May 06, 2025 Hilton Head Town Council

[1. Call to Order]

[00:00:07]

GOOD AFTERNOON I WOULD LIKE TO CALL THIS TOWN COUNCIL TUESDAY ,MAY SIX, 2025 TO ORDER IF WILL STAND AND JOIN IN SAYING THE PLEDGE OF ALLEGIANCE I BELIEVE SO FAR UNITED STATES OF AMERICA PROUDLY STANDS ON ISSUE UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE IF YOU WILL CONTINUE STANDING AS WE SAY THE INVOCATION PASTOR PASTOR JUNE, THANK YOU.

THANK YOU. LET'S PRAY GOOD AND GRACIOUS GOD WE THANK YOU FOR THIS DAY AND FOR THE PEOPLE HERE WHO CARE SO MUCH FOR THIS ISLAND. WE THANK YOU FOR THE MAYOR TOWN COUNCIL AND TOWN STAFF WHO WORKED SO HARD TO KEEP HILTON HEAD THE WONDERFUL PLACE IT IS.

PLEASE BLESS THIS COUNCIL'S WORK AND DELIBERATIONS HELP EVERYONE IN THIS ROOM TO BE WISE, THOUGHTFUL, PATIENT AND COMPASSIONATE. WE PRAY ESPECIALLY FOR PEOPLE ON THE ISLAND WHO HAVE FOOD INSECURITY, WHO ARE LONELY, WHO HAVE HOUSING INSECURITY, WHO ARE HOMELESS. WE PRAY FOR OUR IMMIGRANT BROTHERS AND SISTERS WHO CONTRIBUTE SO MUCH OUR ISLAND. WE PRAY FOR THE COURAGE TO DO WHAT IS RIGHT AND GOOD FOR ALL CITIZENS OF HILTON HEAD AND ESPECIALLY THOSE IN NEED. MAY WE PUT THE INTERESTS OF OTHERS ABOVE OUR OWN MAY WE ACT WITH LOVE FOR THE COMMON GOOD MAY WE BE GOOD NEIGHBORS RECOGNIZE YOUR IMAGE IN EVERY PERSON IN GOD'S NAME WE PRAY AMEN I THINK TO BE NEXT MOVE ON

[4. Adoption of the Agenda]

OKAY. THANK YOU. IS THERE A MOTION COMING? WE HAVE THE FIRST AND SECOND. ALL THOSE IN FAVOR PLEASE SIGNIFY BY RAISING YOUR RIGHT

[5. Approval of the Minutes ]

OH, YOU WEREN'T GOING TO ABSTAIN. OKAY.

THANK YOU. 6 TO 0 THEN PRESENTATION AND RECOGNITION IS MOVING BY

[6. Presentations and Recognitions]

WHEREAS BIKE WALK HILTON HEAD ISLAND IN CONJUNCTION WITH TOWN OF HILTON HEAD ISLAND AND THE HILTON HEAD ISLAND BLUFFTON CHAMBER OF COMMERCE IS PROMOTING BICYCLING EDUCATION AND AWARENESS THROUGH ANNUAL BICYCLE EVENTS AND THE BIKE WALK AMBASSADORS PROGRAM.

AND. WHEREAS TOWN OF HILTON HEAD ISLAND IS A VACATION DESTINATION WHERE VISITORS ENJOY ON PATHWAYS AND THE BEACH AND.

WHEREAS HILTON HEAD RESIDENTS INCREASINGLY RIDE BICYCLES FOR PLEASURE EXERCISE AND A MEANS OF COMMUTING TO AND FROM WORK AND THE LEAGUE OF AMERICAN CYCLISTS THE PALMETTO CYCLING COALITION DOING AROUND BIKE WALK BIKE AMBASSADORS KICK IN ASK 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 THE BICYCLE FRIENDLY COMMUNITY AT THE GOLD LEVEL IN 2019 AND AGAIN IN 24 UNTIL 27. AND. WHEREAS MAY 12TH 18TH 2025 IS BIKE TO WORK WEEK AND MAY 16TH 2025 IS BIKE TO WORK DAY NOW THEREFORE I ELEANOR PERRY, MAYOR OF TOWN OF HILTON HEAD ISLAND HEREBY PROCLAIM MAY 2025 AS BIKE MONTH CONGRATULATE THANK YOU MAYOR APPRECIATE THANK YOU MAYOR THANK YOU TOWN COUNCIL THE TOWN CONTINUES TO BE STRONG ON BEHALF OF BIKING THROUGHOUT THROUGHOUT THE ISLAND AND I TO SAY JUST A

[00:05:03]

WANTED TO RECOGNIZE A NUMBER OF PEOPLE WHO ARE UP TODAY AS THE MAYOR MENTIONED OUR TOWN IS RECOGNIZED BY LEGAL BICYCLISTS AS A GOAL LEVEL BICYCLE FRIENDLY COMMUNITY.

THERE'S ALSO A PROGRAM TO RECOGNIZE BIKE SHOPS WILL ALSO MAKE A COMMITMENT TO BE BICYCLE FRIENDLY. AND JUST TO GIVE YOU A COUPLE OF QUICK STATISTICS, JUST TWO SHORT YEARS AGO THE ENTIRE STATE OF SOUTH CAROLINA HAD A GRAND TOTAL OF FIVE BICYCLE FRIENDLY BUSINESSES OF WHICH TWO ARE HERE ON HILTON HEAD WITH THE ADDITION AND ANNOUNCEMENT OF OUR BEST EVER WINNERS THIS YEAR. THERE ARE NOW 17 BUSINESSES IN THE STATE OF CAROLINA. SOUTH CAROLINA WERE RECOGNIZED AS BICYCLE FRIENDLY.

12 OF THOSE ARE HERE ON HOLYHEAD. SO IT'S A SIGNIFICANT CONTRIBUTION TO OUR ECONOMY SO THANK THIS OUR WINNERS INCLUDE THE BOYS AND GIRLS CLUB.

I KNOW IF ANDREA WAS HERE SHE WAS GOING TO TRY AND MAKE IT BUT THE BOYS AND GIRLS CLUB WAS RECOGNIZED AS AN HONORABLE MENTION AWARD WINNER THIS YEAR WHICH IS FANTASTIC.

THEY OBVIOUSLY DO A LOT TO OUR COMMUNITY JUST ON SUNDAY THEY PUT TOGETHER A RIDE THAT INCLUDED 700 RIDERS. THE TOWN OFFERED A GRANT TO HELP PROMOTE THIS ACTIVITY.

700 RIDERS MOST OF WHICH WERE FROM OUT OF TOWN. SO WAS A HUGE ECONOMIC IMPACT AND WE RAISED OVER $100,000 FOR THE BOYS AND GIRLS CLUB. JUST THIS PAST SUNDAY WITH THE 700 RIDERS BUT JOINING ME UP HERE TODAY ON THIS END IS SUSANNA WINNERS AND EMILY ANDREWS FROM HILTON HEAD COFFEE ROASTERS WHO ARE RECOGNIZED AS BRONZE LEVEL WINNERS. CONGRATULATIONS TO YOU BOTH JUST TO THEIR LEFT IS HERO AND ERIKA TORCHINSKY FROM BREEZE BIKES UP ON THE NORTH END OF THE ISLAND ALSO RECOGNIZED AS GROUND LEVEL BICYCLE FRIENDLY BUSINESSES. CONGRATULATIONS DOUGLAS.

JOINING ME FROM HILTON HEAD OUTFITTERS IS GENERAL MANAGER JUSTIN PITTOCK.

COREY GOSH AND JASON CLOWNEY ALSO RECOGNIZED AS BRONZE ALL THE WINNERS THIS YEAR FROM HILTON HEAD OUTFITTERS. CONGRATULATIONS TO YOU BOTH. OUR FINAL AWARD WINNER IS BIKE AND BEACH RENTALS OVER ON OUR ROAD MARK GARRITY AND HIS WIFE ARE THE OWNERS THERE WEREN'T ABLE TO MAKE THE MEETING BUT THEY ALSO RECOGNIZED AS BRONZE LEVEL WINNER.

SO AGAIN MAYOR THANK YOU VERY MUCH FOR THE AWARD RECOGNITION AND CONGRATULATIONS TO ALL THE WINNERS THIS YEAR. CASTLE STRATFORD I'D ALSO LIKE TO POINT OUT THAT JIM HALL IS NOT ONLY THE OWNER AND OPERATOR OF HILTON HEAD BICYCLE COMPANY ON ARROW ROAD AND A KEY PART OF THE ADVOCACY GROUP BIKE WALK HILTON HEAD. BUT HE ALSO PLAYED IN THE BAND ON SUNDAY AT THE RECEPTION FOR THE PEDAL EVENT A REFERENCE FOR THE BOYS AND GIRLS CLUB A VERY AMOUNT OF VERY DIVERSE TOWNS ASPECT VERY GENEROUS APPROACH. CAN I ADD TO THAT? MR. ALFRED SHY WHICH IS UNUSUAL. HE AND I BOTH PARTICIPATED IN PANEL HHI THIS SUNDAY MR. ALFRED RODE TEN MILES I WAS A BIKE LEADER AND THE 20 MILE RIDE WAS GREAT EVENT AND AS MR. HALL WE HAVE FOLKS FROM ALL OVER THE PLACE THAT COME AND RIDE. THEY LOVE TO COME HERE TO RIDE. IT'S A WONDERFUL EVENT RAISING MONEY FOR A WONDERFUL ORGANIZATION IN OUR COMMUNITY. ON A DIFFERENT NOTE WITH VERMONT THERE'S A RIDE OF SILENCE FOR THOSE WHO HAVE LOST THEIR LIVES WHILE RIDING A BICYCLE. IT WILL WEDNESDAY, MAY THE 21ST STARTING AT 7 P.M..

YOU NEED TO SIGN UP IF YOU WANT TO RIDE ITS NINE MILES NO FASTER THAN 12 MILES PER HOUR.

STEVE DON'T RUN ANY FASTER THAN THAT AND IT LEADS OUT OF FOUR OIL PLAZA.

THERE IS A POLICE ESCORT AND WE DO APPRECIATE THE WORK OF THE SHERIFF'S DEPARTMENT AND ALSO THE HIGHWAY PATROL THAT BIKE RIDE AND THEN I THINK THAT'S WHAT I WANT TO SAY ABOUT BIKE MONTH WHICH IS ALL MONTHS. SO PLEASE BE SAFE OUT THERE. WATCH FOR OUR CYCLISTS AND

[7. Reports from Members of Town Council]

[00:10:02]

[8.a. Consideration of an Ordinance Adopting the Consolidated Municipal Budget for the Town of Hilton Head Island for Fiscal Year 2026 Ending June 30, 2026 - Public Hearing and First Reading - Marc Orlando, Town Manager]

LET'S SEE WHAT CURTIS GETS READY. I JUST WANT TO SAY MAYOR PERRY, MEMBERS OF TOWN COUNCIL GOOD AFTERNOON. IT'S MY RESPONSIBILITY AND IT IS MY PRIVILEGE. PREPARE AND PRESENT FOR YOUR CONSIDERATION A BALANCED FY 26 CONSOLIDATED BUDGET. THIS BUDGET AS YOU'LL SEE IN A FEW MINUTES IS AS ALLOCATED ACROSS SIX MAJOR FUNDS. I DO WANT TO START OFF BY SAYING THANK YOU FOR YOUR LEADERSHIP YOUR GUIDANCE AND JUST A LOT OF YOUR DIRECTION OVER THE LAST COUPLE OF MONTHS AS WE STARTED TO PUT OUR HANDS AROUND THIS YEAR'S BUDGET PROPOSALS.

AS I PRESENT THIS TO YOU KNOW THAT BUDGET IS BUILT WITH A THOROUGH ANALYSIS OF REVENUE TRENDS, ECONOMIC CONDITIONS AND CONSERVATIVE FORECASTING AND KNOW THAT IT'S MINDFUL OF NATIONAL AND ECONOMIC VARIABILITY. SO AS YOU REVIEW THE BUDGET WHILE YOU'LL SEE PROPERTY TAX REVENUES REMAIN STABLE, WE'VE WHAT I'M REALLY TRYING TO GET AT IS WE'VE ACCOUNTED FOR MARKET VOLATILITY IN TOURISM AND IN RETAIL RELATED REVENUES ENSURING THE TOWN REMAINS RESILIENT REGARDLESS OF ANY EXTERNAL ECONOMIC SHIFTS AND.

SO AS WE START DIVING INTO THE MAJOR SCHEDULE OF REVENUES I'LL EXPLAINING A LITTLE BIT OF HOW WE'VE LOOKED AT THAT. WHAT I WILL COVER TODAY IS STRUCTURALLY BALANCED AND I THINK THAT'S A REALLY IMPORTANT POINT I MAKE. I HAVEN'T ALWAYS THAT OUT LOUD CLEARLY EVERY YEAR STRUCTURALLY BALANCED I MEAN THAT RECURRING REVENUES FULLY SUPPORT RECURRING EXPENDITURES SO AGAIN WE HAVE NOT USED ANYTHING FROM PRIOR YEAR OR FUND BALANCE TO FUND RECURRING EXPENDITURES AND SO THIS FUNDAMENTAL DISCIPLINE AS WE TALKED ABOUT IN THE PAST ENSURES OUR ONGOING FISCAL HEALTH AND STABILITY. SO I LIKE TO SAY THAT THIS IS NOT ONLY A FINANCIAL DOCUMENT IT'S DEFINITELY A FINANCIAL DOCUMENT BUT IT'S DEFINITELY ALSO A STRATEGIC ROADMAP. SO WITH THAT BEING SAID, I'M REALLY PLEASED TO PRESENT A BUDGET THAT DELIVERS SEVERAL NOTEWORTHY HIGHLIGHTS. IT PROVIDES PROPERTY TAX RELIEF TO RESIDENTS AND PROPERTY OWNERS. IT STRENGTHENS OUR FUND BALANCE RESERVES AND SUPPORTS ACCOUNTABLE DEBT MANAGEMENT. IT INVESTS IN OUR SERVICES, OUR TOWN SERVICES AND OUR EMPLOYEES. IT SUSTAINS CRITICAL INFRASTRUCTURE. AND OF COURSE AND AND AS IMPORTANT ADVANCES TOWN COUNCIL'S STRATEGIC PRIORITIES. SO I'M GOING TO IN I'M GOING TO DOVE INTO THE PRESENTATION AND PLEASE LIKE WE HAVE IN LAST PAST YEAR'S STOP ME AS I GO OR HOLD YOUR QUESTIONS TILL THE AND THERE'S PROBABLY ABOUT 4045 MINUTES OF OF THIS PRESENTATION FOR YOU.

WE'LL START OFF BY LOOKING AT SOME OF OUR ECONOMIC FACTORS. I'LL REMIND MYSELF STAFF THIS COMMUNITY AND OF COURSE ALL OF US ABOUT THE PROPOSED CONSOLIDATED BUDGET GOALS.

WE'LL LOOK AT BUDGET OH SIX FUNDS, REVENUES AND EXPENDITURES AND THEN WE WILL TALK A LITTLE BIT ABOUT THE FUTURE WORKSHOPS TO AND SECOND AND FINAL READING AS WE GET THERE. SO THAT BEING SAID AND FOR TIME'S SAKE THIS PRESENTATION IS ONLINE AND WE WILL AGAIN COVER A LARGER PORTION OR I WOULD SAY PROBABLY SLOWER AT WORKSHOP WHEN WE HAVE THOSE TWO WORKSHOPS THAT ARE COMING UP. SO I WON'T GO THROUGH EVERY DETAIL, EVERY SLIDE BUT PLEASE I'M GOING TO GO THROUGH THIS WITH PACE BUT PLEASE IF I'M GOING TOO FAST AND YOU WANT TO ASK A COUPLE OF QUESTIONS THROW THROW A HAND UP TELL ME SLOW DOWN. SO WE CAN SEE THAT OUR THAT OUR ISLAND IS IS IS ABOUT THE SAME AS. LAST YEAR WE HAD 160 NEW BUSINESSES OPEN.

WE STILL ARE KEEPING TRACK OF OUR PER CAPITA INCOME. WE KNOW THAT MEDIAN HOUSEHOLD INCOME IS SIX YET MEDIAN DETACHED HOME SALES PRICES ARE AT 1.2 MILLION.

MEDIAN AGE 58 AND OF COURSE WE VALUE AND CELEBRATE AND I'LL ALSO ALIGN WITH OUR TOURISM INDUSTRY SEVERAL ECONOMIC FACTORS THAT I THINK THAT WE SHOULD JUST BE MINDFUL OF AS WE THINK ABOUT OUR FUNDING AND OUR FINANCING. WE HAVE AN EXCELLENT CREDIT POSITION TRIPLE-A BOND RATING FROM MOODY'S TRIPLE-A BOND RATING FROM FITCH AND A DOUBLE-A PLUS BOND RATING FOR S&P. THEY LOOK AT ALL OF THESE

[00:15:04]

THEY LOOK AT A TAX BASE, PROPERTY TAX REVENUES, FISCAL MANAGEMENT, FINANCIAL POSITION AND PENSION BURDEN AND THEN THEY RATE AND SO YOU THAT IN 2024 MOST OF THIS IS UP I HAVEN'T SHOWED YOU ON A BUDGET NOT NOT FROM THAT SCALE WHETHER IT'S UP OR UP OR DOWN BUT JUST FROM AN EMERGENCY RESPONSE MORE THAN 10,000 WE ISSUED 14,167 BUSINESS LICENSES.

THAT'S 160 MORE FROM LAST YEAR AND WE'VE LOST SOME WE'VE GAINED SOME THERE'S $10 MILLION EXCESS OF BUSINESS LICENSE REVENUE. WE WE TRACK THAT AND WE'RE MINDFUL OF BUSINESS LICENSE INVESTMENT IN OUR BUDGET OR MONITORING AND PROGRAMS SHORT TERM RENTALS AND EACH PATROL VIOLATIONS 21,000 MORE THAN 21,000 INTERACT SHINS ON THE BEACH ALCOHOL HOLES RESPECT TRASH EQUIPMENT ALL HANDLED BY OUR OUR COMMUNITY CODE ENFORCEMENT TEAM AND AS OF BUDGET PREP A LITTLE MORE THAN 7000 SHORT TERM RENTALS APPROVED SO THAT ME FRAME REALLY SOME ECONOMIC TRENDS AND SOME ECONOMIC AS WE'RE LOOKING AT THE BUDGET. SO OUR STRATEGIC PLAN PRIORITIES THESE SHOULD LOOK A LITTLE FAMILIAR TO YOU ALL. YOU HAVEN'T FULLY ADOPTED THESE PRIORITIES YET.

WE MET FROM A STRATEGIC STANDPOINT I BELIEVE THAT YOU'VE AT LEAST ALIGNED ON THESE WE'RE GOING TO COME BACK TO YOU IN JUNE AND FINALIZE EVERYTHING BUT I DO LIKE TO PUT IN THE BUDGET AND ALIGN OUR BUDGET WITH YOUR PRIORITIES. PROTECTING ISLAND CHARACTER THROUGH GROWTH MANAGEMENT FOCUSED ON MAJOR CORRIDORS AND STREETS ASSESSING AND REINFORCING OUR ISLAND UPGRADING STORMWATER INFRASTRUCTURE ASSESSING ENHANCING PUBLIC SAFETY CREDIT READINESS SUPPORTING DEVELOPMENT, ADVANCING WORKFORCE HOUSING AND OF COURSE LAST BUT NOT LEAST ON THIS ON THIS PAGE PRESERVING CELEBRATE OUR GOLDEN CULTURAL HERITAGE AND SO YOU'LL SEE THE BUDGET ALIGN WITH THAT THESE GOALS ARE MORE FROM AN OPERATING SIDE, RIGHT? WE CONTINUE TO INVEST WHAT WE VALUE. WE'RE INVESTING CONTINUOUSLY IN OUR RECREATION AMENITIES, OUR OUR PUBLIC FACILITIES, OUR MUNICIPAL SERVICE DELIVERY, OUR EMPLOYEES CUSTOMER SERVICE AS WELL EMPLOYEE ENGAGEMENT, CAPITAL PROJECTS AND OUR ENVIRONMENT AND DEFINITELY LEVERAGING OUR FISCAL PLANNING AS A TOOL FOR PROGRESS. SO WE'RE HERE TODAY MAY SIXTH AND WE HAVE ON MAY 12TH A TOWN COUNCIL BUDGET WORKSHOP OF THE SIX FUNDS.

I'M GOING TRY TO GET THROUGH FIVE OF THEM THAT DAY IN THE PAST YEARS I HAVE SO GENERAL FUND DEBT STORMWATER GULLY HISTORIC NEIGHBORHOOD CDC AND HOUSING FIRST DAY AND SECOND DAY MAY 13TH ON CAPITAL PROJECTS. KIM TIME ARE THOSE WORKSHOPS THAT REMIND ME 2:00 ALL RIGHT. 2:00 AND THEN SECOND. THANKS, KIM.

AND THEN SECOND AND FINAL SECOND AND FINAL READING FOR THE BUDGET ON JUNE 3RD.

SO ALL RIGHT. SO YOUR PROPOSED BUDGET I'LL DRAW YOUR ATTENTION TO THIS COLUMN F Y 26 PROPOSED BUDGET SO A GENERAL FUND OF 59,754,000 A DEBT SERVICE FUND OF 18,864,000. OUR CAPITAL PROGRAM FUND AND IT'S BROKEN UP INTO TWO MAJOR COMPONENTS ONE BEACH RENOURISHMENT AND WE'VE TALKED ABOUT THAT WE HAVE AN OPINION PROBABLE COST COMING IN AT 47.5 BIDS ARE IN THOSE ARE A BIT LOWER BUT UNTIL UNLESS AND WE HAVE A VALID CONTRACT NEGOTIATED I'M GOING TO STICK OUR OPINION OF PROBABLE COST OUT OF $47,500,000 OTHER CIP PROJECTS, OTHER CAPITAL PROJECTS MILLION STORMWATER UTILITY UP $2 MILLION FROM LAST YEAR AT 11.1 MILLION CALLING EACH HISTORIC NEIGHBORHOOD COMMUNITY DEVELOPMENT CORPORATION FUND BROUGHT FORWARD BY THE BOARD OF DIRECTORS AND OUR DIRECTOR TOM BAXLEY THOMAS BAXLEY AT 3.286 MILLION AND A HOUSING FUND OF $3.9 MILLION AND SO YOU CAN SEE THE BUDGET DOLLAR AND PERCENT WERE PRETTY MUCH A REDUCTION IN GENERAL FUND RATE REDUCTION IN OUR GENERAL FUND OF 2.7 THAT FOR DIFFERENT REASONS IS INCREASING. YOU WILL I WILL EXPLAIN WHY. CAPITAL IMPROVEMENT PROGRAM YEAR IT'S THE MAJOR LIFT YEAR THE HEAVY LIFT THIS YEAR FOR BEACH RENOURISHMENT THOSE FUNDS ARE THERE OTHER LIVE PROJECTS FUNDED. HOWEVER A REDUCTION TOWARDS

[00:20:07]

I HEAR FROM ELSE THE ROOMS AREN'T BOOKED. WE'RE TRACKING ALL OF THAT ALL THE TIME WE TRACK IT THROUGH TAX BUT WE ALSO TRACK IT THROUGH THROUGH OUR FINANCIAL THROUGH OUR FINANCIAL REPORTS AS WELL AS THROUGHOUT THROUGH WHAT WE DO.

BUT YOU CAN SEE A FULL SCHEDULE OF REVENUES THIS IS MADE UP OF TWO PAGES BUT YOU'LL SEE THAT PROPERTY TAXES OVERALL THE FULL SCHEDULE AND PROPERTY TAXES GO INTO DIFFERENT FUNDS SUCH AS GENERAL SUCH AS DEBT BUT PROPERTY TAXES OVERALL WE'RE PROJECTING AS MORE OR LESS FLAT 51.2% CHANGE BUSINESS LICENSE 6.9% JUST BASED UPON NEW LICENSING AND TRENDS WITH REVENUE FRANCHISE FEES FLAT MORE OR LESS STORMWATER UTILITY FEES JUST GENERAL GROWTH BASED UPON BASED UPON THAT RATE 4.1% CHANGE $280,000 DIFFERENTIAL YOU SEE A WHOLE BUNCH OF OTHER REVS THAT ARE FLAT. THE LARGER ONES BECOME IN GRANTS SO OF THE $7.3 MILLION SEVEN $7 MILLION OF THAT COMES FEMA. OUR AGREEMENT WITH FEMA THE OTHER THE RESIDUAL IS FROM CDBG BEACH SERVICES AS A REVENUE 650,000.

THAT IS AN INCREASE AND YOU'LL ALSO SEE CAPITAL INVESTMENT SIMPLY FROM FUND BALANCE TO BUILD SOME PROJECTS UP $2.7 MILLION PRIOR YEAR FUNDS AND YOU CAN SEE THAT IN PRIOR YEARS WE'VE USED PRIOR YEAR MONEY IN GENERAL TO CONTINUE TO BUILD THE PROJECTS AND DO THOSE ONE TIME THINGS WE'RE WORKING ON THIS YEAR IS A SIGNIFICANT DECREASE MORE THAN $275,000 IS FOR A LIVE CONTRACT THAT IS ALIGNED WITH THE LAND MANAGEMENT ORDINANCE.

SO THAT WORK WHILE THE CONTRACT WAS LARGER. 275 IS WORK THAT'S INCOMPLETE BUT STILL ONGOING STORM STORMWATER FUND CDC FUND HOUSING REVENUES AND TRANSFERS IN 90 MILLION AND THEN THERE'S BEEN A FEW QUESTIONS FOR ME ABOUT WHAT IS A TRANSFER AND WHY DO WE TRANSFER. I THINK AT THE WORKSHOPS A GREAT OPPORTUNITY TO SIT DOWN AND TALK ABOUT THAT REALLY HERE WHAT YOU'RE WHAT YOUR PERSPECTIVES ARE AND REALLY EXPLAIN THE I WOULD SAY THE NARRATIVE OR THE THE THE THE THE LANGUAGE OF OF OUR BUDGET AND WHY IT'S CALLED IT TRANSFERS BUT FOR TODAY'S PURPOSE WE TRANSFER IN THOSE MAJOR REVENUE SOURCES OF HOSPITALITY TAX BEACH PRESERVATION FEES TIP DOLLARS SBA TAX DOLLARS AND A LONG LIST BUT WE TRANSFER $90,560,000 INTO OUR FULL BUDGET AND KEEP IN MIND THIS IS SCHEDULE OF REVENUES FOR ALL SIX FUNDS YOU MEAN EXPENDITURES YOU CAN SEE FROM HERE AND THIS IS ACROSS STORM WATER CDC HOUSING AND GENERAL YOU'LL SEE THAT SALARIES AND BENEFITS INCREASES 5% OPERATING IS A DECREASE AND I'M PROUD I'M PROUD OF THAT.

