THE FIRST IMPACT FEES BECAUSE WE'RE RECOMMENDING THIS FOR TRANSPORTATION IMPACT FEES. IT DIDN'T MAKE SENSE TO US THAT WE WOULD TELL SOMEBODY YOU NEED TO GO TO THE COUNTY TO PAY THE TRANSPORTATION IMPACT FEES BUT YOU STILL NEED TO COME TO US TO PAY THE LIBRARY FEES AND POTENTIALLY A PARKS AND RECREATION FEE. SO WHY DON'T WE JUST HAVE YOU GO TO ONE PLACE AND PAY THE LIBRARY FEES AND THE TRANSPORTATION FEES. SO THAT IS WHY YOU HAVE THE RECOMMENDATION BEFORE YOU TODAY. QUESTION HAPPY TO ANSWER ANY

QUESTIONS? >> SO ADMINISTRATIVELY IT'S A LOT CLEANER.

IT IS THE ONE CONCERN I HAVE IS HAS THIS CONCEPT BEEN VETTED WITH THE COUNTY?

>> AND DO THEY INDICATE THAT THEY WILL GO ALONG WITH IT? YES.

THIS HAS BEEN DISCUSSED DIRECTLY WITH REPRESENTATIVES BOTH STAFF AND POLICYMAKERS WITH THE COUNTY. WE HAVE JOINT MEETINGS WITH MR. GREENWAY AND MR. PERSIMMON.

THEY ARE SUPPORTIVE OF THAT. ULTIMATELY THEIR CONCERN IS THE THE REALM OF IMPACT FEES

APPEARS TO BE RIPE FOR LITIGATION AT THIS TIME. >> ARE THERE SOME FOLKS WITHIN THE STATE THAT ARE KIND OF TURNING THAT INTO A COTTAGE INDUSTRY GOING AROUND IN DIFFERENT COUNTIES AND FILING CLASS ACTION LAWSUITS BECAUSE OF CONCERNS ABOUT THESE ISSUES? AND SO FOR THE COUNTY'S PURPOSES THEY EITHER WANT TO UPDATE THE STUDY WHICH THEY'VE BEEN WORKING ON AGAIN SINCE THEY COMMISSIONED IT IN 2018 AND THEY'VE HAD THE DATA SINCE 2019. THEY EITHER WANT TO ADOPT IT AND MOVE ON WITH IT OR THEY

WANT TO RESCIND IT AND GO AHEAD AND WALK AWAY FROM IT. >> THAT'S GOOD.

MY SECOND CONCERN IS THE NUTS AND BOLTS OF PROVING THAT THE FEE HAS BEEN PAID TO THE COUNTY. WELL, WHAT WOULD BE ACCEPTABLE? SO WE WOULD WORK WITH THE COUNTY DIRECTLY ON THAT EITHER IT'S A RECEIPT IN A CERTAIN FORMAT PRODUCED BY THE COUNTY OR BETTER YET WHAT WE'VE ACTUALLY TALKED WITH HIM ABOUT IS IF THEY CAN CREATE A PORTAL WHERE SOMEBODY CAN GO ONLINE AND PAY RATHER THAN HAVING TO GO INTO A PHYSICAL BUILDING TO GET A RECEIPT THAT WE COULD THEN RECEIVE SOME KIND OF CONFIRMATION DIRECTLY FROM THE COUNTY SYSTEM THAT SUCH AND SUCH PERMIT WAS PAID AND THAT WAY AND WE'RE NOT HAVING TO

RELY UPON THE APPLICANT. >> WE'RE GETTING SOMETHING DIRECTLY FROM THE COUNTY THAT CONFIRMS THIS IS WHAT WAS PAID. THAT'S MORE OF AN ADMINISTRATIVE MATTER FOR STAFF

TO HANDLE. >> BUT WE DO NEED TO HAVE SOME CLEAR METHOD OF CONFIRMING THAT THOSE THINGS HAPPEN. ABSOLUTELY. THANK YOU.

FIRST A SECOND WOULD COUNCILMAN STAND FOR TO SAY IN AS FAR AS THE PROCESS IS CONCERNED WE CONTINUE TO GET BETTER IN OUR BEING OPEN FOR BUSINESS AND BEING VERY EXPEDIA IN OUR BUSINESS AND WITH THE NEED FOR SOME REDEVELOPMENT TO HAPPEN ON HILTON HEAD.

I JUST DON'T WANT THE REPUTATION TO BE THAT IT'S A PAIN TO PAY SOME FEES AND MOVE

[00:25:06]

STUDY AND THE PRICES THAT CAME OUT OF IT? >> I DON'T BELIEVE WE DID HAVE ANY INVOLVEMENT THE FIRST TIME AROUND. I BELIEVE IT WAS EXCLUSIVELY WITH THE COUNTY BECAUSE WHAT THEY WERE UPDATING WERE THE COUNTIES IMPACT FEES.

THE TOWN DOES HAVE ITS OWN IMPACT. WE HAVE A TRANSPORTATION IMPACT FEE. AND SO WHEN IT GETS TO THE POINT THAT WE'LL NEED TO UPDATE THAT WE WILL BE RESPONSIBLE FOR IT. BUT I DON'T BELIEVE WE HAD THE INVOLVEMENT BUT THE CALCULATIONS THAT WERE PERFORMED THEY ARE SOMEWHAT CONTROLLED BY STATUTE BECAUSE THE ELEMENTS WITHIN THERE HAVE TO BE LOOKED AT IN TERMS OF GROWTH CAPACITY ANTICIPATED INFRASTRUCTURE NEEDS YOUR CFP PROJECTS AND THEN IMPACTS TO AFFORDABLE HOUSING. SO ALL OF THOSE THINGS ARE REQUIREMENTS WITHIN THE ENABLING LEGISLATION THAT THEN HAVE TO TRANSLATE INTO YOUR STUDY DOCUMENT.

ALL RIGHT. AND AS FAR AS THE NEXT TIME THAT WILL BE A STUDY DONE, IS THAT BY STATUTE OR IS THAT JUST DEPENDING UPON THE COUNTY'S DESIRE?

>> IT IS BY STATUTE AND THAT'S WHERE THE COUNTY IS SIGNIFICANTLY BEYOND WHAT THE STATUTE REQUIRES WHICH IS AGAIN DRIVING THE CONCERN THAT WE ACT EXPEDITIOUSLY.

>> OK. AND WHEN WILL THEY HAVE TO DO IT AGAIN?

>> I WANT TO SAY IT'S EVERY SEVEN YEARS AND I CAN GET CONFIRMATION FOR THAT FROM THE STATUTE BUT I BELIEVE IT'S EVERY SEVEN YEARS IT HAS TO BE UPDATED.

ALL RIGHT. THANK YOU. THANK YOU.

NO, NO, EXCUSE ME. THE PRESENTATION ON THE THREE IMPACT FEES MAKE A LOT OF SENSE TO ME. I THINK IT'S GETTING STREAMLINED AND I'M SUPPORTIVE . JOSH, THE CURRENT IMPACT FEE COLLECTION AT THE COUNTY LEVEL.

I ASSUME THOSE FUNDS ARE POOLED AND THEN ALLOCATED GIVEN THE CIA PAYS SOME OF THE AREAS

CORRECT. >> ESPECIALLY THE TRANSPORTATION IMPACT FEES THOSE ARE COLLECTED BY US REMITTED TO THE COUNTY ON A QUARTERLY BASIS AND THEN THEY'RE POOLED FOR THE ENTIRE SOUTH OF THE BROAD SERVICE AREA.

AND THEN THEY'RE TRACKED WITHIN THE COUNTY'S FINANCIAL DOCUMENTS BY THOSE SEPARATE SERVICE AREAS THE LIBRARY IMPACT FEE BECAUSE HILTON HEAD IS ITS OWN SERVICE AREA, IT IS SEGREGATED TO JUST THAT PARTICULAR LOCATION. AND AGAIN THE PARKS AND RECREATION FEES WE'RE CURRENTLY RETAINING AND THEN EXPANDING ON THOSE PROPERTIES.

