[00:00:01]
[1. Call to Order]
WE'D LIKE TO WELCOME EVERYONE TO TODAY'S FINANCE AND ADMINISTRATIVE COMMITTEE MEETING.WE HAVE, UH, COUNCILWOMAN BRYSON, WHO'S THE THIRD MEMBER OF THIS COMMITTEE ONLINE.
[2. Adoption of the Agenda]
MOVE FORWARD WITH THE AGENDA THAT HAS BEEN BEFORE THIS COMMITTEE.UM, ANY CHANGES? I HAVE A MOTION TO ADOPT TODAY'S AGENDA, PLEASE.
[3. Approval of the Minutes]
WE ALSO HAVE THE MINUTES FROM OUR SEPTEMBER 30TH, 2025 MEETING FOR CONSIDERATION.[4.a. Town of Hilton Head Island FY2026 Monthly Financial Update - Dave Byrd, Finance Director]
NEXT UP, WE'LL HAVE PRESENTATIONS.UH, WE'D LIKE TO WELCOME UP OUR FINANCE DIRECTOR, MR. DAVE BYRD, FOR OUR FY 26 MONTHLY FINANCIAL UPDATE.
AND WE ARE JUST COMING INTO THE FIRST QUARTER OF THIS FISCAL.
UM, SO MR. BIRD, I'M GONNA ASK THAT YOU MAYBE STAY TO PAGES ONE THROUGH FOUR AND
SO I WILL TURN IT OVER TO YOU, SIR.
UH, GOOD MORNING, COMMITTEE CHAIR AND COMMITTEE MEMBERS.
UM, MY NAME IS DAVE BUR, DIRECTOR OF FINANCE FOR THE RECORD, JUST A QUICK OVERVIEW.
UH, FOR FIRST QUARTER OF BUDGET YEAR 2026, UM, FOR THE TOTAL REVENUE FOR THE TOWN, WE HAD ABOUT 10 AND A HALF MILLION, UM, THAT HIT THE BOOKS.
UH, VERSUS 2025 OF 9.4 MILLION, THAT'S ABOUT 11.6% GROWTH YEAR OVER YEAR.
UM, WHEN YOU LOOK AT THE GENERAL FUND, UM, ON A NORMALIZED BASIS, WE HAD GROWTH OF ABOUT 13.9% YEAR OVER YEAR.
THERE WAS A, UH, 24 AND 25 WERE BOOKED FOR THE MUNICIPAL ASSOCIATION OF BROKER LICENSES.
SO THAT TAKEN THAT DOUBLE BOOKING OUT FOR THE TWO YEARS.
UM, WE HAD ABOUT 13.9% GROWTH YEAR OVER YEAR.
MOST OF THAT'S BEING DRIVEN BY, UH, AT TAX GROWTH OF 34%, UH, YEAR OVER YEAR.
AND, UH, OUR BEACH PARKING IS GROWING AS WELL.
UM, THE OTHER SIDE OF OUR GROWTH FOR REVENUE IS RELATED TO OUR SPECIAL REVENUE FUNDS, UH, MOSTLY WITHIN OUR REAL ESTATE TRANSFER FEES.
UH, THAT'S WAS ABOUT 954,000 HIGHER THAN LAST YEAR.
UH, AND ALSO BEACH PRESERVATION FEES.
AND THEN ALSO A LITTLE BIT FOR STR AS WELL.
SO OVERALL, YOU KNOW, YEAR OVER YEAR, FIRST QUARTER STRONG, I WOULD SAY STRONG PERFORMANCE AT A HIGH LEVEL VIEW.
AND THEN, UM, ON EXPENSE, UH, FOR THE FIRST QUARTER, OUR GENERAL FUND WENT UP ABOUT 5.7% VERSUS 2025 IN THE FIRST QUARTER.
MOST OF THAT IS IN THE PUBLIC SAFETY ARENA.
SO WE'RE GONNA BE LOOKING TO SEE WHAT'S DRIVING THAT FROM A, A COST PERSPECTIVE.
ONE OTHER THING TO CALL OUT IS ON OUR CAPITAL FUND.
WE HAVE, UM, A BUDGET OF AROUND 77.7 MILLION OF EXPENSE, UH, FOR 2026.
AND, UM, SO FAR THROUGH YESTERDAY, WE'RE AT 52 MILLION, UH, EITHER SPENT OR COMMITTED, WHICH IS STRONG.
UM, IF YOU LOOK AT BEACH, WE HAVE A BUDGET OF 47.7 MILLION AND 40.4 HAS BEEN EITHER SPENT OR COMMITTED.
THAT'S ABOUT 85% ON THE BEACH PROJECT.
AND SO THEY'RE LEAVING THE OTHER PROJECTS.
AND WE HAVE ABOUT ALMOST 30 MILLION IN THE BUDGET AND ABOUT 11.7 MILLION COMMITTED OR, OR SPENT, WHICH IS ABOUT 39%.
SO THAT'S A QUICK HIGH LEVEL VIEW FOR THE FIRST QUARTER.
WE'RE GONNA BE DIGGING INTO THIS, THIS WEEK FOR NEXT MONTH, BUT THIS IS FOR TODAY IF YOU HAVE ANY QUESTIONS.
THANK YOU, MS. DUN, I'LL START WITH YOU.
WELL, UH, FIRST OF ALL, WELCOME.
UH, WE'RE SO EXCITED TO HAVE YOU HERE, UM, AND TO LEVERAGE YOUR EXPERTISE, UM, UH, HERE FOR THE TOWN OF HILTON HEAD.
AND, UH, AS YOU SAID, WE HAVE A VERY LARGE PACKAGE, UH, THAT WE ARE NOT COVERING TODAY.
UM, BUT I ALWAYS APPRECIATE HAVING THE EXTRA INFORMATION.
UM, THINGS THAT ARE IMPORTANT TO ME IS REALLY THE REVENUE TRENDS.
UM, YOU KNOW, I I'M ALWAYS THINKING ABOUT WHAT IS THE HEALTH OF THE TOWN? WHAT ARE THE HEALTH OF THE BUSINESSES? AND SO I'M ALWAYS LOOKING TO SEE WHAT'S HAPPENING WITH OUR REVENUE, BECAUSE THAT IS A REALLY GOOD SIGN OF, OF WHAT IS HAPPENING.
AND SO THERE WERE A LOT OF POSITIVE THINGS THAT YOU SHARED, UH, THROUGH THE FIRST QUARTER.
UM, AND THIS IS WHERE IT GETS IN INTERESTING IS, UM, OUR TOURISM RELATED, UM, TAXES THAT WE COLLECT ARE UP,
[00:05:01]
UM, UP, I THINK YOU SAID 34%.UM, BUT THEN WE ALSO GET MESSAGING THAT OUR OCCUPANCY IS DOWN.
UM, AND SO IT IS, IT IS REALLY INTERESTING, YOU KNOW, PART OF THE STRATEGY THAT THE, UM, TOWN HAD ASKED FOR THE CHAMBER WAS, UM, A REDUCTION IN THE NUMBER OF TOURISTS, BUT, UH, CAPTURING TOURISTS WITH HIGHER INCOME THAT, THAT SPEND MORE, SO LESS PEOPLE THAT SPEND MORE.
AND, UM, SO AS WE START TO ASK THE CHAMBER TO DIG MORE INTO THOSE, WHICH SEGMENTS OF THE OCCUPANCY ARE DOWN, UH, YOU KNOW, THAT STRATEGY MAY BE WORKING BECAUSE AT THE END OF THE DAY, OUR TAXES ARE UP.
THAT DOES NOT MEAN THAT THERE ISN'T A SHIFT THAT'S HAPPENING WITHIN THE TOWN, RIGHT? UM, AND IT'LL BE IMPORTANT TO UNDERSTAND WHAT THOSE SHIFTS ARE.
AND I'LL JUST GIVE YOU A QUICK EXAMPLE.
UM, LAST YEAR, HOSPITALITY TAXES WERE DOWN SLIGHTLY, I DON'T KNOW, I THINK IT WAS LIKE $12,000.
UM, BUT JOHN DID SOME ADDITIONAL ANALYSIS TO SAY THERE WAS A SHIFT IN THE DOLLARS MORE RESTAURANT, UM, FUNDS VERSUS RES, UH, I'M SORRY, LESS RESTAURANT, MORE GROCERY, RIGHT? UM, SO IT'S ALWAYS UNDERSTANDING WHAT, WHAT ARE THE SHIFTS AND WHAT ARE HAPPENING HAPPENING, SO WE CAN CONNECT THE DOTS TO WHAT WE HEAR IN REGARDS TO THE IMPACTS OF OUR BUSINESS AND THE MONIES THAT WE COLLECT FROM THE TOWN.
SO THAT'S REALLY IMPORTANT TO ME.
THE OTHER THING THAT I LIKE TO LOOK AT AS WELL IS THE BUSINESS LICENSE.
AND SO, UM, IF YOU COULD, UH, JUST EXPLAIN, UM, WHEN WE LOOK AT WHAT'S HAPPENING WITH BUSINESS LICENSES, IT, IT'S DOWN 80%.
UM, SO IF, CAN YOU EXPLAIN WHAT THAT VARIANCE IS? THAT'S WHERE THE 1.365 MILLION HIT AND 25 YEAH.
IF YOU TAKE THAT OUT, IT'S RELATIVELY FLAT, RIGHT? SO IT WAS A TIMING RELATED ISSUE OF WHEN THOSE, UM, UH, BUSINESS LICENSES HIT.
UH, BECAUSE THAT'S ANOTHER AREA THAT I LOOK AT TO SEE WHAT, WHAT IS THE HEALTH OF OUR TOWN? AND THEN JUST FROM A, UM, THE OTHER PERSPECTIVE IS HOW MUCH MONEY ARE WE SPENDING? AND CONSIDERING THAT WE'RE 24% OF THE FISCAL YEAR AND YOU'VE SPENT, UH, 21.9% OF THE BUDGET, EVERYTHING SEEMS TO BE IN LINE.
UM, SO, UH, THANK YOU FOR THE UPDATE AND THANK YOU FOR THE MATERIALS.
AND I JOINED IN WELCOMING OUR NEW FINANCE DIRECTOR.
WE'RE ALL VERY GLAD YOU'RE HERE.
UM, I LIKE YOUR HIGH LEVEL, UH, THIS MORNING.
I THINK THAT WAS RIGHT TO THE POINT, UM, AND THE KEY THINGS FOR THE COMMUNITY TO HEAR.
UM, I APPRECIATE MS. TURNER'S, UH, MORE THOROUGH ANALYSIS AS ALWAYS.
UM, AND, AND WHAT I WANT TO KNOW IS BASICALLY HOW ARE WE DOING? UM, ARE WE DOING FINE WITH OUR REVENUES? ARE WE DOING FINE WITH OUR EXPENSES? ARE ARE THERE ANY, UM, UH, TOPICS OR, OR ISSUES THAT WE SHOULD BE LOOKING AT BECAUSE OF SOMETHING UNKNOWN TO US OR SOME TRENDS THAT AFFECT US FROM OUTSIDE, SUCH AS AT THE STATE LEVEL OR THE FEDERAL LEVEL, OR THOSE AFFECTING ANY OF OUR FUNDS, UH, AND OR OUR EXPENSES.
UM, ALSO WOULD LIKE TO SEE A REPORT ABOUT THE CAPITAL BUDGET, AND I DON'T SEE THAT.
UM, SO I THINK THAT WOULD BE IMPORTANT TO KNOW.
WE, WE HAVE OTHER FUNDS AS WELL, SUCH AS DEBT SERVICE AND STORM WATER.
UM, SO I'D LIKE TO SEE SOME HIGH LEVEL ANALYSIS OF THOSE.
UM, AND, UM, UH, I KNOW I'M LEAVING OUT FOR OTHER FUNDS, A HOUSING FUND, UM, BUT I'M, I'M, I DON'T MEAN TO OMIT THOSE, I MEAN TO REPORT ON ALL OF OUR FUNDS WITHIN OUR BUDGET.
AND I THINK WE NEED TO SEE THAT ANALYSIS AS WELL.
UM, AND, UM, THE CAPITAL FUND PROJECTS, UM, ESPECIALLY TO FOCUS ON THAT BECAUSE WE NEED TO KNOW, WE HAVE A THREE YEAR, UM, THREE TO FIVE YEAR, I CAN'T REMEMBER AT LEAST A TWO YEAR, UM, CAPITAL IMPROVEMENT PLAN NOW AND WHERE WE STAND WITH REGARD TO THIS FISCAL YEAR.
UM, AND THEN WE'VE HAD SOME ISSUES IN THE PAST WITH REGARD TO PUSHING FORWARD PROJECTS THROUGH THE PERMITTING ISSUES OR UNAVAILABILITY OF CONTRACTORS.
UM, AND SO IF, IF THAT'S PART OF THE ISSUE WITH REGARD TO SPENDING MONEY THERE, UM, OR MONEY COMING INTO THAT FUND FOR ANY REASON, I THINK WE NEED TO KNOW ABOUT THAT.
SO THOSE ARE THE KIND OF THINGS I, I LOOK FOR.
UM, AND, UM, UH, AGAIN, ANY TRENDS THAT WE NEED TO BE AWARE OF.
UM, AND, AND THE LAST THING IS, UM, WHEN MONEY COMES IN FROM DIFFERENT SOURCES, ONE OF THE QUESTIONS THAT MS. HUNTER WAS ASKING ABOUT HAD TO DO WITH BUSINESS LICENSES, AND THAT HAD TO DO WITH TIMING.