IT WAS A IT WAS A IS A BIG LIFT AND A LOT OF WORK A LOT OF BACK AND FORTH WITH EVERY SINGLE LINE ITEM SCRUBBED AND ANALYZED AND LOOKED AT. BUT WE'VE REDUCED OPERATING CLOSE TO 7% 6.8% $1.388 MILLION CONTRACTED PUBLIC SAFETY DECREASE I'LL THAT AND YOU CAN SEE ACROSS THE BOARD AS WE'RE PREPARING FOR A SLOWER YEAR RESPONDING TO I'M ALMOST TIRED OF SAYING IT BUT POST-COVID I THINK A NEW NORMAL IS WHERE OUR REVENUES ARE STARTING TO TO TO LAND AND OUR EXPENDITURES ARE ALIGNED APPROPRIATE SO ALL IN WE HAVE A.

EXCUSE ME FOR THE BACK AND FORTH WE HAVE AN ALL IN TOTAL REVENUE 174.7 AND A TOTAL EXPENDITURE 140 HUNDRED AND 74.7 EXCUSE ME BALANCED BUDGET SOME DOLLARS THAT TRANSFER OUT WE CAN GET INTO THIS IN THE WORKSHOP. WHAT'S INTERESTING AND I THINK THIS IS ALWAYS AN APPROPRIATE WAY TO TO LET US KNOW HOW OUR MILLAGE RATE IS IS RESPONDING

[00:25:02]

WE ALSO TAKE A LOOK AT THE STRENGTH OF OUR SOUTH CAROLINA LOCAL TAX AND WE'LL SEE THE GROWTH OF A TAX OVER TIME. RIGHT. IF WE LOOK BACK TO 2019, A FLY 3.6 MILLION 25 PROJECTION 24 PROJECTION WAS 10.9 AND WE ARE PROJECTING SEVERAL MILLION DOLLARS LESS A TAX COLLECTION THIS YEAR JUST BASED DIFFERENT DIFFERENT FACTORS.

MAY I INTERRUPT FOR JUST A MOMENT ON THE PREVIOUS PAGE? I DON'T WANT IT TO GO PAST WITHOUT SAYING SOMETHING. FIRST OF ALL, THANK YOU FOR THE PRESENTATION FOR ALL THE HARD WORK IT'S I KNOW HOW MUCH YOU PUT INTO THIS AND HOW HARD STUFF WORKS AND HOW HARD THE COUNCIL WORKS WITH YOU. AND AS I'VE BEEN TALKING ABOUT REDUCING MILLAGE FOR YEARS THIS YEAR WHEN I BROUGHT IT UP I'M REALLY HAPPY TO SEE THAT WE GOT TO A PLACE WHERE WE CAN ON IT AND THAT'S NOT BECAUSE I ASKED FOR IT AS MUCH AS IT IS BECAUSE YOU WORKED REALLY HARD TO MAKE IT HAPPEN. SO THANK YOU BUT I WOULD ENCOURAGE EVERYONE TO READ THE MESSAGE FROM OUR TOWN MANAGER. IF YOU LOOK AT THE BUDGET SOME PAGE AND IT IS I THINK IT IS A GREAT STATEMENT OF THE GREAT LEADERSHIP THAT YOU PROVIDE TO THE TOWN.

SO HAVING SAID OF THAT, I ALSO WANTED TO POINT OUT ON THE PAGE THAT YOU WERE ON JUST PRIOR TO ONE WITH REGARD TO THE POLICE FEE BECAUSE IT SAYS THAT POLICE FEE.

I WANTED TO MAKE SURE THAT IT'S NOTED THAT THAT IS NOT HILTON HEAD ISLAND THAT IS ASSESSING AND COLLECTING THOSE FEES BUT THAT THOSE FROM THE COUNTY AND THAT THIS IS NOT A DIRECTIVE FROM THIS TOWN TO COLLECT THE POLICE FEE THAT IS BEAUTIFUL COUNTY THAT DOING THAT AND I JUST DIDN'T WANT TO GO PAST WITHOUT HAVING POINTED THAT OUT .

THANK YOU THANK YOU YES THAT JUMPED OUT IT'S JUMPED OUT AT US AS WELL AS A STAFF RIGHT.

[00:30:01]

IT'S WHY I SHOW YOU THE OUT THE OUT YEARS AND PAST YEARS OF A TAX AS WE'VE LOOKED UTILIZATION OF TAX OVER TIME WE'VE STARTED AS AS A AS A STAFF AS AS I'VE ARRIVED STARTING TO PROPOSE THE TOWN USE TAX FOR FOR DIFFERENT REASONS AND AND YOU CAN SEE UP HERE GENERAL FUND TO TRANSFER FROM OUR COLLECTED EIGHT TAX OF 3.5 MILLION INTO ADMINISTRATION ON FACILITIES COMMUNITY EVENTS AND THIS YEAR YOU'LL SEE $2.8 MILLION TRANSFERRED INTO OUR CIP PROGRAM MOSTLY FOR ROADS AND PATHS AND SOME PARKS AND SOME FACILITIES ONLY WHERE TOURISM RIGHT IS IMPACTFUL, RIGHT IS IMPACTED BY AND IS IMPACTED BY TOURISM DO WE USE THOSE EIGHT TAX DOLLARS AND SO FIRE RESCUE DEFINITELY CODE ENFORCEMENT SOME OF OUR POLICE SERVICE COSTS BEACH SERVICES, THINGS LIKE THAT AND THEN STATE TAXES FROM LAST YEAR 25 FY 25 WE STILL HAVE MILLION DOLLARS OF STATE EIGHT TAX IN THE HOUSING FUND WHICH WE'LL GET TO SO THAT MAKES UP THE FULL SCHEDULE OF REVENUES HOW I CAN GO THROUGH THIS SOMEWHAT A LITTLE QUICKER BUT THESE ARE OUR SIX FUNDS GENERAL FUND OPERATING CAPITAL AND PRO CAPITAL IMPROVEMENT PROGRAM THAT STORMWATER GOING TO HISTORIC NEIGHBORHOODS CDC AND OUR HOUSING FUND SO GENERAL FUND IS ALL OF OUR FINANCIAL OPERATING RESOURCES RIGHT SO EXPENDITURES REVENUE EXPENDITURES FOR GOVERNMENT ADMINISTRATIVE SERVICES SHERIFF OTHER PUBLIC SAFETY ITEMS LIKE THAT AND THE PRINCIPAL SOURCES I'LL SHARE WITH YOU BUT MOSTLY PROPERTY TAX BUSINESS LICENSE LOCALLY TAX PERMIT FEES THINGS LIKE THAT SO A GENERAL FUND BUDGET I'VE SHARED WITH YOU A LITTLE EARLIER A $59.754 MILLION THAT IS A FOUR AND A HALF 4.46% DECREASE A $2.8 MILLION DECREASE YEAR OVER YEAR AND YOU CAN SEE THE SCHEDULE OF REVENUES WHERE OUR REVENUES HAVE DECREASED RIGHT LESS PROPERTY TAXES UTILIZED AND PROJECTED FOR USE LESS A TAX BUSINESS LICENSE INCREASING 874 SHARE THAT WITH YOU EARLIER JUST BASED UPON OUR RESEARCH OUR TRENDS PERMIT FEES SAME AS LAST YEAR WE'RE PROJECTING BEACH PARKING THIS NEW REVENUE SO LAST YEAR WE DIDN'T COLLECT THE REVENUE WE USED OTHER WE COLLECT THE BEACH PARKING FEE REVENUE THAT COLLECTING THIS YEAR WE USE DIFFERENT SOURCES OF MONEY BUT YOU'LL SEE $400,000 INCREASE IN BEACH PARKING BUT THIS 650 IS BASED UPON OUR PROJECTION OF BEACH PARKING FEES PAID OVER TIME TRANSFERS IN SOMEWHAT SELF EXPLANATORY BEACH PRESERVATION FEE WE'RE USING $248,000 INTO THE GENERAL FUND 6.5 MILLION UP TO 42 242,000 FROM HOSPITALITY TAX LAST YEAR STATE TAX IS ABOUT FLAT ELECTRIC FRANCHISE FEE FLAT SHORT TERM RENTAL THE SAME AND STORMWATER FEE WE'VE TRANSFERRED SOME ADDITIONAL STORMWATER FEE REVENUE INTO THE GENERAL FUND SIMPLY BECAUSE THOSE REVENUES THAT ARE IN PLACE ARE FOR STAFF PROJECTS OPERATING WELL ONE TIME AND OPERATING COST MORE EMPLOYEES TODAY MORE THAN EVER ARE WORKING THE STORMWATER PROGRAM SO WE FEEL LIKE THAT IS A RESPONSIBLE TRANSFER SO WE'LL GO THROUGH ALL THESE NOTES HAVE SOMEWHAT COVERED IT BUT GENERAL FUND PROPERTY TAXES REDUCING OUR MILLAGE FROM ONE BY 1.6 MIL OUR LOCAL TAX DECREASE BUT A TAX BEING USED FOR CULTURAL AFFAIRS CODE ENFORCEMENT BEACH PARKING SERVICES THE $3 AN HOUR $15 FOR THE FULL DAY MAYOR PERRY MEMBERS COUNCIL WE ARE WORKING ON AN AMENDMENT TO BRING FORWARD A BASED UPON YOUR DIRECTION PAST CSP COMMUNITY SERVICE PUBLIC SAFETY COMMITTEE IN THE COMING WEEKS OR I FORGET THE DATE BUT I KNOW IT'S IT'S SCHEDULED MAY 20 WE WILL BRING FORWARD A FEE STRUCTURE WE'LL BRING FORWARD A FEE STRUCTURE PROPOSAL TO ADDRESS WHAT YOU WERE ASKING FOR BUT NO THIS THE $650,000 OF REVENUE WE'RE OPEN FOR BUSINESS MONDAY TO FRIDAY

[00:35:01]

I HAVE GONE BACK AND FORTH WITH PUTTING THIS IN THERE FRANKLY BOB AT FIRST SAID THINK ABOUT IT, LET'S CONSIDER IT AND BOB CAME BACK BOB COMMUNITY OR PUBLIC SAFETY DIRECTOR CAME BACK AND SAID I THINK I CAN HANDLE IT BUT OUT OF THE GATE THE FIRST COUPLE OF WEEKS INTO THE SEASON HE CALLED ME AND SAID PLEASE PUT THIS IN THE BUDGET IF WE CAN.

IT HELPS US DO A FEW THINGS. IT OVER TIME HELPS US REDUCE OUR COSTS WITH OUR PCI CONTRACTOR SO THAT WE GET IN THE PARKING BUSINESS AND DON'T ALWAYS JUST OUTSOURCE EVERYTHING FROM THAT PERSPECTIVE AND THEN ALSO LAST BUT NOT LEAST A PART TIME EMPLOYEE WHO'S BEEN HERE A COUPLE OF YEARS AT 30 HOUR A WEEK JOB FROM A PART TIME TO FULL TIME. SO REALLY TAKING OUR JOB AND MAKING IT A CAREER SO OUR POSITION COUNTS. YOU CAN SEE 4FY 26 IN THE BUDGET I'VE PROVIDED FOR A 4% UP TO 4% PERFORMANCE BASED PAY INCREASE THE BUDGET SO SO WHAT'S WHAT'S GREAT RIGHT WHEN I LOOK 4% INCREASE TWO AND A HALF NEW PEOPLE YET OUR BUDGET INCREASED 3% SO KNOW THAT WE'VE SCRUBBED IN OTHER AREAS WE'RE ALSO PROVIDING THE 11% SOUTH CAROLINA MANDATED MEDICAL INSURANCE EMPLOYER PREMIUM LIFE INSURANCE INCREASE WORKER'S COMP INCREASE IT CONTINUES TO SUPPORT THE TOWN BENEFITS OF 41K AND THEN THE SOUTH CAROLINA MANDATED POLICE OFFICERS RETIREMENT SYSTEM FOR FIRE RESCUE SAME SAME NUMBER OF PAID HOLIDAYS ALLOWS UP TO A WEEK OF EMPLOYEE PAID OFF BUYBACK PROGRAM RIGHT SO THE PTO DOESN'T ACCRUE THROUGH YOUR YEARS YOU CAN YOU CAN SELL A WEEK A YEAR IF YOU HAVE A CERTAIN NUMBER OF HOURS IN YOUR BANK FIRE RESCUE OVERTIME WE HAVE REDUCED GENERAL FUND OVERTIME BY $84,000 IN OTHER

[00:40:01]

I'M NOT GOING TO GO THROUGH ALL OF THEM BUT WE HAD TO REDUCE TRAVEL MEETINGS, CONFERENCE PRINTING 5000 HERE, 10,000 THERE ACROSS THE BOARD ON ALL OF OUR ACCOUNTS TO TO TAKE A STEP FORWARD IN THE BUDGET THE WAY WE HAVE. AND I'M I'M PROUD OF THE WORK WE'VE DONE TO DO THAT SUPPORTS THE ALAMO CLASS COMP STUDY BMI ISLAND JAMS SONGWRITER SINGER SONGWRITER FESTIVAL THE CRESCENDO LANTERN PARADE RBC HERITAGE SPONSORSHIP AGREEMENT HOLIDAY LIGHTING AND THEN MATCHING FUNDS FOR LOWCOUNTRY COUNCIL OF GOVERNMENT LOWCOUNTRY REGIONAL HILTON HEAD ISLAND BEACH SHUTTLE TRANSPORTATION SERVICE PROVIDES FOR THE FIRE TRUCK LEASE PAYMENT IN TOWN OFFICE SPACE LEASE PAYMENTS SO I'LL KEEP GOING REALLY IT THE GENERAL FUND TOUCHES EVERY SINGLE DEPARTMENT CONTRACTED PUBLIC SAFETY'S DOWN RIGHT SO WE HAVE A THAT OVER TIME THE $2 MILLION YOU SAW THE HILTON HEAD ISLAND POLICE ON YOUR PROPERTY TAX BILL EXAMPLE WE'VE STOPPED ACCRUING FOR THAT BECAUSE OF THAT AFFILIATE AGENCY PARTNERSHIPS 1.9 MILLION 39% DECREASE 11 APPLICATIONS RECEIVED FOR 3.2 MILLION TOWN COUNCIL THROUGH COMMITTEE F AND COMMITTEE HAVE FORWARDED SIX APPLICANTS APPLICATIONS FOR 1.9 MILLION AND I TALKED ABOUT THIS TRANSFER FOR PERSONNEL.

YOU SEE THE AFFILIATED AGENCY DISTRIBUTION THESE ARE AGENCY PARTNERS RIGHT SO THAT THAT MEANS THAT WE HAVE SOME FORM FASHION OF A BUSINESS PARTNERSHIP THROUGH A MEMORANDUM OF AGREEMENT WHETHER IT'S IN PLACE RIGHT NOW OR ONE WILL BE FORMED SOON FOR THESE RECOMMENDATIONS. SO ISLAND REC COASTAL DISCOVERY MITCHELL VILLE PRESERVATION PROJECT L-R TO PALMETTO BREEZE BEFORE COUNTY ECONOMIC DEVELOPMENT CORPORATION AND SEA TURTLE PATROL HILTON HEAD ISLAND WE COVERING 100 THROUGH BEAUFORT COUNTY CHANNEL RIGHT SO IT'S HILTON HEAD ISLAND CHANNEL IT'S NOT OUR I.T DEPARTMENT IS A $48,000 CONTRACT WITH BEAUFORT COUNTY. THEY'RE AMAZING AND I'M NOT JUST SAYING THAT SO THEY DON'T SHUT US DOWN RIGHT NOW THEY'RE IN THE ROOM, THEY'RE WORKING HARD AND COVER 110 MEETINGS A YEAR COUNCIL COUNCIL COMMITTEES PLANNING COMMISSION CALLING EACH LAND PRESERVATION TASK FORCE OUR COMMUNITY DEVELOPMENT CORPORATION OUR TAX COMMITTEE AND OUR HOUSING ACTION COMMITTEE. OVER TIME A MASTER WHAT CAN WE COVER MORE WE CAN IT INCREASES THE COST BUT ALSO WHAT WE'RE FINDING THERE THEY'RE AT CAPACITY AS WELL AND SO WE'RE TO BALANCE THAT WITH RESPONSIBLE COVERAGE AT A CERTAIN POINT WHILE I'M NOT ADVOCATING FOR IT TOO SOON AT CERTAIN WE MIGHT NEED TO BRING SOME OF THIS IN-HOUSE IF WE'RE GOING TO COVER MORE THAN SUPPORTS FIRE RESCUE WHO'S HAD 15% INCREASE IN CALLS FOR SERVICE SINCE 21 PUBLIC SAFETY RIGHT OUR COMMUNITY CODE ENFORCEMENT SEVERAL SEVERAL HUNDRED COMPLAINTS FOR SHORT TERM RENTALS AND BEACH PATROL LET ALONE ALL THE TOWN CODE PROVISIONS THAT THEY ARE ON TOP OF AS WELL AS THEY CAN BE.

THEY HAVE AN HOUR RIGHT PUBLIC SAFETY HOURS OF 8 A.M. TO 9 P.M. SEVEN DAYS A WEEK.

THAT'S A GREAT BIG SHIFT WHERE WE USED TO GO HOME AT 430 ON FRIDAY AND COME BACK ON MONDAY.

RIGHT. SO I'M PROUD OF BOB AND TODD AND THE ENTIRE TEAM AND APPRECIATE ALL OF YOUR SUPPORT AS WELL MAYOR AND COUNCIL FOR THAT INVESTMENT OVER TIME SPORTS FINANCE TECHNOLOGY LOTS OF FACILITIES WORK I THINK WE CAN DRIVE AROUND THE ISLAND AND SEE I SAY SOME OF THE BASICS THAT OUR FACILITY TEAM IS WORKING ON BUT IN IN THE FACILITY CONTRACTS IS A TOWN WIDE LITTER PATROL CONTRACT IN AND OF ITSELF SO WE HAVE BAKED IN THE LANDSCAPE CONTRACTS LITTER PATROL BUT I KNOW NOT ENOUGH AND SO THIS IS CALLS FOR SOME ADDITIONAL DOLLARS FOR THAT IT SUPPORTS BEACH SERVICES FRANCHISE AGREEMENT AND A WHOLE BUNCH OF OTHER WORK AT OUR FIRE STATIONS IN OUR FACILITY BUILDINGS FROM A MAINTENANCE STANDPOINT MENTIONED PLANNING COMMUNITY DEVELOPMENT MOSTLY AND SIGNIFICANTLY THE STAFF THE TRAINING AND THE ALAMO DITTO WITH TRANSPORTATION MARKETING COMMUNICATIONS OFFICE

[00:45:05]

SO THAT'S THE GENERAL FUND THAT'S OUR THAT'S THAT'S HOW WE DO BUSINESS ACCOUNT.

IT'S IT'S WITH THOSE RECURRING REVENUES FOR RECURRING EXPENDITURE HOURS AND ANYTHING ANY DOLLARS ANY FUNDS THAT ARE ONE TIME ONE TIME PROJECTS MAY HAVE SOME FUNDS THAT AREN'T RECURRING FROM A FUND BALANCE OR PRIOR YEAR UNUSED. SO CAPITAL IMPROVEMENT COUNT FOR REPORT FINANCIAL RESOURCES ALL OF OUR CAPITAL PROJECTS RIGHT ROADS STORMWATER PARKS AND PRIMARY SOURCES OF REVENUE ARE UP THERE HOSPITALITY TAX, SPEECH PRESERVATION AND VARIOUS OTHER WHAT I WOULD CALL IT TRANSFERS IN SO THE C IP FIVE YEAR PROGRAM SELECTION RIGHT WE REVIEW PRIOR YEAR PROJECTS TO CARRY FORWARD WE CONSIDER INTERNAL LISTS AND OTHER SOURCES AS WE BALANCE FUNDING, AVAILABILITY AND STAFFING I THINK THAT IF WE PAUSE HERE FOR SECOND WE I BELIEVE WE HAVE DONE A MUCH BETTER JOB THIS YEAR THAN PRIOR YEARS BALANCING FUNDING, AVAILABILITY AND STAFFING TO MANAGE THE PROJECTS WE'VE ALSO NOT PUT ON HERE NOT JUST STAFFING TO MANAGE THE PROJECTS EITHER EVEN OTHER AGENCY OR CONTRACTOR OR SURVEYOR STAFFING TO MANAGE PROJECTS. PLANNING COMMISSION RECOMMENDED A PRIORITIZATION AND THEN TOWN COUNCIL REVIEWS AND DECIDES SO OUR CFP PROGRAM $77.687 MILLION A DECREASE OF $5 BILLION FROM LAST YEAR DON'T GET TOO CAUGHT UP IN THAT DECREASE MOST OF THE DOLLARS ARE SHIFTED RIGHT. YOU CAN SEE THE THE REVENUE SOURCES SOME OF THIS IS FUND BALANCE AND SOME OF THIS IS ANNUAL REVENUE ACCRUAL MAJORITY OF THE FUNDS IS FROM BEACH FEES FOR OBVIOUS REASONS THIS YEAR OUR PROPOSED CAPITAL IMPROVEMENT PROGRAM USE OF FUNDS IN OUR BEACH 48 MILLION OUR PATHWAYS WHILE DOWN I THINK SCHEDULE HAS A LOT TO DO WITH THAT SO I DON'T WANT TOWN AND OF ALL NIGHTS PROCLAMATION OF BIKE BIKE MONTH THEY STILL HERE BEHIND ME YEAH SOME OF THEM OUT HERE IN TERMS OF THAT'S A THREAT THAT'S A PUBLIC THREAT $1.6 MILLION FOR PATHWAYS A LOT OF THAT IS BASED ON SCHEDULE BUT IT'S ALSO FRANKLY IT'S BASED ON OUR CAPACITY TO ACQUIRE EASEMENTS AND AND WHILE WE'RE NOURISHING THE BEACH ROADWAYS ROADWAYS 5 MILLION PARKS, TEN FACILITIES 4.7 STORM WATER 6.3 FLEET 180 AND YOU CAN SEE OVER TIME IS IT SHIFTED WHEN FIRE TRUCKS HUNDRED AND $80,000 AND THEN LAND ACQUISITION ADMINISTRATION THAT'S MORE SOFT COST FOR FOR FOR PROPERTIES THAT WE'RE CONSIDERING SO AND AGAIN SOURCES THE USES FOR BEACH RENOURISHMENT FUNDING IT'S A BIT OF A DIFFERENT LOOK AT THE PORTFOLIO OF FUNDS IN EACH OF OUR DIFFERENT PROGRAMS PROJECT PROGRAM OR PORTFOLIOS INTERNSHIP PROGRAM AND THEN PROPOSE USE OF FUNDS.

SO AGAIN SOMETHING I JUST SHARED WITH YOU $77.6 MILLION BEACH RENOURISHMENT 4730 MILLION DIVERSE IFIED IN THESE OTHER PROGRAMS. THIS IS AN INTERESTING SLIDE AND I THINK A SIGNIFICANT ONE BECAUSE IT SHARES WITH YOU THE SOURCES THAT FUND THOSE SPECIFIC PROJECTS. I THAT HAS BEEN A QUESTION IN THE PAST WHY WHY A TAX FOR THIS PROJECT NOT THAT PROJECT WHY TIFF FOR THIS PROJECT NOT THAT PROJECT.

I THINK THE ART AND SCIENCE OF THIS BUDGET IS KNOWING WHERE YOU CAN USE THE DOLLARS, THE PROJECTS AND SO THIS FUNDING SOURCE COLUMN STARTS THAT WITH YOU.

I'M GOING TO GO FAST THROUGH THIS BUT THIS IS MORE FOR THE PUBLIC, THE MEDIA AND REALLY FOR ALL OF YOU MAYOR COUNCIL TO SEE PRIOR TO OUR WORKSHOP IN A COUPLE OF WEEKS YOU'LL SEE THIS IS A SAMPLING OF PROJECTS BUT I ALWAYS TAKE LOOK AT A CAPITAL IMPROVEMENT PROGRAM TO MAKE SURE THAT IT'S DIVERSIFIED WHERE OUR PRIORITIES ARE AND THEN SECONDLY THAT IT'S NOT JUST ALL IN AREA OF OUR OF OUR TOWN. AND SO I THINK THAT THE INTENTION THIS THIS EXERCISE IS SHOWING US THAT OUR RESULTS ARE MATCHING OUR GOALS RIGHT.

[00:50:04]

WE HAVE SOME DOLLARS IN THERE FOR MAINTENANCE FOR PUBLIC ART CROSSINGS PARK PICKLEBALL COMPLEX YOU WILL SEE IT'S DEFINITELY PRIORITY IT'S UNDER DESIGN IS BEING PERMITTED AND WE COULD SQUEEZE IN THE DOLLARS AND THE ANTICIPATED CONSTRUCTION THIS YEAR BUT I'M STARTING TO LEARN TO BE A LITTLE MORE REALISTIC WE WILL BY THIS TIME NEXT YEAR WHILE I'M STANDING HERE HAVE A FOR PICKLEBALL IT SHOULD BE DESIGNED PERMITTED AND PRICED WITH A CONTRACT NEGOTIATED JUST NOT SIGNED O FORBID AND BACK FOR PICKLEBALL TO START NEXT JULY OR SO BUT YOU WON'T SEE IT IN THIS YEAR'S BUDGET BECAUSE WE'RE NOT GOING TO GET TO THE CONSTRUCTION THIS YEAR. SO I THINK IT DOESN'T MAKE SENSE BASED UPON A LOT OF THE FEEDBACK I'VE RECEIVED AND FRANKLY SOME LESSONS LEARNED ON TIMING OF PROJECTS HERE THAT TAKE ABOUT THREE YEARS. THERE'S NO SENSE PUTTING THE EXTRA $8 MILLION OF FUNDING AS AN EXAMPLE IN THIS BUDGET WE'RE NOT GOING TO CONSTRUCT IT. YOU CAN SEE SOME SIGNIFICANT INVESTMENTS THIS YEAR TAYLOR FAMILY PARK PATTERSON FAMILY PARK WILL BE UNDER CONSTRUCTION AT LATE IN THE YEAR IF NOT EARLY NEXT YEAR SAME WITH OLD SCHOOL HOUSE PARK A FEW MORE IMPROVEMENTS THERE AND THE CIRCLE THE STORMWATER AND PEDESTRIAN ACCESS FACILITIES

[00:55:03]

AND I THINK SOME WORK OUT THERE IS LONG OVERDUE TO IMPROVE AND THIS BUDGET STARTS REFLECTING THAT THERE'S DOLLARS IN HERE FOR THE JANESVILLE HORSE BARN. SOME OF IT IS FOR DEMO, SOME OF IT IS TO IMPROVE THE FENCING AROUND THE WE HAVE A DRAFT RFQ TO LEASE IT.