SO YES, AND NO. >> AND AS IT PERTAINS TO THE SECOND QUESTION OF TRANSFER OF TITLE OF THE BEAUFORT COUNTY OWNED PARKS, THOSE FEES WOULD BE RETAINED BY THE TOWN

YESTERDAY. >> ULTIMATELY AFTER THE TRANSFER IS DONE, ANY FEES THAT WE HAVE WOULD REMAIN WITH US AND WE WOULD BASICALLY FINALIZE EXPENDING THOSE ON THOSE PROPERTIES THE COLLECTION OF NEW FEES THAT WOULD BE FOR A QUESTION FOR COUNCIL ABOUT DO WE WANT TO USE THAT AS A POTENTIAL FUNDING SOURCE FOR PARKS BUT WE WOULD PUT THAT IN PLACE VIA OUR OWN ORDINANCE RATHER THAN USING THE COUNTY ORDINANCE AND AN

INTERGOVERNMENTAL AGREEMENT. >> OKAY. >> THANK YOU.

I'D LIKE TO MOVE TOWARD ACTION ON THE TWO QUESTIONS THE MOTION AND ONCE WE HAVE A MOTION IN

PLACE I'LL TAKE COMMENT FROM THE PUBLIC. >> FIRST QUESTION IS THAT WE RECOMMEND TO TOWN COUNCIL THAT IT AUTHORIZED THE TOWN MANAGER TO ENTER INTO AN IGAD WITH BEAUFORT COUNTY FOR THE CONTINUED COLLECTION OF LIBRARY AND TRANSPORT STATION IMPACT FEES SO MOVED. SECOND, ANY DISCUSSION OR COMMENTS FROM THE PUBLIC IF THERE ARE NONE? CHRISTA WOULD YOU CALL THE ROLL? YES, SIR. MR. BROWN SUPPORT MR. HAWKINS? YES, MR. SANFORD.

WELL, THE MOTION, MR. LENNOX. YES. MOTION CARRIES, SIR.

THANK YOU. THE SECOND QUESTION IS THAT IN LIEU OF CONTINUING DISCUSSIONS WITH THE COUNTY PERTAINING TO THE COLLECTION OF PARKS AND RECREATION IMPACT FEES, THIS COMMITTEE RECOMMENDS THE TOWN COUNCIL THAT FOCUS ITS EFFORTS ON THE TRANSFER OF CERTAIN PARCELS FROM BEAUFORT COUNTY TO THE TOWN OF HILTON HEAD ISLAND MOVED TO SUPPORT THAT.

[00:30:08]

>> GOT ANY PUBLIC COMMENT? IF THERE ARE NONE. CHRIS, PLEASE CALL THE ROLL.

>> YES, SIR. MR. BROWN SUPPORT MR. HERRICK? YES.

MR. STANFORD. YES, MR. LEONARD. YES.

MOTION CARRIES. THANK YOU. THANK YOU.

RUSH DID WE DISCUSS ANYTHING FURTHER ON. BEAUFORT COUNTY IMPACT FEES?

[6c. Consideration of a Resolution Approving the Five-Year Consolidated (2020- 2024) Substantial Amendment as Required by the U.S. Department of Housing and Urban Development (HUD) for Participation in the Community Development Block Grant (CDBG) Entitlement Program]

>> NEXT ITEM UNDER NEW BUSINESS IS THE CONSIDERATION OF A RESOLUTION APPROVING THE FIVE YEAR CONSOLIDATED SUBSTANTIAL AMENDMENT AS REQUIRED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. MORE COMMONLY REFERRED TO AS HUD FOR PARTICIPATE IN THE COMMUNITY DEVELOPMENT BLOCK GRANT ENTITLEMENT PROGRAM. MARCY.

THIS IS YOUR DOMAIN. YES. THANK YOU.

FOR THE RECORD, MY NAME IS MARCY BENSON, SENIOR GRANTS ADMINISTRATOR FOR THE TOWN.

AND BEFORE YOU TODAY AS A STAFF RECOMMENDATION FOR THE COMMITTEE TO FORWARD A RECOMMENDATION TO TOWN COUNCIL FOR APPROVAL BY RESOLUTION OF A SUBSTANTIAL AMENDMENT TO THE TOWN'S 2020 THROUGH 2024 FIVE YEAR CONSOLIDATED PLAN IN 2020 HUD ACCEPTED THE TOWN'S FIVE YEAR CONSOLIDATED PLAN WHICH INCLUDED THE 2020 CTG FUNDS AND THE FIRST AND THIRD ROUNDS OF CTG COVERED FUNDS. ALSO REFERRED TO AS CDO G C V FUNDS LITTLE TONGUE TWISTER ON MAY 13TH THIS YEAR HUD ISSUED NOTIFICATION OF A REALLOCATION TO THE TOWN OF CTG CV FUNDS IN THE AMOUNTS OF APPROXIMATELY ONE HUNDRED TWO THOUSAND DOLLARS.

THESE FUNDS BECAME AVAILABLE WHEN OTHER CTG GRANTEES DID NOT APPLY FOR OR DECLINED THEIR REWARDS. THE REAL LACK REALLOCATED FUNDS WERE MADE AVAILABLE TO GRANTEES WHO DEMONSTRATED THE CAPACITY TO QUICKLY EXPAND THE CDC FUNDS AND GRANTEES ELIGIBLE FOR THE REALLOCATE OKATIE FUNDS WERE LIMITED TO THOSE THAT EXPENDED NINETY PERCENT OR MORE OF THEIR CTG CV FUNDS BY JANUARY 4TH OF THIS YEAR. SO IN ORDER TO ACCEPT THIS REALLOCATION HUD REQUIRES THAT THE FIVE YEAR CONSOLIDATED PLAN BE AMENDED TO INCLUDE THIS NEW AMOUNT OF FUNDING. AS OF THE END OF JUNE THIS YEAR THE COMMUNITY FOUNDATION OF THE LOW COUNTRY HAS DISTRIBUTED APPROXIMATELY 730000 DOLLARS OF THE 2020 CTG FUND'S TO 16 PUBLIC SERVICE ORGANIZATIONS AND IN ACCORDANCE WITH THE CDC G.

ADMINISTRATIVE SERVICES SPENDING LIMITS. THERE IS A PROC.

THERE WAS APPROXIMATELY 38 THOUSAND DOLLARS OF THE 2020 CTG AND C.D. BGC V FUNDS THAT WERE DISTRIBUTED FOR ADMINISTRATIVE SERVICES. THE COMMUNITY FOUNDATION OF THE LOW COUNTRY HAS ACKNOWLEDGED THAT 2 PERCENT OF THE REALLOCATION AMOUNT OR APPROXIMATELY 2000 DOLLARS IS SUFFICIENT TO CARRY OUT THE ADMINISTRATIVE SERVICES FOR THE RIBAUT REALLOCATE CTG FUNDS AND THE TOWN'S CITIZEN PARTICIPATE .

PLAN GUIDES THE DEVELOPMENT OF OR CHANGES TO THE CONSOLIDATED FIVE YEAR PLAN AND DEFINES A SUBSTANTIAL AMENDMENT AS WHEN ACTIVITY FEES ARE ADDED DELETE IT OR SUBSTANTIALLY CHANGED IN TERMS OF PURPOSE, SCOPE, LOCATION OR BENEFICIAL SERIES.

THEREFORE THIS SUBSTANTIAL AMENDMENT WHICH PROPOSES APPROXIMATELY ONE HUNDRED AND TWO THOUSAND DOLLARS IN CTG COVE FUNDING TO ADDRESS PREVENTION AND PREPARATION OR END RECOVERY EFFORTS RELATED TO COVE IN NINETEEN DOES MAKE THIS A SUBSTANTIAL AMENDMENTS.