AND SO WHILE WE OPERATE ON A FISCAL YEAR, UM, THERE'S SOME FUNDS THAT COME IN, FOR INSTANCE, STATE AT TAX MONEY COMES IN AT A CERTAIN TIME OF THE YEAR, UM, AND, AND OTHER FUNDS COME AT OTHER TIMES OF THE YEAR.
UM, WE, OUR BUSINESS LICENSE TIME PERIOD IS MAY, I THINK IT'S MAY ONE TO APRIL 30 NOW, AND SHORT TERM RENTALS ARE BEING MOVED TO THAT.
[00:10:01]
UM, WHENEVER YOU GIVE US REPORTS, IT'D BE HELPFUL TO KNOW, UM, KIND OF WHERE WE ARE WITH TIMING OF THOSE INCOME STREAMS. SO THAT MR. CHAIR, UM, ARE THE QUESTIONS AND, AND THE KIND OF ISSUES I'D BE LOOKING AT.UM, DITTO ON THE COMMENTS THAT YOU'VE HEARD SO FAR, MR. BIRD.
AND I'VE JUST GOT, UM, JUST A FEW ADDITIONAL, UM, I LIKE THE, THE FORMAT, UM, THE YEAR OVER YEAR BY QUARTER, THAT'S WHAT WE'RE LOOKING FOR.
UM, ALWAYS HAVING SOME CONTEXT TO THE NUMBERS THAT WE ARE REVIEWING.
UM, YOU MENTIONED THE, WHAT I LIKE TO REFER TO THE BURN RATE OF THE CAPITAL IMPROVEMENT PLAN.
UM, THEY, YOU SAID ABOUT 77 MILLION BUDGETED WENT THROUGH ABOUT 50 OR SO, EITHER SPENT OR COMMITTED.
UM, MY ROUGH CALCULATION, THAT'S ABOUT 70%.
TO ME, THAT'S A GOOD BURN RATE.
UM, AND I'M GOING OFF OF THIS FOGGY MEMORY THAT I HAVE THAT YEARS AGO WE WERE NOWHERE CLOSE TO 70%.
SO, UM, I THINK IT'S IMPORTANT TO CONTINUE TO COMMUNICATE THAT.
AND, UH, I KNOW WE'VE HAD CONVERSATIONS ABOUT DEVELOPMENT OF A FIVE YEAR CIP PLAN, WHICH MAKES A LOT OF SENSE AS FAR AS WHERE THE DOLLARS ARE GOING TO GO.
SO, UM, I APPLAUD YOU IN BRINGING FORTH THAT INFORMATION.
JUST ENCOURAGE IT TO GET A LITTLE MORE REFINED.
UM, AND THEN THE LAST ONE, UM, MS. TURNER IS ABSOLUTELY RIGHT.
WHEN WE, WHEN WE START TO LOOK AT OUR REVENUE SOURCES, THE HEALTH OF THE COMMUNITY IS THE WAY SHE DESCRIBED IT.
UM, A LOT, A LOT OF US, UH, NOT REALLY AWARE OF THE SMALL PERCENTAGE THAT OUR ACTUAL PROPERTY TAXES CONTRIBUTE TO THE TOWN OF HILTON HEAD.
UM, SO ALL OF THOSE ADDITIONAL REVENUE SOURCES, UM, O OBVIOUSLY THEY'RE, THEY'RE GOING TO FLUCTUATE, BUT THE FLUCTUATION OF THOSE BASED ON POTENTIAL DECISIONS THAT WE MAKE AS A BODY, I THINK ARE IMPORTANT.
UM, SO I LIKE TO UNDERSTAND MORE AS WE MOVE FORWARD, UM, OUTSIDE OF THIS COMMITTEE.
UM, BUT AS THE COUNCIL IS MAKING DECISIONS, WHAT IS THE FINANCIAL IMPACT? YOU KNOW, HOW DO WE WEIGH IN ON THAT FROM THAT ASPECT BECAUSE IT COULD AFFECT OUR REVENUE SOURCES AND TO MS. TURNER'S POINT, THE HEALTH OF THE COMMUNITY.
LOOK FORWARD TO TALKING WITH YOU MORE.
[4.b. Lowcountry Regional Transportation Authority Funding Request - Brian Sullivan, Executive Director]
NEXT UP, WE'LL HAVE A FUNDING REQUEST.UH, MR. BRIAN SULLIVAN, EXECUTIVE DIRECTOR OF THE LOW COUNTRY REGIONAL TRANSPORTATION AUTHORITY.
UM, MR. CHAIR AND MEMBERS OF THE COMMITTEE, THANK YOU FOR, UH, CONSIDERING OUR REQUEST TODAY AND, UH, GIVING US SOME TIME HERE THAT THE DAY IS, UM, TODAY, UH, THE PURPOSE REALLY OF, OF US PRESENTING HERE TODAY IS TO PROVIDE A, AN UPDATE ON OUR WORKFORCE TRANSPORTATION SERVICES.
WE FOCUS A LOT WHEN WE PRESENT TO THE TOWN ON THIS, THE SERVICES SPECIFIC TO THE, TO THE TOWN, ESPECIALLY THE TROLLEY SERVICE OVER THE LAST SEVERAL YEARS.
SO THIS IS REALLY GONNA FOCUS MORE ON THE ECONOMIC ENGINE THAT, THAT WE TRY TO DRIVE, RIGHT? THE, THE, THE COMMUTER, UH, TRANSPORTATION THAT WE DO.
WE'LL TALK A LITTLE BIT ABOUT EXPLAINING, UH, OUR FUNDING NEEDS, UM, HOW WE'RE STRUCTURED AND THE IMPLICATIONS OF OUR, UH, REVENUE DEFICIENCY ON FISCAL 26TH.
THAT RUNS THROUGH THE END OF JUNE.
AND OBVIOUSLY YOU HELP TO SUPPORT, UM, AN INFORMED DECISION BY THE COMMITTEE.
UM, THE MAP YOU SEE HERE, A LITTLE CUT OFF THERE.
BUT ANYWAY, THIS, THIS KIND OF SHOWS THE ORIGINS OF OUR COMMUTERS.
SO IT KIND OF GET PAINTS A PICTURE OF HOW FAR AWAY SOME OF THE, THE WORKERS THAT, UH, ARE EMPLOYED HERE ON HILTON HEAD TRAVEL EACH DAY.
UM, WE COME FROM AS FAR AWAY AS WALTERBORO, ALLENDALE, ESTELL, ALL THE WAY INTO HILTON HEAD.
AND MANY OF THESE INDIVIDUALS RIDE AS MANY AS FIVE OR SIX, UH, DAYS A WEEK EACH WAY.
UH, SOME OF THOSE COMMUTES CAN BE ABOUT TWO HOURS EACH, EACH WAY.
UM, THE DESTINATIONS INCLUDE HI HEAD, OBVIOUSLY, PRIMARILY, BUT THERE'S ALSO, UH, WORK, UH, LOCATIONS THAT THEY TRAVEL TO IN HARDY V BUT, AND ALSO IN BLUFFTON.
UM, IF YOU LOOK CLOSELY TOWARD THE BOTTOM WHERE YOU SEE HILTON HEAD THERE, THERE ARE SIX COMMUTER BUSES THAT COME ONTO HILTON HEAD ISLAND EVERY DAY, 362 DAYS A YEAR.
THESE ARE THE MAJOR EMPLOYERS THAT WE SERVE.
THIS IS BASED ON A SURVEY THAT WE DID OVER THE LABOR DAY WEEKEND, THE FOUR DAY LABOR DAY WEEKEND, UH, OF THIS YEAR.
ONE OF THE PRIMARY SOURCES OF RIDERSHIP IS THE MARRIOTT VACATION WORLDWIDE PROPERTIES.
OBVIOUSLY THERE'S SEVERAL ON THE ISLAND.
UM, THEY ACTUALLY DO ASSIST US IN FUNDING A SPECIFIC ROUTE FROM, UH, OC, UH, MARCH THROUGH OCTOBER.
AND THEN OTHER KEY DESTINATIONS THAT WEEKEND, AND TYPICALLY ARE THE MCDONALD'S ON THE SOUTH END, WALMART COURTYARD BY MARRIOTT, PIGGLY WIGGLY, ET CETERA.
[00:15:01]
THIS IS BASICALLY WHERE THEY DEBOARD, WE ASSUME A LOT OF THEM WORK AT SOME OF THESE LOCATIONS.SOME OF THEM WALK TO A DIFFERENT DESTINATION.
AND THEN OFF ISLAND, JUST FOR REFERENCE, UM, THE EMPLOYEES THAT, UH, THAT, UH, COME INTO BLUFFTON AND THEN STAY IN BLUFFTON, MOSTLY GO TO, UH, RSI IN BLUFFTON, AS WELL AS THE WALMART, WENDY'S, UH, KROGER, THE PLANET FITNESS STOP THERE AT THE SHOPPING CENTER.
SO THIS IS KIND OF AN OVERVIEW OF HOW OUR FUNDING WORKS.
WE TRY TO SIMPLIFY IT AS BEST WE CAN.
UM, WE HAVE, UH, OUR PRIMARY FUNDING SOURCES ARE FEDERAL, STATE, AND LOCAL FUNDS, SUPPLEMENTED BY FARES, LIMITED CONTRACTING OPPORTUNITIES, AND THEN A VERY, A VERY SMALL AMOUNT OF ADVERTISING REVENUE.
UM, FEDERAL AND STATE FUNDS ARE ALLOCATED BASED ON POPULATION, UH, TO A CERTAIN EXTENT.
RIDERSHIP AND SERVICE TYPE, WHICH IS EITHER RURAL OR SMALL URBAN.
IN OUR CASE, IN SOME CASES, THERE'S MOBILITY MANAGEMENT GRANTS, AND THEN THERE'S BUS AND BUS FACILITIES, GRANTS, WHICH ARE CAPITAL GRANTS.
UH, WE ARE REQUIRED TO, UH, CONTRIBUTE A LOCAL MATCH.
SO WE HAVE TO SOLICIT AND RE AND RECEIVE A LOCAL MATCH, UM, IN ORDER TO ACCESS ANY FEDERAL AND STATE FUNDING FOR CAPITAL GRANTS.
THAT'S A 20% MATCH FOR OPERATING GRANTS.
UM, A LARGER TRANSIT AUTHORITIES HAVE A DEDICATED FUNDING SOURCE, LIKE A TAX, A SALES TAX, UM, AND THAT'S WHERE THEY SOURCE THEIR LOCAL MATCH.
WE COORDINATE WITH NINE LOCAL PARTNERS, THE FIVE COUNTIES WE SERVE, PLUS, UH, FOUR MUNICIPALITIES INCLUDING THE TOWN.
SO HERE'S OUR SITUATION FOR FISCAL 26.
UM, THE BUDGET THAT WE APPROVED, UM, IS ABOUT 6.25 MILLION, WHICH IS A SLIGHT INCREASE OVER LAST YEAR.
UH, WE HAVE THREE PRIMARY OPERATING DEPARTMENTS, ADMINISTRATION, MAINTENANCE, AND OF COURSE THE OPERATIONS OF THE BUSES THEMSELVES.
UH, WE, THE, THE, THE BUDGET INCLUDES THE DEPRECIATION ON CAPITAL ITEMS AS WELL AS WHAT WE CALL CAPITALIZED MAINTENANCE.
THAT, THAT ALLOWS US TO MATCH THOSE EXPENSES WITH A 20% MATCH INSTEAD OF A 50% MATCH.
THAT'S, THAT'S ALLOWABLE BY THE FEDERAL STATUTE.
WHEN ALL WAS SAID AND DONE AND WE TIGHTENED OR, OR, UH, SHARPENED OUR PENCIL, WE WERE ABLE TO GET OUR EXPENSES DOWN TO THE POINT THE FARTHEST WE COULD GET THEM.
AND WE STILL SHOWED A REVENUE DEFICIENCY OF $361,000.
AND SO WHEN OUR BOARD APPROVED OUR BUDGET FOR THIS YEAR, IT ACTUALLY INCLUDED A SMALL SERVICE REDUCTION AT THE END OF THE YEAR TO CLOSE THAT GAP.
SO, IN OTHER WORDS, A REDUCTION OF EXPENSES TO MATCH THE REVENUES THAT WE ANTICIPATED.
UM, HERE'S JUST THE, THE, THE BIG WHY BEHIND IT ALL.
WHAT IS THE CAUSE OF ALL THAT? NUMBER ONE, AND ONE OF OUR PRIMARY ISSUES IS THE LAG IN TIMING WITH APPROPRIATIONS.
OUR POPULATION GROWTH FAR EXCEEDS THE RATE OF ALMOST ANY OTHER COMMUNITY IN THE COUNTRY.
SO THE NUMBER OF PEOPLE HERE, IT DOESN'T MATCH THE APPROPRIATIONS OF AT THE FEDERAL LEVEL.
UM, IT REALLY KIND OF CATCHES UP AFTER THE, THE, THE, UM, EVERY 10 YEAR CENSUS.
SO, UH, THIS IS BASED LARGELY ON 2020 CENSUS NUMBERS.
AND ANYBODY WHO LIVES HERE KNOWS THAT WE'VE GROWN A LOT SINCE 2020.