I KNOW THAT WE NEED TO DO A LITTLE BIT OF WORK OUT THERE BEFORE WE LEASE THAT PROPERTY MITCHELL FREEDOM PARK RECYCLING AT BEACHES SEVERAL STORMWATER PROJECTS THAT WE CAN TALK ABOUT $6.3 MILLION OF STORMWATER INVESTMENT THIS YEAR MORE THAN YOU KNOW MORE THAN LAST 1.9 MILLION LAST YEAR. WHAT I DO WANT TO DO THESE PROJECTS ARE IMPORTANT TO ALL OF US. THEY'RE IMPORTANT TO US. THEY'RE IMPORTANT TO THE TO THE PRIVATE DUTIES AND COMMUNITY ASSOCIATIONS WE WILL HAVE AND FORGIVE ME THE MONTH IT'S JULY AUGUST, SEPTEMBER WE WILL HAVE TWO WORKSHOPS WITH YOU AS A STANDING WORKSHOP ONE FOR ALL CAPITAL PROJECTS WE CAN TALK ABOUT ALL OF THIS AND WE CAN TALK ABOUT THE FUTURE SO WE'RE GOING TO PAY CASH AS WE GO OR ARE WE IN A IN A PLACE WHERE WE SHOULD BE BORROWING FINISH SOME OF THE PROJECTS? WE HAVE TO HAVE THAT SAME CONVERSATION IN A SEPARATE WORKSHOP FOR STORMWATER AND SO AS YOU LOOK AT THIS WHAT'S VERY HELPFUL IS SOME YOUR SOME OF YOUR REACTION AS WE START INTO OUR NEXT WORKSHOP FLEET STAFF VEHICLE REPLACEMENT AND A CONTINGENCY LAND SOFT COSTS SO I KEEP SAYING I'LL SPEED UP BUT I DON'T DO I SO WE'RE GETTING A LITTLE BETTER SO THAT THE FUNDS USED FOR RESOURCES TO PAY INTEREST IN PRINCIPAL ON GENERAL LONG TERM OBLIGATION DEBT FROM THE TOWN AND, THE SOURCES OF REVENUE OUR PROPERTY TAX AND WHAT OTHER WHATEVER OTHER REVENUE STREAM SUPPORTS THAT SPECIFIC BOND.

AND SO IN OUR CASE BEACH PRESERVATION HOSPITALITY TIFF REAL ESTATE TRANSFER SO YOU SEE A TOTAL REVENUE OF OUR DEBT SERVICE FUND 18.8 MILLION THAT IT'S IT'S ABOUT YEAR OVER YEAR BUT YOU'LL SEE PROPERTY TAXES AT SIX INVESTMENT INCOME AT 300 BEACH PRESERVATION FEES AT 11 MILLION, HOSPITALITY AT 1.4. SO THIS IS ON OUR ON OUR ON OUR DEBT.

SO WE'VE TO PAY 7.3 MILLION OF PRINCIPAL I SCHEDULED PRINCIPAL 1.6 MILLION THIS YEAR ON SCHEDULED INTEREST BANK FEES 17 SIX BECAUSE WE'RE ANTICIPATING DEBT FOR BEACH RENOURISHMENT AND YOU SEE ANTICIPATED DEBT COSTS AT 2.4 AND THEN WE'RE ALSO PROPOSING CALL BEACH PRESERVATION SPECIAL OBLIGATION THIS YEAR AT $7.4 MILLION AS WE TALK ABOUT BEACH PRESERVATION AND DEBT THAT'S NOT FOR THIS BUDGET CYCLE, RIGHT? IT'S NOT FOR TONIGHT. IT'S NOT FOR WORKSHOP. IT'S NOT FOR SECOND READING.

IT'S RIGHT AFTER ALL OF THIS. SO I WILL BRING YOU BACK AN ORDINANCE WHERE YOU CONTEMPLATE YOUR BEACH PRESERVATION DEBT. WE THAT WORKSHOP AS A FOLLOW UP FROM IT SO THAT YOU CAN GIVE SOME GOOD GUIDANCE AT FIRST AND SECOND READING SO BUT WHAT WE HAVE PUT IN THE BUDGET IS THE ANTICIPATED DEBT. I WANT TO MAKE SURE I SHARE THAT.

SO WE'VE REDUCED PROPERTY TAX DEBT SERVICE MILLAGE FROM FIVE 5 TO 5 ONE RIGHT HERE 116 MILLION IN DEBT REDUCTION FROM 18 FISCAL YEAR 18 OF FISCAL YEAR 25.

SO THAT'S THAT'S AMAZING THE DECISIONS TOWN HAS MADE OVER TIME TO PAY THE DEBT OFF AT THAT PACE ALSO AN ADDITIONAL $14.8 MILLION DEBT REDUCTION IS PLANNED FOR 26 RIGHT.

SO OUR PRINCIPAL SCHEDULED AND ARE CALLABLE ON A SPECIFIC DATE WHEN WE CAN WHEN WE CAN CALL IT BEACH RENOURISHMENT IS BUDGET AT 100% CASH RIGHT NOW SO THE DOLLARS ARE IN THE BUDGET SO I DON'T HAVE TO COME BACK TO YOU AND AMEND THE BUDGET WE SIMPLY HAVE TO AGREE YOU ALL HAVE TO AGREE AND ON THE STRATEGY FOR FUNDING AND YOUR DEBT VERSUS CASH RATIO THE DEBT SERVICE

[01:00:04]

YOU CAN SEE THE BALANCE AFTER A FLIGHT 26 PAYMENTS AND WHY I PUT THIS UP HERE IS TO REMIND US THAT WE HAVE WE STILL HAVE A LOT OF OUTSTANDING DEBT BUT OVER TIME THINGS ARE STARTING TO MATURE. 2026 WE PAID OFF A COUPLE OF BONDS THIS YEAR AND RIGHT NOW THIS THIS SERIES 017 BE SPECIAL BOND REALLY IT WAS A $30 MILLION SERIES PROPOSING PAY THAT OFF IN THIS IN THIS IN THIS BUDGET YOU CAN SEE OVER TIME TOTAL REDUCTION AND WE HAVE REDUCED OUR DEBT IN EACH OF THE LAST SEVEN YEARS FUNDING SCENARIOS FOR AND SO FORGIVE ME THIS IS A SLIDE THAT WE PUT IN HERE LATE YESTERDAY SIMPLY TO REMIND US THAT THIS BEACH RENOURISHMENT FUNDING ISN'T DECIDED IN THE BUDGET. 100% OF THE FUNDS ARE IN THERE BUT DEBT FUNDING WILL BE CONSIDERED AND FINANCE AND ADMINISTRATIVE COMMITTEE JUNE 24 SO RIGHT AFTER SECOND READING OF BUDGET COUNCIL FIRST READING JULY COUNCIL SECOND READING AUGUST AND SO AT THAT WE CAN START REALIZING AND I HEARD COUNCIL THE 7030 6040 WORD OUR FINANCIAL THERE'S THERE'S THERE'S SOMEWHERE IN BETWEEN WE WILL LAND BUT YOU CAN SEE THAT 7030 HAS A FUND BALANCE POLICY OF 20 AND I'LL GET TO THAT I HAVE PROPOSED IN THIS BUDGET AS A POLICY THAT WE INCREASE OUR FUND BALANCE BEACH OUR BEACH PRESERVATION AND FUND BALANCE FROM A MINIMUM OF 12 TO 20 AT THIS TIME. SO YOU CAN SEE THAT IT STILL ACCOMPLISHES THAT AND SO TO 6040 SO AGAIN SLIDES ARE JUST FOR A REMINDER THAT WE'RE COMING BACK AT THE SCHEDULE THE BOTTOM RIGHT OF YOUR SCREEN STORMWATER UTILITY $11.1 MILLION REVENUE WE'RE USING PRIOR YEAR FUNDS FOR ONE TIME PROJECTS TRANSFERRED TO CAPITAL PROJECTS OUR RATE REMAINS AT HUNDRED AND 50 SO WE HAVE RECOMMENDED TO CHANGE THE RATE ALTHOUGH I KNOW THAT IN THE FUTURE IF WE DO MORE WE'RE GOING TO HAVE TO FIGURE OUT RATE AS AS POTENTIAL DEBT IF WE WANT TO BUILD PROJECTS SOONER LATER WITH A PROPOSED BUDGET EXPENDITURES SALARY AND BENEFITS OPERATING ALL OF THOSE REALLY REMAIN ALMOST FLAT IF NOT AT THE SAME RATE WHEN YOU SEE A LARGE DIFFERENCE OF AS 1.1 MILLION INTO THE CIP STORM WATER CIP STORMWATER PROGRAM OF OF 6.3 RIGHT SO 1.18 LAST YEAR 6.35 THIS YEAR SO OF OF STORMWATER EXPENDITURES 57% IS GOING TO PROJECTS. WE'LL GET INTO THIS MORE AT WORKSHOP BUT I DO WANT TO DRAW OUR ATTENTION THAT WE ARE COVERING SALARIES AND BENEFITS OPERATING COSTS MONITORING AND MODELING PLAY IN PUBLIC SYSTEM CORRECTIVE MAINTENANCE ROUTINE MAINTENANCE AND CONTINGENCY SEA PUMP STATION MAINTENANCE, STORMWATER DEPRECIATION INTEREST AND FEES TRANSFERRING DOLLARS TO GENERAL FUND FOR STAFF AND THEN NEW IN THE CITY THIS YEAR ARE MORE PROJECTS SO TRANSFER FROM STORMWATER STORMWATER CORRECTIVE AND MAINTENANCE ACTIVE DRAINAGE AGREEMENT PARTNER CORRECTIVE MAINTENANCE PROJECTS REIMBURSEMENT SO THERE'S $2 MILLION OF THOSE DOLLARS FOR REIMBURSEMENTS I THINK THAT'S BEEN SOME OF OUR STANDING FLATFOOTED IN PRIOR YEARS BEING ABLE TO REIMBURSE FASTER

[01:05:04]

OUR UPCOMING WORKSHOP WE HAVE COMPLIANCE WITH OUR WATER QUALITY PROGRAM OUR ALAMO AS WELL AS OUR M IS FOR PERMIT WE MAINTAIN PONDS STREET SWEEPING CHANNEL MAINTENANCE FUNDING THROUGH THIS IS ALSO FOR OUR RESILIENCE PLAN AND OUR RESILIENCE INITIATIVES ARE CORRECTIVE PROGRAM IS ACROSS THE ISLAND AND HERE'S WHERE IT'S GETTING INTO CORRECTIVE MAINTENANCE IMPROVEMENT PROJECTS $1.8 MILLION AND WE STARTED TO IDENTIFY SOME OF OUR WORK AS WELL AS LAYING SOME DOLLARS OUT THERE REIMBURSEMENTS FOR THOSE THOSE PROJECTS CALLING EACH HISTORIC NEIGHBORHOOD CDCC CORP COMMUNITY DEVELOPMENT CORPORATION WE KNOW THAT'S A STAND ALONE FUND PRIOR SOUTH CAROLINA GRANT 2.9 MILLION BEFORE COUNTY GRANT STILL SOME RESIDUAL DOLLARS AND SOME INCOME FOR A REVENUE OF $3.2 MILLION AND MOST OF IS FUNDED AS YOU CAN SEE FROM THE SOUTH CAROLINA EARMARK THAT WE RECEIVED SEVERAL YEARS AGO A FEW YEARS AGO YOU SEE THE OPERATING PERSONNEL BENEFIT OPERATING MORE OR LESS THE SAME AND YOU'LL SEE THIS YEAR THE GRANTS AND INCENTIVE LOANS, CAPITAL OUTLAY AND LAND ACQUISITION AND SOME CONTINGENCY IN THAT BUDGET.

HERE'S SOME HIGHLIGHTS. I WILL SAY THAT I THINK OF THE GREATER HIGHLIGHTS ARE THOMAS FOXLEY WORKING ON ON A ON A TECHNOLOGY DRIVEN INNOVATIVE WAYFINDING PROGRAM ON SOME TECHNOLOGY AND SIGNAGE AS IT RESPECTS OUR CULTURAL OUR CULTURE AND OUR HISTORY AND THEN SERVICES FOR PROPERTY OWNERS IMPACTED AND IN HISTORIC NEIGHBORHOODS AND PARTICULARLY ON THE STONEY CORRIDOR AND THEN THROUGH THOMAS REALLY THROUGH THE CDC BOARD THIS BUDGET WAS PRESENTED AND THEY HAVE DOLLARS IN HERE FOR PROFESSIONAL SERVICES FOR ARCHITECTURE, ENGINEERING AND CONSTRUCTION AS WELL AS DESIGN PERMITTING FOR EITHER A RENO OR CONSTRUCTION OF CDC SPACE. THIS YEAR. AND YOU'LL SEE THAT IN IN THE CAPITAL OUTLAY LAND ACQUISITION ACCOUNT HOUSING IS MORE OR LESS THE SAME AS LAST YEAR YOU SEE $3.9 MILLION BUDGET OUR REVENUES OR SALARY AND OPERATING FROM GENERAL FUND YOU'LL SEE STATE TAX FROM PRIOR YEAR YOU'LL SEE PRIOR HOUSING FUNDS AND YOU'LL SEE PRIOR YEAR FROM ARPA GRANT AND THE WAY THAT IS DISTRIBUTED IS THE NORTH POINT PUBLIC PRIVATE PARTNERSHIP $1,000,000 AND THAT'S BEEN REMAINING IN THERE THROUGH THE DEVELOPMENT AGREEMENT. WE HAVE $1,000,000 RESPONSIBILITY TO OUR PARTNER.

I'M PLEASED TO ANNOUNCE THAT WE RECENTLY RECEIVED COASTAL ZONE CONSISTENCY A.K.A OUR LAND DISTURBANCE PERMIT. NORTHPOINT THAT'S BEEN ONE OF THE NEXT STEPS AND AS WELL YOU WILL BE LOOKING AT THE NORTH POINT REZONING MAP AND TEXT AMENDMENT SOON.

SO I ANTICIPATE THAT THIS PROJECT WILL BE UNDER CONSTRUCTION BY YEAR'S.

THOSE MILLION DOLLARS HAVE BEEN EARMARKED FOR A COUPLE OF YEARS FOR REASON IN IN THE SAME WAY WE STARTED TO LINE UP THE MUDDY CREEK NEIGHBORHOOD STABILIZATION WITH CAPITAL PROJECT MONEY FUNDS AS WELL AS THE BRYANT ROAD PUBLIC PRIVATE PARTNERSHIP.

I'LL BE UPFRONT ABOUT THIS WE EAGER TO GET ON WITH THAT BRYANT ROAD PROJECT BUT WE'VE WORKING PRETTY DILIGENTLY ON ON NORTH POINT. SO WHAT I DO THERE WE GO THERE WE GO WE HAVE IN BUDGET AS WELL BEAUFORT JASPER HOUSING TRUST DOES FOR TWO YEARS OF PAYMENT PERSONNEL AND SOME OPERATING COSTS. THIS TEXT DESCRIBES THOSE THOSE EXPENDITURES AND THEN LAST BUT NOT WE HAVE IN THIS BUDGET YOU WILL SEE AS ONE OF YOUR ATTACHMENTS IT'S AN ATTACHMENT TO AN ORDINANCE IT CALLS OUT SOME OF OUR MAJOR FUNDS WHERE I THINK IT'S YEAR I BELIEVE IT'S THE YEAR THAT WE REALLY ASSESS AND PUSH ON SOME OF OUR FUND BALANCE EXPECTATIONS SO. YOU CAN SEE ALL OF OUR OPERATING RESERVES, CAPITAL RESERVES SPECIAL PURPOSE RESERVES, RIGHT? SO TOTAL RESERVES OF MORE THAN

[01:10:02]

WE DO NOT HAVE ONE FOR STORM WATER AND I WOULD TELL YOU THAT OVER TIME IT GREW TO 16.6 FOR DIFFERENT REASONS. ARE WE KEEPING UP WITH THE WORK? DO WE HAVE STAFF? ARE WE FOCUSED MORE ON ONE BIG PROJECT AND NOT WHOLE BUNCH OF OTHERS THAT WE CAN KEEP UP WITH? ARE WE REIMBURSING ENOUGH? BUT AS WE START TO DRAW DOWN ON THAT AND I SHARED WITH YOU THE UTILIZATION OF THAT FUND BALANCE THIS YEAR I DO RECOMMEND AND AGAIN FOR DISCUSSION TONIGHT AND OR AT WORKSHOP AT A $5 MILLION RESERVE IN THERE A JUST IN CASE ACCOUNT AND WE CAN TALK ABOUT THAT REALLY IS 12 MONTHS OF REVENUE FIREMAN'S CAPITAL PROJECTS ROAD USAGE THERE'S NO PROPOSED MINIMUM REAL ESTATE TRANSFER FEE HAS A MINIMUM OF A MILLION AND I'M JUST PROPOSING I'M PROPOSING TO LEAVE IT THE WE HAVE 11.2 RESERVED IN THERE I SHOULD SAY ACCRUED IN THEIR BEACH PRESERVATION FEE. YOU CAN SEE $12 MILLION A PROPOSAL UP TO 20 THAT'S AN 18 MONTH REVENUE. IT INCREASES THE MINIMUM BALANCE AND SO WE'RE STILL ABLE TO DO THIS THIS WE'RE STILL TO IMPROVE 12 TO 20 AS WE GET READY TO REINFORCE BEACH AND ANY SCENARIO YOU ALL HAVE DIRECTED ME GUIDED ME TO THINK THROUGH WE DO NOT HAVE A HOSPITALITY TAX FUND BALANCE I PROPOSE THAT WE PUT ONE IT'S A SIX MONTH REVENUE AND THEN NATURAL EVERY YEAR. I REMEMBER PAST COUNCIL MEMBERS ASKING IS THAT MONEY? THEY'RE ALMOST WANTING TO SEE US SCHOOL MAKE SURE IT'S SO THE $20 MILLION THAT WE HAVE TALKED ABOUT AS A NATURAL RESERVE INCREASING THAT ALIGNED WITH ACTUAL RIGHT NOW AT 37 BUT A MINIMUM OF 36 AND TO CONTINUE TO GROW THAT WE STARTING TO REALIZE THAT OVER TIME FEMA'S MAKING DIFFERENT DECISIONS WE HAVE RISK AND I WOULD CALL IT FINANCIAL ANXIETY NOT ONE WONDERING WHAT FEMA WILL OR WILL NOT DO. I'VE SEEN SOME CORRESPONDENCE FROM FEMA RECENTLY STARTING TO LINE UP DIFFERENTLY WITH WHAT THEY REIMBURSE FOR AND SO IN THE BUDGET I THINK A BIG STEP A $6 MILLION INCREASE AND AN $8 MILLION INCREASE IN OUR FUNDS TO PLUG INTO AND PLEDGE INTO THOSE RESERVE ACCOUNTS AS IS APPROPRIATE AND AND RESPONSIBLE AT THIS TIME. SO THERE'S YOUR BUDGET 174.7 IT'S A $3.8 MILLION OVERALL GENERAL FUND WENT DOWN, GENERAL FUND WENT DOWN SOME PEOPLE WENT UP OPERATING DECREASED AND BEACH RENOURISHMENT IS OUR MAJOR PROJECT THIS YEAR WITH A PROPERTY TAX REDUCTION.

ALL RIGHT, THANK YOU, MR. ORLANDO NEXT WE'LL OPEN UP THE PUBLIC HEARING FOR THE PROPOSED ORDINANCE ADOPTED THE CONSOLIDATED BUDGET MUNICIPAL BUDGET FOR THE TOWN OF HILTON HEAD ISLAND FOR FISCAL YEAR 2026 ENDING JUNE 30TH 26. IS THERE ANYONE I'D LIKE TO SPEAK DURING THIS GAME TO HAVE SOMEBODY SIGNED UP? I'VE GOT ONE COMMENT.

MR. BUSY RICHARD GOOD AFTERNOON, RICHARD INDIGO RUN THE HILTON HEAD ISLAND RESIDENTS WHO WORK FULL TIME ONCE AGAIN ARE BEING DISENFRANCHIZED BECAUSE OF THE AFTERNOON MEETING TIMES FOR THE TOWN BUDGET. AT LEAST ONE PUBLIC MEETING ON THE BUDGET SHOULD BE HELD ANYWHERE 6 TO 8 P.M. TO PROVIDE AN OPPORTUNITY FOR HILTON HEAD RESIDENTS WHO WORK FULL TIME A CHANCE TO EXPRESS THEIR TO THE TOWN COUNCIL.

THEY ARE AS IMPORTANT AS THOSE RESIDENTS WHO ARE RETIRED. HOW CAN YOU IN GOOD CONSCIENCE DENY RESIDENTS WHO WORK FULL TIME A VOICE BEFORE THE TOWN COUNCIL? YOU MAY RECALL THAT I TALKED ABOUT MEETING TIMES A WHILE BACK BUT MOST PUBLIC COMMENTS EXPRESSED HERE NOTHING HAPPENED . I MENTIONED THAT I ASKED THE MAYOR WHY THE MEETING TIMES WERE ALWAYS AT 3 P.M. HIS RESPONSE WAS SIMPLY WELL THE WAY IT'S ALWAYS BEEN THAT'S AN UNACCEPTABLE RESPONSE. APPROVAL OF THE TOWN BUDGET IS ONE OF THE MOST IMPORTANT THINGS YOU DO AS A TOWN COUNCIL AND TO DEPRIVE HILTON HEAD RESIDENTS WHO WORK FULL TIME AN OPPORTUNITY TO BE HEARD IS DISGRACE.

APPARENTLY SINCE THE MAYOR SETS THE AGENDA AND HE DOESN'T VIEW THIS ISSUE AS IMPORTANT I HAVE A SOLUTION TAKE A CUE FROM THE BEAUFORT COUNTY BOARD OF EDUCATION.

FOR THE MOST PART I'M NOT A FAN OF HOW THEY DO BUSINESS BUT THERE IS ONE THING THEY DO IT

[01:15:02]

I SUPPOSE IT WAS A SECOND CALL. OKAY SO THE HEARING IS NOW CLOSED SO NOW WE HAVE A CONSIDERATION OF AN ORDERS ADOPTED THE CONSOLIDATED MUNICIPAL BUDGET FOR THE TOWN OF HILTON HEAD ON FOR FISCAL YEAR 2026 ENDING JUNE 30TH 2026 WE HAVE A MOTION TO TAKE A MOTION RIGHT. YEAH SORRY FOR THAT. I MEAN ADOPTION SECOND YEAR THE FIRST AND SECOND. ALL RIGHT, MR. ORLANDO, FIRST I WANT TO THANK YOU FOR PUTTING OUT THE THE BUDGET TO THE RESIDENTS SO THEY HAD A CHANCE TO REVIEW PRIOR TO THE DAY.

I THINK THAT IS EXCELLENT AND IS TRUE TRANSPARENCY. SO THANK YOU FOR THAT COMMENTS FROM COUNCIL SPEAKER. WELL, A COUPLE OF THINGS I JUST I HAVE ALREADY EXPRESSED MY FEELINGS ABOUT THE BUDGET. IT'S A GREAT JOB MARK. I THINK THIS IS THE FIRST TIME I WAS GOING TO VOTE ON YOUR BUDGET COMING OUT OF THE GATE. SO I'M IT REALLY IS A IT'S A GOOD BUDGET. SOME OF THE LANGUAGE, THE NARRATIVES NOT INCLUDING YOUR STATEMENTS BUT THE REST I WOULD RATHER SEE WRITTEN DIFFERENTLY BUT NUMBERS AND WHAT WE'RE DOING AS A TOWN AND THE STABILITY THE FINANCIAL STABILITY THAT WE HAVE AND OPPORTUNITIES FOR US IN THE FUTURE EVEN UNDER THOSE GUIDELINES IS INCREDIBLY IMPRESSIVE. THANK YOU FOR YOUR LEADERSHIP ON THAT.

AND I'D ALSO LIKE TO REQUEST AT THIS TIME THAT WE DO INCLUDE AN EVENING BUDGET HEARING AS IT'S BEEN MENTIONED AND IT HASN'T ALWAYS BEEN THAT WE MET AT 3:00 IN THE AFTERNOON IN FACT PRIOR TO GUESS IT WAS 18 THE TOWN COUNCIL MEETINGS WERE LATER IN THE AFTERNOON.

SO IN THIS PARTICULAR CASE FOR THIS PURPOSE WITH REGARD TO THE BUDGET WELL IT'S HOW YOU VOTE TO BE SEEN AND READ ONLINE. I THINK OPPORTUNITY TO HAVE FOLKS COME IN PERSON TO ADDRESS US IS IMPORTANT AND I'D ASK THAT WE INCLUDE AN EVENING OR LATE AFTERNOON MEETING TIME FOR THAT PURPOSE JUST FOR CLARITY SO EVERYBODY AWARE THAT I DID HAVE THAT CONVERSATION WITH MR. ORLANDO PRIOR TO THIS MEETING SO THANK YOU. OTHER COMMENTS MS. TAYLOR HELLO. MY FOCUS ON TOWN FINANCES IS TO BE FINANCIALLY SECURE TRANSPARENT TO SPEND OUR TAX DOLLARS EFFICIENTLY AND EFFECTIVELY AND WORK ON PROCESS IMPROVEMENT. AND I BELIEVE THAT WHAT WAS PRESENTED TODAY SHOWS THAT WE'RE ON THE RIGHT PATH WITH A PROPOSED BUDGET. IT IS CLEAR THAT THE TOWN IS FINANCIALLY SECURE. THERE IS VALIDATION THROUGH OUR BOND RATINGS, OUR FINANCIAL AUDIT, DEBT REDUCTION, OUR EXCEEDING OUR RESERVE STANDARDS AND THIS BUDGET IMPROVE UPON THAT BY IMPLEMENTING ADDITIONAL RESERVE STANDARDS BY KEY FUNDS WHILE MAINTAINING STRONG FUND BALANCES OF WHICH I'M IN FULL SUPPORT. THERE'S ALWAYS THE OPPORTUNITY TO IMPROVE TRANSPARENCY AND AS MAYOR PERRY MENTIONED ALL THE MATERIALS AVAILABLE TO THE PUBLIC IN ADVANCE IS BIG STEP IN CREATING THAT TRANSPARENCY, LAYING OUT THIS TYPE AND DEFINING WHAT IS CONSIDERED MAINTENANCE VERSUS DISCRETIONARY PROP PROJECTS PROVIDES TRANSPORT AGENCY AND A BETTER UNDERSTANDING OF THE CONTINUED OBLIGATIONS WE HAVE TO MAINTAIN OUR PROPERTIES VERSUS THE DISCRETIONARY INVESTMENTS WE WANT TO MAKE TO IMPROVE OUR COMMUNITY. IDENTIFYING RESOURCE SUPPORT NEEDED FOR VARIOUS FUNDS PROVIDES TRANSPARENCY ABOUT THE INTERNAL COSTS TO SUPPORT THOSE AREAS.

ALTHOUGH THE BUDGET IS STILL LARGE AT $174.7 MILLION, WE MUST AND SHOULD RECOGNIZE THAT IT INCLUDES THE COST OF THE BEACH RENOURISHMENT WHICH IS DONE EVERY 8 TO 10 YEARS AT A

[01:20:01]

AS YOU KNOW I ASK A LOT OF QUESTIONS AND WE HAD THE OPPORTUNITY TO THROUGH THE DETAIL OVER SEVERAL MEETINGS YOU ANSWERED MY QUESTIONS YOU MADE REVISIONS BASED ON THE FEEDBACK WHICH IS WHAT I SEE TODAY AND I LOOK FORWARD TO THE OPPORTUNITY TO DRIVE INTO MORE DETAIL DURING THE UPCOMING WORKSHOPS AND MAKE CHANGES IF NECESSARY.