THE DRAFT OF THE FIVE YEAR PLAN SUBSTANTIAL AMENDMENT WAS RELEASED TO THE PUBLIC ON JUNE 30TH. THERE WAS ALSO A PUBLIC MEETING HELD THAT DAY.

THERE WERE NO PUBLIC COMMENTS RECEIVED. THERE IS A SUMMARY REFLECTING THESE RESULTS AND THAT'S INCLUDED IN THE AMENDED PLAN AND UPON SUBMISSION OF THE AMENDED PLAN HUD WILL REVIEW IT AND IF SATISFACTORY AND ACCEPTANCE NOTICE WILL BE ISSUED AND A REVISED GRANT AGREEMENT WILL ALSO BE ISSUED FOR SIGNATURES BETWEEN THE TOWN

[00:35:01]

HAVE. >> THANK YOU, MARCY. COMMITTEE WHAT ARE YOUR QUESTIONS AND COMMENTS? I'M HAPPY TO RECEIVE ANOTHER HUNDRED AND TWO THOUSAND DOLLARS FOR THIS BENEFICIAL PROGRAM AND I APPRECIATE YOUR SUCCINCT PRESENTATION.

THANK YOU. YES, THANK YOU. THANK YOU AGAIN FOR ALL YOUR HARD WORK. THERE'S ALWAYS A LOT OF MATERIAL DETAILED WHAT YOU PRESENT. THANK YOU FOR BEING ABLE TO PULL IT TOGETHER VERY CONCISELY FOR US. NOW AS I WAS REVIEWING THIS AND NOTICED THAT WE'RE RECEIVING MORE FUNDS BECAUSE ULTIMATELY OTHERS EITHER DIDN'T QUALIFY OR DIDN'T ASK.

RIGHT. AND I KNOW THAT WE'VE BEEN KEENLY FOCUSED ON CVG AS A FUNDING SOURCE AND WE ARE WE ABLE TO GET THESE FUNDS BECAUSE OF OUR CENSUS TRACTS.

RIGHT. SO I'M JUST CURIOUS NOT THAT IS GERMANE TO OUR ACTION TODAY BUT IN THE FUTURE IF YOU COULD TO THIS COMMITTEE PROVIDE US MAYBE WITH SOME OTHER GRANTS THAT MAY BE OUT THERE THAT WOULD SERVE THE PURPOSE OF ENHANCING THESE AREAS.

OK. I HAD A PLEASURE OF DELVING INTO A ENVIRONMENTAL PROTECTION AGENCY ROUNDTABLE. I THINK THERE'S A COUPLE WEEKS AGO BUT THERE WAS A LOT OF TALK FROM INSTITUTIONS AND AGENCIES ABOUT MONEYS THAT OUT THERE THAT COULD FLOW INTO COMMUNITIES. SO I THINK THAT WE CAN DO A LITTLE BIT MORE SCRATCHING THE SURFACE ON THIS AND SEE IF THERE'S SOME OTHER OPPORTUNITY FOR US.

IF YOU COULD KIND GIVE US A LIST OF WHAT'S OUT THERE. WELL, WE HAVE NOT BEEN ABLE TO TAP INTO AND MAYBE THERE'S SOME OPPORTUNITY FOR US TO MAKE SOME MOVES AT A POLICY LEVEL IN

ORDER TO GET YOU TO THE POINT WHERE YOU COULD TAP IN TO US. >> NICE.

ABSOLUTELY. THANK YOU. >> THANK YOU.

MARCI, SUPPORT THE DIRECTION. THANK YOU. MARCI, WOULD YOU MAKE A COMMENT ON THE RELATIONSHIP THAT THE TOWN HAS ESTABLISHED WITH THE COMMUNITY FOUNDATION OF THE LOW

COUNTRY AS IT PERTAINS TO GRANT APPLICATIONS AND GRANT AWARDS? >> CHECK BACK IN 2020 THE TOWN STARTED A COLLABORATION WITH THE COMMUNITY FOUNDATION OF THE LOW COUNTRIES SPECIFICALLY FOR THE CTG COVE IT FUNDS AND OVER THE COURSE OF THE LAST FEW YEARS I'VE WORKED HAND IN HAND WITH THEIR STAFF. THEIR STAFF AND AND COMMITTEE HANDLE THE VETTING OF THE APPLICATIONS THAT COME IN BUT THEY ARE BASED ON THE REQUIREMENTS THAT HUD HAS SET FORTH FOR US. AS FAR AS INCOME LIMITS AND THAT TYPE OF INFORMATION AND THEN BASED ON THAT RELATIONSHIP WHEN THE TOWN RECEIVED ITS ARPA FUNDS WE'VE SET UP A SIMILAR PROGRAM TO BENEFIT LOW TO MODERATE INCOME RESIDENTS WITH ARPA FUNDS.

SO THEY'RE VERY SIMILAR PROJECTS BUT THE POTS OF MONEY ARE COMING FROM FROM DIFFERENT SOURCES. THE CTG FUNDS ARE A LITTLE BIT MORE PARTICULAR BECAUSE I HAVE VERY, VERY SPECIFIC REPORTING REQUIREMENTS TO HIDE WHERE THE ARPA FUNDS ALTHOUGH WE HAVE REPORTING REQUIREMENTS THAT GOES TO THE U.S. DEPARTMENT OF TREASURY.

SO I WORK PRETTY REGULARLY LEE WITH THE STAFF AT THE COMMUNITY FOUNDATION.

>> AND ARE YOU SATISFIED TODAY? >> VERY MUCH. THINK WE HAVE A VERY GOOD RELATIONSHIP? YES. GOOD TO HEAR.

MARSHALL, YOU NEED THIS COMMITTEE TO MOVE ON A RESOLUTION APPROVING THIS FIVE

YEAR CONSOLIDATED PLAN. >> YES. IS THERE A MOTION TO APPROVE THE RESOLUTION AND FORWARD IT TO TOWN COUNCIL SO MOVED SECOND ,ANY COMMENTS FROM THE PUBLIC?

>> IF THERE ARE NONE. CHRISTA, PLEASE CALL THE RURAL BROWN SUPPORT MR HARKINS YES.

>> MR. STAMPER. YES. MR. LENNOX YES.

SOCIAL KERRY. THANK YOU, MR. JOHN TROYER. >> WELCOME BACK.

[6d. Town of Hilton Head Island Financial Update]

YOUR REPORT IS ON THE 11 MONTH MAY 30TH END OF THE TOWN FINANCIAL STATEMENTS.

YES, IT IS. >> FOR THOSE OF YOU IN ATTENDANCE WE HAVE BEEN HAVING DRAWN REPORT TO THIS COMMITTEE ON A MONTHLY BASIS SINCE SINCE COVE IT REALLY HIT.

AND THE PURPOSE OF THIS REPORT IS TO ESTABLISH TRENDS BOTH FAVORABLE AND UNFAVORABLE AS

[00:40:11]

AND I WOULD ADD ALSO I SERVE ON THE COMMITTEE WITH THE COMMUNITY FOUNDATION TO EVALUATE GRANT APPLICATIONS AND WE ARE SCHEDULED FOR THE NEXT. THE NEXT SET OF GRANT APPLICATIONS ARE OPEN NOW. AND SO IF ANY AGENCY ARE INTERESTED IN APPLYING FOR THOSE, THE APPLICATIONS ARE AVAILABLE AND WE WILL EVALUATE STARTING ON AUGUST 11TH.

SO THAT NEXT SET WILL BE NO, WE'RE JUST HAPPY AS CAN BE WITH THAT PROCESS.

OKAY. ELEVEN MONTHS IN OK AGAIN TOWN COUNCIL TWO PREVIOUS ACTION TO BUILD RESERVED VERSUS HIGH REVENUE STREAMS INVEST IN THE ISLAND.