UM, WE ALSO, BECAUSE OF THAT, WE HAVE AN INCREASED SERVICE DEMAND, UM, WHICH IS CLEARLY EXCEEDING OUR CURRENT ALLOCATIONS.
UM, ANOTHER THING WE HAD COVID-19 SUBSIDIES, LIKE A LOT OF PUBLIC ENTITIES, UM, TRANSIT AGENCIES ALL OVER THE COUNTRIES HAVE THAT SAME ISSUE THAT THOSE MONIES DID NOT REQUIRE A MATCH.
AND SO THEY WERE EASY, IF YOU WILL, TO USE TO FILL ANY KIND OF FUNDING GAPS, REVENUE GAPS THAT A TRANSIT AUTHORITY WOULD HAVE, INCLUDING OURS.
AND THEN OF COURSE, THERE'S THE RISING OPERATIONAL COSTS, ESPECIALLY FOR INSURANCE MAINTENANCE AND THE COST OF STAFF.
SO HERE'S THE CONSEQUENCES KIND OF TO THAT.
UH, SERVICE REDUCTION I TALKED ABOUT.
WE LOOKED AT PROBABLY A DOZEN DIFFERENT PERMUTATIONS OF WHAT A SERVICE REDUCTION COULD LOOK LIKE IN ORDER TO FILL THAT $360,000 GAP.
AND, UH, WITHOUT FILLING THAT REVENUE GAP, WHAT WE LANDED ON WAS THE ELIMINATION OF WEEKEND SERVICE.
SO SATURDAY AND SUNDAY, STARTING FEBRUARY 28TH, THAT WOULD ELIMINATE ALL COMMUTER S ALL SERVICES ENTIRE ENTIRELY.
SO THAT WOULD ELIMINATE EVERYTHING FROM THE COMMUTER, THE DAILY COMMUTER SERVICES, AS WELL AS THE TROLLEY.
AND IF, IF NEEDED, THE CLAYTON BEACH SHUTTLE THAT STARTS, UH, THE WEEK OF MEMORIAL DAY.
UM, THE REASON IT HAS TO INCLUDE ALL THOSE THINGS IS OUR TITLE SIX MANDATE.
UM, WE HAVE TO COMPLY WITH TITLE SIX, AND YOU CAN'T, WE WOULD GET COMPLAINTS IF WE ELIMINATED COMMUTER SERVICE BUT NOT THE TROLLEY SERVICE.
UM, YOU'D BE SERVING ONE POPULATION AND NOT THE OTHER UNEQUALLY.
UM, SO THE AT, AT THE END OF THE DAY, THE ESTIMATED IMPACT IS ABOUT 200 COMMUTERS, PLUS OR MINUS IMPACTED DAILY.
IT GOES UP AND DOWN WITH THE SEASON, JUST LIKE A LOT OF THINGS HERE.
UM, I'VE GOT SOME NUMBERS IF YOU NEED 'EM, UH, TO TALK ACTUALLY, AS RECENT AS OCTOBER, I HAVE THE, THE, THE AVERAGE RIDERSHIP
[00:20:01]
FROM OCTOBER.SO OBVIOUSLY WHAT'S THE IMPACT TO THE ISLAND, WHICH IS OBVIOUSLY ONE OF OUR KEY QUESTIONS BEFORE WE EVEN, UH, TAKE ANYTHING OUT TO OUR, TO OUR PARTNERS.
OBVIOUSLY, THE BUSINESS THAT ARE RELYING ON OUR WORKFORCE WOULD FACE A LABOR SHORTAGE, AT LEAST FOR THOSE DAYS OF, OF SERVICE.
UH, IT COULD LEAD TO POTENTIAL WAGE INFLATION TO ATTRACT WORKERS WHO LIVE CLOSER TO HILTON HEAD, AND OF COURSE, THE LOSS OF THE BREEZE TROLLEY.
YOU, YOU WOULD LOSE ACCESS FOR VISITORS AND RESIDENTS THAT WOULD INCREASE CONGESTION AND REDUCE MOBILITY AND POTENTIALLY AFFECT LOCAL SPENDING.
SO SORT OF THE KEY TAKEAWAYS KIND OF SUMMARIZE, WE PROVIDE ESSENTIAL SERVICE SUPPORTING THE ISLAND'S THRIVING ECONOMY.
UH, WE HAVE AN IMMEDIATE SHORTFALL OF $361,000.
A SHUTDOWN OF SERVICE ON WEEKEND WOULD AFFECT BOTH WORKFORCE AND TOURISM.
AND, UM, AND THIS IS SORT OF A SEGUE, UH, SEVERAL, THERE ARE SEVERAL LONG TERM ME MECHANISMS TO EVALUATE AND, AND TO, UH, COLLABORATE ON TO ADDRESS THIS FOR THE LONG TERM.
WE ALSO HAVE SOME SHORT TERM SOLUTIONS.
SO THE FIRST ONE, AND THE REASON I'M HERE TODAY IS THE CITIES AND TOWNS AND, UH, COUNTIES COULD, COULD SUPPLY THAT GAP, HELP FILL THAT GAP WITH SOME ADDITIONAL FUNDING TO MAKE SURE THAT THAT SERVICE REDUCTION DOESN'T HAVE TO OCCUR.
UM, AND THEN LASTLY, WE, WE WE'RE CONSIDERING A FAIR INCREASE.
UM, FARES HAVE NOT BEEN INCREASED SINCE 2014, WHICH WAS A LONG TIME.
UH, OUR FARES RANGE FROM ABOUT $2 AND 50 CENTS TO $4 FOR COMMUTER RIDERS.
AND, UM, THEY CERTAINLY COULD BE RAISED.
UM, THE ISSUE TO ME IS OPTICS.
UM, IF WE WERE TO INCREASE FARES TO TRY AND FILL THAT GAP, WE OBVIOUSLY WOULD RISK LOSING SOME RIDERS.
AND IT'S THE, THE, THE, THE, THE PICTURE THAT WE'RE, THAT WE'RE PUTTING THE ONUS ON THE COMMUTERS WHO PROBABLY HAVE THE LEAST RESOURCES OF ANY, ANY PARTY INVOLVED LONG TERM.
I'VE GOT SOME REALLY GOOD NEWS.
UM, WE DO HAVE THE ABILITY TO EXPLORE A VEHICLE REGISTRATION FEE.
UM, IT'S IN OUR CHARTER FROM THE STATE IN, UH, THE 1970S.
UM, NO OTHER TRANSIT AUTHORITIES DO IT, UH, DON'T KNOW WHY, BUT IT'S SOMETHING WE CAN EXPLORE.
IT'S ACTUALLY IN THE STATE STATUTE.
UM, YOU CAN ALSO CONSIDER THE USE OF STATE AT TAX DOLLARS FOR, TO FUND TOURISM SHUTTLES.
IT CANNOT FUND COMMUTER SERVICES, BUT STATE A TAX COULD FUND SOMETHING LIKE THE TROLLEY, UH, SEASONAL BEACH SHUTTLES, THINGS OF THAT NATURE.
YOU COULD PURSUE PRIVATE SECTOR, UH, EMPLOYER PARTNERSHIPS SIMILAR TO WHAT WE DO WITH MARRIOTT VACATIONS WORLDWIDE.
AND ONE THAT'S NOT SHOWING HERE, I APOLOGIZE, IS PROBABLY THE MOST IMPORTANT ONE.
UM, THE COUNTY, BEAUFORT COUNTY HAS DECIDED TO PURSUE IN NOVEMBER, 2026, A TRANSPORTATION SALES TAX REFERENDUM.
UM, THAT IS PROBABLY OUR MOST LIKELY LONG-TERM SOLUTION, UM, TO, TO CLOSING THIS GAP AND ADDRESSING OUR DEFICIENCIES ON REVENUE.
UM, WE WERE INCLUDED IN THE 2024 REFERENDUM, UH, ALONGSIDE THE, UH, AIRPORT, THE COUNTY AIRPORTS, AS WELL AS, UH, THE FERRY SERVICES.
AND I WOULD ENVISION THAT WE WOULD BE AS WELL FOR THE 2026 REFERENDUM.
SO WE'LL BE WATCHING, OBVIOUSLY, THAT COMMITTEE PARTICIPATING TO THE EXTENT THAT WE CAN, UH, THE COMMITTEE THAT'S BEING FORMED BY THE COUNTY, AND I KNOW, I KNOW THE TOWN OF HILTON HEAD MAYOR ABOUT PERRY HAS BEEN ASKED TO NAME A CITIZEN REP.
SO, UM, WE WILL BE STICKING TO THAT LIKE GLUE.
SO TODAY'S REQUEST, UM, ORIGINALLY, UH, $350,000 WAS APPROVED AS OUR AFFILIATED AGENCY AMOUNT.
UH, OUR, OUR INITIAL REQUEST, WHAT, WHAT WE USED TO KIND OF CALL THE FAIR SHARE, UM, WAS 5 0 7 0 5 1.
UM, AND THAT WAS BASED ON RIDERSHIP POPULATION AND A LITTLE BIT OF EXTRA MONEY TO SUPPORT THE COMMUTER SERVICES THAT ARE MOSTLY SUP, UM, UH, LOCALLY FUNDED BY THE, THE, THE FIVE COUNTIES.
UM, OUR MEDIA FUNDING GAP, AS I MENTIONED, $361,000.
AND, UM, I, THE REC THE REQUEST TODAY WOULD BE ESSENTIALLY TO, UH, COMPLETE, UM, THE APPROPRIATION ALL THE WAY UP TO WHAT WE ORIGINALLY ASKED FOR THAT 5 0 7 0 5 1.
SO THAT WOULD BE AN ADDITIONAL 1 57 0 5 1 THAT WOULD EQUAL OUR INITIAL REQUEST AND ELIMINATE 44% OF OUR IMMEDIATE FUNDING GAP COMBINED WITH SOME REALLY TIGHT BUDGET CONTROLS THAT WE'VE ALREADY PUT IN PLACE THIS YEAR.
AND LOOKING AT A, WE'RE A THIRD OF THE WAY THROUGH OUR YEAR.
WE ARE TRENDING ABOUT 4% POSITIVE, MEANING WE HAVEN'T, WE HAVEN'T SPENT A THIRD OF OUR, UH, REVENUE YET, BUT WE'RE, WE'VE OPERATED A THIRD OF OUR SERVICE.
SO COMBINE THAT WITH AN ADDITIONAL 150,000 OR SO, I'M PRETTY CONFIDENT THAT BORROWING EITHER A HUGE SPIKE IN FUEL OR SOME UNFORESEEN EXPENSE, WE CAN DELAY, HOPEFULLY ELIMINATE ANY KIND OF SERVICE, UH, REDUCTION.
[00:25:02]
UH, WE ARE IN DISCUSSIONS WITH BEAUFORT COUNTY.IN FACT, AS, AS RECENT AS THIS MORNING, UM, WE'RE RECEIVING AN AUDIENCE WITH THE CFO.
SO WE ARE MEETING WITH HER HOPEFULLY IN THE NEXT TWO WEEKS TO, UH, GO THROUGH WHAT THE COUNTY CAN HELP US WITH IF NECESSARY.
AND, AND PERHAPS MORE IMPORTANTLY, REALLY UNDERSCORE THE IMPORTANCE OF BEING FRONT AND CENTER ON THAT REFERENDUM.
AND NUMBER TWO, THAT THEY SEE THE IMPORTANCE LONG TERM OF WORKING WITH US ON A SOLUTION.
I HATE COMING HERE JUST TALKING ABOUT NEW MONEY I NEED.
SO I HAD TO THROW THIS IN HERE, SOME THINGS THAT WE'VE BEEN TALKING ABOUT THAT I THINK WOULD BE GREAT FOR GROWTH.
UM, I KNOW WE'RE TALKING ABOUT A REVENUE DEFICIENCY, BUT LET'S ALSO TALK ABOUT SOME KIND OF THINGS THAT I THINK THAT WOULD REALLY HELP THE TOWN OF HILTON.
HU ONE OF THEM WOULD BE SOME POTENTIAL ROUTE EXTENSION DOWN IN THE FOREST BEACH AREA.
UM, WE BELIEVE THAT THERE'S A STRONG DEMAND FOR ADDITIONAL CONNECTIVITY UP AND DOWN NORTH AND SOUTH FOREST BEACH TO CONNECT INTO THE TROLLEY SERVICE ATY.
UM, THIS WOULD OBVIOUSLY REQUIRE NEW FUNDING COORDINATION.
UM, THERE'S EXISTING, UM, GOLF CART SHUTTLES DOWN THERE THAT ARE, THAT PROPERLY OPERATED.
UM, I ENVISION THIS SORT OF CALLED IT THE BREEZE BUGGY, SOMETHING THAT CAN BE MORE NIMBLE AND, UM, HOLD AND, UH, AND GET IN AND OUT OF TIGHTER SPOTS THAN A, THAN A TROLLEY OR A BUS CAN, AND THEN FEED INTO THE TROLLEY SERVICES THERE.
UM, ONE OTHER THING THAT, UH, I'VE BEEN DREAMING ABOUT FOR A LONG TIME IS, UH, A FEEDER ROUTE, WHAT I CALL A FEEDER TROLLEY ROUTE UP TO, UH, UP PALMETTO BAY ROAD UP TO THE PALMETTO BAY MARINA, AND THEN BACK DOWN ARROW ROAD TO CONNECT TO THE EXISTING TROLLEY ROUTE.