SO AS I SAID, I BELIEVE THIS PROPOSED BUDGET IS A STEP IN THE RIGHT DIRECTION AND I LOOK FORWARD TO MORE DETAILED CONVERSATIONS OVER THE NEXT FEW WEEKS.

THANK YOU. OTHER COMMENTS WITH ROOM COMMENTS I CALL THE COMMENTS OF OUR COLLEAGUES HERE AS FAR AS GRATITUDE TO MR. ORLANDO WITH THE PREPARATION OF THIS BUDGET, YOU ALWAYS I'M GOING TO PRESENT A BALANCED BUDGET AND I INTERPRET BALANCE A LITTLE DIFFERENTLY THAN THE REVENUE COMING IN THE EXPENDITURES GOING OUT MATCHING OKAY AS WE CELEBRATE A POTENTIAL DECREASE IN MILLAGE I WANT TO JUST REMIND US ALL THAT THAT BECAUSE WE HAVE VERY HEALTHY OTHER REVENUE SOURCES AND WE HAVE TO REMIND THAT WE CONTINUE TO KEEP THOSE REVENUE SOURCES HEALTHY IN OUR DECISION MAKING. OKAY.

SO I APPRECIATE THE OPPORTUNITY FOR US TO HAVE FURTHER OVER THE NEXT COUPLE OF WEEKS AND YES, WE CONTINUE TO TIME I'LL BE MORE THAN HAPPY TO SUPPORT THAT AS WELL.

MR. MAYOR, ONE OF THE THINGS THAT ARE MOST IMPRESSED ABOUT THIS BUDGET IS ALTHOUGH IT IT'S IT'S IT'S A REDUCTION BUT WE'RE NOT REDUCING AND INVESTING IN WHAT WE VALUE THAT'S THE MOST IMPORTANT PIECE. OKAY SO ONE THING I'D ASK MR. ALMANZA AS WE SLOW DOWN AND GO THROUGH THIS AT THE WORKSHOPS WE'RE HAVING DISCUSSIONS AROUND THE RESERVE POTENTIAL ADJUSTMENTS THE FUND AT THE MOMENT DOES NOT HAVE A RECOMMENDATION AS FAR RESERVE IS CONCERNED AND I JUST WANT TO REMIND US ALL THAT WHEN WE STARTED THAT FUND WE DIDN'T PROJECTS ALIGNED WITH IT. IT WAS A COUNCIL DECISION TO PUT MONEY TOWARDS HOUSING AND DEVELOP THE PLAN AFTERWARDS AND IF WE'RE GOING TO CONTINUE TO BE SUPPORTIVE OF THAT INITIATIVE I THINK WE NEED TO TALK ABOUT HAVING SOME TYPE OF RESERVE THE INITIATIVES THAT WE HAVE HAD OVER THE LAST FEW YEARS LIKE HOME AND SAFETY REPAIR SEWER CONNECTIONS WHICH ARE CENTRAL TO HOUSING AS WELL AND THOSE WERE BROUGHT FORWARD THROUGH GRANTS OUTSIDE OF THE TOWN AND I THINK IF WE ARE FORCING OURSELVES TO HAVE A RESERVE POLICY AROUND HOUSING THEY FORCES US ALSO TO LOOK FOR ALTERNATE REVENUES. SO THOSE ARE MY COMMENTS FOR TODAY. MR. MAYOR, LOOKING FORWARD TO THE DISCUSSION COUPLE OF WEEKS.

OKAY. THANK YOU, MISS PRICE. THANK YOU, SIR.

ALSO ECHO THANKS TO MR. ORLANDO AND HIS TEAM THIS BUDGET I SUPPORT IT AND I GLAD TO SEE THE REDUCTION IN MILLAGE. IT'S ACTUALLY THE SECOND TIME SINCE I'VE BEEN ON TOWN COUNCIL TO SEE A REDUCTION IN MILLAGE THE FIRST ONE WAS AFTER REASSESSMENT AND I CERTAINLY ADVOCATED FOR THAT AND I ALSO AM PLEASED THAT WE HAVE A PUBLIC HEARING AT THE BEGINNING OF THE BUDGET PROCESS WHEN I WAS A MEMBER OF THE PUBLIC THE PUBLIC HEARING WAS HELD DURING THE SECOND READING OF THE ORDINANCE AND I OFTEN WONDERED IN THE WORLD WOULD YOU HAVE PUBLIC INPUT AT THE VERY END SOMETIMES EVEN AFTER THE MOTION ON THE SECOND READING AND SO THANKS FOR US TO THAT TO HAVE A PUBLIC HEARING TWO OF THEM ONE AT THE BEGINNING AND ONE AT THE

[01:25:04]

WELL, I'M ALSO VERY PLEASED TO SEE THE FUNDS POLICY IN ONE PLACE BEFORE KNOW I ASKED THIS WHERE WHERE ARE THESE WHERE'S THE POLICIES ON DIFFERENT RESERVE AND I WAS TOLD IT'S IN LOTS OF DIFFERENT PLACES SO I'M VERY GLAD TO SEE IT IN ONE PLACE I'M INTERESTED IN A SUGGESTION BY MR. BROWN FOR RESERVE FOR THE HOUSING FUND AS WELL BUT I'M GLAD TO SEE IT IN ONE PLACE SO WE CAN FIND IT AND AS PART OF THE BUDGET ORDINANCE ITSELF AND I SUPPORT THE INCREASES THAT HAVE BEEN PROPOSED FOR THE RESERVE FUNDS I ALSO I'M GLAD TO SEE THE BENEFITS FOR EMPLOYEES WE HAVE GREAT EMPLOYEES AND I ADVOCATE ALWAYS FOR MAKING SURE THAT THEY'RE TAKING CARE OF THE 4% ACROSS THE BOARD PERFORMANCE SPACE INCREASE THE INCREASES IN INSURANCE ALL KNOW INSURANCE KEEPS INCREASING INDIVIDUALLY AND AS BUSINESSES SO I'M GLAD TO SEE THAT TAKEN CARE OF IN THIS FINE. I'M ALSO HAPPY TO SEE AN EMPLOYEE FOR THE PEST MANAGEMENT POLICY SO WE CAN MOVE FORWARD WITH A TRULY ORGANIC TREATMENT OF OUR GROUNDS AND THEN ALSO I'M GLAD TO SEE ANOTHER CODE ENFORCEMENT OFFICER. WE CERTAINLY SEE THE NEED THAT IF YOU LOOK AT THE WHAT OVER 21,000 VIOLATIONS ON THE BEACH, THAT'S JUST INCREDIBLE AND I THINK WE'VE COME A LONG WAY IN OUR BEACH MANAGEMENT AND I COMMEND MR. ORLANDO AND HIS STAFF FOR MOVING FORWARD IN BEACH MANAGEMENT AND I'M HOPEFUL THAT WE WON'T HAVE 21,000 VIOLATIONS IN THE FUTURE . ALSO I'M VERY HAPPY TO SEE THE LARGE INCREASE IN STORMWATER I'VE LONG ADVOCATED FOR A STATEWIDE STATEWIDE STATEWIDE WOULD BE ALSO GOOD A TOWN WIDE STORMWATER SYSTEM AND WE'RE MOVING TOWARDS THAT FROM THAT MAP YOU SHOWED IN OUR AGREEMENTS WITH VARIOUS COMMUNITIES AND I KNOW THAT WE KEEP LOOKING AT THAT AND WE HAVE A GREAT SYSTEM FOR LOOKING AT REQUIREMENTS AND DETERMINING WHEN WHEN WE CAN HAVE AGREEMENTS ON THAT. ALSO AS YOU KNOW, I'M A BIG ADVOCATE FOR HAVING RESILIENCE PLAN AND THAT'S PART OF OUR STRATEGIC PLAN AND I WAS GLAD TO SEE THE SLIDE ON THE RESILIENCE INITIATIVE AND WHERE THE FUNDING IS FOR THAT AND I'M ALSO WANTING TO CONTINUE TO SUPPORT THE LAGOON HISTORIC NEIGHBORHOODS COMMUNITY DEVELOPMENT CORPORATION.

I GUESS WE'RE ENDING NEARING THE END OF THE STATE LEGISLATIVE SESSION THIS YEAR I THINK IT'S MAY 8TH WHICH IS COMING UP THIS WEEK AND I UNDERSTAND THAT SENATOR DAVIS HAS BEEN REQUESTING SOME ADDITIONAL FUNDS FOR THAT CDC AND SO HOPEFULLY WE'LL KNOW SOON IF THERE'S FUNDING AVAILABLE FOR THAT COMMUNITY DEVELOPMENT CORPORATION THEN THE OTHER THING THAT I WOULD NOTE IS THE STATE HAS REQUIRED US TO CHANGE OUR BUSINESS LICENSING PROCEDURE AND WE DON'T YET KNOW THE IMPACT ON OUR BUDGET FOR THIS COMING YEAR BUT THAT'S SOMETHING THAT WE KNOW WE'RE GOING TO KEEP AN EYE ON AS WE DO ALL THE VARIOUS FUNDS THAT SUPPORT OUR BUDGET. SO WE'RE TO BE MINDFUL OF THAT AS WELL AS THE IMPACT ON ALL COMBINATIONS TAX ETC. DURING THIS CALENDAR YEAR AND THE ENTIRE FISCAL YEAR TO COME.

THE LAST THING I WOULD SAY IS THAT I LOOK FORWARD TO AS MY COLLEAGUES HAVE SAID MORE DETAILED DISCUSSIONS PARTICULARLY WITH REGARD TO THE CAPITAL IMPROVEMENT PROGRAM AND FOR THE PUBLIC TO KNOW MORE ABOUT WHAT'S INCLUDED IN THIS BUDGET.

BUT THANK YOU MAYOR. THANK YOU MR. ALFRED. WHEN I HAD MY CONGRATULATIONS TO THE TOWN MANAGER AND THE FINANCE STAFF THIS IS AN AWFUL LOT OF WORK TO PUT IN TO GET THIS ALL PUT TOGETHER AND AS THE TOWN MANAGER INDICATED, IT'S NOT JUST LINING UP REVENUES AND EXPENSES BECAUSE WHERE THE DOLLARS ARE ALLOCATED INDICATES WHAT'S OUR WHAT OUR POLICY OBJECTIVES. AND SO IT REALLY IS A OF WHAT'S IMPORTANT TO US AND WHICH ARE THE PROJECTS WE ARE GOING TO PURSUE AND IN ORDER TO DETERMINE THAT THERE'S HAS TO BE AN AWFUL LOT OF CONVERSATION BETWEEN THE TOWN MANAGER AND THE COUNCIL SO THAT THE DOLLARS AND THE POLICY PRIORITIES LINE UP TOGETHER. ONE THING THAT I THINK IS VERY CLEAR IS THAT THE TOWN OF HILTON HEAD ISLAND IS VERY WELL OFF FINANCIALLY.

WE ARE ABLE TO DO A LOT OF THINGS THAT OTHER COMMUNITIES AROUND THE STATE DO NOT HAVE THE THE RESOURCES AVAILABLE TO THEM TO DO THAT. AND THAT PART OF THAT IS SHOWS IN THE BOND RATINGS WHICH THE MAJOR AGENCIES INDICATE WHAT OUR BORROWING SITUATION IS IS

[01:30:05]

SO FOR THOSE WHO LIKE TO DEAL WITH THE WHAT ARE THE DOWNSIDES WE ARE VERY WELL OFF IN THE EVENT OF A DISASTER AND WE KNOW SOMETHING IS COMING WE DON'T KNOW WHEN AND FINALLY IN TERMS OF TERMS OF MEETINGS I HAVE NO OBJECTION TO HAVING EVENING MEETINGS AS LONG AS THEY DON'T GO BEYOND MY BEDTIME. USED TO HAVE MR. DESMOND WHAT IS THAT WHAT PM 730 THANK YOU MARK YOU DID A FINE JOB FOR THE PUBLIC. I MEAN THIS IS NOT THIS IS MONTHS MONTHS OF WORK NOT WEEKS. THIS IS MONTHS OF WORK.

HUNDREDS AND HUNDREDS OF HOURS BEEN PUT INTO THIS WITH OUR TOWN MANAGER AND OUR STAFF AND THEY'VE DONE A REALLY GREAT JOB. I REALLY LIKE THE PROCESS OF WHERE YOU CAN YOU PUT THINGS IN THE COLUMN OF WHAT'S HAPPENING NOW INSTEAD OF STRETCHING THIS BUDGET OVER YEARS IT MAKES IT A LITTLE BIT HARD TO UNDERSTAND THAT WAY FOR SOME AND I THINK THAT'S A THAT'S A GREAT IMPROVEMENT IMPROVEMENT I'VE HAD THE PRIVILEGE OF BEING IN THE CITY THIS POSITION AND WATCHING THE TOWN GROW FROM THE NINETIES TO NOW. I'VE APPROVED BUDGETS IN THE PAST THAT WERE MUCH, MUCH SMALLER THAN THIS BUDGET AND AS THE TOWN HAS GROWN SO HAS OF OUR EXPERIENCE AND SO IS OUR TOWN MANAGER'S EXPERIENCE AND SO I REALLY COMMEND YOU IS AN EXCELLENT JOB.

THANK YOU. THANK YOU ALL. YOU KNOW SEVERAL YEARS AGO WE WORKED ON A COMPREHENSIVE PLAN AND ONE OF THE THINGS THAT WAS TALKED ABOUT WAS EXCELLENCE AND THAT'S WHAT YOU PROVIDED HERE TODAY WITHIN YOUR BUDGET BETWEEN AND YOUR STAFF TO MAKE CERTAIN THAT IT IS SPOT ON AND IS LOOKING OUT FOR THE BEST INTEREST OF OUR COMMUNITY AND I AGREE WITH EVERYTHING ELSE EVERYBODY ELSE TO SAY TODAY. SO YOU WANT TO ADDRESS I HEARD SOME FEEDBACK WE'RE PREPARED TO ANSWER A LOT AND WE GO INTO THAT FIRST WORKSHOP WE CAN TALK TIME I WOULD SUGGEST IF IF BOTH WORKSHOPS ARE GOING TO BE IN THE EVENING LET'S JUST FIX THAT TIME AND OFF CIRCLE WITH EVERYBODY SO THAT WE CAN GET THE MESSAGE OUT SOON.

I WOULD LIKE TO REALLY SAY THANK YOU TO ALL OF YOU AND DEFINITELY ERIKA KIMBERLY KIM AS WE CALL THEM THE SHAWN'S KELLY HEATHER AND EVERYBODY AND MOST IMPORTANTLY I SAY THE DEPARTMENT. SO THIS WAS AN INTERESTING YEAR TO PUT A BUDGET TOGETHER WHERE I KNEW BASED UPON INITIAL FEEDBACK FROM FINANCE THAT WE HAD TO SCALE BACK AND IT WAS A YEAR WE HAD TO FONT IN MY FIND SOME DOLLARS TO CONTINUE TO MOVE FORWARD BUT SCALE BACK AND EVERY SINGLE DEPARTMENT HEAD THAT I WORKED WITH BOB CHIEF MISSY TOM EVERYBODY THERE ALL EXCEPT ERIC EVERYBODY EVERYBODY WAS OPEN MINDED AND IN THERE AND RESPONSIVE TO THE THE THE ECONOMIC TRENDS AND EVERYONE'S BEST INTERESTS AT HEART. SO A SPECIAL THANK YOU TO EVERY SINGLE PERSON INVOLVED WITH THE BUDGET. ALL RIGHT.

THANK YOU. SO WITH THAT WE HAVE A MOTION ON THE TABLE.

WE HAVE SECOND MS. PRICE AND MADE THE MOTION I THINK MR. ALFRED SECONDED AND COMPETING BETWEEN MS. BECKER MR. ALFRED SO I'M NOT SURE WHICH WAS FIRST BUT ALL THOSE IN FAVOR PLEASE SIGNIFY BY RAISING YOUR RIGHT HAND SO MOVE THE SEVEN ZERO UNANIMOUS NEXT UP ON THE AGENDA

[8.b. Consideration of a Resolution of the Town Council of the Town of Hilton Head Island Approving for the Purposes of Section 147(F) of the Internal Revenue Code of 1986, as Amended, the Issuance of Not to Exceed $855,000,000 TaxExempt Bonds to be Issued by the National Finance Authority for the Benefit of Novant Health, Inc., with no Financial Obligation or Liability to the Town of Hilton Head Island - Shawn Colin, Assistant Town Manager]

[01:35:10]

THEY'RE LOCATED IN NEW HAMPSHIRE AND THAT'S IMPORTANT TO NOTE BUT IS PART OF A LARGER FINANCING FOR A FACILITY HEALTH FACILITIES IN TEN DIFFERENT SITES IN SOUTH CAROLINA NORTH THE FINANCING OF THESE TEN PROJECTS ARE BEING CONSOLIDATED INTO A SINGLE REVENUE BOND ISSUE FOR FINANCIAL EFFICIENCIES. YOU CAN SEE THE AMOUNT UP ON THE SCREEN OF A $155 MILLION THEY COULD HELP US PAY FOR A FEW BEACH NOURISHMENT PROJECTS AND THINK ABOUT MONEY. BUT ANYWAY IN ORDER FOR THE ON THE BONDS TO BE FEDERALLY TAX EXEMPT THROUGH THE INTERNAL REVENUE SERVICE AS WELL AS TO COMPLY WITH THE NEW HAMPSHIRE STATUTE THAT GOVERNS THE NATIONAL FINANCE AUTHORITY LOCATED IN NEW HAMPSHIRE A COUPLE OF THINGS HAVE TO HAPPEN A PUBLIC HEARING MUST BE HELD BY ONE OF THE ELECTED GOVERNING BODIES HAVING JURISDICTION OVER THE SITE OF THE BOND FINANCE PROJECT AND THEN FOLLOWING PUBLIC HEARING THE GOVERNMENT BODY ADOPTS A RESOLUTION APPROVING THE FINANCING FOR THE PROJECT. THIS IS A REQUEST THAT A TOWN COUNCIL CONDUCT A PUBLIC WHICH IS WHAT WE'RE DOING AS WE SPEAK FOR HOSPITAL AND THEN FOLLOWING IT THERE'S A RESOLUTION OBVIOUSLY TOWN TO TOWN COUNCIL WILL CONSIDER AUTHORIZING PROJECT.

WE HAVE JOEL TAYLOR HERE FROM NOVA ALSO SAM HOWELL, LEGAL COUNSEL HERE TO ANSWER QUESTIONS ABOUT. ANY PROJECT SPECIFIC ITEMS THAT YOU MAY BUT THIS IS REQUIRED BY THE INTERNAL REVENUE SERVICE TO AUTHORIZE FOR THE TAX EXEMPTION AND ALSO THROUGH THE NEW HAMPSHIRE STATE STATUTE WHERE THE FINANCE COMPANY IS LOCATED TO GO THROUGH THIS PROCESS I DO WANT TO REITERATE THERE'S NO FINANCIAL LIABILITY OR OBLIGATIONS AS A RESULT OF SUPPORTING BY A RESOLUTION THIS FINANCING FOR NOVA AND THE ISSUANCE OF THESE OF THESE BONDS. I ALSO WANT TO POINT OUT THAT WE TALKED MANY TIMES WITH OUR BOND COUNSEL AND THERE WERE BOTH FRANNY AND HER TEAM AND THEN ALSO CURTIS OUR TOWN ATTORNEY HAS LOOKED AT THIS AND RATES THE SAME. THERE'S NO LIABILITY OR OBLIGATION ON THE TOWN AND I CAN ANSWER ANY QUESTIONS AT THIS TIME AND I CAN ALSO BRING IN AS WELL AS LEGAL MIND UP TO ANSWER QUESTIONS. COUNCILMAN MR. TAYLOR HAS ANYTHING THAT YOU WANT TO ADD OR NEED TO ADD TO THIS TIME TO MAKE SEAN LOOK BETTER? THANK YOU, MR. MAYOR. THANK YOU. TOWN COUNCIL I'LL BE I'LL BE BRIEF. APPRECIATE THE WILLINGNESS TO HEAR US OUT ON THIS LOCALLY WHAT YOU ALL CAN EXPECT ABOUT APPROXIMATELY MILLION DOLLARS WILL BE DEDICATED TO HILTON HEAD MEDICAL CENTER OVER THE NEXT SEVERAL YEARS FOR CAPITAL IMPROVEMENT PROJECTS NOTABLY EARLY ON NEW IMAGING EQUIPMENT AS WELL, SOME MINOR CONSTRUCTION PROJECTS IN THE FACILITY ITSELF. SO BUT APPRECIATE THE WILLINGNESS TO CONSIDER HAVING TO ANSWER ANY QUESTIONS YOU MAY HAVE WE'LL COME TO QUESTIONS AFTER WE MAKE THE MOTION.

YES WELL THANK YOU, TONY. ANYTHING ELSE THOUGH, SIR? I WANT TO REMIND IT'S A PUBLIC HEARING RIGHT NOW SO YEAH. SO NEXT WILL HAVE THE PUBLIC HEARING FOR THE CONSIDERATION OF A RESOLUTION APPROVING THE PURPOSE OF SECTION 147 HALF OF THE INTERNAL REVENUE CODE OF 1986 AS AMENDED THE ISSUANCE OF TO EXCEED $855 MILLION TAXES AND BONDS TO BE ISSUED BY THE NATIONAL FINANCE AUTHORITY FOR THE BENEFIT OF NOVANT HEALTH WITH NO FINANCIAL OBLIGATION OR LIABILITY TO THE TOWN OF HILTON HEAD ISLAND. OH NOW OPEN THE PUBLIC HEARING AS EVERYBODY SIGNED UP TO SPEAK . WE DON'T HAVE ANYONE SIGNED UP.

OKAY, SO PUBLIC HEARING IS NOW CLOSED. DO WE HAVE A MOTION ON THE TABLE OVER AGAIN? WE'VE GOT A FIRST AND THE SECOND DISCUSSION QUESTIONS AND I'M FAMILIAR WITH THIS TYPE OF FINANCING AND I SUPPORT IT. ANYBODY ELSE? MR. BROWN YEAH, I JUST WANT TO GIVE MR. TAYLOR SOME APPRECIATION FOR THE ORGANIZATION TO HAVE THESE INVESTMENTS IN OUR COMMUNITY. AND I WANT TO JUST SAY OUT LOUD NOT ONLY BRING IN BETTER HEALTH CARE SERVICES HERE BUT WE ARE HOPEFUL AND I'M SPEAKING FOR ME

[01:40:06]

ANY OTHER COMMENTS MOSBACHER IS THE QUESTION SO OF $855 MILLION 15 MILLION WILL BE INVESTED HERE ON HILTON HEAD APPROXIMATELY. 30 MILLION IS DEDICATED TO THE ENERGY PLANT, THE HOSPITAL AND THEN 15 MILLION FOR GENERAL CAPITAL AND ADDITIONAL FUNDS FOR COASTAL CAROLINA. SO SO ALL OF THE FUNDS ARE STAYING WITHIN THE REGION WITHIN THE 855 ARE STAYING WITHIN NORTH CAROLINA ITSELF, NORTH AND SOUTH CAROLINA.

AND HOW MANY TOWN COUNCILS DOES IT REQUIRE YOU TO I THINK TO GET APPROVAL OF SAM BECAUSE HE'S MAKING THE ROAD SHOW I GUESS SAM HILTON HEAD AND JASPER COUNTY IT REQUIRES EVERY EVERY GOVERNMENT IN EVERY JURISDICTION ALL THE HOSPITALS LOCATED IN SOUTH CAROLINA.

PERFECT. THANK YOU SO MUCH FOR THAT ANSWER AND ANY OTHER ALL RIGHT.

SO WE'VE GOT A MOTION ON THE TABLE FIRST AND SECOND FROM THIS PERSON, MR..

ALL THOSE IN FAVOR OF APPROVING THE RESOLUTION PLEASE SIGNIFY BY RAISING YOUR RIGHT HAND SO MOVED SEVEN ZERO MARK WHY COULDN'T YOU BEEN THAT TO SO EVERYONE WE WILL MOVE ON TO

[9.b. Consideration of an Ordinance to Authorize the Execution and Delivery of an Easement for Ingress and Egress to Cordillo Courts and the Hedges, Encumbering Real Property, Located at 104 Cordillo Parkway, Owned by the Town of Hilton Head Island - Second Reading - Shawn Colin, Assistant Town Manager]

[9.a. Consideration of an Ordinance to Amend the Town of Hilton Head Island Budget for the Fiscal Year ending June 30, 2025; to Provide for the Budgeted Appropriations of the Land Acquisitions and Certain Other Appropriations and Commitments and the Expenditures of Certain Funds; to Allocate the Sources of Revenue for the Said Funds; and to Provide for Severability and an Effective Date - First Reading - Adriana Burnett, Finance Director]

AND LASTLY, WE ALSO WE HAVE PURCHASED 1.98 ACRES OF REAL ESTATE IN THE CITY ROAD AREA AND FOR THE AMOUNT OF $1.2 MILLION AND THIS ONE ALSO CAME FROM THE REAL ESTATE TRANSFER FEE. AGAIN I'M SPEAKING FOR OUR TOWN COUNCIL TO APPROVE THIS LAND ACQUISITION. THIS IS UNDER THE CAPITAL IMPROVEMENT PROGRAM AND THIS IS TO AMEND THE FISCAL 2025 BUDGET. THANK YOU.

WE HAVE A MOTION SOME OF AND PUBLIC COMMENT IN MY SIDE OF KIM NO PUBLIC COMMENT THANK YOU DISCUSSION FROM COUNSEL THANK YOU SAYING NINE WE'VE GOT A MOTION FOR MISS BECKER CYCLE

[01:45:05]

[10.a. Consideration of a Resolution to Adopt the Destination Marketing Organization FY26 Marketing Plan, Budget and Industry Metrics - Ariana Pernice, Vice President of the Visitor & Convention Bureau]

GOOD AFTERNOON MAYOR COUNCIL TOWN MANAGER AS YOU CAN SEE I'M NOT ARIANA PERNICE BUT I'M GOING TO INTRODUCE HER. YOU ALL HAVE THIS IN YOUR PACKET? AS YOU JUST MENTIONED IT WAS PRESENTED AT A TAX RECOMMENDED UP THROUGH TO FINANCE ADMINISTRATION AND THEN OF COURSE FINANCE ADMINISTRATION RECOMMENDED APPROVAL OF THE BUDGET HERE. SO WITHOUT FURTHER ADO NOW WE'LL HAVE ARIANA GRANDE'S THANK YOU. GOOD AFTERNOON EVERYONE. PLEASURE BEING HERE.

MY NAME IS ARIANA PERNICE AND I'M HERE TO REPRESENT THE HILTON HYLAND BLUFFTON CHAMBER OF COMMERCE. I OVERSEE THE VISITOR AND CONVENTION BUREAU.