ALL OF THESE THINGS CONTINUE TO BENEFIT THE TOWN AND CONTINUE TO HELP THE TOWN HAVE RESILIENCE WHEN WHETHER IT'S A STORM OR WHETHER IT'S COVERED TO TO THRIVE IN THE MIDST OF DIFFICULT CIRCUMSTANCES. IT'S ALL MAY PRELIMINARY RESULTS AS THE CHAIRMAN SAID THIS IS ELEVEN MONTHS IN ELEVEN OUT OF 12 AND SO WE ARE GETTING CLOSE TO THE END MAY. YOU CAN SEE THESE ARE GENERAL FUND REVENUES.

MAY IS NOT A BIG COLLECTION MONTH BUT WE DID HAVE HIGHER COLLECTION IN MAY 2022 THAN THE LAST THREE YEARS. AND FOR THE YEAR TO DATE WE ARE 9 11 MONTHS GREATER THAN LAST YEAR. WE'RE HAPPY TO REPORT THAT OUR REVENUE STRENGTH CONTINUES.

AGAIN, WE'RE CONTINUING TO EXCEED THE LAST THREE YEARS. THIS IS YEAR TO DATE REVENUES AND SO YEAR COLLECTIONS. ELEVEN MONTHS IN WE'VE COLLECTED 41 MILLION.

OUR BUDGET IS 44. AND SO WE'RE WELL ON TRACK TO MEET AND EXCEED THE BUDGET FOR 2020. JUNE IS A BIG COLLECTIVE MONTH .

AND SO THE WAY THAT WE RECORD REVENUES IT'S TO BE DUE FOR JUNE 30TH AND IT'S GONNA BE OFFICIALLY OWED AND JUNE 30TH. IT'S GOT TO BE MEASURABLE AND IT'S GONNA BE AVAILABLE AND AVAILABLE. WE MEASURE THAT THROUGH TO WE RECEIVE THAT BY JULY 30 FIRST.

AND SO EVERYTHING THROUGH JULY 30 FIRST THAT RELATES TO JUNE 30.

WE WILL CONTINUE TO POST. WE'VE GOT ANOTHER ELEVEN DAYS OR 12 DAYS TO GO THAT WE WILL CONTINUE TO POST JUNE ACTIVITY . BUT JUNE YOU CAN SEE IS A BIG MONTH. THAT'S A QUARTERLY REPORTING MONTH FOR A NUMBER OF DIFFERENT REVENUES. AND SO JUNE IS ALWAYS A SIGNIFICANT MONTH FOR COLLECTION. PROPERTY TAXES WERE ALREADY THERE AND SO WE CAN WE DON'T HAVE A LOT TO GO. IN JUNE AND WE DON'T NEED IT. AND SO WE CAN SAY THAT WE'VE COLLECTED WHAT WE ANTICIPATED AND COUNTED ON FOR 20 22 PROPERTY TAXES WERE 60 MILLION ONE FOR GENERAL FUND. WELL, WE'LL COLLECT A LITTLE BIT MORE HERE IN JUNE AND SO THAT'S COMING UP. BUT WE'RE ALMOST FULLY COLLECTED AND AGAIN WE'VE EXCEEDED IN THE LAST THREE YEARS COMFORTABLY. LOOK AT OUR REVENUES.

ELEVEN MONTHS IN AND SO SOME OF THIS SEASONAL VARIATION IS OUT.

TIFF CONTINUES TO WORK WELL AT 8 PERCENT UP LOCAL TAX CONTINUES VERY STRONG AT 35 PERCENT UP STATE A TAX VERY STRONG 35 PERCENT UP REAL ESTATE TRANSFER FEE LAST YEAR 2021 WAS A RECORD YEAR AND SO WE'RE ONLY ONE AND A HALF PERCENT BEHIND A RECORD YEAR.

AND SO WE ARE VERY PLEASED WITH THAT. H TAX AT 30 PERCENT.

BEACH PRESERVATION FEE 35 PERCENT UP ELECTRIC FRANCHISE FEE WE'VE HAD SOME COMMUNICATIONS WITH OUR FRIENDS AT PALMETTO ELECTRIC AND THERE'S A SEASONAL ASPECT OF IT. THERE'S WEATHER ASPECT OF IT. AND SO WE'RE JUST A LITTLE BIT BEHIND BUT THAT HAPPENS AND THEY EXPECTED THAT AND OUR NUMBERS DID NOT SURPRISE THEM AT ALL. ROAD USAGE FEE WE PAUSED ON OUR COLLECTIONS AND SO THIS STOPPED EARLIER IN THE YEAR STORM WATER WERE ALMOST FULLY COLLECTED AND IT'S VERY, VERY STABLE AND SO ARE OUR STORMWATER NUMBERS ARE WHAT WE WOULD EXPECT PROPERTY TAXES WE TALKED ABOUT BUSINESS LICENSES. JUNE IS STILL A BIG MONTH FOR BUSINESS LICENSES SO WE CAN SAY WE'RE 29 PERCENT UP THIS YEAR BUT JUNE WILL BE SIGNIFICANT AND SO IT'LL BE INTERESTING TO SEE HOW THOSE FINAL NUMBERS COME IN. EMERGENCY MANAGEMENT OUR AMBULANCE FEES EIGHT POINT SEVEN PERCENT UP AND SO THAT'S A MEASURE OF ACTIVITY AT THE

[00:45:03]

CAN WE INTERRUPT YOU, DAN, AS WE GO INTO THIS LIVES YOU WANT TO WAIT TO LAY IN FOR QUESTIONS NO LESS. INTERRUPT ME PLEASE. OKAY.

THANK YOU. SO A COUPLE NOTES ON THE BUSINESS LICENSE.

WE WERE SHOWING A DAY AGO ALMOST A 30 PERCENT INCREASE THERE.

WOULD YOU SAY THAT THAT'S BECAUSE OF THE CHANGE IN THE LEGISLATION AS TO WHY WE ARE SEEING THAT INCREASE OR IS THAT RELATED TO THE INCREASE OF REVENUE BY THE BUSINESSES? IT'S PRIMARILY THE INCREASED OF THE BUSINESSES, REVENUE OF THE BUSINESSES WILL GET ANOTHER SLIDE LATER ON THAT WILL SHOW A LITTLE BIT MORE INFORMATION.

ONE OF THE THINGS THAT WE'RE STILL LOOKING AT IS HOW MUCH OF THAT IS A TIMING ASPECT AND SO BUSINESSES HAVE A CHOICE. DO THEY WANT TO PAY MONTHLY OR THEY WANT TO PAY QUARTERLY AND SO IT DOESN'T HAVE TO BE CONSISTENT FROM YEAR. AND SO I THINK WE'LL HAVE A MORE FULL PICTURE ONCE WE GET THE JULY REVENUES IN THAT WILL. I HAVE A LITTLE BIT MORE

INFORMATION LATER. >> OKAY. AND HOPEFULLY WE'LL COVER THIS LATER. BUT I WANT TO GET IT OFF MY HEAD BEFORE I FORGET IT.

THE OPTION TO BE MONTHLY OR QUARTERLY IS THAT PROVIDED TO A BRAND NEW BUSINESS THAT IS ASKED TO ESTIMATE THEIR REVENUE AHEAD OF TIME. YES.

ALL RIGHT. THANK YOU. AND JOHN.

JOHN, SINCE WE JUST CAME OUT OF A DISCUSSION ABOUT COUNTY IMPACT FEES, THE LAST LINE IS PERMIT REVENUE AND WE'VE SEEN A CONSISTENT DECREASE I THINK IN THE NUMBER OF PERMITS THAT HAVE BEEN ISSUED. SO WE'RE BECOMING A LESS SIGNIFICANT PLAYER IN THE WORLD

OF COUNTY IMPACT FEES. >> YES. AND SO THAT'S I THINK WOULD BE A GOOD DISCUSSION FOR ANOTHER DAY TO TALK ABOUT THE PERMITS THAT WE KEEP BECAUSE WE DO HAVE SEPARATE FUNDS FOR THOSE AND JUST KIND OF GO THROUGH THE ACTIVITY THAT'S RELATED TO THOSE PERMITS AND THEN THE BEAUFORT COUNTY WE COLLECT ON THEIR BEHALF AND REMIT TO THEM.