UM, OVER THE YEARS, WE'VE HAD SIGNIFICANT ANECDOTAL REQUESTS TO DO SUCH A THING TO CONNECT THAT, THAT AREA THAT'S, THAT'S GROWN.
IT REALLY HEATED UP AS SOON AS THE, UH, ALL THE DOCKS WERE FINISHED AND ALL THE, THE MARINA WAS COMPLETELY FULL.
AND JUST RECENTLY, IF YOU'LL OBLIGE ME, I RECEIVED, UM, UH, A LETTER THAT SOMEONE ASKED ME TO READ TODAY TO YOU.
IT'S ACTUALLY A COUPLE OF RESIDENTS FROM THE PALMETTO BAY MARINA AREA.
AND, UH, AND SO THESE ARE NOT MY WORDS, THESE ARE THEIR WORDS.
UH, IT'S BETH
UM, THEIR LETTERS READS, GOOD MORNING COUNSEL.
ON BEHALF OF THE OVER 200 PLUS RESIDENTIAL CONDOS BETWEEN BRIGHTON BAY, PALMETTO BAY, MARINA VILLAS, AND PALMETTO BAY CLUB, WE COME TO YOU IN HOPES OF ADDING A TROLLEY STOP AT PALMETTO BAY MARINA.
THIS IS LONG TIME SERVED AS A WATERFRONT HUB FOR LOCALS, BUT ITS POPULARITY AND PRESTIGE IS NO LONGER A SECRET AND HAS SIGNIFICANTLY INCREASED TOURIST TRAFFIC.
THE MARINA IS HOME TO THREE RESTAURANTS AND OUTDOOR BAR YACHT CLUB, AS WELL AS A THRIVING MARINA WITH SEVERAL LOCAL CHARTER COMPANIES.
IT'S ALSO JUST AROUND THE CORNER FROM OUR PUBLIC BOAT LAUNCH, SPORTS FIELD, SKATE PARK, HOCKEY COURT, AND SOON ADDITIONAL PICKLEBALL COURTS.
WITH THIS MANY AMAZING OPPORTUNITIES FOR LOCALS AND TOURISTS, IT'S NO WONDER THAT IT'S BECOME NEARLY IMPOSSIBLE FOR RESIDENTS TO FIND A PARKING SPOT DURING PEAK MONTHS.
MANY OF THE CONDO OWNERS ARE FORCED TO STRUGGLE FINDING A PLACE TO PARK WHEN THEY COME HOME FROM WORK BECAUSE THE PARKING LOT IS ALREADY FULL.
ADDING A TROLLEY STOP WOULD NOT ONLY SERVE AS A GREAT WAY TO ENCOURAGE TOURISTS TO VISIT THIS BEAUTIFUL AREA, BUT ALSO AID AND REDUCING PARKING CONGESTION.
IN ADDITION TO THE BENEFIT OF PROVIDING MORE PARKING, IT WOULD ALSO BE A MAJOR SAFETY IMPROVEMENT.
A TROLLEY WOULD ALLOW PATRONS TO A SAFE RIDE AFTER A DAY ON THE WATER OR ENJOYING COCKTAILS AT ONE OF THE MANY RESTAURANTS.
THE LAST THING WE NEED IS SOMEONE BEHIND THE WHEEL AFTER DRINKING WHEN THEY'RE JUST DOWN THE ROAD FROM A HIGHLY TRAFFICKED CHILDREN'S SPORTS COMPLEX.
PLEASE, PLEASE CONSIDER ADDING PALMETTO BAY MARINA AS A TROLLEY STOP TO ENHANCE THE COMMUNITY IN PROTECTING OUR STREETS.
SO, UM, I THOUGHT THAT WAS INTERESTING BECAUSE LIKE I SAID, WE'VE HAD A LOT OF ANECDOTAL REQUESTS.
UH, WE'VE, WE'VE LOOKED AT SOME DATA JUST TO KIND OF SUPPORT THE IDEA, THE NOTION THAT I THINK IT WOULD WORK.
IT'S GREAT TO HAVE SOME TESTIMONIAL LIKE THAT, AND I THINK THERE'S MORE WHERE THAT CAME FROM.
UH, OH, THE LAST THING ON THERE REAL QUICK.
UM, WE HAVE AN OPPORTUNITY RIGHT NOW BEFORE US FROM THE STATE, UH, S-E-D-O-T, FOR SOME OF THOSE BUS AND BUS FACILITIES GRANTS.
THEY DO NOT REQUIRE A MATCH, WHICH IS FANTASTIC.
SO WE ARE PUTTING TOGETHER A PROPOSAL DUE IN JANUARY FOR SOME ADDITIONAL VEHICLES.
THERE NO MONEY NEEDED FROM ANYBODY, INCLUDING THE TOWN.
UH, SO WE'RE, AND WE'LL LOOK AT MORE OF THOSE.
WE'RE HOPING TO SEE SOME MORE OF THOSE GRANT OPPORTUNITIES.
SO, SO TO BASICALLY TO DRAW IT ALL TOGETHER, UM, IF, IF COUNCIL COULD PLEASE CONSIDER OUR, UH, REVIEW OF THE ADDITIONAL FUNDING REQUEST, OBVIOUSLY WORK WITH US TO EXPLORE REGIONAL FUNCTIONAL COLLABORATIONS.
UH, MAYBE PERHAPS WITH EMPLOYERS, OBVIOUSLY WITH THE COUNTY, WITH THE REFERENDUM THAT'S ABOUT TO HIT.
UM, ASSESS THE FEASIBILITY WORK WITH US TO ASSESS THE FEASIBILITY OF A VEHICLE REGISTRATION FEE, AND THEN, UH, DEVELOP A SUSTAINABLE STRATEGY FOR, FOR WORKFORCE, UH, TRANSPORTATION OPERATIONS AND, AND FUNDING OF SUCH SERVICES.
[00:30:01]
I APPRECIATE, UH, VERY MUCH THE, UH, CONSIDERATION THE TIME THAT THE TOWN PUTS FORTH TO SUPPORT OUR SERVICES.I CAN'T THANK YOU ENOUGH FOR ALL THAT, AND I'LL TURN IT OVER TO YOU FOR QUESTIONS.
OKAY, THANK YOU, MR. SULLIVAN.
UH, MS. BRYSON, WE'LL START WITH YOU.
UM, AND I APPRECIATE YOUR PRESENTATION THIS MORNING.
VERY WELL ORGANIZED, UM, TO THE POINT.
AND, UM, UH, I, I LIKE THE ANALYSIS OF OTHER FUNDING SOURCES AND THE WORK THAT YOU'RE DOING FOR THAT.
UM, THE, UM, I, I DO HAVE A QUESTION FOR OUR NEW FINANCE DIRECTOR AND, UM, WE CAN CHOOSE FOR HIM TO TRY TO RESPOND NOW OR, UM, AT THE END OF MY QUESTIONS, UM, FOR PALMETTO BREEZE.
BUT MY QUESTION IS, UH, WHAT FUNDS ARE AVAILABLE FOR AFFILIATED AGENCIES, UH, FOR US TO CONSIDER THIS REQUEST? AND HE MAY NOT KNOW THE ANSWER NOW.
I KNOW HE IS FAIRLY NEW AND STILL LOOKING AT ALL THE VARIOUS NUMBERS, BUT, UM, IT'S IMPORTANT TO KNOW IF WE HAVE SOME MONEY TO BE ABLE TO INCLUDE RESPECTFULLY.
IF I COULD GET BACK ON THAT, UM, I WOULD, I WOULD RESEARCH TO SEE WHAT WE COULD DO AND THEN REPORT BACK, IF THAT'S OKAY.
UM, AND IN THE NEXT, UH, QUESTION I'VE GOT IS THAT THERE'S A $361,000 SHORTFALL FOR THIS FISCAL YEAR.
UM, YOU'RE ASKING THE TOWN TO INCREASE ITS ALLOCATION BY 157,000 PLUS THAT LEAVES ABOUT A $204,000 GAP IF I'VE DONE MY MATH RIGHT, MS. HUNTER
UM, AND, AND SO I SEE THAT YOU'RE WAITING ON RESPONSE AND HAVE A MEETING WITH, UH, BEAUFORT COUNTY.
UM, SO THERE ARE OTHER, UM, UH, LOCATIONS WHICH RECEIVE THE COMMUTING SERVICE.
UM, AND WHAT PARTICIPATION DO THOSE JURISDICTIONS HAVE IN THE FUNDING ALREADY? AND ARE ANY OF THOSE A SOURCE FOR ADDITIONAL FUNDING? YEAH, UM, THANKS.
UH, WE'VE REACHED OUT TO EVERY FUNDING PARTNER WITH THE EXCEPTION OF THE CITY OF BEAUFORT AND TOWN OF PORT ROYAL.
AND THE REASON FOR THAT IS THAT THEY ARE, UH, REALLY ONLY BEHOLDEN TO THE NORTHERN BEAUFORT, UH, SMALL URBAN AREA AS OPPOSED TO THE SOUTH, SOUTH BEAUFORT COUNTY, UM, URBAN AREA.
UM, WE'VE ALREADY HIT 'EM KIND OF HARD FOR SOME CAPITAL MATCH DOLLARS, SO WE DID NOT REALLY REACH OUT TO THEM, THOUGH FOR THE RECORD, WE SHARE OUR PLIGHT WITH THEM SO THEY'RE AWARE
UM, BUT FOR DIFFERENT REASONS, FOR GROWTH REASONS.
UM, SO WE ELIMINATED THEM SO THAT, THAT NARROWED IT DOWN TO THE OTHER, TO THE FIVE COUNTIES.
WE, WE, UH, CLEARLY WE FOCUSED ON BEAUFORT COUNTY.
THE MAJORITY OF OUR TRIPS OCCUR IN BEAUFORT COUNTY.
UM, AND THEY HAVE HISTORICALLY ALWAYS BEEN OUR LARGEST FUNDING PARTNER.
UM, THE OTHER REASON, AND THIS IS, UH, IN OUR, UH, BOARD MATERIALS, UM, THEIR, UH, REQUEST WAS SIGNIFICANTLY HIRED, MUCH LIKE THE TOWN OF HILTON HEADS WAS GOING INTO THE FISCAL YEAR.
UM, THEY KEPT THEIR, UH, CONTRIBUTION FLAT.
IT WAS A DOLLAR FOR DOLLAR THE SAME AS 2020, FISCAL 25, UM, WHICH IS ACTUALLY A REDUCTION IN THEIR SUPPORT FOR THE LEGACY SERVICES BECAUSE 110,000 OF THAT HAD TO GO TOWARD THE NORTHERN BEAUFORT URBAN AREA TO MATCH THOSE CAPITAL GRANTS.
SO IT WAS ACTUALLY A HUNDRED THOUSAND PLUS REDUCTION FROM BUFORT COUNTY.
UM, AND THAT'S THE MESSAGING WE'RE SHARING WITH THEM.
WE'VE BEEN SHARING THAT WITH THEM, UM, WORKING TO GET AN AUDIENCE.
THEY'VE HAD A LOT OF DISTRACTIONS, UM, TO BE CO HONEST, AND, AND SOME OF THEM RIGHTLY SO.
SO, UH, LIKE I SAID, IT'S A LONG TIME COMING, BUT WE DO HAVE SOME MEETINGS WITH THEM, SO FINGERS CROSSED THAT THAT WILL HELP US FILL THAT GAP.
UM, THE OTHER COUNTIES, QUITE FRANKLY, ARE EITHER IN CRISIS OR HAVE TOLD US THEY DON'T HAVE A DOLLAR TO SPEND.
UH, JASPER COUNTY IN PARTICULAR, UM, HAMPTON AND ALLENDALE AND COLLEGE AND COUNTY HAVE BEEN VERY UPFRONT WITH US.
THEY'VE DONE THE BEST THEY CAN TO MATCH, UH, THE, THE AMOUNT WE ASK THEM TO PROVIDE.
MOST OF THEM EITHER COMPLIED WITH OUR REQUEST OR STAYED LEVEL WITH LAST YEAR OR THE PREVIOUS YEAR.
UM, I WOULD ALSO ADD TOO, I DON'T, MY, I PERSONALLY DON'T THINK IT WOULD BE FAIR FOR ME TO COME TO THE TOWN OF HILTON HEAD AND ASK FOR MORE THAN WHAT WE ORIGINALLY ASKED FOR.
UM, I THINK THERE SHOULD BE A CAP ON IT.
WE SHOULD KNOW AND WE DO WHAT OUR COSTS ARE, RIGHT? AND SO, UM, AND THEN GOING INTO THE NEXT CYCLE THAT WE'RE, THAT WE'RE HEADING INTO NOW, AGAIN, I THINK WE SHOULD HOLD TO WHAT THAT REQUEST WAS.
AND, AND I THINK IN SOME SENSES, IF THAT'S THE RIGHT WAY TO PUT IT, IT WOULD BE UNFAIR FOR THE TOWN OF HILTON HEAD TO CARRY ANY ADDITIONAL BURDEN THAT SHOULD BE CARRIED BY SOME OTHER PARTY.
AND MAYBE THAT'S JUST ME BEING FAIR, BUT I KIND OF THINK IT'S THAT WAY.
THE OTHER THING, MS. BRYSON, IS
[00:35:01]
THAT WE HAVE REALLY MANAGED A TIGHT BUDGET, UM, AND WE GOT LUCKY BE SO FAR, FUEL HAS NOT SPIKED.IT COULD SPIKE TOMORROW, BUT, UM, WE GOT AGGRESSIVE ON OUR FUEL ASSUMPTION.