I APPRECIATE YOUR TIME THIS AFTERNOON. ARE YOU GOING TO WORK WHERE YOU LIVE? YES, MA'AM. IT'S JUST YOU JUST SLIDE.

OKAY. YES. SO NO PRESENTATION.

NO. OKAY. THANK YOU.

THIS MICROPHONES I'M SORRY. PERFECT. SO AS HEATHER MENTIONED, I HAVE HAD THE OPPORTUNITY TO PRESENT TO THE ACCOMMODATION TAX COMMITTEE AS WELL AS THE FINANCE ADMINISTRATION COMMITTEE AND NOW TO YOURSELF. SO THANK YOU FOR THE OPPORTUNITY. I HOPE HAVING A WONDERFUL AFTERNOON AND WE WILL WORK THROUGH THIS SO PLEASE STOP ME AT ANY POINT IF YOU HAVE ANY QUESTIONS OR WE CAN WAIT TILL THE END. SO WE'LL TAKE A LOOK BACK BEFORE WE MOVE FORWARD.

THIS IS GOING TO BE A RECAP OF OUR CALENDAR YEAR 24 BASED ON US HAVING THOSE METRICS AVAILABLE TO US WHEN THIS IS DONE WITH THIS PRESENTATION PLAN REVIEW.

AND THEN IT WILL ALSO PRESENT TO YOU THE FISCAL YEAR 2526 OPPORTUNITY FOR US IN TERMS OF MARKETING THE DESTINATION IN THE APP MARKETS WE ALWAYS LIKE TO START WITH OUR DEMO TOURISM APPROACH HOW WE PLACE TOURISM IN OUT MARKETS. SO IT STARTS WITH A VISIT IS A TERM THAT WE A PHRASE THAT WE OFTEN USE AND I THINK IT'S IMPORTANT FOR US TO VISUALLY SEE HOW WE HOW WE APPROACH TOURISM IN PARTNERSHIP WITH OUR COMMUNITY AS WELL AS WITH THE TOWN. WE START AND UNDERSTAND AND SUPPORTING THE 20 YEAR COMPREHENSIVE PLAN. WE SUPPORT THAT WITH OUR TEN YEAR MANAGEMENT PLAN ON TOURISM. WE HAVE ALSO INCLUDED OUR COMMUNITY CORNERSTONE PLAN THAT WAS DONE IN PARTNERSHIP WITH THE TOWN AND MANY OTHER ENTITIES WITHIN THE AND BEYOND TO MAKE SURE THAT WE'RE THINKING NOT JUST FOR TODAY BUT TOMORROW.

WE ALSO HAVE OUR INTERNAL ANNUAL MARKETING PLAN AND A STRATEGIC PLAN IS OUR THREE YEAR PLAN AND THEN WE ALSO HAVE OUR VISITOR AND OUR COMMUNITY SURVEYS THAT WE DO ANNUALLY.

SO THAT IS OUR APPROACH BUT WE ARE AS ARE SUPPORTED BY OUR VISION OF BEING A WELCOMING WORLD CLASS COMMUNITY EMBRACING NATURE, CULTURE AND ECONOMIC VIBRANCY FOR RESIDENTS AND VISITORS WITH A MISSION TO STIMULATE REGIONAL ECONOMY WHILE ENHANCING THE QUALITY OF LIFE FOR ALL. I THINK IT'S IMPORTANT THAT WE ALWAYS JUST KIND OF REMIND OURSELVES OF HOW WE'RE TAKING THE APPROACH TO TOURISM IN PARTNERSHIP WITH THE TOWN AND THE COMMUNITY. WE DO THAT BY SEEING THROUGH OUR VALUES FOR THE DESTINATION IS ALIGNED WITH WHERE THE COMMUNITY ALSO SITS IN TERMS OF WHAT WE'D LIKE TO PRESERVE, PROTECT AND ADVOCATE FOR ECO TOURISM HISTORY, ARTS AND CULTURE.

RECREATION AND WELLNESS. I THINK THE REALLY GREAT PART ABOUT DEFINING THESE AND BRINGING THESE FORWARD IS THAT ON A REGULAR BASIS WHETHER THAT BE THROUGH OUR QUARTERLY OR OUR ANNUAL REPORTS OR JUST OUR TOUCH POINTS WITH OUR COMMUNITY ON ANY GIVEN TIMEFRAME WE ARE ABLE TO PULL FORWARD OUR EFFORTS WITHIN EACH ONE OF THESE CATEGORIES AND TALK TO WHAT WE'RE DOING TO SUPPORT THOSE. SO THAT'S BEEN A REALLY, REALLY GREAT PARTNERED EFFORT WHO WE'RE TARGETING WHEN WE'RE TALKING TO THE LEISURE TRAVELER IN THE OUT MARKETS BASED ON OUR 2024 VISITOR PROFILE STUDY AND THEN ALSO IN JUST TERMS OF WHO ARE GOING AFTER AND WHO WE'RE TARGETING. WE'RE LOOKING FOR AN AFFLUENT TRAVELER. SO ANYONE FROM A HOUSEHOLD INCOME OF 150,000 250,000.

THERE ARE EDUCATED WITH AN UNDERGRADUATE DEGREE OR HIGHER THEY HAVE A TO TRAVEL TAKING 2 TO 4 TRIPS PER YEAR AND THEY LOVE STAY ON AVERAGE SEVEN NIGHTS.

RIGHT NOW WE'RE SEEING THAT IT'S REALLY A SHARED DECISION IN TERMS OF WHO'S MAKING THE DECISION FOR TERMS OF TRAVEL IN THE HOUSEHOLD. AND SO THIS YEAR WE JUST SEE IT'S SLIGHTLY HIGHER WITH THE MAIL. BUT TRULY IT IS WHAT WE'RE

[01:50:04]

SO WHAT WE'RE TARGETING VERSUS WHAT WE'RE SEEING ACTUALLY WITHIN THE MARKET WHEN THEY'RE TRAVELING TO US THAT'S THE COMBINED EFFORT OF THINGS THAT WE'VE TALKED ABOUT WITH USING OUR PLACE PLACER I DATA VERSUS OUR COLLEGE OF CHARLESTON DATA THAT WE DO ANNUALLY IN PARTNERSHIP AND THERE REALLY ARE. SO IT'S GOOD TO SEE THAT THOSE PIECES ARE REALLY COMBINED IN OUR ARE BRINGING FORWARD SOME OF THE SAME INFORMATION AS WE WORK FIND A WAY TO BRIDGE TECHNOLOGY AND REAL TIME SUCH AS PLACE RIGHT AND OUR MORE TRADITIONAL EFFORTS WITH SURVEY OUTREACH. ALL RIGHT.

IF I COULD ASK YOU ON THAT ONE. IT'S SO TO DECIPHER THE COLORS WITH THE SMALL COLORS TO SIDE IF THERE'S A WAY TO HAVE THAT REPRESENTED AT SOME POINT SO THAT IT CAN BE A LITTLE BIT CLEARER AND UNDERSTAND YOU KNOW, BECAUSE THE GREENS ARE SO CLOSE TO EACH OTHER THAT THERE'S A WAY TO PUT THAT AT THE SHOWS THAT AGE THAT I'D BE REALLY INTERESTED IN THAT THANK YOU I'M HERE SO I MAY I THINK I THINK THEY'RE JUST HARD TO SEE TOO.

I APOLOGIZE SO WE'LL WORK ON THAT MAYOR AND WE'LL MAKE SURE THAT WE BRING IT BACK.

SO I APOLOGIZE THAT BUT WHAT WE'RE SEEING IS THAT WE ARE GARNERING WHAT WE'RE REACHING FOR. YOU KNOW, THE DIFFERENCE THAT WE'RE SEEING IS JUST SLIGHTLY FROM THOSE WHO TAKE A SURVEY, A LINK ON AN EMAIL WE SEND IT WE TEND TO SEE THAT SKEWS A LITTLE BIT YOUNGER AND OUR AGE DISTRIBUTION WHERE IN PLACE OR THAT'S THE REAL TIME DATA TRACKING WHAT WE ARE SEEING THAT IT'S IN AN OLDER AGE GROUP LIKE THIS BUT LIKE I HAD A QUESTION YES MA'AM YOU DIDN'T WANT TO SPEAK TO THAT. OH, YOU'RE FINE.

OKAY. SO ALONG THAT SAME LINE THERE IS ANOTHER CHART BACK IN THE STATISTICS THAT YOU GIVE WHERE IT'S A MORE LINEAR GRAPH TYPE OF CHART THAT I HAD PULLED OUT BUT THIS ONE DOES THE SAME THING WHEN WE TALKED A COUPLE OF PAGES BACK ABOUT WHAT THE INTENTION FOLKS THAT YOU'RE TRYING TO REACH THE THE INCOME LEVEL AND THE AGE ETC. RIGHT.

HUNDRED AND 52 TO 50 AND THE COLLEGE GRADUATE THE CHARTS THE ONE THAT YOU WERE JUST ON INDICATES THAT WE MIGHT NOT BE REACHING THAT THAT IS LOOKED AS THOUGH IT'S THE YOUNGER AGE GROUP IN THE DEMOGRAPHIC AND UNLESS DEMOGRAPHIC AND I JUST HAD A QUESTION THAT BECAUSE THAT SEEMS TO BE SOMETHING THAT WE'VE BEEN TRYING TO COMBAT FOR THE LAST SEVERAL, MANY YEARS NOW. AND WHAT'S YOUR THOUGHTS THAT ARE AND WHAT STEPS ARE BEING TAKEN TO MOVE US FURTHER ALONG TO REACH THAT MORE AFFLUENT TRAVELER? AND JUST SO I'M CLEAR, YOU'RE JUST ASKING TERM IN TERMS OF THE INCOME AND AGE WHY WE'RE SO SPECIFICALLY THOSE TWO ARE KIND OF THE ONES THAT ARE WORKING RIGHT? OKAY. NO IT'S JUST FOLLOWING UP ON THE CURRENT CONVERSATION.

YOU KNOW, I THINK I THINK THEY'RE GREAT QUESTIONS. I THINK THAT, YOU KNOW, WE HAVE OUR TARGET OF WHO WE'RE GOING AFTER AND I THINK THAT THERE'S OPPORTUNITIES FOR US AND HOW WE'RE WE'RE RECEIVING OUR RESEARCH AND WE HAVE KIND OF TWO WAYS IN WHICH WE'RE REALLY GOING AFTER THOSE OPPORTUNITIES NOW WE HAVE PLACE REAL EYE WHICH ALL OF US HAVE BEEN A PART OF AND AND IT'S REALLY REAL TIME AND GREAT AND WE'RE DOING COLLEGE OF CHARLESTON WHICH IS THE SURVEY INTERCEPT AND SO WE HAVE A TRADITIONAL VERSUS REAL TIME, YOU KNOW, TECHNOLOGY DRIVEN AND WHAT WE'RE SEEING IS A REALLY NICE BLEND AND SO I THINK WE HAVE TO LOOK AT THERE'S ALWAYS A DIFFERENT WAY TO INTERPRET THE DATA SO WE HAVE THAT ONE PIECE OF IT AND THEN THE SECOND IS EVEN THOUGH WE ARE REACHING FOR THAT 152 TO 51, WE LOOK AT THAT TO 50 IT IS SUCH A SMALL AMOUNT OF THE US POPULATION. I THINK WHEN WE ORIGINALLY STARTED TALKING ABOUT THE HIGHER INCOME HOUSEHOLD INCOME I SAID I THINK THIS WAS A FEW YEARS WE SAID 16% OF THE US POPULATION WHEN WE WERE FIRST TALKING ABOUT THIS FOR THIS COMING EFFORT IT'S LESS THAN 8% OF THE US POPULATION AT THE 250 OR HIGHER.

AND SO WE'RE CASTING OUR NET AND WE'RE GOING AFTER DESIRED HOUSEHOLD INCOME AND WE'RE GIVING THEM ALL THE OTHER OPPORTUNITIES THAT THEY HAVE TO TRAVEL THESE DAYS CONSIDERATION OF THE RECESSION OR CONCERNED ABOUT OPPORTUNITY TO REALLY GO ANYWHERE WE JUST ARE BATTLING A FEW DIFFERENT THINGS AND SO WE ARE A CONSIDERATION BUT WE HAVE TO CONTINUALLY FIGHT TO BE

[01:55:02]

HOW DOES 5% REPRESENT HOW DOES THAT COMPARE TO THE LAST YEAR OR TWO WITH REGARD TO THAT LEVEL OF INCOME? I'M SORRY. I JUST WANT MAKE SURE I KNOW THIS THIS RIGHT HERE THIS IS THE IT'S THE RUST COLOR NEXT TO THE LEFT OF THAT OR FROM MY LEFT AND I THINK KIND OF IS THAT COMPARED TO LAST YEAR I WOULD HAVE TO GO I'M SORRY I DON'T HAVE THAT DATA BUT I CAN PULL THAT FOR YOU. I THINK IT'S ONLY IMPORTANT BECAUSE WE LOOK AT THE MARKETING RATE WE ARE GOING TO SEE WHETHER OR NOT WE'RE ACTUALLY COMPARE THE EFFORTS BEING MADE TO SUCCESS THAT YOU'RE HAVING OVERALL.

BUT ANYWAY, THERE IS ANOTHER CHART THAT I FOUND WILL MUCH, MUCH EASIER TO BE FURTHER IN THE DOCUMENT OF COLUMNS YEAH THEY WERE COLUMNS AS TO WHERE THEY WERE SO COMING UP LATER SO HOPEFULLY THAT WILL HELP US I GUESS REQUEST IT SINCE YOU BROUGHT UP THE UNIVERSITY OF CHARLESTON I FIGURE I'LL TAKE AN OPPORTUNITY TO TALK ABOUT MY CONCERN.

I'M CONCERNED ABOUT THE VIABILITY OF THEIR PROFILE SURVEY IF LOOK AT THE NUMBER OF COMPLETED SURVEYS THAT DECLINED BY 6560 4% THIS LAST YEAR THE PRIOR YEAR THEY HAD 2900 RESPONDENTS AND THIS YEAR ONLY HAD 1040 AND THERE WAS A SIGNIFICANT SHIFT IN THE DEMOGRAPHICS AS WELL TOO MUCH YOUNGER AND LOWER INCOMES AND SO MY QUESTION WOULD BE DO WE KNOW WHY LESS PEOPLE RESPONDING? IS IT THAT THEY'RE NOT PROVIDING THEIR EMAIL WHEN THEY'RE ON THE WEBSITE OR IS IT A LOWER RESPONSE? YOU KNOW, SO FOR EXAMPLE, THE NUMBER OF PEOPLE RESPONDING AS DAYTRIPPERS WAS 23 AND SO WE'RE USING THAT DATA AS YOU KNOW ABOUT HOW MUCH MONEY THEY SPEND AND EXTRAPOLATE ADDING IT TO AN ECONOMIC INPUT ON A VERY SMALL NUMBER AND NUMBER OF INTERNATIONAL TRAVELERS WAS 19. SO WHAT ARE YOUR THOUGHTS ABOUT THE VIABILITY OF CONTINUING TO USE THIS MOVING FORWARD AND WHAT'S CAUSING THE SIGNIFICANT DECREASE IN THE NUMBER OF RESPONDENTS? IT'S A GREAT QUESTION YOU COUNCILMAN TANNER.

I THINK THE OPPORTUNITY IS YOU KNOW, WE'RE LIVING REAL TIME THE OPPORTUNITY TO MERGE YOU KNOW WHERE WE ARE FROM A TECHNOLOGY INTO MORE TRADITIONAL RESEARCH EFFORTS AND I THINK WHAT YOU'RE SEEING NOW IS THAT WE'RE TRYING REAL TIME TO BLEND THOSE EFFORTS AND SO WE ARE IN CONSTANT CONTACT WITH COLLEGE OF CHARLESTON AND TRYING TO UNDERSTAND EFFORTS AND WHAT THEY'RE DOING TO BRING IN MORE OF A TECH SAVVY TECH APPROACH TO THEIR RESEARCH EFFORTS BEYOND. JUST THE SURVEY INTERCEPTS THAT WE TRADITIONALLY SEE LIKE YOU SEE TODAY AND THEN WE HAVE OUR PLACE EFFORTS WHICH ARE GREAT AND ALL KIND OF REVIEWED THOSE AND LOOKED AT THOSE BUT THEY HAVE LIMITATIONS AS WELL. AND SO WHAT WE'RE SEEING IS IN THIS EFFORT WE WE COMPARED YOU KNOW, THE BEST WE COULD IS ARE NOT APPLES TO APPLES.

YOU KNOW, WE TOOK WHAT PLACER WAS SHOWING FOR EACH AND THEN INCOME DISTRIBUTION AND WE COMPARED THEM TO THE ECONOMIC IMPACT VISITOR PROFILE STUDY EFFORTS AND THEY ARE COMPARABLE. THEY'RE NOT COMPLETELY, YOU KNOW, OTHER ENDS OF THE SPECTRUM EACH OTHER. SO WE ARE GETTING THE INFORMATION AND SHOWING THAT EVEN WHEN WE'RE TRACKING YOU BY YOUR PHONE OR SOMEONE IS WILLING TO TAKE THE SURVEY WHICH THAT DEFINITELY SKEWS TO BE A YOUNGER INDIVIDUAL AN OLDER INDIVIDUAL WHO WOULD TAKE THE SURVEY ON A PHONE OR A COMPUTER SO WE'RE SEEING THAT BLEND.

BUT OUR EFFORTS IN THE NEXT PHASE OF THIS IS HOW DO WE CONTINUE CHALLENGE AND PUSH OUR PARTNERS TO THINK MORE INNOVATIVE INNOVATIVELY AND TO BE INNOVATIVE IN THE PROCESS WHEN THEY'RE TALKING ABOUT RESEARCH. AND SO THOSE THOSE MEETINGS HAVE BEEN SCHEDULED AND WE'RE TAKING THAT PROACTIVE APPROACH TO WORK WITH OUR PARTNERS TO DO THAT. I THINK THAT'S GOING TO BE VERY IMPORTANT BECAUSE IT'S A LOT OF REALLY GREAT INFORMATION AND QUESTIONS THAT WE ASK AND WE'RE LEVERAGING THAT INFORMATION MANY WAYS AND WE WANT TO MAKE SURE THAT THAT DATA THAT WE'RE RECEIVING IS ROBUST ENOUGH FOR US TO REALLY MAKE DECISIONS UPON JUST WHEN OUR CO-SPONSOR CAN MAKE SURE THAT WAS RIGHT WHEN WE HAVE THAT ALWAYS ON APPROACH WE TALK OFTEN ABOUT HOW A CONSUMER MEDIA AND BRANDS

[02:00:04]

WE TALK ABOUT 3 SECONDS. I OFTEN THINK THAT THAT'S MUCH SHORTER IN TERMS OF WHAT WE HAVE BECAUSE WE ARE JUST OUR MINDSDIFFERENT THAN THEY WERE PRE-COVID BECAUSE WE'RE YOU KNOW THIS, THIS AND THIS WE HAVE ALL THESE THINGS ON AND YOU KNOW THE DECISION TIME AND BEING HAVING THAT RECALL OPPORTUNITY WITH A POTENTIAL VISITOR IS SO IMPORTANT TO STAY TOP OF MIND SO THEY'RE ACTUALLY ABLE TO THINK HEY I'M GOING TO TAKE A VACATION, I'M GOING TO CHOOSE HILTON HEAD ISLAND. WE WANT THEM TO BE ABLE TO RECALL OUR AND SO CONSTANTLY HAVING THESE TOOLS IN OUR TOOLKIT ON IN SOME CAPACITY FIRING AT DIFFERENT TIMES IS KEY AS WE WORK THROUGH THAT PROCESS WITH KEEPING TOP OF MIND WITH OUR POTENTIAL VISITOR I, I LOVE THIS SLIDE BECAUSE I THINK IT ALLOWS ME ONE TO USE MY HANDS WHICH I LOVE TO DO WHEN I'M SPEAKING SO I APPRECIATE YOU ALLOWING ME TO DO THAT BUT IT'S THE CASTING OF THE NET THAT ALLOWS TO KIND OF WALK THROUGH THE SLIDE.

SO WE CAST A VERY WIDE NET IN TERMS OF REACHING OUT THERE WITH OUR BRAND BUT WE'RE CONSTANTLY QUALIFYING POTENTIAL VISITORS AS WE PULL THAT NET IN AND WE WANT TO BRING THEM THROUGH KIND OF THE DIFFERENT PARTS OF THE FUNNEL AS WE PULL THAT NET IN CLOSER AND CLOSER.

SO IT'S AWARENESS, IT'S INTENT AND CONVERSION AND THE CONVERSION COMPONENT FOR US AS A DESTINATION TO BRING THEM TO THE PARTNER AS A QUALIFIED POTENTIAL VISITOR.

THERE'S INTENT TO TRAVEL. THERE'S INTENT TO WANT TO COME TO A BEACH DESTINATION, AN INTENT TO WANT TO DO SOMETHING WITHIN THE NEXT 3 TO 6 MONTHS IF NOT A SHORTER TIME FRAME BECAUSE THAT ALSO IS HAS SHORTENED IN TERMS OF WINDOW AND WE WANT TO BRING THEM IN WHAT WE'RE CALLING A HANDSHAKE OR CLICKING OUT TO THAT PARTNER IN TERMS THEIR WEBSITE AND DOING SOMETHING THERE AND. SO THAT'S HOW WE GET THERE. WE'RE CASTING THAT NET AND PULLING THEM THROUGH SO NOW THAT WE KIND OF HAVE THE OVERALL APPROACH AND UNDERSTANDING OF HOW WE WE TAKE A LOOK AND WE APPROACH TOURISM FOR THE DESTINATION WE WANT TO LOOK BACK AT THE CALENDAR YEAR 2024 PERFORMANCE. WE'RE GOING TO START WITH OUR WEBSITE. WEBSITE PERFORMANCE IS WHAT WE ARE CALLING OUR DIGITAL FRONT DOOR. MANY OTHER DESTINATIONS HAVE A BRICK AND MORTAR A PHYSICAL LOCATION IN TERMS OF THAT'S THE ONE PLACE THAT THEY WELCOME AND YOU STOP IN AND YOU GO THERE WE HAVE WE DO HAVE THAT IN OF OUR OFFICES BUT WE HAVE REALLY THE BACKBONE OF HILTON HEAD ISLAND DOT ORG THAT IS KIND OF A VISUAL WELCOMING PIECE FOR THE DESTINATION AND CAN BE ACCESSED ANYWHERE IN THE WORLD WHAT WE'RE SEEING WHY YOU SEE TO BOTH A LAPTOP AND A PHONE IS BECAUSE MOST ARE CONSUMING ALL BRANDS ON THEIR CELL PHONE. AND SO THIS PAST YEAR IN 2024 WE HAD OVER 3.3 MILLION VISITS AND WE CREATED OVER 1.5 MILLION HANDSHAKES OR CONNECTIONS TO BUSINESSES HERE ON THE ISLAND. BUT HOW A OH I FORGOT THESE ARE MY BAR SLIDES.

COUNCILMAN BROWN AND OTHERS HAD ASKED THAT WE KIND OF GIVE THE EFFORT OF WHAT DOES LOOK OVER THE LAST FIVE YEARS AND SO THIS IS OUR FIRST EFFORT IN BRINGING THAT FORWARD.

ONE OF OUR PRESENTATIONS FOR THIS THIS PIECE I KNOW WE LOOK AT THIS FOR SOME OF OUR FINANCIAL EFFORTS IN THE DEMO METRIC BUT THIS IS ONE THAT KIND OF WE'LL BREAK THIS DOWN FOR EACH SEGMENT THE REPORTING. SO AS YOU'LL SEE HERE IN OUR VISITS, THOSE ARE PEOPLE COMING TO THE HILTON HEAD ISLAND ORG WEBSITE THAT'S IN THE BLUE AND THEN OUR HANDSHAKES OUT ARE IN GREEN. SO THAT REALLY SPEAKS TO THE FIVE YEARS AND SEEING THAT GROWTH AND ALL THESE VISITS ARE SPECIFIC. WE RELATED TO VISITS TO HILTON HEAD AND NOT STAYS WITHIN THE BLUFFTON THE TOWN OF BLUFFTON ALL OF THESE STATISTICS ARE SPECIFIC ACTUALLY DRIVEN BY BECAUSE I KNOW IN A LOT OF THE NARRATIVE THERE SEEM TO BE THE SPECIFIC PLACES WHERE ONE OR TWO WHEREAS AT THE HILTON NUMBERS WERE BEING REPORTED BUT A LOT OF OTHER AREAS SEEMED TO COMBINE BOTH HILTON HEAD AND BLUFFTON TERMS OF NUMBERS ETC.

AND I JUST WANT TO MAKE SURE THAT WHEN WE LOOK AT THIS INFORMATION AND WE'RE THINKING ABOUT THE DOLLARS THAT COME FROM HILTON HEAD THAT IT IS INDEED BRINGING TRACKING VISITORS TO HILTON HEAD AND STAYING AND ON THE ISLAND IN OUR VISIT RESIDENCES OR HOTELS OR TIMESHARES ETC. AND ON THE ISLAND SO THAT ALL OF THIS REPORTING BASED ON PEOPLE THAT CAME TO HILTON HEAD ISLAND DOT ORG SPECIFICALLY THOSE FUNDS THAT WE USE TO PROMOTE THE

[02:05:01]

AND SO WE'VE ASKED THAT THEY A LITTLE DEEPER. YES, SIR.

AND I THINK THAT WE'RE ABOUT TO CHANGE THIS PRESENTATION BUT GOING FORWARD WE'LL WORK ON OUR QUARTERLY REPORTS AND HAVE THOSE OPPORTUNITIES TO REVIEW KIND OF NOT ONLY BUT HOW THAT TIME FRAME PERFORM THAT REPORTING BUT WHAT IS ON THE BOOKS AS WELL MOVING FORWARD WHICH WILL BE GREAT. YOU CAN LOOK AT THAT BOTH ON HOTEL AS WELL AS HOME AND VILLA TURN TO DOCUMENT IT CONTINUES TO BE AND CORRECT ME IF I'M WRONG BUT AS I RECALL READING THROUGH THE DOCUMENT IT CONTINUES TO BE OUR BEACHES AND THAT DRIVES PEOPLE TO THE ISLAND. SO THAT'S WHY I GUESS MOST OF THE INFORMATION IS COMING FROM THE SUMMER TIME RIGHT NOW LOOKING AT OUR SOCIAL MEDIA SOCIAL HAS PLAYED AN INTERESTING ROLE OVER THE PAST FEW YEARS FOR ALL BUSINESSES WHEN YOU LOOK AT IT FROM A DESTINATION STANDPOINT YOU'RE OFTEN TAKEN TO WHAT PERFORMED BEST ARE THESE PICTURES ALLOW OR VIDEOS THAT ALLOW A POTENTIAL VISITOR TO DREAM. IT'S THAT SNOW GLOBE THAT THEY'RE, YOU KNOW, MENTAL SNOW GLOBE THAT THEY GET TO BRING WITH THEM AND YOU KNOW, TURN ON FOR A FEW QUICK SECONDS SAY GOSH, I CAN'T WAIT FOR MY NEXT TRIP OR I CAN'T WAIT TO GO THERE. WHERE IS THAT? AND WE SEE THAT THE VISUAL CONNECTION TO OUR BRAND HAS MEANT SO MUCH AND HAS ALLOWED US TAKE THAT SOCIAL AUDIENCE, GROW IT YEAR OVER YEAR AND ALSO CONVERT THEM BACK OVER TO THE WEBSITE TO FURTHER INVESTIGATE AND FALL IN LOVE WITH THE PLACES THEY'RE SEEING ON SOCIAL MEDIA AND BUILD THAT TRIP.