THAT'S A DIFFERENT THING. SO I THINK YES THAT LIKE TO MR. HARKINS POINT THIS IS

STREAMLINING ON THE ROAD USAGE FEE. >> I RECALL THE REASONS THAT WE SUSPENDED IT BUT IT LOOKS LIKE THE LEGISLATURE HAS GONE FULL CIRCLE AND POSSIBLY OPEN THAT UP. IT PROBABLY IS A QUESTION FOR LEGAL ADVICE TO COME FORWARD.

BUT I THINK WE OUGHT TO LOOK AT THE EFFECTS OF THE NEW LEGISLATION THAT CAME DOWN AT THE END OF THE SESSION ON THE ROAD USAGE FEE. I'M NOT ASKING FOR AN ANSWER RIGHT NOW. I'M JUST POSING THE QUESTION. YES, THANK YOU.

I THINK THAT'S MOST CERTAINLY WORTH A LOOK IN TERMS OF THE PERMANENT FEES TO IF WE COULD ENCOURAGE MORE REPURPOSING MORE RENOVATION THAT COULD HELP A LOT WITH BERNANKE'S.

ABSOLUTELY. OKAY. COMPARISONS ARE MORE MEANINGFUL THIS COMPARES MADE THROUGH THE FISCAL YEAR OF 2020 1 AND SO WERE 77 MILLION COLLECTED COMPARED TO LAST YEAR 86 MILLION. SO EIGHTY NINE PERCENT AND SO ALL OF THESE ARE VERY FAVORABLE AND WE'LL SEE EVEN A COUPLE OF THEM ARE ALREADY OVER 100 PERCENT. AND SO WE'RE LOOKING FOR A STRONG JUNE AS WELL LAST MONTH.

>> AND JUST IT SHOWS THAT MAY WAS A LITTLE BIT WAS NOT A HIGH COLLECTION TRADITIONALLY AND SO WE WENT FROM EIGHTY FIVE PERCENT COLLECTED 89 8 IN THE MONTH OF MAY.

SO WE'RE MAKING PROGRESS. JUNE IS A BETTER MONTH. 90 PERCENT COLLECTED.

WE'RE FEELING GOOD. WE WON'T STOP AT LAST YEAR'S 86 MILLION.

AND SO OUR EXPECTATIONS WE'LL SEE WHAT THE NUMBERS ARE NEXT MONTH WE'LL BE ABLE TO REPORT BACK REAL ESTATE TRANSFER FEE YOU CAN SEE THROUGH THE ELEVEN MONTHS WE HAVE A VERY CONSISTENT MESSAGE IS THAT WE'RE SUBSTANTIALLY MORE THAN 20 20 BUT NOT QUITE AS HIGH AS 20 21 COLLECTIONS AND THAT'S BEEN A CONSISTENT MESSAGE THROUGHOUT THE YEAR.

AND SO WE CAN SEE OUR 2021 IS THE HIGHEST AND WE ARE SLIGHTLY BEHIND THIS YEAR IN THE 20 22

[00:50:08]

THE FUTURE OF THESE TRANSACTIONS. >> HOW MUCH OF AN IMPACT THAT WILL HAVE ON REAL ESTATE TRANSACTIONS. AND SO IT'S COMING UP ALSO AND THIS IS SIMILAR TO ANOTHER OTHER REVENUES IS JUNE IS A VERY IMPORTANT MONTH AND SO

WE'VE GOT 11 MONTHS AND YOU CAN LOOK AT LAST YEAR. >> LAST YEAR'S COLLECTION IN JUNE WAS THE BEST OF THE BEST OF 20 21. AND SO WE'LL SEE HOW OUR NUMBERS COMPARE. WE'LL HAVE IT SAME BUSINESS LICENSES A LITTLE BIT OF THIS.

WE'VE GOT LOCAL BUSINESS LICENSE AND WE HAVE SOME STATE COLLECTED AND MAY I SEE BUSINESS LICENSE REVENUE AND WE ALSO HAVE A LITTLE BIT OF TRANSPORTATION REVENUE.

I THINK WE SHOULD JUST TALK ABOUT THE FIRST TWO AND I THINK THIS SPEAKS A LITTLE BIT TO ALEX'S QUESTION HOW MUCH OF THIS IS RELATED TO OUR CHANGES IN THE MODEL ORDINANCE VERSUS HOW MUCH OF THIS IS DUE TO CHANGES IN ACTIVITY? AND I THINK BECAUSE THE THE LOCAL BUSINESS IS UP 30 PERCENT IN THE STATE BUSINESS IS UP 25 PERCENT.

I THINK YOU'RE SEEING THAT DIFFERENCE IS PROBABLY MORE IN TUNE WITH HOW MUCH THE MODEL ORDINANCE ADDED TO THE CHANGE IN ACTIVITY. AND SO WE'LL HAVE A LITTLE BIT MORE OF THIS DYNAMIC, A MORE COMPLETE PICTURE WITH THE JUNE NUMBERS.

BUT I THINK YOU'LL SEE I THINK THOSE NUMBERS WILL BE AN INDICATOR OF HOW MUCH THAT CHANGE IN THE ORDINANCE CAME BACK INTO OUR REVENUES. I HOPE THAT'S HELPFUL BUSINESS LICENSES IN THIS SLIDE JUST SHOWS A THERE IS ANOTHER THREE POINT SEVEN MILLION COLLECTED IN JUNE OF LAST YEAR ON JUNE IS A VERY IMPORTANT COLLECTION MONTH AND SO WE CAN LOOK AT YEAR TO DATE THROUGH MAY BUT WE NEED JUNE TO GET THE FULL PICTURE.

>> JOHN ONE DOES THE CHANGE IN SHORT TERM RENTAL BUSINESS LICENSE TAKE EFFECT REQUIRING A SINGLE PROPERTY OWNER TO PAY A BUSINESS LICENSE FEE IS JANUARY 1ST.

AND SO IT WAS JANUARY 1ST 2022. SO WE STARTED THIS CALENDAR YEAR.

SO THAT'S CHANGED INTO THESE NUMBERS AS WELL. YES, YES.

>> DID YOU EXPLAIN TO US WHY THE STATE IN A SC THESE ARE DOWN 59 PERCENT.

>> THIS IS JUST THE FIRST COLUMN AS YEAR TO DATE. SO IT'S ELEVEN MONTHS IN THE SECOND COLUMN IS ALL 12 MONTHS OF LAST YEAR. AND SO WHAT THIS SHOWS FOR THE STATE IS THAT THERE IS LARGE COLLECTIONS IN JUNE AND SO WHEN I'M JUST TRYING TO SHOW IN THIS SLIDE IS THAT JUNE IS REALLY IMPORTANT AND WE NEED IN JUNE TO GET A FULL PICTURE AND SO IT'S IT'S LESS THAN A FULL YEAR COLLECTION BECAUSE THERE WAS ONLY 11 MONTHS IN JUNE AND A

LARGE COLLECTION MONTH. >> SO WHAT WE'RE SAYING IS THAT BUSINESSES WAIT UNTIL JUNE TO

PAY THEIR BUSINESS LICENSE. >> BY. YES.