THINGS WE DON'T LIKE TO DO IN THE TRANSPORTATION INDUSTRY OR ANY KIND OF TRANSPORTATION.
UM, AND SO FAR WE'VE GOTTEN LUCKY WITH THAT.
SO I FEEL PRETTY CONFIDENT, AS DOES MY DIRECTOR OF FINANCE THAT WE CAN COMPLETE THIS YEAR.
UM, WE CAN, WE CAN SAY WE FEEL COMFORTABLE COMPLETING THIS YEAR WITHOUT A SERVICE REDUCTION AND THEN SHIFT OUR CONVERSATION ABOUT ANY KIND OF SERVICE REDUCTIONS AS WE ENTER CONVERSATIONS ABOUT FISCAL 27.
AGAIN, HOPING THAT WE DON'T HAVE TO DO THAT.
WELL, FIRST OF ALL, I, I DON'T WANNA SEE A, UM, A CESSATION IN SERVICES CERTAINLY FOR COM COMPUTE, UH, SORRY, COMMUTERS, UH, BECAUSE OF THE IMPACT IT WOULD HAVE ON THE LABOR FORCE FOR OUR, UH, BUSINESSES HERE.
UM, AND SO BECAUSE THE, THE POSSIBILITY OF ENDING WEEKEND SERVICE, THE END OF FEBRUARY OF NEXT YEAR IS NOT ATTRACTIVE TO ME.
UM, SO I THINK IN ONE OF YOUR SLIDES YOU HAD, UH, PARTICIPATION BY EMPLOYERS.
UM, AND WHAT I'M WONDERING IS, I DON'T KNOW HOW THAT WORKS NOW.
SO FOR INSTANCE, THE COMMUTERS WHO COME IN TO WORK ON HILTON HEAD ISLAND, DO THOSE, UM, COMMUTERS PAY A FEE THEMSELVES? AND THEN SECONDLY, DO THE BUSINESSES WHO NEED THOSE, UM, WORKERS PAY A FEE FOR THAT SERVICE? UH, SO BEAR VACATION WORLDWIDE, UH, HELPS US UNDERWRITE ADDITIONAL STOPS ON, UH, I THINK IT'S ROUTE 5 0 7, UM, THE COMMUTER ROUTE THAT RUNS YEAR ROUND, BUT WE ADJUST IT TO MAKE SURE THAT WE HIT ALL THEIR SPOTS.
BASICALLY, IT'S, UM, H TWO B EMPLOYEES THAT COME OVER.
THEY PUT THEM UP WHEREVER THEY'RE PUTTING THEM UP, WE STOP THERE TO OBVIOUSLY PICK THEM UP, AND THEN WE TAKE THEM TO A FEW ADDITIONAL LOCATIONS ON HILTON HEAD.
UM, AND THAT'S BEEN IN PLACE FOR SEVERAL YEARS.
SO THERE'S A NICE LITTLE PRECEDENT FOR, TO THE PRIVATE SECTOR SUPPORTING A ROUTE.
UM, SOME EMPLOYERS IN THE PAST HAVE PAID FOR FARES.
IT'S BASICALLY A TRANSIT BENEFIT TO THEIR EMPLOYEES.
UH, I WANNA SAY THE WESTIN RESORT HAS DONE THAT IN THE PAST, AND THEY MAY STILL DO SOME, BUT THE VAST MAJORITY OF OUR PASSENGERS PAY A FARE.
IT'S EITHER A CASH FARE, EXACT CHANGE OR, UM, A PREPAID VIA THE MOBILE APP.
UH, THEY CAN GET A 10% DISCOUNT IF THEY PREPURCHASE PASSES.
SO THAT HELPS A LITTLE BIT, BUT THE VAST MAJORITY OF THEM PAY THEIR OWN FARE.
UM, HOW ABOUT THE LOCAL SHUTTLES? UM, I THINK ANOTHER ONE OF YOUR OPTIONS IS, WELL, FIRST OF ALL, LET ME BACK UP.
I'M NOT IN FAVOR OF INCREASING THE COMMUTER FEES.
UM, I, I WANNA BE ABLE TO HOLD THAT STEADY, BUT I THINK MAYBE LOOKING AT EMPLOYER CONTRIBUTIONS FOR THOSE COMMUTERS MIGHT BE A WAY TO LOOK AT NOT YOU, NOT, NOT ANYHOW, AS SOON AS POSSIBLE, BUT NOT TO MAKE UP THE SC RIGHT NOW.
THAT'S, I'M GONNA SAY ABOUT THAT, UM, LOCAL SHUTTLES, UM, YOU KNOW, UH, WE'VE, WE STARTED THIS PROGRAM WITH NO FEES SO WE COULD GROW THE PROGRAM.
UM, AND I KNOW YOU'VE GIVEN US DATA BEFORE, UM, ON THE SHUTTLE RIDERSHIP, UM, AND, AND I APPRECIATE YOU'RE EVEN LOOKING FORWARD TO OTHER POSSIBILITIES, UH, FOR EXTENSION OF THE SHUTTLE SERVICE.
AND I THINK WE CAN CONSIDER THAT, BUT CERTAINLY NOT RIGHT NOW WHILE WE'RE LOOKING AT A FUNDING GAP.
UM, SO WHAT I'M WONDERING ABOUT IS WHAT, IF ANY SMALL FEE INCREASE WOULD YOU RECOMMEND FOR THE FUNDING GAP? AND THEN SECONDLY, UM, I ASK ABOUT, UH, EMPLOYER BUSINESS, UH, PARTICIPATION IN COMMUTER FEES.
WHAT ABOUT, UM, CHARGING A SMALL FEE FOR THOSE WHO ARE RIDING THE SHUTTLES AND THEN, UM, IN ORDER TO ATTRACT 'EM TO BUSINESS AREAS, PERHAPS THE BUSINESSES COULD CONSIDER A VOUCHER FOR THOSE WHO BUY SOMETHING AT THEIR STORE TO BE ABLE TO TAKE CARE OF THE SHUTTLE SERVICE.
SO I DON'T KNOW, UH, WHAT IF ANY FEE THAT YOU WERE LOOKING AT RECOMMENDING AND THEN ABOUT, UH, BUSINESS PARTICIPATION? WELL, IN SHORT, I THINK ALL THREE OF THOSE ARE VIABLE ALTERNATIVES.
UM, I THINK APPROACHING INDIVIDUAL BUSINESSES, OBVIOUSLY WHERE THERE ARE MORE EMPLOYEES THAT RELY ON THE, ON THE, ON THE COMPUTER BUS TO GET TO AND FROM, WOULD BE THE ONES YOU'D WANT TO TARGET FIRST.
UM, AND SOME OF THOSE ARE NOT RESORTS LIKE THE MCDONALD'S.
I THINK MCDONALD'S OVER THE LABOR DAY WEEKEND WAS 12, AN AVERAGE OF 12 EMPLOYEES A DAY.
SO, UM, THAT'S A, THAT'S A HEAVY CREW ON, ON ONE BUS.
UH, THEY MIGHT COME IN ON SEVERAL BUSES, EXCUSE ME, I SAID THAT WRONG.
BUT, UM, SO I THINK THAT'S A VERY VIABLE THING AND I THINK THAT IS SOMETHING WE SHOULD LOOK AT ON THE LONG TERM PERSPECTIVE.
UM, IN, IN TERMS OF INCREASING OUR FARES, UH, WE ALWAYS LIKE TO TRANSIT RULE OF THUMB, YOU WANT TO KIND OF KEEP IT IN A NICE EVEN NUMBER.
UM, SO SOMEWHERE IN THE 50 TO A DOLLAR, YOU KNOW,
[00:40:01]
YOU WANT A 50 CENTS OR A DOLLAR INCREMENTS.UM, LIKE I SAID, WE'RE AT TWO 50 TO $4 RIGHT NOW.
MAYBE IT WOULD BE THREE TO FIVE, SOMEWHERE IN THAT VICINITY.
YOU DON'T WANNA, YOU DON'T WANNA INCREASE IT TOO MUCH.
UM, IT'S, IT'S A DELICATE BALANCE.
BIGGER TRANSIT AGENCIES EMPLOY A CON A CONSULTANT TO, TO HELP THEM DECIDE THAT.
SO I'M NOT SURE WE WOULD HAVE TO DO THAT.
BUT, UM, IF WE DID THAT, WE WOULD PROBABLY CONSULT EVERY FUNDING PARTNER AND GET THEIR INPUT, UM, MAKE SURE THAT WE DID THE RIGHT THING.
WHEN WE DO IT, IT IS INEVITABLE WE WILL BE DOING IT.
THE QUESTION IS TIMING AND THE OPTICS OF THAT TIMING.
UM, AS FAR AS A FEE, UH, TECHNICALLY THE, THE TROLLEY SERVICE, THE SEASONAL SERVICE HAS A FAIR, IT IS A $1 PER TRIP FAIR.
AND THE WAY WE HAVE ARRANGED THAT WITH THE TOWN TO MAINTAIN ITS FREE RIDER, FREE TO RIDE APPEAL IS FOR THE TOWN TO PREPAY AN ESTIMATED A NUMBER OF FARES.
AND SO, AGAIN, AS WE APPROACH FISCAL 27, WE'LL WE'LL DO THE SAME THING LOOKING AT, UM, ANTICIPATED RIDERSHIP.
SO THE, THE THE, AND THE REASON FOR THAT IS BACK TO THAT TITLE VI EQUITY, UM, IT WOULD BE DIFFICULT TO, FOR A TRANSIT AUTHORITY, YOU WOULD RISK VIOLATING TITLE VI BY OFFERING FREE RIDERSHIP FOR A SEASONAL TROLLEY IN A RESORT, BUT THEN CHARGING A $2 AND 50 CENT $4 FARE TO COMMUTERS TO COME IN AND SUPPORT THAT RESORT.
UM, AND UM, YOU, UM, MENTIONED, UM, FEDERAL FUNDING AND THE LOCAL MATCH, UH, FOR OPERATING IS 50%.
UM, ARE ANY OF THESE SHORTFALLS AS A RESULT? UM, AND I KNOW YOU SAID TIMING OF FUNDING, UH, IS A CHALLENGE, UM, BUT, UH, FROM WHAT YOU KNOW,
THE APPROPRIATIONS FROM THE FEDERAL TRANSIT ADMINISTRATION JUST SIMPLY CAN'T KEEP UP.
WE, AND, AND, AND ANOTHER WAY TO PUT THAT, WE DO NOT LOSE A SINGLE DOLLAR FROM THE FEDERAL GOVERNMENT.
WE HAVE PLENTY OF LOCAL MATCH TO GET THOSE DOLLARS.
THEY JUST AREN'T ENOUGH DOLLARS.
AND THAT'S, UM, THERE'S A GREAT BLOOMBERG ARTICLE THAT WAS PUBLISHED, I BELIEVE IT WAS IN APRIL OR MAY, THAT SUMMARIZED THIS FOR THE TRANSIT INDUSTRY AS A WHOLE.
IT EXPLAINS ON A MACRO LEVEL EXACTLY WHAT WE'RE FACING.
UM, THE DIFFERENCE HERE IS THAT UNLIKE A PHILADELPHIA, A NEW YORK, A BOSTON, OUR A REGIONAL POPULATION IS GROWING MUCH FASTER.
AND IN SOME CASES, THEIR GROW, THEIRS IS SHRINKING TO OUR BENEFIT, IF YOU WILL.
AND THE APPROPRIATIONS, THE, THE CENSUS COUNTING JUST CAN'T KEEP UP.
AND SO I'M ANXIOUS FOR THE 2030 CENSUS BECAUSE I THINK WE'RE GONNA SEE A PRETTY SEISMIC SHIFT IN THE AMOUNT OF APPROPRIATIONS FOR THIS AREA.
AND I'M ALSO HOPEFUL, UH, GIVEN UNDER THE CERTAIN CIRCUMSTANCE, THE CURRENT CIRCUMSTANCES WITH THE ADMINISTRATION IN WASHINGTON, IT'S, IT'S HARD TO SAY WHICH WAY IT'S GONNA GO.
WE'LL KNOW A LOT MORE NEXT YEAR.
WE'RE HOPING THAT THE APPROPRIATIONS TABLES WILL BE UPDATED PRIOR TO 2030.
'CAUSE I THINK IF YOU'VE GOT 20, 24 NUMBERS, 20 EVEN MAYBE DARE I SAY 20, 25 NUMBERS, WE WOULD HAVE A MUCH HIGHER APPROPRIATION THAT REQUIRES MORE LOCAL MATCH.
BUT I'M SURE WE WOULD BE ABLE TO GET IT.
SO THAT'S, THAT'S THE HOPE WE HAVE ON THE FEDERAL FUNDING.
SO NO, IN SHORT, WE HAVE NOT LOST ANYTHING.
NOTHING HAS CHANGED FROM A FEDERAL LEVEL AS TO HOW WE ARE SUPPORTED.
WE ARE STILL UNDER THE, THE GLOBAL REAUTHORIZATION BILL THAT WAS ENACTED UNDER THE BIDEN ADMINISTRATION.
IT IS DUE FOR REAUTHORIZATION IN 2026, SO IT'S GONNA BE AN INTERESTING RIDE.
UM, WE'RE STAYING VERY CLOSE TO OUR STATE TRANSIT ASSOCIATION AS WELL AS THE NA NATIONAL ASSOCIATION TO MAKE SURE THAT WE HAVE INPUT TO THAT.