SO AS LEADING THEM FROM SOCIAL MEDIA TO A DEEPER CONTENT MIGHT BE A BLOG MIGHT BE AN ITINERARY BASED ON THE CONTENT THEY'RE SEEING SO IT'S AN EXCITING PIECE TO SEE AUDIENCE AT 357 THAT'S TOTAL AUDIENCE AND THAT INCLUDES ALL THOSE SOCIAL CHANNELS THAT WE TALK ABOUT WHICH IS FACEBOOK FIRST AND FOREMOST INSTAGRAM PINTEREST AND THEN WE DO ENGAGE ON TIK TOK NOW AND WE WILL CONTINUE TO MONITOR WHERE THAT GOES AND THEN TWITTER USE MORE FOR REAL TIME UPDATES AND KIND OF MORE FOR REPORTING OF REAL TIME UPDATES NOT FOR THE KIND OF SOCIAL COMPONENT FOR DESTINATION AS MOST PEOPLE ARE APPROACHING IT THAT WAY.

BUT YOU CAN SEE NOW ON SOCIAL YOU'LL SEE THAT GROWTH YEAR OVER YEAR WHICH IS FANTASTIC IN THAT WHAT WE'RE ABLE TO DO AGAIN IS TO BUILD THAT DEEPER CONNECTION WITH THE POTENTIAL VISITOR WAS JUST GREAT TO SEE AND CHARLIE CLARK AND HER TEAM WITH PUBLIC RELATIONS HAS DONE AN AMAZING JOB. SO THERE'S YOU KNOW TWO PARTS TO OUR MARKETING EFFORTS.

WE HAVE THE PAID SIDE IS HAVING THE OPPORTUNITY TO USE OUR OWN CHANNELS HEAD ISLANDS OWN CHANNELS WHICH ARE IN DIGITAL AND SOCIAL YOU KNOW CONTENT PIECES THAT LIVE ON YOUTUBE AND WE DOVE DEEPER INTO THOSE TO BUILD BRAND BUT THEN THERE'S ALSO THE PAID PARTNERSHIPS THAT COME ALONG WITH USING THE QUALIFIED AUDIENCES OF CONDE NAST TRAVELER TRAVEL AND LEISURE SMITHSONIAN GARDENING GUN SOUTHERN LIVING. BUT THEN THERE'S ALSO THE EARN SIDE WHEN AN EDITOR FALLS IN LOVE WITH A PARTICULAR PORTION OF CONTENT THAT CHARLIE AND HER TEAM ARE REALLY BRINGING TO THE TOP WHICH MIGHT BE SOMETHING TO DO WITH ARTS AND CULTURE OUR

[02:10:01]

SHE'S DONE AN AMAZING JOB ON OUR TEAM AND THESE ARE JUST A SNAPSHOT OF THINGS.

SHE WAS ABLE TO GARNER IN 2024. SO IT'S EXCITING TO. SEE THAT IN PARTNERSHIP WE CAN WORK ON BOTH SIDES AND, BRING THOSE STORIES FORWARD ON BEHALF OF THE DESTINATION.

THE DESTINATION GUIDE IS THE OFFICIAL PLANNER FOR THE DESTINATION AND WE FULFILLED NEARLY 59,000 OF THOSE 50 549 THAT'S THE IMPORTANT PART HERE FOR US IS WE WORK THIS ONLINE DIGITAL WORLD FOR 98% OF OUR EFFORTS AND WHEN PROMOTING THE DESTINATION AND WE HAVE THIS ONE PIECE THAT FROM A STANDPOINT OF HAVING A REAL ESTATE HAVING COFFEE TABLE BOOK THAT CAN LIVE THERE YEAR LONG AS A PIECE OF REAL ESTATE WITHIN A HOME TO INSPIRE AND KEEP OUR BRAND TOP OF MIND AS IS SO IMPORTANT BECAUSE EVERYTHING ELSE IS SO QUICK RIGHT YOU SEE A POST IT'S ON YOU SEE A BLOG IT'S GONE BUT THIS IN OUR EFFORTS TO CREATE A PIECE THAT'S LASTING CAN AND WILL SIT ON YOUR COFFEE TABLE OR YOUR COUNTER AND WE HOPE IT'S THERE FOR FOR THE YEAR AND YOU'RE EARNING YOUR NEXT ONE. SO WHERE DO WE HAVE THESE PLACED OUTSIDE OF YOU WALKING IN AND RECEIVING YOURS AS YOU ARRIVE ON TO THE ISLAND ONE IS IN OUR OFFICES YOU CAN ALSO CALL OR EMAIL AND REQUEST THAT NOW WE SEND TO YOUR HOUSE AND OR WE HAVE THEM AT ALL OF OUR STATE CENTERS ACROSS SOUTH CAROLINA THAT ARE ALL OFFICES THERE AT BOTH OF OUR AIRPORTS AND SAVANNAH HILTON AND AS WELL AS HILTON HEAD AIRPORT AND WE TAKE THEM TO ALL OF OUR MEDIA AND PUBLIC RELATION AND ALL TRADE SHOWS AND EVENTS AS YOU SEE HERE WE GIVE YOU THE FIVE YEAR LOOK AND WHAT WE'RE CONSTANTLY MONITORING AND FROM A FULFILLMENT STANDPOINT AND AN ORDERING STANDPOINT IS WHAT'S THE RIGHT NUMBER AND WE ORDER VERY EARLY ON WE ARE ORDERING AS AN EXAMPLE 2026 BOOKS WE ORDERING THAT OR MAKING THAT COMMITMENT TO A NUMBER BASED ON LAST YEAR'S NUMBERS. I'M VERY EARLY ON IN THE IN THE CALENDAR YEAR IF NOT PRIOR TO GOING OUT FOR HOLIDAY AND ADJUSTING BASED ON YOU KNOW, THE NEEDS THAT WE HAVE. SO YOU CAN SEE THAT 58 WE'RE GOING INTO THIS COMING YEAR WITH 65 AND FOUR FOR 2026 AND 2025 WILL BE SOMEWHAT SIMILAR. SO WE'RE WE'RE EXCITED THAT WE'RE ABLE TO MANAGE THAT THE SUMMIT AND THE PRODUCTION OF THOSE BOOKS.

SO I THINK WHAT WE SEE HERE IS THAT IT'S STILL A PIECE THAT'S DESIRED AND PEOPLE ARE REQUESTING IT BUT WE JUST WANT TO MONITOR THAT MORE CLOSELY. YEAH, I HAD A QUESTION ON THAT AND THANK YOU FOR A ADJUSTING MOVING FORWARD NOTE YOU KNOW NOTICING THE THAT LESS ARE BEING FULFILLED AND REDUCING YOUR ORDER SO THAT WE DON'T HAVE ANY WASTE BECAUSE I KNOW THAT COSTS MONEY TO PRODUCERS AND IT'S A BEAUTIFUL PIECE OF WORK AND I THINK YOU'RE RIGHT TO CALL IT A COFFEE TABLE BOOK IT IT IS UP QUALITY AND WE JUST WANT TO MAKE SURE THAT THEIR MONEY IS BEING SPENT TO THAT ALIGNS TO HOW MANY WE NEED SO ONE OF THE THINGS THAT I WAS EXPECTING TO SEE IN THE BUDGET WHICH I KNOW YOU'RE GOING TO GET TO IS THAT THAT CATEGORY OF THE VACATION PLANNER AND FULFILLMENT HAVE A LOWER EXPENSE NUMBER AND IT'S THE SAME AS LAST YEAR. SO I JUST HAD A QUESTION ON WHY THE BUDGET IS SAME KNOWING THAT YOU'RE GOING TO BE PRODUCING LESS VOLUME. YES.

FOR THE RECORD, RADIO AND THE CHAMBER OF COMMERCE, THAT PARTICULAR LINE ITEM A LOT OF THE COST IS A PUBLISHING COST ACTUALLY GO UP A LITTLE BIT.

THE PRINTING COST ITSELF WILL GO DOWN AND THEY MAY EVEN THEMSELVES OUT.

PLUS WHEN WE DID THE THE HIGH LEVEL BUDGET IT WAS BACK IN FEBRUARY MARCH AND SO WE DECIDED TO SEE WHAT YOU KNOW WE DECIDED BEFORE WE MADE A DECISION ON WHAT WE'RE GOING TO PLACE THE ORDER IN 2026 WE HAD TO FIGURE OUT WHERE WE'RE GOING TO BE.

WE THOUGHT WE'RE GOING TO BE A LITTLE BIT LOWER THAN WHERE WE WERE THIS YEAR.

BUT AGAIN THE PUBLISHING COSTS KIND OF OFFSET THE PRINTING COSTS AND I KNOW WHEN THIS IS WHEN WE TALKED ABOUT THIS IN SOME PRESENTATION JUST NOT TOO LONG AGO, THOSE EXTRAS THAT ARE AVAILABLE, I THINK I MADE A SUGGESTION THAT THE RENTAL PROPERTY MANAGEMENT COMPANIES TO DROP THEM OFF THERE EVERYBODY FLIPS WHEN YOU'RE SAYING IN A PLACE WHATEVER IS

[02:15:06]

SO WE ARE A MEMBERSHIP BASED ORGANIZATION. WE WE'RE A DIVISION OF THE CHAMBER OF COMMERCE AND SO THOSE ARE HOW WE SERVE OUR MEMBERS IN WHICH WE SERVE OVER 1300 MEMBERS IN THIS COMMUNITY TO REPRESENT THAT BOOK AND BEYOND ON THE WEBSITE AND FURTHER SO TO GET THE CONTENT THOUGH TO WHERE YOU AND I WERE TALKING ABOUT IT IT IT REALLY IS ARE WE TYING THE MOST ACCURATE STORY AND WE DO TAKE THAT INTO CONSIDERATION WHEN WE'RE BUILDING THOSE STORYLINES AND BUILDING OUT THE CONTENT. SO I GUESS, I WAS A LITTLE BIT MISTAKEN IN MY THINKING THEN I DIDN'T REALIZE THAT ONLY MEMBERS WERE HIGHLIGHTED THROUGH THE DIRECT MARKETING PLANS AND I JUST WONDER IF THAT'S THE BEST POLICY GIVEN THE FACT THAT WE ARE TRYING TO STIMULATE ALL OF THE ISLAND AND ALL OF THE BUSINESSES AND HOW THOSE WHO CAN'T OR DON'T FOR WHATEVER REASON CHOOSE TO BE MEMBERS OR SERVICE BY OUR TAX DOLLARS. IT'S A GREAT QUESTION AND THEY ACCOMMODATION COMPONENT TO CLARIFY ALL ACCOMMODATIONS IN TERMS OF WHO PROVIDE OR PAY INTO ACCOMMODATION TAX ARE REPRESENTED IN THERE IN THE BOOK SO THAT IS BY STATE LAW WE HAVE TO DO THAT AND SO THEY'RE IN THERE IS SO THAT IS 100% EVERY SINGLE PERSON ON THE ISLAND WHO HAS FROM A HOTEL OR HOME AND BILLS STANDPOINT SO IF WE LOOK THROUGH THE LAST COUPLE OF YEARS WE FIND MEMBERS AND NONMEMBERS WITHIN. YES. AND CERTAIN ASPECTS SO THE DIRECTORY SHOULD ENCOMPASS ALL OF THOSE BECAUSE THAT'S A COMPONENT WHERE WE PUT THEM ALL AND THEN IF THERE IS ADVERTISING MORE PIECES THAT LIVE IN THE FRONT OF THE BOOK THOSE ARE THE PAID OPPORTUNITIES INTEREST. THANK YOU.

YES, RIGHT. OKAY. SO WE'RE LOOKING BACK AT THE PERFORMANCE NUMBERS COMBINED HOME AND VILLA REPORT WITH EXCUSE ME AND SO WHAT WE'RE SEEING FOR 2024 IS THAT OUR OCCUPANCY WAS DOWN BY 4% BUT OUR AVERAGE DAILY RATE ADR WAS UP BY 1% BUT IT LEFT US WITH SLIGHTLY DOWN 23 VERSUS 24 AND 173.

PAS WHEN WE TALK ABOUT WHY DID THAT HAPPEN AND WE'RE SEEING WE'RE SEEING YOU KNOW JUST COME SOME OF THOSE COVID YOU KNOW IMPACTS THINGS ARE NORMALIZING DOES THAT LOOK LIKE NOW PEOPLE HAVE THE WORLD HAS OPENED HAVE CHOICES AND YOU KNOW WE'VE OFTEN TALKED ABOUT HOW DO WE MAINTAIN WHAT ADR THE AVERAGE DAILY RATE LOOKS LIKE GOING FORWARD.

YOU KNOW WHEN WE WERE DURING COVID YOU KNOW, WE WERE SEEING $800 ON A TUESDAY IS THAT REALISTIC AS WE MOVE FORWARD RIGHT NOW WHAT WE'RE SEEING I THINK IS A RIGHT SIDE OF THAT AND WE'RE GETTING THE AVERAGE DAILY RATE TO BE A LITTLE BIT MORE REALISTIC OF WHERE IT WAS AND IN 18 AND 19 SORRY IN THIS PLACE NOT TO PROLONG ALL THE DISCUSSION HERE BUT DO WE KNOW WHAT OUR EXPERIENCE IS SO FAR FOR 2025 ANY ANY DATA THAT WE KNOW OF FOR 2025 YET I KNOW IT'S NOT WE'RE JUST IN MAY DO YOU HAVE ANY DATA THE TREND YES AND SO WE'RE WE'RE TALKING ABOUT WITH THE ON THE BOOKS WHICH WAS GREAT VERSUS HOW WE'RE SEEING THE REPORTS COME OUT ABOUT THREE WEEKS AT THE MONTH CLOSE. SO MARCH WAS A LITTLE LIGHTER FOR US BUT APRIL REALLY GREAT. SO WHAT WE'RE SEEING IS THAT WE'RE HAD SOMEWHAT OF A SOFTER MARCH IF YOU COMPARE IT TO LAST YEAR'S MARCH. BUT APRIL REALLY IN AND WE'RE SEEING MAY LOOK EVEN STRONGER SO I THINK THAT'S A GOOD INDICATOR FOR US.

BUT WHAT I THINK IS THE BIGGER CONVERSATION IS THE BOOKING TRENDS, RIGHT? SO WHAT WE WERE TRADITIONALLY USED TO IS SIX MONTHS OUT OR THREE MONTHS OUT SOMEONE MAKING THEIR DECISION TO TRAVEL AND THAT WOULD WHAT WE CONSIDERED ON THE BOOKS BECAUSE THEY'VE MADE THE WHOLE PURCHASE OF THAT THAT TIME FRAME HAS SHORTENED TO WHAT WE'RE SEEING QUITE FRANKLY LIKE THREE WEEKS SOMEONE'S MAKING THAT DECISION TO TRAVEL WHICH IS INTERESTING . RIGHT. AND IT'S IT'S HARDER TO FORECAST IT'S HARDER TO PLAN AGAINST SOMEBODY WHO'S MAKING A DECISION THREE WEEKS IN.

AND SO OUR OUR IS REALLY TO COMMUNICATE THAT OUT TO OUR OUR COMMUNITY PARTNERS SUCH AS HOTELS AND HOME AND VILLAS TO UNDERSTAND LIKE HOW ARE WE GOING TO APPROACH THAT KNOWING YOUR LOOK TRYING TO LOOK HISTORICALLY BACK AND MAKE A PLAN BUT YOU'RE NOT GOING TO

[02:20:01]

AND SO THOSE ARE JUST SOME CONSTANT TIME CONVERSATIONS THAT WE'RE HAVING IN TERMS OF WHAT THEY'RE SEEING AND HOW WE CAN HELP THEM AND BRING THAT INFORMATION FORWARD.

DO YOU GET DATA FROM THAT? THERE'S A GLOBAL ASSOCIATION OF SHORT TERM RENTAL COMPANIES.

YOU GET DATA FROM THEM AS WHAT'S GOING ON FOR THE SUMMER. WE TALK WITH A BUNCH OF OUR MEMBERS. WE USE KEY DATA AS ONE OF OUR PLATFORMS THAT WE PULL OF OUR INFORMATION IN FOR HOME AND VILLA THAT ALSO WORKS FOR US FOR HOTELS AS WELL PREVIOUS TO HOTELS FOR THAT WE USED TO STAR AND THAT HAS CHANGED AND NOW WE HAVE BOTH RUNNING THROUGH KEY DATA AND THEN WE FIND THAT MANY OF OUR PARTNERS ARE ON THAT SAME PLATFORM SO THEY CAN SEE THEIR INDIVIDUAL BUSINESS BUT WE CAN SEE IT AN ISLANDWIDE PERSPECTIVE AND THEN COMPARE THAT TO DIFFERENT AREAS WHICH ARE MORE THAN A NATION OR A REGIONAL DATA SOURCE.

OKAY GUESS BUT EVERYBODY ON THE SAME MAJORITY I SHOULD SAY ON THE SAME SYSTEM WHICH HELPS HAVE A REAL TIME CONVERSATION ABOUT WHAT THEY'RE SEEING, WHAT WE'RE SEEING.

AND I JUST HAVE ANOTHER QUESTION IF. SO BECAUSE IT'S A COMBINED HOME PAVILION HOTEL REPORT HERE I HAVE A COUPLE OF QUESTIONS. I'M RECALLING ALSO SOME OF THE LATER DATA AND STATISTICS WAS IN THE PACKET THAT WE HAD AND THE FIRST QUESTION IS IS WHAT WE'RE LOOKING AT ARE THESE STATISTICS THEN ONLY STATISTIC BASED OUT OF THOSE WHO ARE MEMBERS NOW IT'S EVERYONE. IT'S EVERYONE, RIGHT? SO OF ASSISTANT HOMES AND VILLAS FOR INSTANCE OF THE 7000 PLUS HOMES IN ELIZABETHTOWN PERMITTED, HOW MANY REPORTS IN TERMS OF AVERAGE DAILY OR WEEKLY RATES AND ALL THE REST ARE YOU GATHERING INFORMATION FROM I WOULD HAVE TO GO AND CHECK THE DATA TO GIVE YOU A SPECIFIC NUMBER.

BUT WE ARE PULLING FROM MY UNDERSTANDING AND I JUST LOOKED AT RECENTLY A MAJORITY OF ALL THE BIGGER HOME AND VILLAS AND THEN WE CAN SEE IN OUR REPORTING ALL OF THE WE SHOWED THE MAP ONE TIME WHERE YOU CAN SEE ALL THE DIFFERENT HOME AND VILLAS THAT ARE AVAILABLE ON THE ISLAND AND THAT INTERESTED IN KNOWING HOW MANY OF THOSE ARE MEMBERS.

AND THEN AS I RECALL LOOKING AT THE CHART HOMES AND HOMES ANYWAY I GUESS I MEAN THINK OF AS THIS HOMES IN THE HOMES AND FAMILIES BUT EITHER WAY THEIR AVERAGE RATE WAS LOWER AND ALL OF THESE VARIOUS CATEGORIES ON WHERE THEY SPENT MANY VISITORS WERE SPENDING MONEY ON THE SEEM TO BE HIGHEST AND THE HOTEL REPORT THE AVERAGE NIGHTLY RATE WAS HIGHER IN THE CATEGORIES WHERE VISITORS WERE SPENDING MONEY ON THE ISLAND GROCERIES RESTAURANTS ENTERTAINMENT ALL OF THEM YOU KNOW THE LIST THAT'S THERE THEY WERE ALL HIGHER FOR THOSE WHO STAY IN A HOTEL. I DON'T KNOW IF YOU FIND THAT SIGNIFICANT BUT IT WAS INTERESTING ME AND I WONDER IF YOU HAVE ANY THOUGHTS ON THAT.

I THINK IT'S SOMETHING WE CAN DEFINITELY INTO. I DON'T HAVE THAT DATA IN FRONT OF ME RIGHT NOW BUT I'M HAPPY TO LOOK INTO IT WITH YOU AND I AND I THINK AGAIN WHEN WE'RE LOOKING AT HOME IN VILLA OR HOTEL PRODUCT, YOU KNOW, WE'RE NOT LOOKING AT IT FROM A YOU KNOW, A LENS ONLY WE'RE LOOKING AT THAT FROM THE ENTIRE ISLAND'S PERSPECTIVE.

SO I JUST WANT TO BE REALLY CLEAR ABOUT THAT THAT WE'RE NOT NOT INCLUDING SOME AND INCLUDING SOME OTHERS EVERYONE IS INCLUDED IN THOSE REPORTS. WE SEE ALL THAT DETAIL SO OR MAKING SUGGESTIONS OR THOSE ARE BASED ON HAVE AN ISLAND WIDE PERFORMANCE WITHIN THE CATEGORY AND I THINK THE OPPORTUNITY IS REALLY HOW DO WE WORK WITH THAT INFORMATION IT'S CHANGING SO REAL TIME TO BRING THAT INFORMATION FORWARD OUR PARTNERS COMMUNITY PARTNERS RIGHT BECAUSE I THINK YOU KNOW AN OCCUPANCY OR ADR LEVEL DOESN'T JUST IMPACT ONE SEGMENT, RIGHT? IT DOESN'T JUST IMPACT A HOME AND VILLA DOESN'T JUST IMPACT HOTEL SEGMENT. IT IMPACTS ALL OF THE SECONDARY AND TERTIARY TOUCH THAT COME ALONG WITH THAT AS YOU'RE SEEING IN THAT REPORT. SO WE'RE WE'RE BRINGING INFORMATION REAL TIME TO OUR PARTNERS AND SEEING HOW BEING IMPACTED NOT ONLY FOR A QUARTER THAT WE'RE LOOKING AT BUT WHAT'S ON THE BOOKS GOING. I THINK IT'S IMPORTANT THAT YOU KNOW AS I RECALL LOOKING AT THE CHART AND POINTING OUT THAT IT'S THE HOTEL VISITORS WHO ARE PAYING HIGHER RATE AND SPENDING MORE MONEY IN A VARIETY OF DIFFERENT CATEGORIES THAT WE THINK ABOUT THAT BECAUSE IN AND THE MISSION STATEMENT THE QUALITY OF LIFE FOR ALL THE THE HOTEL AND THE HOMES AND THE VILLAS TEND TO IMPACT THE QUALITY OF LIFE FOR ALL ON THE ISLAND A LITTLE BIT MORE DRASTICALLY. SO THE RETURN ON INVESTMENT WITHIN THAT CATEGORY ISN'T AS SIGNIFICANT AS IT IS WITHIN A TRADITIONAL HOTEL RESORT.

I THINK THAT'S SOMETHING TO LOOK AT IN TERMS OF WHAT WE'RE DOING IN.

THE OTHER THINGS ON THAT PAGE THAT I WANTED TO HIGHLIGHT THAT WAS THE MISSION I THINK ON THE

[02:25:02]

AND I'D ALSO LIKE TO SEE TIMESHARE AS WELL TIMESHARES ARE ON THAT LIST IF THERE ARE LIKE THE THIRD OVER COLUMNS BUT I THINK THERE'S STILL A LITTLE SMALL WORK ON BRINGING THOSE OUT BUT AGAIN BREAKING OUT EACH SEGMENT OCCUPANCY, ADR AND ARE OUT BY THE FIVE YEARS AND WE CAN SEE THE ADJUSTMENTS IF WE'RE LOOKING AT THE PURPLE LINE FOR OCCUPANCY WE'RE AT 55% DOWN FROM 59% IN 23 AND AGAIN RATE AVERAGE DAILY RATES UP FROM 299 TO 313 BUT THEN BRINGING IT DOWN SLIGHTLY FROM 177 TO 173. SO AGAIN THE BIGGER CONVERSATION IS WHAT THE ECONOMIC IMPACT OF THOSE VISITS, RIGHT? WHETHER IT BE FOR A HOTEL OR HOME AND VILLA, HOW ARE THEY DIGESTING THE DESTINATION? THEY'RE CHOOSING TO TRAVEL TO US OR CHOOSING TO INVEST IN OUR COMMUNITY TO REACH BEYOND JUST THEIR HOME AND VILLA OR THEIR HOTEL AND ENGAGE AT A DEEPER LEVEL IN THEIR IMPACT IS OVER 3.72 BILLION UP 17% BUT OUR VISITATION IS DOWN POINT 6%. SO WE'VE HAD MANY OF THOSE CONVERSATIONS OVER THE YEARS. WE HAVE LESS BUT THEY'RE INVESTING MORE WHICH LIKE TO SEE AND THIS JUST FOR CLARIFICATION IS THE IMPACT THAT TOURISM TO HILTON HEAD ISLAND BRINGS TO COUNTY. SO I THINK THAT'S IMPORTANT TO KNOW HOW SIGNIFICANT TOURISM IS IN TERMS OF AN ECONOMIC DRIVER FOR FOR OUR AREA AND IF YOU LOOK BACK AT ECONOMIC IMPACT CONTINUES TO GROW YEAR OVER YEAR FROM 2023 3.61 BILLION TO 3.72 BILLION.

SO WE ARE SEEING THAT STEADY GROWTH YEAR OVER YEAR AND WE CONTINUE TO REPORT OUT ON HOW THEY'RE DIGESTING DESTINATION AND THOSE THOSE DEFERRED BREAKOUTS YOU SEE IN THE VISITOR PROFILE STUDY. SO I HAD A QUESTION REGARDING THE POINT THAT YOU WERE MAKING ON THAT. THE NEXT SLIDE THAT SAID THAT IT WAS NO AFFECT ECONOMIC IMPACT BASED ON TOURISM HILTON TO BEAUFORT COUNTY SO THE 3.72 BILLION ISN'T JUST A HILTON HEAD NUMBER, RIGHT? IT'S THINKING ABOUT INDIRECT INDIRECT RIGHT.

SO WE HAVE TO TAKE INTO CONSIDERATION JUST THE SMITH FAMILY COMING AND TAKING THEIR TRIP HERE AND DIGESTING JUST BEYOND THEIR ACCOMMODATIONS INTO ALL THE OTHER PLACES.