YES. FOR THE LOCAL AND YES, THE STATE WAITS UNTIL JUNE AND THEN WE WE GET SOME COLLECTIONS IN JULY THAT RELATE TO JUNE AND SO ALL OF THAT HAPPENS AND THOSE DYNAMICS HAPPEN WHICH WE NEED ALL OF THESE COLLECTIONS COME IN SO THAT WE CAN GIVE YOU A BETTER OR MORE COMPLETE PICTURE. JOHN, JUST TO HELP ME MY MEMORY HERE I KNOW WHAT WE WILL DISCUSS IN THE ADOPTION OF THE LICENSE FEES ALIGNING THERE WERE SOME STIPULATIONS AROUND WINDFALLS. WOULD IT BE ANY PENALTIES IF WE

OVER A CERTAIN PERCENTAGE? >> NO. WHAT'S THE RATE STUDY? WHY IS THE RATE STUDY WAS BASED ON THE PREVIOUS YEARS AND SO WE HAD A NEUTRAL SAY STANCE WITH THE CHANGE IN THE BUSINESS LICENSE CATEGORIES THE DIFFERENT CATEGORIES THAT THE BUSINESSES REPORTED TO AND WITH THE MODEL ORDINANCE CHANGED A NUMBER OF DIFFERENT CATEGORIES OF BUSINESSES REPORTED TO AND THOSE RATES WERE SLIGHTLY DIFFERENT IN THE DIFFERENT CATEGORIES. AND SO WE OUR STUDY THAT'S WE WENT BY THE INSTRUCTION FROM MSE. WE DID THE STUDY BASED ON THE MOST RECENT FOR FISCAL YEAR AND WE MADE IT COME OUT EVEN. AND SO THAT WAS ALL WE DON'T HAVE TO REEVALUATE IF WE ARE I

[00:55:07]

I GUESS WHERE I'M GOING IS ARE WE FREE AND CLEAR OF HAVING TO GO BACK AND REEVALUATE OUR

RATES? >> WE ARE THERE'S NOTHING TO PREVENT US FROM DOING THAT BUT WE DON'T HAVE TO EXPENDITURE SPENDING BY MONTH. YOU CAN LOOK OUR MAIN NUMBERS ARE SLIGHTLY LESS THAN WHAT OUR AVERAGE WAS FOR THE YEAR AND SO WE CAN LOOK AT THAT AS A FAVORABLE MAY EXPENDITURE. BUT YOU CAN ALSO SEE JUNE WE HAVE WE CHANGE MOST OF OUR REPORTING IS ON A CASH BASIS THROUGH MAY BUT AT JUNE WE CONVERT TO AN ACCRUAL BASIS AND SO WE'RE A MUCH MORE TRADITIONAL ACCOUNTING PRESENTATION WITH JUNE AND THAT SHOWS THAT OUR SHOWS UP IS HIGHER EXPENSES IN JUNE AND SO WE TRUE UP EVERYTHING AND WE BOOK EVERYTHING AND SO WHAT WE'VE ASKED OUR DEPARTMENTS TO DO IS TURN IN ALL THEIR BILLS BY THE END OF JULY SO THAT WE CAN GET THOSE POSTED AND WE'LL HAVE OUR JUNE NUMBERS HERE

COMING UP SOON INTO AUGUST. >> AND SO JUNE IS TRADITIONALLY JUST A THERE'S MORE EXPENDITURES THAT FALL INTO THE JUNE BUCKET YEAR TO DATE. WE'RE A LITTLE BIT MORE TWO POINT SIX PERCENT THAN LAST YEAR. WE'RE PRETTY CONSISTENT OR CONSISTENT WITH OUR BUDGET. WE'RE AT EIGHTY TWO POINT FIVE PERCENT OF OUR BUDGET AND SO WE'RE WE'RE ON TRACK BUT WE'RE ALSO I THINK YOU'LL SEE IN THE NEXT SLIDE.

OKAY. MAYBE NOT TWO POINTS SIX MORE THAN LAST YEAR.

WE'VE GOT A DIFFERENT THAT WE'VE GOT A LITTLE DIFFERENT MIX OF WHERE PEOPLE ARE A LITTLE DIFFERENT MIX OF WHERE SOME EXPENSES ARE BUT OVERALL A TWO POINT SIX PERCENT INCREASE IN THE PRIOR YEAR DATE. THIS IS MORE I WANTED TO TALK A LITTLE BIT WE ARE 82 PERCENT SPENT EIGHTY TWO AND A HALF PERCENT SPENT THROUGH THE END OF MAY AND LAST YEAR WE WERE EIGHTY POINT EIGHT PERCENT SPENT THROUGH THE END OF MAY AND US AND A COUPLE OF THINGS THAT DRIVE THAT IS ONE OUR BUDGETS ARE A LITTLE BIT TIGHTER THEN.

SO WE'RE SHOWING A LITTLE BIT HIGHER PERCENTAGE AND ALSO WE ARE VERY PURPOSEFUL.

YEAR AGO WE WERE HOLDING BACK A LITTLE BIT JUST BECAUSE OF NERVOUSNESS FOR THE COVE IT THIS YEAR WE HAVE BEEN MORE MAKE SURE THAT WE GO AND DO WHAT'S BEEN ANTICIPATED IN THE BUDGET. AND SO WHAT THAT WILL MEAN IS THAT THERE WILL HAVE A HIGHER UTILIZATION OF OUR BUDGET WHEN ALL IS REPORTED TEMPORARY USE OF THE RESERVES.

WE'RE LOOKING GOOD IF YOU JUST LOOK AT THAT BOTTOM LINE FOUR POINT SIX MILLION TO THE GOOD YEAR TO DATE THROUGH MAY COMPARED TO ONE POINT SEVEN MILLION YEAR TO DATE MAY 20 21 . SO THAT'S GOOD BUT IT'S PRELIMINARY AND SO BECAUSE JUNE IS SO IMPORTANT THAT WE DON'T WANT TO HANG OUR HAT TOO MUCH ON THIS BUT WE CAN SAY HOW ARE WE DOING THROUGH MAY? WE'RE DOING VERY WELL ALL FOUR YEARS SHOWED A DEFICIT IN MAY.

>> SO IT JUST ONE MONTH IN THE MIX AND YOU CAN SEE THERE'S ANY ONE MONTH MIGHT BE UP OR DOWN AND SO IT'LL BE INTERESTING TO SEE WHERE OUR JUNE COMES IN. THIS ONE I THINK IS WORTH TALKING ABOUT AND YOU CAN SEE 2020 TO THE GREEN LINE HAS BEEN CONSISTENTLY BETTER THAN THE LAST THREE YEARS ALL YEAR LONG. AND SO AS WE GO INTO OUR ONE OF OUR MOST IMPORTANT MONTHS, JUNE, WE'RE POSITIONED WELL THAT WE SHOULD PUT SOME MONEY BACK INTO THE GENERAL FUND.

AND SO THE LAST COUPLE OF YEARS THE LAST THREE YEARS YOU CAN SEE THERE WAS A REALLY STRONG JUNE COLLECTIONS. AND SO THAT HELPED AT THE END OF THE YEAR WE HOPE TO HAVE SOMETHING SIMILAR. WE WANT A STRONG JUNE COLLECTION SO OUR EXPECTATIONS

ARE HIGH AND WE HOPE TO REPORT SOME GOOD NEWS . >> BHP MAY AGAIN A VERY SIMILAR STORY MORE THAN LAST TWO YEARS. MAY IS NOT A BIG COLLECTION MONTH BUT WE CONTINUE THE SAME TREND. GREEN IS 20 20 TO HIGHER THAN THE LAST COUPLE OF YEARS AND SO WE'RE AN IMPORTANT REVENUE AND IT CONTINUES TO DO WELL. HOSPITALITY SIMILAR MAY IS BETTER THAN LAST COUPLE OF YEARS AND WE CONTINUE TO DO BETTER THAN THE LAST TWO YEARS FOR HOSPITALITY STORM WATER. WE HAVE ALMOST ALL OF THE STORMWATER REVENUE COLLECTED

[01:00:04]

STORMWATER IN THE FUTURE. >> BUT IF YOU LOOK AT OUR STORMWATER FIXED ASSETS FROM JUNE 30TH 2021, OUR COST OF WHAT'S ON THE BOOKS IS TWENTY SIX MILLION DOLLARS ACCUMULATED DEPRECIATION IS TWELVE POINT SEVEN MILLION. OUR NET BOOK VALUE IS THIRTEEN POINT THREE. AND SO MANY OF THESE STORMWATER IMPROVEMENTS ARE DEPRECIATED OVER TWENTY FIVE YEARS AND SO BASICALLY WE'RE 12 YEARS IN 13 YEARS TO GO AND SELL OUT.