BUT IT'S ESSENTIALLY GONNA BE THE SAME AS ALL THE OTHER TRANSITS ACROSS THE COUNTRY.
UM, THERE'S A CONCERN THAT THEY WOULD LIKE TO PUSH MORE FUNDING TO THE LOCAL LEVEL AND STATE LEVEL.
UM, AND THAT COULD BE A CATASTROPHE FOR NOT JUST FOR US, FOR EVERYBODY.
SO, UH, WE WILL SEE WHERE THAT REAUTHORIZATION BILL HEADS.
SORRY, MR. CHAIR, AT LEAST ANOTHER QUESTION OR TWO, AND I TRY TO BE BRIEF.
UM, YOU MENTIONED THE VEHICLE REGISTRATION FEE, UM, AND I DON'T KNOW ANYTHING ABOUT THAT.
I'VE NOT LOOKED AT THAT SINCE I'VE LOOKED AT THIS AGENDA, BUT CAN YOU TELL US HOW WOULD, BRIEFLY, HOW THAT WOULD WORK, UM, AND WHAT THE TOWN WOULD NEED TO DO TO BENEFIT FROM THAT FEE? CORRECT.
SO, UM, THE CHARTER, UH, FROM THE STATE IN THE 1970S THAT ESTABLISHED REGIONAL TRANSPORTATION AUTHORITIES, REGIONAL TRANSIT AUTHORITIES, UM, IN THE STATE INCLUDES THE ABILITY AS A PRIMARY FUNDING SOURCE TO ENACT A LOCAL VEHICLE REGISTRATION FEE.
AND AS I MENTIONED BEFORE, UH, CONSULTING WITH OTHER TRANSIT, MY COHORTS AT OTHER TRANSIT AUTHORITIES, NONE OF 'EM DO IT.
THEY HAVE, UH, UM, ROAD USER FEES THAT HAVE BEEN CHALLENGED IN COURT, UM, SOME SUCCESSFUL, SOME NOT.
UM, BUT THE CHARTER CLEARLY STATES THAT YOU COULD DO A VEHICLE REGISTRATION FEE.
[00:45:01]
UM, THE WAY IT WOULD WORK ACCORDING TO THE STATUTE IS FOR, UH, LRTA TO COME TO WHICHEVER LOCAL JURISDICTION, THE TOWN, THE MORE LIKELY THE COUNTY OR COUNTIES AND SAY, WE WOULD LIKE YOU TO APPROVE THE ENACTMENT OF A VEHICLE REGISTRATION FEE OF X DOLLARS PER VEHICLE.AND THEN THE COUNTY OR THE TOWN WOULD AGREE TO DO THAT.
SO THEY ISSUE A RESOLUTION SAYING, YES, WE WOULD LIKE TO ENACT THIS RE VEHICLE REGISTRATION FEE.
ONCE THAT HAPPENS, THEN YOU HAVE TO GET A 51% MAJORITY OF YOUR, UH, STATE DELEGATION TO APPROVE IT.
IT DOES NOT HAVE TO GO TO THE HOUSE OR THE SENATE, IT JUST NEEDS A 51% APPROVAL.
IT'S A LITTLE UNCLEAR HOW THAT HAPPENS, UH, BUT OBVIOUSLY THERE'D BE DOCUMENTATION IN PLACE THAT SHOWS IT.
UM, IF WE, OR WHEN WE PURSUE THIS AS AN AVENUE, I THINK WE NEED TO CONSULT WITH FOLKS THAT ARE WAY SMARTER THAN ME ABOUT STATE STATUTES TO MAKE SURE WE'RE INTERPRETING IT CORRECTLY.
IT IS OLD, IT IS FROM THE 1970S, AND WE HAVE NO RECORD OF ANYBODY EVER DOING IT.
SO, UM, BUT IT'S THERE, IT'S IN THE LRTA CHARTER, SO IT WAS CARRIED OVER FROM THE STATE STATUTE INTO OUR CHARTER AND WAS NEVER DONE.
SO IN THE PAST, THERE WAS ENOUGH LOCAL FUNDING, IT WAS ALL GOOD, THE SERVICE WAS MUCH, MUCH SMALLER.
AND SO NOW MAYBE IT'S TIME TO LOOK AT IT.
UM, I, I THINK IT'D BE HELPFUL, UM, THE PALMETTO BAY MARINA EXTENSION OF THE SHUTTLE SERVICE, UM, I, I THINK IT'S SOMETHING FOR US TO CONSIDER.
I CERTAINLY KNOW ABOUT THE PARKING CHALLENGES DOWN THERE.
I APPRECIATE THE LETTER THAT WAS SENT.
UM, APPRECIATE YOU READING THAT.
BUT I THINK THAT'S A FUTURE THING.
SO WHENEVER IS APPROPRIATE TIMING TO BRING THAT TO US.
UM, AFTER ALL THIS IS SOLVED, CERTAINLY.
UM, THE, UH, THE OTHER THING AND, UH, THAT I'D LIKE TO SEE IS THE BUS SHELTERS THAT FOR THE COMMUTING FOLKS.
I KNOW THAT'S BEEN DISCUSSED IN THE PAST, BUT IF YOU COULD PUT THAT ON THE FUTURE REPORT TO US, I THINK THAT'D BE HELPFUL.
I DON'T WANNA TALK ABOUT IT TODAY JUST TO ASK ABSOLUTELY.
UM, BUT, BUT THOSE ARE MY QUESTIONS, UH, MR. CHAIR, I, I CERTAINLY, UM, AND LEANING TOWARDS, UH, PROVIDING SOME ADDITIONAL FUNDING FOR THE SHORTFALL, UM, SUBJECT TO AVAILABILITY OF FUNDING.
BUT, BUT THAT'S, THAT'S THE WAY I SEE IT SO FAR.
THAT SEEMS TO BE THE MOST IMMEDIATE, UH, AVAILABILITY TO RESPOND.
UM, BUT I, I WANNA HEAR FROM OTHER, UH, COMMUNITY MEMBERS, UM, ABOUT YOUR QUESTIONS AND, AND SUGGESTIONS.
WELL, THANK YOU, UH, FOR YOUR PRESENTATION TODAY.
UH, AS I'VE MENTIONED BEFORE, I'VE BEEN WORRIED ABOUT YOUR ORGANIZATION FROM THE BEGINNING WHEN YOU CAME TO US, UH, AS AN AFFILIATED AGENCY.
AND I TOOK A LOOK AT YOUR FINANCIAL STATEMENTS AND, AND SAW THE WRITING ON THE WALL, AND THE WRITING IS CLEAR NOW.
UM, YOU KNOW, AND YOUR REQUEST FOR, UM, AFFILIATED AGENCY, UM, INCREASED DRAMATICALLY WHAT YOU WERE ASKING FOR THE TOWN.
I MEAN, IT WENT UP, UH, A HUNDRED PERCENT, UH, ACTUALLY MORE THAN A HUNDRED PERCENT FROM LAST YEAR.
UH, SOMETHING LIKE 254,000 TO 507,000.
AND WE DID INCREASE OUR, UM, CONTRIBUTION TO 350, BUT WE DID HAVE THAT GAP.
UM, SO, YOU KNOW, PUBLIC TRANSPORTATION IS IMPORTANT.
I, I GET THE NEED TO, UM, MOVE WORKERS, UM, WHO CANNOT AFFORD TO LIVE ON THE ISLAND, UM, TO OUR COMMUNITY.
AND YOU TALKED ABOUT THE FACT THAT 200 PEOPLE EVERY DAY, UH, ARE COMMUTING HERE.
AND SO THAT'S AN IMPORTANT, JUST A REAL QUICK CORRECTION ON THAT.
SO THE 200 IS A TOTAL COMMUTER BASE? YES.
UM, I SAMPLED OCTOBER, UM, LEMME MAKE SURE I GOT THE NUMBERS RIGHT, UH, IN OCTOBER, SO THE BEGINNING OF THE OFF SEASON, IT WAS 135 PEOPLE DAILY TO AND FROM HILTON HEAD ONLY, WITH AN ADDITIONAL 33 TO BLUFFTON.
SO NOT TOO FAR OFF THAT 200, ROUND IT UP, IT'S ABOUT 200, BUT THAT'S ABOUT WHAT WE EXPECT IN THE OFF SEASON.
IT'LL GO DOWN A LITTLE BIT, PROBABLY FOR JANUARY, BUT IT'LL START TO PEAK BACK UP IN FEBRUARY AND MARCH.
I JUST WANNA MAKE SURE YOU, THAT WAS, THAT WAS FULL UNDERSTANDING.
MS. TURNER, ARE WE OKAY WITH MUTING MR. COLTRANE? THANK YOU.
SO, AGAIN, UH, COMMUTER, UM, SUPPORT IS IMPORTANT, UH, TO OUR BUSINESS COMMUNITY AS WELL AS THE WORKERS THEMSELVES.
UM, AND THEN WE ALSO HAVE THE OTHER BENEFIT OF MOVING OUR TOURISTS AND RESIDENTS AROUND.
UH, AND I APPRECIATE THAT YOU'RE ALWAYS LOOKING FOR NEW WAYS TO EXPAND YOUR SERVICE.
UM, BUT AS, UH, COUNCILMAN BRYSON SAID, YOU KNOW, THOSE ARE THINGS TO CONSIDER IN THE FUTURE BECAUSE WE HAVE AN IMMEDIATE NEED AND THAT A NEED IS NOT GONNA GO AWAY, YOU KNOW? YEAH.
ONE OF THE THINGS THAT I CAN REMEMBER US TALKING ABOUT IN APRIL, THE REASON WHY IT WENT FROM 2 54 UP IS BECAUSE, UM, YOU HAD, UH, VERY
[00:50:01]
EFFECTIVELY USED UP OLD GRANTS YEAH.UM, TO BE ABLE TO SUPPORT YOUR BUSINESS, UH, OPERATIONS, THE GRANTS THAT WERE SITTING THERE.
SO YOU, YOU WENT THROUGH ALL OF THOSE AND NOW YOU DON'T HAVE THOSE GRANTS ANYMORE.
AND SO THIS IS WHAT, YOU KNOW, WE'RE LEFT WITH.
I DON'T SEE THAT GOING DOWN, UH, YOU KNOW, IN THE FUTURE.
SO THIS ISN'T ONLY A, A TODAY ISSUE, IT'S A, IT'S A FUTURE ISSUE AS WELL THAT WE NEED TO COME TO TERMS WITH AND, AND HELP YOU, UH, FIND THE REVENUE SOURCES.
UM, ONE OF THE THINGS THAT YOU TALKED ABOUT, UM, IN APRIL WAS THAT YOUR MATCH INFORMATION, UH, AND FEDERAL GRANT INFORMATION WAS GONNA COME IN SEPTEMBER AND OCTOBER, SEPTEMBER, OCTOBER.
AND THAT YOU WERE HOPING TO SEE THAT GROW BASED OFF OF POPULATION.
DID YOU GET IT WAS A VERY SLIGHT INCREASE.
IT IS AN INCREASE, BUT IT'S, I WANNA SAY IT'S MAYBE THREE OR 4%.
IT'S KIND OF SIMILAR TO THE COST OF LIVING.
UM, SO IT IS AN INCREASE, AND WE'RE HAPPY ABOUT THAT.
UM, UNFORTUNATELY, AND I, I THINK I'M SAYING THIS CORRECTLY, UH, MY FINANCE DIRECTOR'S NOT HERE, BUT WE HAVE SEEN A SLIGHT DECREASE FROM THE STATE.
SO WE'RE A LITTLE CONCERNED ABOUT THAT.
SO WE'LL, WE'LL KNOW MORE AS WE START TO PUT PENCIL TO PAPER FOR FISCAL 27.
SO, UM, IT'S, IT'S NOT A CITY COULD INCREASE, IF I HAD TO SAY RIGHT NOW OUR, OUR AFFILIATED AGENCY REQUEST FOR FISCAL 20 SEVENS CAN BE VERY SIMILAR.
AND THAT'S WHAT I'M SAYING, AND THAT'S ASSUMING NO GROWTH.
AND, AND I CAN SEE HOW, UM, CHANGES IN THE LEGISLATION MAKE SOUTH CAROLINA DOT MUCH MORE IMPORTANT IN REGARDS TO THE FUNDING REQUEST.
UM, WHICH CAN BE GOOD NEWS OR BAD NEWS.
UH, BUT, UM, I DID SPEAK WITH, UH, SENATOR DAVIS, UH, LAST WEEK REGARDING THIS, AND HE HAS ASKED FOR YOU TO REACH OUT TO HIM, UM, EXCELLENT.
TO LOOK FOR ADDITIONAL FUNDING FROM THE STATE.
HE'S A VERY MUCH A, HE'S VERY MUCH A SUPPORTER, SO I WILL DO THAT FOR SURE.
YES, YOU WERE ON A CALL YESTERDAY.
HE'S, HE'S HE'S VERY INVOLVED.
UM, SO HE MAY BE ABLE TO FIND, AND HE WAS TALKING ABOUT PERHAPS FINDING, UM, YOU KNOW, APPROPRIATIONS THAT COULD BE MADE ON AN ANNUAL BASIS, BECAUSE I REALLY FEEL FOR YOU HAVING TO COME TO THE COMMUNITIES EACH YEAR WITH HAT IN HAND, UM, YOU KNOW, TO SUPPORT SUCH AN IMPORTANT PIECE OF INFRASTRUCTURE.