BUT IT IS ALSO HOW WE ARE EMPLOYING PEOPLE FOR TOURISM HERE AND THAT'S IN DIRECTLY THE GROCERY STORES THE INDIRECT WHICH WOULD BE THE HOSPITALS THAT COULD THAT WE'VE HIRED SOMEBODY AN EVENTS COMPANY IS COMING TO FULFILL A REQUEST HERE ON THE ISLAND THAT'S INDIRECT SO WHAT WE'RE HAVING HERE IS THAT THAT GLOBAL OF 3.7 TO FROM ALL TOUCH POINTS BUT IT'S HAPPENING HERE ON HILTON HEAD THAT'S WHY THOSE BUSINESSES ARE SERVING AND THEY'RE BEING CALLED FROM UPSTATE TO COME DOWN HERE OR COMING OVER FROM OUR BORDERING STATE TO BRING IN THE OPPORTUNITY THAT IS CONSIDERED AND PART OF THE ECONOMIC IMPACT WE DID IT DOWN AS IT IS IN THE THE DEEPER REPORT VISITOR PROFILE STUDY.

WE HAVEN'T BROKEN DOWN BY SEGMENT AND AGAIN WHAT WE'RE LOOKING AT IS THE VISITOR VERSUS THEIR DIRECT SPEND IN THAT SEGMENT SO YOU CAN SEE HERE THAT YOU KNOW WHAT WE'RE LOOKING AT HOME AND VILLAS THERE THE DIRECT SPEND THOUGH THERE WAS LESS OF THEM THE HOME VILLA RENTALS EXCUSE ME I THINK I SAID HOTELS BUT HOME AND VILLA RENTALS WAS DOWN 9% DIRECT SPEND WAS UP BY 8%. HOTELS AND RESORTS DOWN BY BUT UP IN THEIR SPEND BY 18%.

SECOND HOME WAS NOT PAYING GAS IT WAS DOWN 3% AND THEY DID HAVE MORE SPEND DOWN BUT I THINK WE'VE SEEN THAT GO UP AND DOWN EVERY YEAR JUST BASED ON THEIR THEIR TIME TO TRAVEL HERE SO IN THEIR INVESTMENT BUT DAYTRIPPERS AGAIN THAT NUMBER IS DOWN BUT THEIR DIRECT SPEND QUALITY OF THE DAY TRIPPER HAS GONE UP IN TERMS OF THEIR SPEND IF WE'RE IF WE'RE JUDGING IT BY THEIR SPEND INVESTMENT SO I'M GLAD THAT WE GET TO BREAK IT DOWN INTO THOSE SEGMENTS GIVES US BETTER CLARITY OF OF WHO IS TRAVELING TO HELP THEM OUT AND ARE THEY DIGESTING THE DESTINATION. ANY OTHER QUESTIONS ON THAT 2024 PERFORMANCE OF OUR WE MOVE FORWARD SO AS WE LOOK AT FORWARD INTO FISCAL YEAR 2526 WHAT WE SEE IS SOME OF OUR SAME TRAVEL TRENDS GLOBAL TRAVEL TRENDS HAVE REALLY STAYED WITH US AND CONTINUE BE TOP OF MIND

[02:30:07]

IT ALLOWS TO ENCOMPASS ALL OF THE DESTINATION AND SO THAT THAT PROGRAM THAT INITIATIVE HAS BEEN REALLY HELPFUL FOR US TO MAKE SURE WE'RE WE'RE ENCOMPASSING ALL OUR EFFORTS HERE AND THAT IN THE DESTINATION WE SPOKE BRIEFLY ABOUT DIVING DEEPER AND DISCOVERING AND EXPLORING OUR DESTINATION. SO AGAIN WE HAVE TOUCH POINTS ON THE ISLAND THAT PEOPLE ARE FAMILIAR WITH THAT THEY'VE BEEN COMING TO AND GOING TO FOR YEARS AND WE'RE SAYING THAT'S BUT LET'S GET OUT AND EXPLORE A LITTLE DEEPER.

LET'S TAKE A LEFT INSTEAD A RIGHT AND TAKE A LONGER BIKE RIDE OR EXPLORE NEW BEACH OR DISCOVER A NEW RESTAURANT THAT THEY HAVEN'T GONE TO OR A NEW PART OF THE ISLAND AND GO OUT ON AN EXCURSION. SO WE'RE CONSTANTLY BUILDING OUT ITINERARIES AND SUGGESTIONS FOR FOR FAMILIES WHO'VE BEEN HERE AND TRAVELING US TO US FOR BEST FOR GENERATIONS OR NEW TO OUR DESTINATION AND WE'RE CONSTANTLY WORKING ON BUILDING BRAND AWARENESS, MAKING SURE THAT WE STAY TOP OF MIND. THAT'S A VERY IMPORTANT THING TO DO.

IT'S SO QUICKLY LEAVES I THINK WE HAVE TO MAKE SURE THAT WE'RE CONSTANT DRUMBEAT TO OUR POTENTIAL VISITORS. WE'RE ENHANCING LEISURE AND GROUP BUSINESS THROUGH QUALIFIED VISITATION SO POST-COVID IT IS MEANING IN GROUPS AND MEETINGS AND GROUPS HAVE BEEN IN A VERY INTERESTING SPOT FOR QUITE A WHILE WASN'T PEOPLE WEREN'T TRAVELING FOR MEETINGS AND GROUPS POST-COVID RIGHT AWAY NOW WE'RE SEEING THAT THEY'RE BACK AND OUR HOTELS ARE REALLY OUT MAKING SURE THAT THEY'RE SEEKING THAT BUSINESS TO COME INTO OUR HOTEL AND MAKING SURE THAT THEY'RE FILLING THOSE SPACES AND WE'RE THEY'RE IN LOCKSTEP TO HELP SUPPORT THEM AND ADJUST OUR COPY AND OUR INITIATIVES AND OUTREACH AS WELL.

SO WE DO THAT WITH THESE THIS APPROACH OUR WEBSITE SOCIAL MEDIA, DIGITAL ADVERTISING AND MEDIA PARTNERSHIPS, OUR PR AND GROUP TRAVEL INTERNATIONAL MARKETING AND VACATION PLANNER SO THIS RIGHT HERE REALLY SHOWCASES HOW WE'RE APPROACHING THE DIFFERENT SEGMENTS OF BUSINESS FOR OUR MARKETING AND PR EFFORTS. THIS IS A GENERAL SUGGESTION OF HOW WE APPROACH FISCAL YEAR IN TERMS OF PROMOTION CAMPAIGN CONTENT THEMES.

WE'VE PUT SOME TRADITIONAL MEDIA PLACEMENTS USING THE TRADITIONAL MEDIA PLACEMENT SUCH AS A CONTRAST AGAIN FOR THEIR READERSHIP BASE THAT'S A QUALIFIED READERSHIP BASE.

THEY'RE ENGAGED WITH US, THEY HAVE AN AFFINITY FOR US AND WE'RE JUST JUMPING INTO THAT CONVERSATION. WE'VE BUILT A RELATIONSHIP THEM SAME WITH GARDENING GUN AND OTHER SMITHSONIAN OTHER MAGAZINES SORRY MISS YEN CAN YOU THAT FOR A MOMENT I KNOW WE WERE TALKING ABOUT THE SHOULDER SEASON EARLIER AND THEN I ASK IT FINANCE ADMINISTRATIVE ABOUT THE CONNECTION TO A LOT OF OUR LOCAL FESTIVALS SO JUST LOOKING AT THIS CHART I'M LOOKING AT NOVEMBER DECEMBER AND THE SEAFOOD FESTIVAL THE WINE AND FOOD FESTIVAL AND OYSTER LANTERN PARADE. SO THERE IS A CONNECTION BETWEEN MARKETING AND OUR LOCAL FESTIVALS AND IT'S GOOD TO SEE THAT IN THIS TIMELINE AND IN JANUARY FEBRUARY I SEE SOME

[02:35:05]

AND THEN HILTON HAD PIANO COMPETITION. I'M FAMILIAR WITH THAT RESTAURANT WEEK DARIUS RUCKER GOLF TOURNAMENT JUST TO NAME A FEW.

SO I LIKE TO SEE, YOU KNOW, SHOULDERS, NECK AND SHOULDER SEASONS CONNECTION WITH OUR LOCAL EVENT. SO I THINK THAT'S HELPFUL TO SEE I THINK YEAH AND THEY ARE HUGE DRAWS AND IT GIVES THEM A CONSUMER OF A POTENTIAL VISITOR A REASON TO THINK DIFFERENTLY ABOUT THE DESTINATION HOW EXPLORE IT DIFFERENTLY SO THEY'RE GREAT PARTNERSHIPS AND WE'RE EXCITED TO KEEP PROMOTING THOSE AND THIS IS JUST ANOTHER FEW QUICK SLIDES ON HOW WE USE OUR TOOLS IN OUR TOOL KIT. SO AGAIN REALLY THROUGH THE DESTINATION WEBSITE IS OUR VIRTUAL FRONT DOOR USING ORGANIC SOCIAL MEDIA AS WELL AS OUR PAID MEDIA SOCIAL MEDIA TO REALLY DRIVE QUALIFIED VISITATION BASED ON THEIR INSPIRATION OF VISUALS THAT THEY'RE SEEING BACK TO THE WEBSITE CONNECTING OUT TO OUR COMMUNITY BUSINESSES DIGITAL ADVERTISING ALSO SUPPORTS ALONG WITH MEDIA PARTNERSHIPS AGAIN WHEN WE TALK ABOUT DIGITAL ADVERTISING THOSE HILTON HEAD ISLAND OWNED CHANNELS WE'RE GOING OUT THERE PROMOTING DESTINATION THROUGH BEAUTIFUL PICTURES, ENGAGING CONTENT AND DRIVING THEM BACK TO THE WEBSITE MEDIA PARTNERSHIPS DOING THE SAME THING BUT UNDER THE UMBRELLA OF THEIR PUBLICATION BUT THAT COULD BE DIGITAL IT COULD BE THROUGH OUR EDITORS VOICE.

IT COULD BE THROUGH SOME KIND OF EVENT THAT THEY'RE PUTTING ON AND BRINGING FORWARD.

SO AGAIN, WE'RE JUST UTILIZING SOME OF THESE TOP TIER PARTNERSHIPS AND BRINGING MORE PEOPLE TO THE WEBSITE TO GIVE EXPOSURE TO THE DESTINATION AS A WHOLE.

CHARLIER AND HER TEAM AGAIN GOING OUT CONTINUOUSLY FROM A PUBLIC RELATIONS AND THOSE STORIES AGAINST SUCH TITLES AS VOGUE PUBLICATIONS OF TRAVEL AND THESE ARE CONDÉ NAST TRAVELER SHE HAS DONE AN AMAZING JOB BRINGING THE DESTINATION ALIVE THROUGH THOSE CHANNELS SHE CONTINUES TO DO SO MEETINGS IN GROUPS WE'VE SOME GREAT CONVERSATIONS REALLY WORKING FORWARD THROUGH HOW WE CAN BEST GROUP MEETINGS AND GROUPS BACK TO THE DESTINATION MORE CONSISTENTLY IN DIFFERENT SEGMENTS. IT'S NOT JUST CORPORATE IT COULD BE YOU FROM AN INCENTIVE GROUP, FROM AN ASSOCIATION GROUP, FROM THE SMURFS AND SO WE REALLY HAVE TO TALK TO EACH ONE OF THOSE OPPORTUNITIES AND BRING BECAUSE THERE IS OPPORTUNITY FOR THOSE TO HAVE OUR FAIR SHARE HERE. THE DESTINATION INTERNATIONAL CONTINUES BE A KEY FOCUS FOR US IN TERMS OF THE REACH OF OUR INTERNATIONAL EFFORTS AND WHAT WE'VE GAUGED OVER TIME IS BEING OUR TOP MARKETS AND AGAIN NOTING CURRENT CONCERNS WITH CANADA WE STILL CONTINUE APPROPRIATELY TO OUTREACH TO CANADA, IRELAND, UK AND GERMANY BUT THOSE ARE IMPORTANT. KEY MARKETS ARE FAMILIAR WITH US.

THERE'S EASY ACCESS TO US IN TERMS OF FLIGHTS AND THEY DO SPEND A CONSIDERABLE AMOUNT OF TIME HERE WHEN THEY DO TRAVEL. I MEAN THEY INVEST IN THE DESTINATIONS THAT'S GREAT AND WE'LL CONTINUE THAT EFFORT AND WE ATTEND NOT JUST THE CONSUMER FACING PIECE BUT THE BUSINESS FACING PIECE AS WELL WHICH IS TRADE SHOWS MAKING THOSE CONNECTIONS WITH TOUR OPERATORS AND UNDERSTANDING THAT THEY CAN PROMOTE HILTON HEAD ISLAND THEIR CONSUMERS VACATION. WE TALK THROUGH THAT WE'RE IN THE PROCESS OF PLANNING 2026 THIS WILL BE EXCITING AND BRINGING THOSE STORIES TO LIFE. SO ALL THAT RICH CONTENT IN THERE YES. IF IT'S TURNED INTO A DIGITAL BOOK IT'S BREAKING THAT CONTENT UP AND PUTTING IT INTO THE WEBSITE. OUR SOCIAL MEDIA OUR KEY NEWS SO ON SO FAR SO IT'S BEEN A REALLY GOOD PLATFORM US TO DO THAT AND THEN EVERYTHING IS COMES TO ARE WE PROMOTING THE PRIORITIES OF OUR TOWN AND OUR COMMUNITY TO MAKE SURE THAT WE'RE ALIGNED WITH OUR PRIORITIES AND OUR EFFORTS OF WHO WE'RE REACHING AND NOT JUST THE SLIDE THAT WE SAW EARLIER WHICH WAS THE 250,000 PROPENSITY TO TRAVEL BUT DO THEY CARE LIKE WE CARE DO THEY HAVE THE SAME RESPECT FOR THE DESTINATION WHEN THEY'RE COMING ? SO WE AGAIN WE REALLY STRIVE TO GET THAT MESSAGE OF TRAVEL TO THE DESTINATION ANSWER THESE FIVE PILLARS AND OUR PROPOSED BUDGET FOR FISCAL YEAR 2526 PAUSE HERE I KNOW WE PROBABLY HAVE SOME QUESTIONS AND I HAVE RADIO WITH ME AS WELL HE CAN COME BACK UP AND HELP US IF WE HAVE ANY KIND OF CONVERSATIONS ABOUT THIS.

I DO HAVE SOME QUESTIONS. YES. SO ONE OF THE THINGS I NOTICED I YOU KNOW, I I ALWAYS THINK IT'S POWERFUL TO HAVE SOMETHING TO COMPARE TO WHEN YOU'RE LOOKING AT SOME THINGS THAT THIS JUST TELLS US WHAT IT FOR THE NEW PROPOSED BUDGET AND SO WHAT I DID IS TOOK A LOOK AT WHAT YOU HAD PROPOSED LAST YEAR AND WOULD RECOMMEND IN THE FUTURE THAT YOU HAVE SOME OF THAT COMPARISON BECAUSE IT DID A STORY AND THAT I WANT TO LEARN MORE ABOUT SO. I NOTICE THAT THERE'S A CHANGE IN SPEND MEDIA WENT DOWN THE AMOUNT OF MONEY YOU'RE PROPOSING FOR THE NEW YEAR FROM $960000 TO $718000 AND DIGITAL MARCH MARKETING IS GOING UP SIGNIFICANTLY HUNDRED 65000 TO 1.2 MILLION.

[02:40:02]

I THINK WHAT WE'RE DOING IS WE'RE MONITORING HOW THE CONSUMER IS DIGESTING MEDIA AND WE'RE UNDERSTANDING THAT WE NEED TO BE ABLE TO SPEAK DIRECTLY TO THEM.

AND SO WHEN WE PLACED A BIT MORE SIGNIFICANCE IN THE DIGITAL MARKETING IN OUR OWN CHANNELS IT WAS TO ENSURE THAT WE ARE OWNERS AND THAT AND THE AUTHORITY IN THAT MESSAGING WHEN WE'RE THERE AND WE STILL VALUE THE LEISURE MEDIA PARTNERSHIPS GREATLY AND WE WILL STILL INVEST IN THOSE OPPORTUNITIES BUT WE'RE JUST INVESTING THE DIGITAL MARKETING, MAKING SURE WE HAVE THE RIGHT MESSAGING, THE RIGHT CHANNELS WITH SUPPORTING NEW ROUTES COMING IN WITH AIR SERVICE, TALKING THOSE KEY MARKETS, USING THE DATA THAT WE HAVE FROM PLACER AND OTHER TECHNOLOGY PLATFORMS THAT WE'RE USING THAT WE CAN DOVE IN DEEPER. BUT TO DO THE DIVING YOU NEED TO HAVE THE BUDGET BEHIND IT AND HAVE THE CREATIVE AND THE COPY READY TO GO. SO AGAIN JUST BASED ON CONSUMER BEHAVIOR AND HOW THEY'RE DIGESTING TRAVEL TODAY, WE THOUGHT THAT WAS THE APPROPRIATE TO TO INVEST HIGHER IN AND MAKE THAT SWITCH AND OUR BUDGET LINE.

OKAY THANK YOU AND I DID NOTICE THAT THERE WERE TWO NEW ENTRIES LISTED UNDER THE DIGITAL MARKETING AND THAT DID SOME OF THAT YOU KNOW THE SPREADSHEET THAT YOU PROVIDE AND YOU LIST OUT THE VARIOUS THAT YOU ARE PLANNING TO SPEND MONEY WITH AND UNDER DIGITAL MARKETING THERE WERE TWO NEW CATEGORIES THE FIRST ONE WAS A $200,000 SPEND FOR GOLF MARKETING THAT YOU DIDN'T HAVE LAST YEAR AND I'M ESPECIALLY INTERESTED IN UNDERSTANDING WHAT THAT IS. I SAW ON YOUR PREVIOUS SLIDE YOU SHOWED VACATION PLANNER AND THE HILTON HEAD ISLAND GOLF AND I'M JUST TRYING TO CONNECT THE DOTS BETWEEN THAT AND THE LOW COUNTRY GOLF ASSOCIATION BECAUSE THEY DID COME THEY WEREN'T ONE OF THE AFFILIATE ATX GROUPS AND THEY DIDN'T COME AND ASK FOR ADDITIONAL MONEY WE GRANTED THEM $150,000.

SO I'M JUST TRYING TO UNDERSTAND WHAT YOUR $200,000 COMPARED TO LOW COUNTRY GOLF HUNDRED AND 50,000 AND WHY YOU'RE ADDING THAT MONEY THIS YEAR ALSO THERE WAS $42,000 IN MARKETING STRATEGY AND COUNSEL AS WELL. THAT WAS IDENTIFIED LAST YEAR AND JUST WANTING TO UNDERSTAND WHAT THAT SPEND IS FOR I CAN SPEAK TO YOU KNOW FOR THE GOLF THE GOLF MARKETING SO I DON'T KNOW WHETHER MY GLASSES ON OR OFF I CAN'T SEE AND THEN I CAN SEE GOLF MARKETING AS YOU KNOW WE'VE BEEN THROUGH PARTNERSHIPS OF FUNDING FOR GOLF MARKETING WE IN YEARS PAST HAVE SOUGHT GOLF FUNDING LGC AWAY ON THEIR BEHALF AND IN PARTNERSHIP WITH THEM THROUGH THE PLATFORM. WHEN WE WERE ASKED NOT TO DO THAT ANY WE BELIEVE STRONGLY THAT GOLF IS A DRIVER FOR THIS DESTINATION. IT IS A LARGE CONTRIBUTOR TO THE ADMISSIONS TAX THAT IS COLLECTED AND WE FELT THAT IT WAS IMPORTANT IN EFFORTS TO ENSURE THAT COMMUNITY OF OUR BUSINESS FOR THIS DESTINATION WE PUT MONEY BEHIND IT TO SUPPORT IT. SO THERE IS A GOLF MARKETING SITE THAT IS A MICROSITE ON THE DESTINATION WEBSITE THAT TAKES IN INQUIRIES SPECIFICALLY FOR GOLF.

SO IT'S BASICALLY ANY RFP AND THOSE GET DISTRIBUTED OUT TO THE GOLF AND THEY USE THAT AS A LEAD TO GO AFTER BUSINESS AND SO WITHOUT THE FUNDING IN THAT TO GO TOWARDS THAT THAT WOULD HAVE HAD YOU KNOW BEEN LOWERED AND THEY WOULD HAVE SEEN A SIGNIFICANT DROP IN THE LEADS ACQUIRED AND SO WE FELT THAT IT WAS A RESPONSIBILITY AS A DEMO TO HAVE THAT BUDGET IN PLACE SPECIFICALLY CALLED OUT TO SUPPORT THEM AS A BUSINESS ON A BUSINESS FOR THIS DESTINATION THAT IS DRIVEN BY TOURISM. SO THAT'S ONE THAT WE JUST WANTED TO IN YEARS PAST WE'D ALWAYS ASK FOR 200,000 ON THEIR BEHALF. WE WILL CONTINUE TO ASK FOR 200,000 IN LINE ITEM FOR IT BECAUSE OF ITS SIGNIFICANCE AND IMPACT TO THE DESTINATION.

SO IT IS FOR THE LGA DRIVING FOR OUR GOLF EFFORTS SO, DRIVING TOWARDS GOLF MARKETING THAT DRIVE SPECIFICALLY TO THAT WEBSITE AND IF THERE IS GOLF EVENTS THAT WE WANT TO SUPPORT FOR IN PARTNERSHIP WITH LGC THOSE GO TOWARDS SUPPORTING NOW THE SEPARATE FUNDS THAT LGC WE ASK FOR GO TOWARDS SPECIFIC EFFORTS THAT ARE SEPARATE OF OUR EFFORTS.

YOUR YOU'RE ASKING FOR A MONEY TO BE THE FRONT DOOR FOR THEM TO FUNNEL THEY DON'T HAVE A WEBSITE AND SO WHAT WEBSITE IS DOING IS AS A DESTINATION MARKETING ORGANIZATION WE'RE DRIVING QUALIFIED VISITORS PEOPLE WHO WANT TO GOLF WITHIN OUR DESTINATION ON OUR 23 COURSES. WE'RE DRIVING THEM THERE TO THAT MICROSITE AND AN OPPORTUNITY FOR THEM TO HAVE A LEAD THAT GOES THEM BECAUSE IT'S AN RFP PROCESS THAT THEY FILL OUT. IT'S ALSO WHERE THEY CAN LINK ON TONS MORE INFORMATION ABOUT OUR 23 COURSES. SO WHAT IS THE 150,000 FOR OUR ATX GOING TOWARDS I'M JUST

[02:45:02]

IT GOES TO SUPPORT ALL OF THEIR IS ROBBY PUTS TOGETHER A SEPARATE KIND OF MARKETING INITIATIVE THAT HE WOULD LIKE TO WHETHER THAT BE THROUGH A TRADE SHOW OR A DIFFERENT EVENT HE PROPOSES THAT WE WOULD SUPPORT THEM IN THAT EFFORT SO THE GOLFING IS A SEPARATE WEBSITE. IT'S ON THE DESTINATION WEBSITE, IT'S UNDERNEATH I'M SORRY IT'S INCLUDED IN YOUR WEBSITE YES. AN AREA WITHIN YOUR WEBSITE.

YES. IT'S A DEDICATED SPECIFIC FOR GOLF.

AND SO WHEN WE HAVE DIGITAL MARKETING ADS OR SOCIAL ADS OUT THERE, THEY'RE DRIVING TO THAT PARTICULAR WEBSITE. OKAY. I KEEP SAYING WAS IT MICROSITE IT'S IS I A MICROSITE WITHIN THAT HILTON HEAD ISLAND DOT ORG WEBSITE AND THEN THE MARKETING COUNCIL YES YES THAT ONE GOES ALONG WITH ENSURING THAT WE ARE HAVING ALL OUR STRATEGIC EFFORTS ALIGNED IS EVERYTHING THAT WE'RE DOING IN THE OUT MARKET MAY COME TO BE IS IT SUPPORTED THAT STRATEGY THAT COMES ALONG WITH IT IS THROUGH OUR AGENCY SO OUR AGENCIES WITH US AND WE HAVE JUST THE STRATEGIC OUTLINES OF OUR OF OUR EFFORTS BECAUSE THAT'S AGENCY COST SO COST BUT STRATEGIC SUPPORT YOU KNOW THEY'RE HELPING US DO ALL OF OUR YOU KNOW, WE'RE SITTING WITH THEM AS LEADING EFFORTS WITHIN KIND OF THAT TECH DIGITAL WE'RE COMING IN THERE WERE LEANING INTO THEIR GUIDANCE AND WE'RE LOOKING AT NEW OPPORTUNITIES HOW ARE WE PLANNING OUR NEXT THREE MONTHS IN TERMS OF EFFORTS FOR THE OVERALL WEBSITE? ALL RIGHT. THIS IS CONTINUE ON.

THAT'S IT. THANK YOU VERY MUCH. THANK YOU ALL.

RIGHT. THANK YOU. THAT WAS COMPREHENSIVE.

WE HAVE A MOTION ON THE TABLE TO BRING BACK. I'M GOING TO IMPROVE I'M SORRY FOR MY MICROPHONE ON. ALL RIGHT. KIM IS AM SIGNED UP TO SPEAK ON THIS NOT ON THIS ITEM. NO. OKAY.

ANY DISCUSSION FROM COUNSEL THERE JUST BRIEFLY THIS MATTER WAS REVIEWED BY OUR TOWN MY MARKETING INCLUDING TOWN STAFF MEMBER PRO-TEM BROWN, THE TOWN MANAGER AND ALSO REVIEW BY THE ATX COMMITTEE AND BY THE FINANCE ADMINISTRATIVE COMMITTEE.

SO THERE'S BEEN A LOT OF THAT. I'VE CERTAINLY LEARNED MORE FROM THE DISCUSSION TODAY AND I THINK IT'S IT'S HELPFUL TO NOTE THAT IN THE LAST COUPLE OF YEARS WE'VE REALLY PUSHED OUR DMR TO SAY WE NEED TO CHANGE THE MARKETING VALUES REFLECT OUR COMMUNITY VALUES.

SO THERE'S FIVE PILLARS THAT HAVE BEEN DISCUSSED ARE VERY HELPFUL YOU KNOW THAT THE ACTIONS THE INFORMATION ABOUT OUR SEA TURTLE PATROL AND ITS ACTIVITIES CERTAINLY PIQUE YOUR INTEREST IN ECO TOURISM AND THEN WE DID RECEIVE A COMMUNICATION JUST TODAY ABOUT EFFORTS TO WORK WITH OUR GULLAH COMMUNITY AND PROMOTING GULLAH BUSINESSES AND ARTS AND OF THE GULLAH COMMUNITY ON THE ISLAND. SO THERE'S A LOT OF LINKAGE THERE AND I JUST WANTED TO SAY THAT I APPRECIATE THAT KIND OF MARKETING YOU WERE COMMENTS WAS BETTER SO AS I SAID BEFORE THERE WAS A LAUNCH AND THIS IS A VERY GOOD PRESENTATION AND YOU WERE REALLY QUICK THINKING AND INFORMATIVE ON YOUR FEET AND I IT'S BEEN A LONG DAY AND I WAS JUST WANTING TO SAY YOU'RE GREAT AND THANK YOU AND AND GO BACK TO OF THE INFORMATION THAT WASN'T PRESENTED HERE BUT WAS THAT BIGGER PACKAGE WITH THE OTHER STATISTICS AND IT DOES DIRECT TO UNDERSTAND THAT OUR BEACHES ARE STILL ONE OF OUR HIGH PRIORITIES AND THEN WITHIN THE SURVEY AND THE SURVEY QUESTIONS I BELIEVE THAT OVER OVER AGAIN WORD OF MOUTH RECOMMENDATIONS RETURNING NOWHERE ELSE THEY WANT TO BE WHICH IS A GOOD SIGN.