>> I PUT ANOTHER LITTLE NOTE HERE TOO ON OUR DEPRECIATION IS A LITTLE BIT OVER A MILLION YEAR AND WE TRIED TO TIE THAT TO OUR PRINCIPAL PAYMENTS AND SO FROM A CASH FLOW BASIS WE KIND OF TRADE DEPRECIATION FOR PRINCIPAL AND IT KIND OF HELPS WITH THE CASH PLANNING.

JOHN, DOES THE DEPRECIATION, THE BOOKKEEPING DEPRECIATE NATION TRACK FAIRLY WELL WITH THE REALITY OF THE SYSTEM OF THE WEAR AND TEAR OF THE SYSTEM?

>> I THINK WE NEED OUR STORMWATER PEOPLE TO TALK ABOUT THAT.

BUT TOM, THEY DO SPEND THERE'S A CERTAIN AMOUNT THAT WE CAPITALIZE EACH YEAR AND THIS IS NEW AND DIFFERENT THAN THERE'S MOST OF THE ACTIVITY IS RELATED TO MAINTENANCE AND SO THAT'S ABOUT KEEPING THE SYSTEM IN GOOD OPERATING ORDER. AND SO I THINK THAT'S WHAT WE WANT OUR STORMWATER PEOPLE TO TALK ABOUT AND TALK ABOUT HOW THEY MEASURE THAT, HOW THEY DETERMINE THE PRIORITIES OF THE PROJECTS. I THINK THAT WOULD BE A REALLY HEALTHY DISCUSSION REVENUE DIVERSITY AND WE ALSO HAD A QUESTION LAST MONTH, COUNCILMAN

STANFORD, WHAT ARE WE GOING TO DO IF WE HAVE A RECESSION? >> AND SO WE WE NEED TO THINK THAT WAY. I REALLY HOPE FOR THE BEST BUT PLAN FOR THE WORST.

AND SO WHAT WOULD WHAT DO WE DO WITH THE RECESSION? WE'VE GOT THESE DIFFERENT REVENUE ITEMS AND THEY'RE DIFFERENT ECONOMIC DRIVERS AND SO THAT HELPS GIVE SOME CHRISTIAN AND GIVES US SOME DIVERSITY IN OUR REVENUE COLLECTIONS AND THAT HELPS IF ANY ONE REVENUE ITEM MIGHT BE IN MIGHT BE BAD OR A BAD COLLECTION.

WE'VE GOT OTHER OPTIONS TO GO TO. SO THIS THIS HELPS TO OFFSET REVENUE. ANOTHER THING I WANTED TO TALK ABOUT IS HOW DO YOU MANAGE TO A RECESSION IF YOU JUST LOOK AT THIS PIE CHART OF OUR BUDGET, OUR DEBT SERVICE IS FIXED.

WE HAVE TO PAY IT OUR GENERAL FUND, OUR BASIC TOWN OPERATIONS .

TOM COUNCIL DOES HAVE A TOP MANAGEMENT HAS THE OPTION IF THEY NEEDED TO.

IF A RECESSION WERE TO COME TO KIND OF PACE OUR CAPITAL PROJECT, THAT MIGHT BE ONE OF OUR FIRST MOVES AND WE WOULD CERTAINLY TIGHTEN UP OUR OPERATING COSTS WHATEVER WE COULD. BUT WE COULD ALSO HELP TO OFFSET ANY KIND STATIONARY FROM THE REVENUE SIDE WITH PACING OUR CAPITAL PROJECTS. AND SO THIS I THINK IS SOMETHING THAT SHOULD GIVE TIME COVER . AND WE DID THAT THE LAST RECESSION THAT WE HAD WAS SECOND QUARTER OF 2012 AND THAT'S WHEN YOU WENT TO THE CAPITAL PROJECTS AND PUT A PAUSE IN PLACE AND THAT'S REALLY ONE OF THE REASONS THIS 45 MILLION IS UP THERE. WE'RE TRYING TO CATCH UP WITH WHAT WE PAUSED IN 2020.

YEAH. WE STILL THINK THESE INVESTMENTS ARE GOOD FOR THE ISLAND. WE WE WANT TO BE THE LEADER AND INVEST IN IRELAND AND HOPE THAT PRIVATE INVESTORS WILL FOLLOW. AND SO WE WE WANT TO BE FULL SPEED AHEAD.

BUT IF WE HAD TO WE COULD PACE THESE. >> IT'S GOOD THAT YOU SHOWED US THE DIVERSITY OF THE REVENUE SOURCES. I THINK IT WOULD BE VERY INTERESTING TO SEE WHAT HAPPENED IN A PREVIOUS RECESSION ON THOSE VARIOUS CATEGORIES, HOW MUCH THEY WERE IMPACTED SO THAT WE COULD PLAN FOR THE POTENTIALS OF AN IMPACT OF A NEW RECESSION. I THINK THAT WOULD BE A REALLY INTERESTING LOOK.

>> YES, FOR FUTURE MEETINGS. THANK YOU. SO OUR KEY ISSUES STAY THE

[01:05:07]

PEOPLE ARE GOING AND DOING AND EXECUTING THE BUDGET. THE TOWN COUNCIL HAS ADOPTED IT SO THAT WE HAVE ANY QUESTIONS COMMITTEE. WHAT ARE YOUR COMMENTS OR QUESTIONS? JOHN, GIVEN THE POSSIBILITY OF A RECESSION OR A SLIGHT TURN DOWN, EITHER THE RATING AGENCIES CALL CALLING YOU ASKING HOW THINGS ARE GOING

MORE THAN USUAL? >> NO. AND THAT'S THAT'S BEEN AN INTERESTING CAUSE THAT AT THE VERY START OF THE COVE AND WE WERE THE FIRST JURISDICTION THE MOODY'S CALLED AND WANTED TO KNOW HOW WE WERE GOING TO MANAGE THROUGH THE COVE IT AND WHAT THE IMPACT OF COVERED WOULD HAVE ON A ECONOMIC GREEN ECONOMY THAT IS BASED ON TOURISM. AND THAT THEY WERE CONCERNED. AND SO WITH THE LAST MEETING THAT WE HAD IT'S BEEN A COUPLE OF MONTHS WITH A MOODY'S AGENCY.

THEY WERE 100 PERCENT SATISFIED AND TOOK AWAY THE CREDIT WATCH AND AND THEY THEY SANG OUR PRAISES AND SO WE HAVEN'T HAD FURTHER COMMUNICATION WITH THEM.

I'M THEY'RE GOING TO BE AND WE ALWAYS HAVE. ONCE WE GET OUR ANNUAL REPORT AND THEY ALWAYS DELVE INTO THOSE AND WE ALWAYS HAVE DISCUSSIONS WITH THE RATING AGENCIES ABOUT THOSE AND THEN WE DON'T HAVE ANY DEBT ISSUANCE AS PLANNED AND THAT'S NORMALLY WHERE WE HAVE ANOTHER CONVERSATION WITH THE RATING AGENCIES.

SO WE DON'T HAVE THAT ON THE BOOKS BECAUSE THERE'S WE'RE JUST PAYING DEBTS AND NOT

ISSUING DATA AT. NOW THANK YOU. >> YEAH, JOHN.