UM, AND WE NEED TO SOLVE THE LONG-TERM SOLUTION, UM, CORRECT.
AND FINDING A RELIABLE FUNDING SOURCE, WHETHER IT'S THROUGH THE AUTO REGISTRATION OR THROUGH A SALES TAX OR BOTH.
AND, UM, WE NEED TO, UH, IN MY OPINION, STOP TALKING ABOUT IT AND DO SOMETHING ABOUT IT.
AND, AND SO MY QUESTION WOULD BE HOW DO WE ORGANIZE RESOURCES TO BE ABLE TO DO THAT SO THAT, UM, WE CAN EXPLORE THESE OPTIONS, UM, AND, YOU KNOW, FIND YOU, UH, REGULAR FUNDING? YEAH, I THINK ON THE VEHICLE REGISTRATION FEE THAT ISN'T COMING ON US.
I THINK WE NEED TO MAYBE GET SOME, A PRO, UH, A PROFESSIONAL OPINION.
ANOTHER INTERPRETATION, UM, I'VE HAD OTHERS IN THE INDUSTRY LOOK AT IT AND THEY'VE AGREED WITH ME, BUT I, I THINK I'D LIKE TO HAVE SOMEONE ELSE AT A HIGHER LEVEL, A HIGHER FINANCIAL LEVEL AND, AND MAYBE A STATE EXPERT, YOU KNOW, SOME IN STATE STATUTE.
UM, BUT I THINK THAT'S INCUMBENT ON US TO COME BACK TO THE JURISDICTIONS.
UM, AS FAR AS THE STATE'S CONCERNED, THE HOUSE OF REPRESENTATIVES HAS A, AN AD HOC COMMITTEE THAT'S CO-CHAIRED BY, UM, MS. ERICKSON, WHO'S A, A REP FROM BEAUFORT.
UM, IT IS LOOKING INTO THE MODERNIZATION OF S-C-D-O-T ACROSS THE BOARD, NOT JUST THE TRANSIT PIECE.
UM, THEY'VE HAD, I THINK, I WANNA SAY SEVEN OR EIGHT REGIONAL MEETINGS.
UM, WE'VE PROVIDED TESTIMONY AT THE ONE THAT WAS HELD IN BUFORT AS WELL AS THE ONE THAT WAS HELD IN NORTH CHARLESTON.
UM, AND TRANSIT ADVOCATES HAVE BEEN AT EVERY ONE OF THEM.
AND IN HER OWN WORDS, UM, UH, REPRESENTATIVE ERICKSON, UM, TRANSIT HAS BEEN LOUD AND CLEAR THAT IT NEEDS ATTENTION.
AND I THINK EVEN THE OFFICE OF PUBLIC TRANSPORTATION AT THE S-E-D-O-T WOULD AGREE.
SO WE'RE NOT, YOU KNOW, OUTTA TURN, YOU KNOW, SPEAKING OUTTA TURN.
THEY'RE, UH, GOING INTO SUBCOMMITTEES AND THEN IT IS EXPECTED TO BE A BILL IN THE NEXT LEGISLATIVE SESSION STARTING IN JANUARY.
UH, WE'LL BE FRONT AND CENTER TO MAKE SURE THAT THEY UNDERSTAND OUR NEED HERE.
UM, WE'VE BEEN PRETTY QUIET HISTORICALLY, UM, PARTLY BECAUSE WE DIDN'T REALLY NEED TO BE LOUDER.
UM, I THINK IT'S VERY CLEAR THAT WE NEED TO BE LOUDER.
UM, AND, YOU KNOW, STATE THE OTHER THINGS THAT THE STATE I THINK IS REALLY JUST ADVOCACY WITH OUR LOCAL DELEGATION, WHICH I, I SAID IS VERY SUPPORTIVE.
UM, AND THEN ON THE FEDERAL LEVEL, THERE'S NOT A LOT YOU CAN DO OTHER THAN TO OBVIOUSLY REACH OUT TO REPRESENTATIVES AND HOPE THAT THEY SEE THE LIGHT IN TERMS OF, UM, REAUTHORIZING AT OR ABOVE, UH, THE LEVEL THAT IT'S CURRENTLY AT FOR PUBLIC TRANSPORTATION.
BUT, UM, IT'S A, IT COULD BECOME A BIT OF A HOT POTATO.
IT'S IT, BECAUSE IT INVOLVES HIGHWAYS, BRIDGE, AIR, AIRPORTS, YOU KNOW, THE FAA, THE F ALL THE, THE TECHNOLOGY THAT THEY NEED.
IT'S COMPLICATED
AND I, AND I KNOW THERE ARE FOUR ARMED, UH, GIVEN THE CURRENT CLIMATE.
[00:55:01]
I, I THINK WE NEED AS A TOWN AND OTHER MUNICIPALITIES, AND WE HAVE THESE OTHER ORGANIZATIONS OUT THERE THAT ARE ALL ACRONYMS AND I'M NOT SURE WHICH ONES ARE THE RIGHT ONES, BUT, UH, UH, S LOCO AND LATS AND OTHER, YOU KNOW, UH, UH, COUNTY COUNCIL OF MAYORS MAYOR AND EVERYTHING TO LOOK AT HOW WE CAN HELP SUPPORT YOU.AS YOU, UM, LOOK FOR THESE INITIATIVES WITHIN THE STATE AND HOW THE MUNICIPALITIES CAN STAND BEHIND YOU AND SAY THAT THIS IS AN I IMPORTANT PIECE.
I'M ALSO GLAD TO HEAR THAT YOU HAVE A MEETING WITH THE, UH, CFO OF, UH, BEAUFORT COUNTY.
I TALKED WITH COUNCILMAN RE THE OTHER DAY AND HE WAS LOOKING TO YEAH.
UH, BECAUSE THEY PLAY A BIG PIECES THE OF THIS AS WELL.
SO, UM, YOU KNOW, UH, YOU SAID YOU SHARPENS YOUR PENCIL ON THE EXPENSES.
WE NEED TO SHARPEN OUR PENCIL ON THE REVENUES NOW,
AND, UM, YOU KNOW, SO FOR ME, WHAT I'M, I'M THINKING ABOUT IS, UH, AGAIN, CONCERN ABOUT CUTTING OF, UM, COMMUTER, UM, COMMUTER SUPPORT, UH, BUT ALSO WHAT, YOU KNOW, WHAT IS OUR FAIR SHARE? HOW ARE THESE OTHER ENTITIES GOING TO STEP UP? UM, AND I, I'D BE VERY INTERESTED TO HEAR HOW BEAUFORT COUNTY IS GOING TO STEP UP BECAUSE THEY, WE'LL KEEP YOU POSTED.
THEY HAVE A LOT BIGGER BUDGET THAN WE DO
UM, AND, UH, YOU KNOW, AS YOU SAID, YOU ARE PROVIDING SUPPORT FOR, UM, OTHER COUNTIES AS WELL.
UM, UH, YOU KNOW, AND THEY MAY NOT, AND THESE OTHER COUNTIES MAY NOT HAVE, UH, THE FUNDS TO SUPPORT, BUT BEAUFORT COUNTY, UM, YOU KNOW, MAY BE ABLE TO DO THAT.
SO, UM, OTHER THAN THAT, LET'S SEE.
IS THERE ANYTHING ELSE? I THINK THAT'S IT.
SO MS. SULLIVAN, UM, THIS IS, UH, ON OUR AGENDA AS A PRESENTATION.
UM, I'M NOT HEARING, UH, ANY STERN NOS FROM MY COLLEAGUES HERE.
UM, WHAT NEEDS TO HAPPEN IS YOU COME BACK OKAY.
WITH SOME ADDITIONAL INFORMATION.
UM, I'VE GOT A FEW POINTS HERE THAT I WANT.
I'M NOT LOOKING FOR RESPONSES HERE.
JUST WANNA MAKE SURE THAT YOU'RE WELL PREPARED WHEN YOU, WHEN YOU COME BACK, UM, YOU KNOW, I UNDERSTAND THE, ONE OF THE CONSEQUENCES WOULD BE SUSPENDING THE ROUTE ON THE WEEKENDS, BOTH COMMUTER AND TROLLEY.
UM, AND THAT WOULD COVER SOME OF THE GAP.
I THINK WE NEED TO UNDERSTAND A BIT BETTER WHAT THAT NUMBER IS OKAY.
AND WHAT THAT FINANCIAL IMPACT IS GOING TO BE ON THE COMMUNITY.
SO IF YOU CAN SORT OF TEASE THAT OUT FOR US A LITTLE BETTER, I THINK THAT WILL, WILL HELP US.
UM, BECAUSE IT'S NOT GONNA MAKE UP THE 360 SOME ODD THOUSAND GAP.
UM, THE, THE MARRIOTT ROUTE THAT YOU MENTIONED WAS AN ON ISLAND ROUTE.
UM, SO IN A SENSE IT WAS ADDITIONAL SERVICE THAT WERE ADDED TO YOUR PORTFOLIO.
UM, SO I'M NOT, I'M SORT OF DISCOUNTING THAT ONE TO A DEGREE.
UM, BUT THE OTHER, THE 14 OTHERS THAT YOU HAVE MENTIONED HERE THAT ARE NOT CONTRIBUTING, UM, OBVIOUSLY WE NEED TO UNDERSTAND WHEN WE GET BACK TOGETHER, IF ANY RELATIONSHIPS ARE GOING TO BE FORMED TO TRY TO CHIP AWAY AT THE GAP USING MAYBE SPONSORSHIPS OR, UM, SOME OTHER MEANS OF, UH, SHARING OF THE COST THERE.
UM, THE CENSUS THAT YOU MENTIONED, UM, OBVIOUSLY THAT'S FIVE YEARS OUT.
SO THIS IS A FIVE YEAR ISSUE, RIGHT? A FIVE YEAR LOCAL ISSUE.
TO MS. TURNER'S POINT, AT LEAST FOR NOW.
SO WE NEED TO MAKE SURE THAT WE ARE TRYING TO BUILD THAT COALITION TO TAKE CARE OF THIS LOCALLY.
UM, I, I WANT TO HIGHLY RECOMMEND THAT AS WE HAVE CONVERSATIONS WITH THE COUNTY AND THE STATE THAT, UM, YOU FIND CHAMPIONS.
I'M NOT GONNA SPEAK FOR ANY OF OUR COLLEAGUES AT THE COUNTY LEVEL, BUT YOU'VE GOT THREE REPRESENTATION FROM HILTON HEAD ON THAT COUNCIL.
AND ONE OR THREE OF THEM NEED TO BE THE CHAMPION ON THIS, RIGHT.
PARTICULARLY WHEN IT COMES TO THE, UH, THE REGISTRATION FEE CONSIDERATION.
UM, AND AS FAR AS THE STATE DELEGATION IS CONCERNED, MS. UND HAS ALREADY HAD A CONVERSATION WITH SENATOR DAVIS.
UM, HE TENDS TO HAVE A VERY GOOD TRACK RECORD OF BEING A CHAMPION.
SO I'M GONNA RECOMMEND THAT AS WELL.
IF WE CAN, IF WE CAN FIND CHAMPIONS AT THOSE LEVELS TO HELP FACILITATE THIS CONVERSATION, I THINK WE'LL BE ABLE TO GET TO A GOOD POINT.
AND, UM, YOU KNOW, I'LL, I'LL, UH, I'LL JUST CLOSE WITH, UM, THIS IS VERY IMPORTANT TO OUR COMMUNITY.
YOU MENTIONED THIS IS A TWO HOUR COMMUTE AND I WAS LOOKING AT THE SERVICE AREAS AND THE ONE THAT I THOUGHT WAS PROBABLY THE FURTHEST OUT WAS ALLENDALE OR ESTEL.
[01:00:01]
TAKE ME TWO HOURS TO GET TO ALLENDALE OR, OR ESTEL.UM, BUT WITH ALL OF THE STOPS THAT YOU HAVE TO MAKE, YOU HAVE TO CONSOLIDATE FOLKS AND BLUFFING, I THINK IT IS, THEY HAVE TO CHANGE BUSES LIKE IT'S A LOT.
UM, AND IT'S ALREADY AFFECTING OUR QUALITY OF SERVICE HERE ON HEALTH HERE BECAUSE OF THAT LONG COMMUTE, UM, WITH FATIGUE AND WHATNOT.
AND IF WE ARE LOOKING TO PUT AN ADDITIONAL BURDEN ON THE COMMUTE IS WITH COST INCREASE, THAT'S NOT GONNA GET US ANYWHERE.
AND QUITE FRANKLY, I THINK THAT THE PART OF THE REGION THAT IS CLOSER TO THOSE PLACES, MAYBE LOOKING FOR SOMETHING LIKE THIS TO FAIL BECAUSE THEN THEY WILL COME THERE TO WORK.
VILLE IS A PRIME EXAMPLE, RIGHT? IS ONE OF OUR COMPETITORS, RIGHT.
UM, SO THIS IS SOMETHING WE HAVE TO SOLVE, ALL RIGHT? WE'RE NOT SENDING YOU AWAY SAYING THAT WE WE'RE NOT WILLING TO HELP.
I JUST THINK UNDERSTANDING THE HELP IS GOING TO BE IMPORTANT TO CARRY THE CONVERSATION FURTHER.