WE WANT THEM COMING BACK BUT A LARGE PORTION OF THOSE WHO VISIT US COME BACK AND

[02:50:03]

[10.b. Consideration of an Ordinance of the Town of Hilton Head Island Authorizing the Execution of a Lease Purchase Agreement for Fire Trucks - First Reading - Adriana Burnett, Director of Finance]

HELLO AGAIN AT. THE OPPORTUNITY OF PRESENTING TO THE FAA COMMITTEE THIS ORDINANCE SO THIS IS A FIRST READING FOR THE TOWN COUNCIL. AGAIN, THIS IS A OF AN ORDINANCE FOR THE TOWN COUNCIL TO AN AUTHORIZED TOWN TO ENTER INTO A TAX LEASE AGREEMENT WITH A FINANCIAL INSTITUTION TO FINANCE BOTH PAST AND PURCHASES OF FIRE TRUCKS UPON.

THE EXECUTION OF THAT LEASE PURCHASE AGREEMENT THE TOWN WILL RECEIVE ABOUT $8 MILLION NOT TO EXCEED $8 MILLION FROM THE FINANCIAL INSTITUTION. WE WILL BE DEPOSITING THAT MONEY AS REVENUE IN OUR HOSPITALITY TAX FUND SO THAT THE REIMBURSEMENT WILL BE AS FOLLOWS WE HAVE PURCHASED A TOTALING ABOUT $5.1 MILLION AND WE ARE EXPECTING TO RECEIVE TWO QUINTS FOR ABOUT $2.4 MILLION AND HOPEFULLY BY THE END FISCAL YEAR 26 OR BEGINNING OF FISCAL YEAR 27. SO JUST TO GIVE YOU A I KNOW WE HAVE NEW MEMBERS HERE THAT PROBABLY WERE NOT HERE IN 2021 CALENDAR 2021 FISCAL YEAR 2022 TOWN COUNCIL AT THAT TIME THEY APPROVED THE PURCHASE TEN FIRE TRUCKS AND WE WAS THE TOWN COUNCIL APPROVED WE ACTUALLY AN AGREEMENT WITH SAVE INDUSTRIES FOR THEM TO PRODUCE AND THE TRUCKS AND IS YOU MIGHT BE QUESTIONING THIS WAS BACK IN 2022 AND NOW WE ARE IN FISCAL YEAR 2025 BUT THERE HAVE BEEN SOME SIGNIFICANT DELAYS PRODUCTION AND ALSO IN DELIVERY THUS FAR WE ARE BACK TO STILL THREE YEARS LATER STILL TALKING ABOUT THE FIRE TRUCKS. WE'RE HOPING THAT THIS IS HOPEFULLY THIS IS IT SO IF YOU APPROVE WE ARE PLANNING AND THERE'S AN RFP OR A REQUEST FOR PROPOSAL THAT INCLUDED IN YOUR POCKET AND THAT'S A SAMPLE OF WHAT WE'RE PLANNING TO SEND TO THE DIFFERENT FINANCIAL INSTITUTIONS TO GET THIS ABOUT $1,000,000 FUNDS.

SO ONCE YOU APPROVE THE GOAL IS TO BEGIN TO RECEIVE THE THE PROCEEDS AND REIMBURSE OUR HOSPITALITY TAX. THIS IS SOMETHING BY THE WAY THAT IS GOING TO BE APPROVED BY COUNCIL ON AN ANNUAL BASIS. SO WE WILL BE COMING HERE ON AN ANNUAL BASIS APPROPRIATIONS OF YOUR APPROVAL FOR THIS. ONE THING THAT I DO WANT TO MENTION THE ORDINANCE MENTIONS THAT EITHER THE MAYOR AND OR THE TOWN MANAGER WILL BE AUTHORIZED TO TO SIGN THAT AGREEMENT WITH FINANCIAL INSTITUTION ON BEHALF OF THE WHOLE TOWN COUNCIL.

ANY QUESTIONS OR ANYTHING ELSE THAT I CAN TELL YOU? WE HAVE A MOTION AMONG EVERYBODY SIGNED UP TO SPEAK ON THIS ITEM. OKAY.

QUESTIONS CONCERNS FOR MS.. BURNETT OKAY. ALL RIGHT.

THANK YOU GUYS FIRST. OKAY. SO IF I UNDERSTAND THIS CORRECTLY, WE'RE ASKING FOR $8 MILLION EVEN THOUGH WE HAVEN'T RECEIVED THE OTHER TWO QUINTS

[02:55:03]

BEFORE PURCHASE THAT IS CORRECT AND THE REASON WHY WE'RE DOING THAT IT IS COST EFFECTIVE TO DO IT ALL AT ONCE RATHER THAN BREAK IT DOWN INTO DIFFERENT FINANCIAL TRANSACTIONS.

AND IT ALSO AND IT'S INTERESTING FROM A GOVERNMENT PERSPECTIVE THIS IS CONSIDERED REVENUE. SO THIS IS REVENUE ACTUALLY IS GOING TO BE DEPOSITED IN OUR HOSPITALITY TAX AND IS GOING TO ALLOW US FROM A CASH FLOW PERSPECTIVE TO UTILIZE THIS FUNDING ALL THE CHP PROJECTS CAPITAL IMPROVEMENT PROGRAM PROJECTS SO THEM THAT MAKES SENSE TO ME AND IT ALSO SAID IN THE MATERIALS THAT YOU WOULD DEFINE AN ESCROW THEN FOR THE MONEY TO SET ASIDE AND PUT ASIDE IF YOU GET THE $8 MILLION FOR THOSE ADDITIONAL TWO VEHICLES. THAT'S CORRECT. ONE OF THE THINGS THAT I DIDN'T UNDERSTAND WAS IN THE ORDINANCE IT SAYS THAT THE PROCEEDS MAY BE USED FOR THE ACQUISITION OF THE FIRE TRUCKS. IT'S OKAY PLUS YOU AND I DIDN'T UNDERSTAND WHY IT SAID MAYBE USE FOR THE ACQUISITION OF FIRE TRUCKS BECAUSE THAT'S I WOULD THIS AND WHY IT DOESN'T SAY WILL BE USED I CANNOT ANSWER ON BEHALF OF TOWN THAT OUR TOWN COUNCIL I'M TALKING ABOUT THE EXTERNAL ATTORNEYS THAT WE UTILIZED I DON'T KNOW THE LANGUAGE IN TERMS OF LEGAL BUT THAT WOULD BE UTILIZED FOR OUR PART OUR REIMBURSEMENT OF FIRE TRUCKS IN ADDITION TO ANY THE TWO REMAINING COINS THAT WE ARE SUPPOSED TO BE GETTING IN 2026 IF ANYTHING TO TO TO REMEDY THAT AND IT SHOULD WE CAN AMEND THAT. YES, WE CAN TO REACH OUT INSTEAD OF JUST CHANGE THOSE TWO WORDS OUT. SO THE STRAIGHT THROUGH THE CHANGE. THANK YOU THAT'S I WOULD YOU WOULD WANT THAT.

YES. OKAY. AND SO THE PROCESS IS TO DO THAT FOR THE NEXT TIME. OKAY. YES, THIS IS THE FIRST WRITING SO WE WILL BE PRESENT IN THE CORRECTIONS OR THE ADDITIONS TO ON THE SECOND TRAIN AND FOR CLARITY YOU COULD WITH YOUR MOTION MAKE AN AMENDMENT TO IT THAT THE CONDITION OF READING THAT THE WORDS CHANGED FROM A TO SHALL OR YOU COULD JUST ASK US TO BRING IT BACK FORWARD.

IT'S JUST PROCEDURAL. OKAY. ALL RIGHT.

THANK YOU. IT WAS BETTER. THAT WAS MY QUESTION.

ALSO WE'RE ASKING ANY OTHER COMMENTS QUESTIONS PROFFERED. YES, SIR.

IS MY UNDERSTANDING THAT WHILE THIS IS YOU ORDER AS A LEASE AGREEMENT IT IS SIMPLY AN ALTERNATIVE OF FINANCING. ORDINARILY WE'D TO SEE IT AS A BOND WITH BONDS OR NOTES BUT THIS HAS SUBSTANTIVE DIFFERENCE IN TERMS OF THINGS LIKE AND COMPLIANCE WITH THE 8% LIMITATION ON OVERALL BORROWING . THAT'S CORRECT.

AND OUR 8% LIMITATION THAT WE HAVE AS A TOWN IS NOT IN WELL, THIS IS NOT A FINANCIAL NORMAL FINANCIAL TRANSACTION LIKE WE NORMALLY HAVE. SO IT WILL NOT AFFECT OUR OR OUR TOWN BORROWING RIGHT. AND AS FAR AS AS A SECOND TO THE MOTION, I AGREE WITH THAT AMENDMENT. HOPEFULLY MR. ALFORD IS MAKING EMOTIONAL AND AGREE WITH THAT AMENDMENT. BUT I ALSO WANTED TO ADD THAT I'M FAMILIAR WITH THIS KIND OF FINANCING FACT I IN THE CITY OF ASHEVILLE ASSISTANCE TO THE ATTORNEY TO PRIVATE PRACTICE IN 2020 SO THIS KIND OF FINANCING WAS AVAILABLE THAT ESPECIALLY FOR LARGE PURCHASES LIKE SA TRUCKS. SO IT'S A GREAT METHOD OF FINANCING.

IT DOES NOT PLEDGE THE FULL FAITH AND CREDIT OF THE TOWN AND THERE'S A NON APPROPRIATION CLAUSE INCLUDED IN THE AGREEMENT SO THOSE ARE GREAT THINGS FOR US FINANCIALLY AND THAT STILL GIVES US GOOD MARKING WITH OUR CREDIT AGENCIES SO I FULLY THIS METHOD OF FINANCING AND I UNDERSTAND HOSPITALITY TAXES WE'RE GOING TO REFUND THE HOSPITALITY TAXES AND THEN THE HOSPITALITY TAXES TO MAKE THE ANNUAL PAYMENTS SO A WIN WIN SITUATION.

AND CHIEF, I HOPE THESE TRUCKS SOON. THANK YOU, MR. ALFORD, IF YOU JUST RESTATE THAT MOTION WITH THE CHANGE FROM MAY TO SHOW JUST SO THAT WE'VE GOT IT ON RECORD PLEASE I THINK WE AGREED WITH THAT I JUST WANT TO MAKE SURE THAT THAT'S ON THE RECORD YOU GOT KIM OKAY THANK YOU. SO SO WE'VE GOT A MOTION ON THE TABLE AMENDED SO ALL THOSE IN FAVOR PLEASE TAKE FIVE RAISING YOUR RIGHT HAND SO MOVED I THANK YOU.

[10.c. Consideration of a Resolution of the Town Council of the Town of Hilton Head Island, South Carolina, Authorizing the Execution and Delivery of an Agreement with Cordillo Courts and the Hedges, Regarding Signs on Real Property Owned, Located at 104 Cordillo Parkway, by the Town of Hilton Head Island - Shawn Colin, Assistant Town Manager]

[03:00:03]

OKAY. MISS BECKER SAID SECOND OKAY. PERFECT TIMING KIMBERLY.

YOU MIGHT SIGN UP TO SPEAK ON THIS NOT ON THIS ITEM. THANK YOU.

ANY DISCUSSION FROM COUNSEL AMEREN AT THIS LATE HOUR? I'M HESITANT TO MAKE A COMMENT BUT I JUST HAVE TO THIS NOTE RIGHT HERE A SIGN IN A PARK IT SAYS GENERATED CONTENT MAY INCORRECT WE ARE JUST TALKING ABOUT I DO BELIEVE THAT THOSE THE CORRECT NAMES ON THAT SIGN HAVING LIVED IN THERE BEFORE ALL RIGHT SEEING THE COMEDY IS GOOD WE'VE GOT A FIRST AMENDMENT PROCESS LIKE AMENDMENT BECKER ALL THOSE IN FAVOR OF PLACING THE FIRE BY

[11. Public Comment - Non Agenda Items]

PLEASE MAINTAIN THE QUORUM SUITABLE FOR MEETING AND REFRAIN FROM USING ANY PROFANE, ABUSIVE OR OBSCENE LANGUAGE IF YOU HAVE ANY YOU'D LIKE TO GIVE TO TOWN COUNCIL PLEASE GIVE THEM TO THE TOWN KIRK AFTER CLERK AFTER YOU'RE FINISHED SPEAKING TERMS WE HAVE ANYBODY SIGNED UP TO SPEAK WE HAVE THREE. OKAY FIRST AS MR. RICHARD BUSY . OH OH NOW IT'S GOOD EVENING RICHARD BUSY TO GO RUN PARKING FEES AT TOWN BEACHES ISSUE HAS BEEN DEBATED AND DISCUSSED FOR FOUR LONG YEARS AS YOU WELL KNOW YOU SHOULD KNOW AND EVEN THOUGH THE COUNCIL APPROVED A PACKAGE IN THE FALL OF 24 THE ISSUE IS STILL UNDER DEBATE NOW . WE LEARN THAT THE MAYOR APPARENTLY UNDER PRESSURE FROM OUT-OF-TOWNERS WANTS TO PROVIDE FREE BEACH PARKING FOR ALL BEAUFORT COUNTY RESIDENTS AND SHOW SOME LOVE OF THIS HAS NOTHING TO DO LOVE MR. MAYOR, JOSH GRUBER INFORMED THE OLD COUNCIL LAST FALL THAT HILTON HEAD IS ONE OF THE ONLY BEACH COMMUNITIES IN NORTH CAROLINA. SOUTH CAROLINA, GEORGIA AND FLORIDA NOT TO CHARGE FOR BEACH PARKING, MR. GRUBER SAID ONE OF THE PURPOSES OF IMPOSING FEES IS TO CONTROL DEMAND AND INFLUENCE. SO WHY WOULD THE COUNCIL EVEN CONSIDER ALLOWING ALL BEAUFORT COUNTY RESIDENTS FREE BEACH PARKING AS IT IS THE MAIN PARKING AREA FOR GALLEGLY BEACH AS UNDERSTAND IT IS FREE TO ALL VISITORS. THE MAYOR SAID HE WAS ASKING THE TOWN MANAGER TO BRING TO COMMITTEE A REQUEST FOR A BEAUFORT COUNTY BEACH PASS BECAUSE WE HAVE 14,000 PEOPLE WHO COME HERE EVERY DAY TO WORK AND WE NEED TO SHOW THEM THE LOVE THE NEW BEACH PARKING JUST TOOK EFFECT IN MARCH AND YET ONE MONTH LATER YOU WANT TO CHANGE THE POLICY. YOU KNOW WHAT THAT DOES TO THE INTEGRITY OF THE TOWN COUNCIL THE TRUST WHO CAN BELIEVE ANY VOTE THE COUNCIL TAKES BECAUSE IT CAN BE REVERSED ONE MONTH LATER RIGHT LIKE THAT EXCUSE ME JUST BECAUSE SCORES OF EMAILS WERE SENT OR WHAT ABOUT THAT PETITION? MORE THAN 12,000 SIGNATURES OPPOSING A MONSTER BRIDGE AND YET THE COUNCIL IGNORED THAT AND APPROVED THE BRIDGE AND THE 278 PLAN.

THE ONLY REASON THE BRIDGE IS NOT HAPPENING BECAUSE YOU DON'T HAVE THE MONEY.

SIMPLE THAT I THINK THERE'S A REASON WHY LOCAL ISSUES ARE DEBATED FOR YEARS AND YEARS.

[03:05:02]

DIFFICULT CONVERSATIONS ARE CUT SHORT TO MITIGATE INFIGHTING THIS LEAVES ISSUES UNRESOLVED FOR EXTENDED PERIODS OF TIME. THE TOWN SHOULD AT THE VERY LEAST KEEP THE BEACH POLICY THAT YOU HAVE ENFORCED FOR ALL OF 25 AND EVALUATE THE RESULTS AT THE END OF THE YEAR.

THANK YOU. THANK YOU, GENE. I'M SORRY MY THAT RIGHT THROUGH. OKAY. I AM GENE CREW I'M A RESIDENT OF THE SHIPYARD COMMUNITY ALSO EXECUTIVE DIRECTOR OF THE OUTSIDE FOUNDATION.

WE'RE A SMALL NONPROFIT HERE ON THE ISLAND AND WE WE GET KIDS OUTSIDE AND WE DO ENVIRONMENTAL PROTECTION. I'M HERE TO JUST EXTEND A HEARTFELT THANK YOU TO THE TOWN OF HILTON HEAD TO T.J. JET TO ALL OF THE GREAT VOLUNTEERS WHO CAME OUT THE MEMBERS YOUR STAFF TO HELP US ON EARTH DAY WE HAD A TREMENDOUS CLEANUP ON THAT PARTICULAR DAY 2 HOURS ON COLLECT DAY WE COLLECTED I THINK TWO OVER #200 OF TRASH, #56 OF WHICH WAS EASILY RECYCLED BECAUSE OF YOUR RELATIONSHIP WITH IT TO RECYCLE WHICH WAS GREAT DURING THAT WHOLE AND WE GOT 336 STRAWS AS WELL PATTY WILL ATTEST TO THAT IN 2 HOURS 336 STRAWS. SO THAT WAS EARTH DAY. IT WAS A GREAT DAY BUT WE ALSO CELEBRATED EARTHQUAKE AND EARTH MONTH. WE HAD 25 COMMUNITY ORGANIZATIONS TEAM UP ALONG WITH FIVE SCHOOLS SO FAR OUR COUNT IS AT THREE QUARTERS OF A TON OF TRASH FROM BEACHES. WATERWAYS ARE OUR LOCAL PARKS. IT'S WHAT WE DO.

WE BELIEVE IN THE COLLECTIVE POWER OF THE INDIVIDUAL TO DRIVE CHANGE THAT'S WHAT WE DO AT THE OUTSIDE FOUNDATION WE'RE SMALL. WE DON'T HAVE AN OFFICE.

WE ARE WHAT DO AND SO I'M HERE TODAY TO REALLY KIND OF CHALLENGE AND DISCUSS THE PROBLEM OF PLASTIC SINGLE USE. I THINK IT SHOULD BE ON THE FOREFRONT OF DISCUSSION ACTION FOR THIS FOR THIS TOWN. THERE ARE A LOT OF STUDIES OUT THERE OF THE EFFECTS OF PLASTICS ON OUR ON OUR ON OUR BASICALLY OUR BODIES. AND THERE'S THE MOST RECENT ONE IN NATURE MEDICINE. IT BASICALLY SAYS THAT, YOU KNOW, AS MICRO AND NANOPLASTICS ARE GETTING INTO OUR FOOD STREAMS ARE ENDING UP IN OUR BRAIN TISSUE AND THAT'S THAT'S PRETTY BAD AND. THERE WAS A STUDY RECENTLY OUT OF UNIVERSITY OF NEW MEXICO AND IT SAID THEY LOOKED AT CADAVERS OVER SEVEN YEARS FROM THE BEGINNING TO THE END THERE'S A 50% INCREASE IN PLASTIC IN THE CADAVER BRAINS AND IN PARTICULAR IN THOSE LAST TWO YEARS IT CAME DOWN TO BE 4800 MICROGRAMS EXISTING IN BRAINS THAT'S THIS THIS IS 4800 MICROGRAMS. SO AS SEAFOOD EATERS WE KNOW THAT THE FOOD CHAIN BEGINS WITH LARVAL FISH, LARVAL CRAB, LARVAL SHRIMP WE EAT ALL AND BECAUSE OF BIO MAGNIFICATION WE KNOW EVEN IF SOMETHING ELSE THAT BEFORE WE EAT THAT WE'RE GETTING PLASTICS REGULARLY INTO OUR BODIES AND SO I WOULD SAY TO ALL OF YOU AND TO THE TOWN WE NEED TO TAKE ACTION.

WE NEED TO HAVE LEADERSHIP. THE OUTSIDE FOUNDATION COMMITTED TO THAT LEADERSHIP.

WE ARE COMMITTED TO EVENTS THAT HAVE NO SINGLE USE PLASTIC BOTTLES.

WE HAVE BEEN PART A HUGE OF THE QUENCH BOOGIE DRIVE AND WE WILL CONTINUE TO THIS PROBLEM THANK YOU. THANK YOU. LAST LASTLY LINDA HERRINGTON CORONER LINDA HERRINGTON IN TO GO RUN I HAD PLANNED TO STAND HERE AND PRESENTED TRANSPARENCY RESOLUTION TO THE TOWN BOARD BE VOTED ON AS HAS BEEN PASSED PRACTICE BY OTHERS THAT I'VE PERSONALLY WITNESSED. HOWEVER MY CONSCIENCE WILL NOT IT YOU SEE I WAS INSTRUCTED IT'S UNETHICAL FOR OUTSIDE PERSON OR BODY TO TRY TO MOVE A RESOLUTION CRAFTED THROUGH THE MANY TOWN BOARDS COMMITTEES COMMISSIONS AND THE ALL IMPORTANT TOWN COUNCIL.

THIS IS AN ELECTED BODY YOU HAVE CERTAIN RESPONSIBILITIES THAT YOU NEED TO ADHERED TO.

I SIGNED MANY A DISCLOSURE AND ETHICS WHEN I WAS IN OFFICE. I CERTAINLY HOPE THIS TOWN'S EMPLOYEES AND ANY BOARD AND OR ADVISORY COMMISSION OR READ AND SIGN A DISCLOSURE IS WELL IF YOU HAVE ONE IT'S NOT BEING I ALSO CALL ON ANY ALL TEN OF HILTON HEAD ISLAND BOARD MEMBERS EMPLOYEES AND VOLUNTEER BOARD MEMBERS THEY'RE ALSO A MEMBER OF THE GREATER ISLAND

[03:10:05]

I'VE NEVER UNDERSTOOD WHY IS THE TOWN GOVERNMENT YOU WOULD LEAVE YOURSELVES OPEN TO PROBLEMS WITH THIS ISSUE. I ATTENDED A TOWN COUNCIL MEETING RECENTLY.

I HAD THAT A PROJECT BLUE IOWA WAS LOBBYING THE TOWN TO REZONE OR GRANT A VARIANCE ON THEIR ENDEAVOR. THIS CAME OUT IN THE MEETING WHEN THE APPLICANT WAS ASKED HOW HE CAME TO HILTON ISLAND. THE ANSWER WAS SOMEONE FROM THE TOWN REACHED OUT TO THEM.

I WAS SHOCKED THERE WERE A NUMBER OF QUALIFIED PEOPLE IN OUR OWN AREA.

WHY GO TO SOMEONE OUT OF TOWN WHO IS INEXPERIENCED? I STOOD UP DURING THE PORTION OF THE MEETING I ASKED QUITE CLEARLY WHO HAD CONTACT WITH BLUE HOUR FROM THE TOWN.

NO ONE ON THE DAIS ANSWERED, BUT THEY ALL HAD PUZZLED LOOKS AS IF THEY HAD NO IDEA WHO HAD MADE THAT CALL. BUT IT TURNS OUT FROM WHAT I UNDERSTAND IT WAS YOU MAYOR PERRY, WHILE YOU DIDN'T OUTRIGHT LIE YOU LIE BY OMISSION.

OUR LATEST PROBLEM AGAIN AT THE MAYOR'S INSTRUCTION IS BIG BEACH PARKING.

YOU CANNOT APPEASE EVERYONE MANY HOURS, DAYS WEEKS AND MONTHS WERE PUT INTO THIS ENDEAVOR. HOW CAN YOU PUT IT BACK UP FOR DISCUSSION? IT'S ONLY BEEN IN EXISTENCE FOR A SHORT TIME. GIVE US A CHANCE TO SEE HOW IT WORKS NOW THAT YOU'VE MUDDIED THE WATER YOU HAVE RESIDENTS PITCHED AGAINST RESIDENTS.

THANK YOU MAYOR. BEFORE YOU CLOSE PUBLIC COMMENT I JUST WANTED TO JUST SAY SOMETHING THERE THERE IS A REPORT THAT SAYS THAT THIS COUNCIL HAS DIFFICULTY OR HAD DIFFICULTY BETTER I THINK NOW IN THE LAST FIVE MONTHS THAN IT CERTAINLY WAS THE TWO YEARS PRIOR TO THAT WITH CONFLICT. AND AND I ALSO KNOW AND ANYONE WHO WATCHES KNOWS THAT I'M USUALLY PUSHING THE EDGES THAT THE BEACH PARKING IS A PROBLEM WE I WAS PART OF THAT ORIGINAL DISCUSSION FROM THE BEGINNING FOUR PLUS YEARS AGO AND WE DID DEBATE IT AND WE GOT ALL SORTS OF INFORMATION AND STATISTICS AND DATA AND WE MADE AN AGREEMENT AMONG OURSELVES AND A COHESIVE GROUP TO MOVE SOMETHING AND PART OF THAT INCLUDED THE COLLECTION OF DATA FOR A YEAR THIS IS NOT UNLIKE OTHER SITUATIONS ONE IN PARTICULAR WITH REGARD TO THE FLOOR AREA RATIO WHEN THE DIRECTION THAT THIS COUNCIL HAS BEEN TAKING YOUR VOTE INCLUDED HAS BEEN THEN STOPPED BEFORE IT'S HAD FULL TIME FOR FULL IMPLEMENTATION WHETHER.

IT'S A SECOND VOTE ON THE FLOOR RATIO OR NOW WITH ONLY A MONTH AND A HALF AND SOME DEBATE ABOUT CHANGING PARKING, I'M GOING TO SPECIFICALLY AS THE CHAIR OF THE COMMUNITY SERVICE AND PUBLIC SAFETY THROUGH WHICH A LOT OF THIS DISCUSSION HAS COME THROUGH.

ASK THAT WE CONTINUE TO LET THAT RIDE OUT AND WITH THE COMMITMENT THAT WE AS A GROUP WITHOUT CONFLICT AGREE MOVE FORWARD AND I THINK IT'S IMPORTANT THAT THIS COUNCIL HAS THE ABILITY TO PASS THINGS AND KNOW THAT IS GOING TO PLACE AS WE'VE AGREED TO IT AND THAT WE DON'T HAVE SITUATIONS THE FLOOR AREA RATIO AND OTHERS THAT HAVE HAPPENED IN THE PAST WE ARE A

[12. Executive Session]

[13. Action from Executive Session]

MR. BROWN, DO WE HAVE ANY ACTION COMING OUT OF EXECUTIVE SESSION? NO, SIR. ALL RIGHT. MOTION TO ADJOURN SO WE'RE

* This transcript was compiled from uncorrected Closed Captioning.