THANKS FOR GOING THROUGH THESE SLIDES AND FAIRLY QUICKLY I'M STILL TRYING TO GET MY HEAD WRAPPED AROUND SOME OF IT. SO WE'RE ACTUALLY A VERY DIRECT QUESTION WITH WITH JUNE BEING SO IMPORTANT TO US ON THE REVENUE SIDE AND ALSO AS WE WENT THROUGH THE EXPENDITURE SIDE. A LOT OF THE EXPENSES IT SEEMS AS IF WE'RE EITHER 80 TO 90 PERCENT THERE. RIGHT. BUT GOT 20 PERCENT OR 10 PERCENT THE GOAL IN IT BEING SUCH A BIG NUMBER. I'M JUST CURIOUS TO KNOW WHERE YOU THINK WE'RE GOING TO LAND AT THE END TODAY OUR EXPENSES VERSUS THE REVENUE.

ARE WE GONNA BE AHEAD OR SLIGHTLY BEHIND? WE'RE GOING TO BE AHEAD.

OKAY. WE'RE GOING TO BE HAND WE'RE GOING TO ADD MONEY TO THE GENERAL FUND BALANCE THIS YEAR. OKAY. AND SO I THINK IT'S JUST A MATTER OF , YOU KNOW, WHAT IS THAT AMOUNT AND YOU KNOW, TOWN COUNCIL THIS YEAR VOTED TO INCREASE THE RESERVE POLICY. AND SO I THINK ADDING TO THE FUND BALANCE THIS YEAR IT WORKS VERY WELL WITH THAT NEW POLICY AND WE'LL TALK ABOUT THE AMOUNTS HERE IN VERY SOON.

SO THANK YOU, JOHN. >> I'M VERY PLEASED WITH THE POSITIVE VARIANCES AND WE'RE

COUNTING ON YOU TO KEEP THOSE UP. >> THANK YOU, JOHN.

>> ARE THERE ANY UNFAVORABLE TRENDS THROUGHOUT ELEVEN MONTHS ? NO. I THINK WHAT WE'RE SEEING IS AND SPEAK TO COUNCILMAN BROWN'S QUESTION IS THAT WERE MORE COMPLETE UTILIZATION OF THE BUDGET.

AND SO THERE'S WHAT IS TURNED BACK OR WE CALL TURN BACK OF BUDGET EXPENDED IS GOING DOWN WITH TIGHTER BUDGETS. BUT WHAT WE'RE GOING TO SEE IS REVENUES ABOVE EXPECTATIONS AND SO WE CAN ARE HAPPY TO REPORT THAT AND THROUGH 12 MONTHS. HAVE THERE BEEN OR IS THERE ANY UNFAVORABLE VARIANCES? AGAIN, WE'VE GOT LITTLE POCKETS BUT I WOULD SAY NO.

I THINK WE WE SHOULD BE SATISFIED THAT WE ARE OPERATING AS WE SHOULD.

OKAY. THANK YOU. I'LL TAKE ANY PUBLIC COMMENTS.

>> YES. FIRST OF ALL, NONE OF YOU ARE FORENSIC CPA.

AND I ALSO WANT TO KNOW THE OVERCHARGED LEGAL FEES. I WANT THOSE BROKEN OUT AND NOT COMMINGLED. THE ADOPTION OF THE TOWN OF HILTON HEAD BUDGET SHOULD NOT HAVE BEEN APPROVED NOR SHOULD HAVE THE FRAUDULENT TOWN AUDIT BEEN APPROVED BY GREEN FARM UNTIL OUR CORRUPTED TOWN OFFICIALS UNDERGO A FORENSIC AUDIT.

THEY HAVE ALL BEEN CAUGHT AT A LEGAL CRIMINAL ACTS ALREADY INCLUDING FRAUD, ETHICS

[01:10:02]

YES, WE ALL GOT THE MIDDLE FINGER CPA JOHN TROYER ONCE FORENSICALLY AUDITED WILL REVEAL CRIMES SUCH AS EMBEZZLEMENT, PAYOFFS, LAUNDERING, FACILITATING ILLEGAL FUNDING WITH OTHER INSIDERS. STEVE RILEY THE PAST 30 YEAR TOWN MANAGER AND MARK ORLANDO ONCE THIS FORENSIC AUDIT IS COMPLETE I PREDICT WILL BE PROSECUTED AND PROBABLY ARRESTED BASED ON THE PRIVATE INVESTIGATIONS AND INFORMATION ALREADY PROVIDED BY SOUTH CAROLINA WATCHDOG SCUM. PLEASE NOTE IN AN ARRESTING FACT NEVER IN THE 300 YEAR HISTORY OF SOUTH CAROLINA OR THE ENTIRE U.S. WHEN A FORENSIC AUDIT WAS FORCED ESCAPE WRONGDOING AND WASTE BEING DISCOVERED AND MOTIVE MUST.

MUCH OF THE TIME PRISON THE RESULT I'M CALLING FOR A FORENSIC AUDIT AN ALL A B FOR COUNTY SINCE SO MUCH ILLEGAL CRIMINAL TAX USE HAS ALREADY BEEN CAUGHT AND THE OVERWHELMING MAJORITY OF ELECTED OFFICIALS ARE FACTUALLY DISHONEST, CROOKED AND CORRUPTED. I'M CALLING FOR FORENSIC AUDITS ON ALL THOSE WHO RECEIVE CONTROL. MILLIONS OF TAX FUNDS ISSUED BY THE SOUTH CAROLINA TREASURY TO CLEAN THE SLATE IDENTIFY CRIMES IN THE FUTURE, MAKE IT MANDATORY.

EVERY BEAUFORT COUNTY AND SOUTH CAROLINA INSTITUTION UNDERGO FORENSIC AUDITS EVERY THREE YEARS INCLUDING THE SCHOOL DISTRICT. IT'S A KNOWN FACT HIRED COOKIE CUTTER FINANCIAL AUDITS ONLY SHOW THE NUMBERS INSIDERS WANT US TO SEE BY DESIGN TO HIDE CRIMES. ONLY A FORENSIC AUDIT IDENTIFIES CRIMES AND WASTE FOLKS TENS OF MILLIONS OF HARD EARNED TAX DOLLARS MONEY HAVE FOR THE LAST 40 YEARS AND COUNTY HAS DISAPPEARED WITH ZERO OVERSIGHT, TRANSPARENCY AND ACCOUNTABILITY OR REAL AUDITS. IT'S TIME TO CLEAN UP. NOT THE BEAUTIFUL SWAMP WHERE NICE CREATURES LIVE BUT THE CESSPOOL OF INCESTUOUS BUT TOM PASSING BACK SLAPPING BACKROOM DEALING, LYING, STEALING, INCOMPETENCE, CORRUPTION WE HAVE ALL BEEN DEALING WITH AND LIVING WITH THEM BEAUFORT COUNTY FOR 50 YEARS AGAIN BANKER TOM H.

LENNOX I HOLD MY HAND EVIDENCE THAT YOU CONSPIRED AND NO KNOWINGLY SCHEMED ANOTHER SIX HUNDRED THOUSAND DOLLAR TAX THEFT TO OTHERS TO USE IT WITH OTHERS TO PUBLICLY FUND THE DREDGE THE PRIVATE HARBOR TOWN YACHT BASIN YOU NEED TO BE REMOVED FROM COUNCIL AND INVESTIGATED. AND BY THE WAY, A LAWYER FROM GREENVILLE WILL BE IN CONTACT WITH WOOD CURTIS COAL COLTRANE AND YOU'RE GOING TO BE SUED FOR ANY OTHER PUBLIC COMMENTS.

>> IS THERE ANY OTHER BUSINESS TO COME BEFORE THIS COMMITTEE MOVE TO ADJOURN AND ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING WHY I OPPOSE THE SAME WE STAND ADJOURNED

* This transcript was compiled from uncorrected Closed Captioning.