SO WHAT I'M GONNA DO NOW, UM, I HAVE A LOT OF COUNSEL HERE, MR. MAYOR, UM, MR. DEAMON, UH, MS. BECKER, UM, SO IF THERE'S ANY ADDITIONAL COMMENTS THAT YOU ALL WOULD LIKE TO ADD TO THIS PARTICULAR ITEM? I OPEN THE OPPORTUNITY NOW.
I THINK THAT YOU HAVE COVERED IT WELL, MY PERSPECTIVE, AND I LOOK FORWARD TO ADDITIONAL INFORMATION.
SO I WANNA THANK YOU FOR YOUR PRESENTATION.
UM, AS YOU STATED, IT IS VERY IMPORTANT TO OUR ECONOMIC LIVELIHOOD.
UM, ONE OF THE THOUGHTS THAT I HAD IS POSSIBLY REACHING OUT TO THE STATE BECAUSE OF THE GAS TAX THAT WAS IMPLEMENTED SEVERAL YEARS AGO.
IF THERE'S AN ABILITY TO USE THOSE FUNDS THAT GOES THROUGH S-E-D-O-T, UM, WE KNOW THERE'S, THERE'S A LOT OF MONEY THAT'S THERE.
UM, I WOULD ALSO LEAN ON ALL OF OUR REPRESENTATIVES LOCALLY, UM, TO HIT UP AT THE STATE HOUSE.
AND ONE THING THAT I THINK THAT WE MIGHT WANT TO TRY TO UNDERTAKE AND UNDERSTAND IS WHAT DOES CUTTING SERVICE OFF MEAN TO US ECONOMICALLY? WHAT IS THE LOSS IN REVENUE THAT WE COULD SEE BECAUSE OF THAT, TO HELP US MAKE A BETTER DECISION ON PROVIDING ADDITIONAL FUNDING? SO, YOU KNOW, IT'S SOMETHING THAT, YOU KNOW, IT'S SOMETHING I THINK WE'VE GOTTA TAKE UP SERIOUSLY, BUT WE DO HAVE TO FIND A WAY THAT IN THE FUTURE THE FUNDS ARE THERE TO MOVE THIS PROGRAM FORWARD BECAUSE IT IS PIVOTAL TO OUR STABILITY ON HILTON HEAD.
I'M GONNA OPEN UP ANY PUBLIC COMMENT ON THIS PARTICULAR ITEM.
HI, MY NAME'S SUSAN WHEATLEY AND I AM A RESIDENT HERE ON HILTON HEAD ISLAND.
MY BACKGROUND ACTUALLY IS PUBLIC TRANSPORTATION, AND I HAD NO INTENTION OF BEING HERE TODAY, EXCEPT FOR I SAW A NEGATIVE COMMENT OR TWO OR THREE ON FACEBOOK AND SOCIAL MEDIA.
WHAT I AM ENCOURAGED ABOUT TODAY IS YOUR UNDERSTANDING OF HOW IMPORTANT PUBLIC TRANSPORTATION IS TO, AS MAYOR, THE MAYOR JUST SAID TO WHAT WE DO HERE AND THE LIFESTYLE.
WE, UM, YOU KNOW, ALL ENJOY HERE ON HILTON HEAD ISLAND.
BUT I ALSO WANT TO SAY THIS, MS. BRYSON MENTIONED, YES, I REALLY APPRECIATED, UM, MR. SULLIVAN'S THOUGHTS DOWN THE ROAD OF HOW WE CAN GROW IT.
RIGHT NOW WE ARE DEALING WITH A, A, A SITUATION THAT NEEDS AN IMMEDIATE BANDAID.
ALMOST A TOURNIQUET, RIGHT? AND, UM, BUT IF EVERYBODY CAME TO THE TABLE TO REALLY TRULY UNDERSTAND HOW A GOOD PUBLIC TRANSPORTATION SYSTEM COULD FIT INTO AN OVERALL PLAN, YOU KNOW, IT WOULD BECOME, IF YOU BUILD IT, THEY WILL COME.
I THINK THE TROLLEY'S A GOOD LITTLE EXAMPLE OF THAT.
I REMEMBER, YOU KNOW, IT STARTED OUT AS A FREE THING AND THEN A DOLLAR WAS ASKED TO BE PAID AND THEN NOBODY WANTED TO USE IT.
AND SO NOW IT'S A, A FREE THING THAT'S REALLY ISN'T FREE, BUT IT IS PART OF WHAT WE DO AND HOW WE ENJOY LIFE HERE.
AND WE INVITE OTHERS TO DO THE SAME.
YOU KNOW, WE'RE GETTING READY TO HAVE A BIG BRIDGE, UH, REBUILD.
AND I UNDERSTAND THERE CURRENTLY IS GONNA BE THREE, UH, LANES OF TRAFFIC, TWO WILL BE USED, ONE IS JUST AN EXTRA, AND THEN TWO PULL OFFS.
WOULDN'T IT BE AMAZING IF ONE OF THOSE WAS USED EVEN DURING PEAK HOURS FOR A, A RAPID, A BUS RAPID TRANSIT LANE TO WHERE PEOPLE AS WE'RE SITTING IN THE, IN OUR CARS COMING ACROSS THE BRIDGE, CAN SEE A TRANSPORTATION SYSTEM THAT GETS THERE A LITTLE QUICKER.
THINGS THAT THE PALMETTO BAY RESIDENTS
[01:05:01]
MENTIONED IN THAT WELL-DESIGNED LETTER AND THOUGHTFUL LETTER.THIS CAN BECOME PART OF OUR CULTURE.
WE ARE AT A PIVOTAL POINT WHERE WE CAN DECIDE IF WE WANT IT AS OUR CULTURE AND DESIGN HOW IT GROWS OR, OR WE KEEP THROWING BANDAIDS AND PEOPLE DON'T TRULY UNDERSTAND THE IMPORTANCE IT CAN BE TO OUR QUALITY OF LIFE.
I DO APPRECIATE THE BREEZE AND HOW IT BRINGS WORKERS TO OUR ISLAND.
AND THANK YOU GUYS FOR REALLY LISTENING TO MR. SULLIVAN AND UNDERSTANDING.
SO, MR. SULLIVAN, AS FAR AS, UH, TIMING IS CONCERNED, OBVIOUSLY YOU'VE STILL GOT A LOT OF WORK TO DO.
UM, YOU, YOU MENTIONED THAT THE BOARD HAS MADE A DECISION AS TO HOW TO FILL SOME OF THIS GAP IF NOTHING HAPPENS WITH OUTSIDE SOURCES.
UM, AND THAT IS THE CUTTING OF THE, THE WEEKEND.
UM, IS THERE EXECUTION DATE ASSIGNED TO THAT AT THE MOMENT? SO THE, THE, THE EFFECTIVE DATE WOULD BE FEBRUARY 28TH.
UM, WE WOULD BE MANDATED OR WE ARE MANDATED TO, UM, OUT REACH OUT TO THE PUBLIC TO ANNOUNCE ANY KIND OF SERVICE REDUCTIONS.
WE CAN GROW ALL WE WANT WITHOUT DOING THAT, ALTHOUGH YOU DO PUBLIC COMMENT WHEN YOU'RE PLANNING.
BUT, UM, IF YOU HAVE A SERVICE REDUCTION OR A FAIR INCREASE, WE'RE REQUIRED BY THE FEDERAL GOVERNMENT TO PUT IT OUT TO THE PUBLIC HOST WORKSHOPS, MUCH LIKE THE TOWN DOES.
WE HAVE OUR EVERY TWO MONTH BOARD MEETINGS, THAT'S ABOUT IT.
BUT, UM, WE WOULD HOST, LIKELY HOST IN ALL FIVE COUNTIES.
UM, IT'S AN EFFORT AND IT HAS TO BE, THERE HAS TO BE A MINIMUM OF 30 DAYS.
WE WANTED TO GIVE IT A 45 TO 60 DAY WINDOW.
SO FROM A TIMELINE STANDPOINT, WE'RE LOOKING AT DECEMBER.
UM, WE WERE ORIGINALLY THOUGHT WE WOULD ACTUALLY WANT TO START PUBLIC OUTREACH IN DECEMBER, BUT GIVEN OUR PERFORMANCE ON THE CURRENT BUDGET, THE POSITIVE PERFORMANCE, WE FELT COMFORTABLE, UH, WITH THE BOARD RECOMMENDING WE CAN PUSH IT BACK TILL AFTER THE HOLIDAYS IF IT'S NECESSARY AT ALL.
SO, UM, BECAUSE ONCE YOU GO OUT TO PUBLIC COMMENT, THAT'S WHEN THINGS GET REAL.
UM, AND OUR BIGGEST CONCERN, QUITE FRANKLY, WE CAN TAKE THAT HEAT AND WE CAN EXPLAIN WHY NONE OF US LIKE DOING IT.
WHAT WE DON'T WANT TO HAPPEN IS FOR THIS ROOM AND OTHERS LIKE IT ACROSS FIVE COUNTIES TO BE FILLED WITH PEOPLE THAT ARE UPSET ABOUT IT.
UH, SO, UH, WHAT WE'LL DO IS OBVIOUSLY YOU'RE UNDER THE GUN HERE AS FAR AS TIMING IS CONCERNED.
UM, AND I'LL WORK WITH THE MAYOR AND THE TOWN MANAGER, MAKE SURE WE GET THIS BACK ON THE AGENDA, BUT YOU'VE GOT SOME WORK TO DO BETWEEN NOW AND THEN.
WE'LL LOOK TO SEE YOU BACK IN DECEMBER.
AND MR. BYRD, IF YOU CAN COME BACK TO US WITH AN ANSWER AS FAR AS ANY AVAILABLE FUNDS.
UH, SO WE'LL TAKE IT UP IN, IN DECEMBER.
UH, MR. CHAIR? YES, MR. CHAIR.
UM, ONE MORE THING TO ADD TO YOUR LIST, UH, I'VE REQUESTED MR. SULLIVAN, UM, AND THAT IS, IF THERE, UM, IS AN INCREASE IN THE FARE FOR THE TROLLEY SYSTEM, WHAT AMOUNT WOULD THAT BE IN ORDER TO TRY TO COVER THE GAP? I THINK IT'D BE HELPFUL TO KNOW THAT, FOR US TO CONSIDER THAT.
UM, AND THEN, UH, IN ADDITION TO, UM, ASKING OUR FINANCE DIRECTOR FOR FUNDS AVAILABLE, IF WE COULD ASK THE TOWN ATTORNEY AT SOME POINT, I DON'T THINK WE NEED IT FOR A DECEMBER MEETING TO TAKE A LOOK AT, UM, AN OPINION ON THAT VEHICLE REGISTRATION FEE.
UM, I DON'T WANT IT, I SEE MR. COLTRANE ONLINE, BUT I'M NOT ASKING FOR IT NOW.
BUT I THINK IN ORDER FOR US TO EVEN CONSIDER IT IN THE FUTURE, I'M NOT SAYING WHAT, WHAT, HOW I FEEL ABOUT IT, BUT I THINK WE NEED OUR OWN OPINION ABOUT IT, UM, AND, UH, WHAT WE COULD DO.
YEAH, NO, WE WOULD WELCOME THAT
[5.a. Consideration of an Ordinance of the Town of Hilton Head Island Authorizing the Issuance of General Obligation Debt Bonds - John McGowan, Assistant Finance Director]
ALRIGHT, MOVING ALONG TO OUR NEW BUSINESS CONSIDERATION OF AN ORDINANCE OF THE TOWN HILTON ISLAND AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION DEBT BONDS.RIGHT NOW HERE, THANK YOU CHAIRMAN BROWN AND MEMBERS OF THE COMMITTEE.
UH, AND ALSO THANKS TO MARK ORLANDO FOR HIS GUIDANCE AND HELP IN PULLING TOGETHER TODAY'S PRESENTATION.
THANKS TO DAVID CHEATWOOD, OUR MUNICIPAL ADVISOR, WHO, UH, IS REPRESENTING FIRST TRYON THANKS TO MICHAEL SEASON, WHO'S REPRESENTING OUR BOND COUNCIL.
BYR AND FOREMAN, AND MARK AND DAVID AND, UH, MICHAEL ARE ALL AVAILABLE TO JUMP IN AT ANY POINT, UH, TO GO THROUGH THE PARTICULARS, UH, MICHAEL, ESPECIALLY ON THE BOND ORDINANCE ITSELF, WHICH IS IN DRAFT FORM, UH, DAVID, UH, REGARDING THE, THE DEBT SERVICE RUNS THAT WE HAVE HERE, UH, TO SHOW YOU IN A LITTLE BIT.
AND THANKS ALSO TO THE FINANCE TEAM STAFF INCLUDING JOHN TROYER AND, AND DAVE BYRD.
WE'RE REQUESTING THAT TOWN COUNCIL CONSIDER THE ISSUANCE OF TAX EXEMPT BONDS, UM, UH, UH, TO COVER ALL
[01:10:01]
OF THE COSTS ASSOCIATED WITH THE ACQUISITION AND BUILD OUT OF SPECIFIC PROPERTIES TO BUILD A NEW FIRE AND RESCUE HEADQUARTERS AND EMERGENCY OPERATION CENTER.AND AT YOUR DISCRETION, UH, TO FUND FUTURE LAND ACQUISITION AND UNDERTAKE VARIOUS OTHER SHOVEL-READY, SHOVEL-READY CAPITAL PROJECTS.
AND WE'LL SHIFT TO THE PRESENTATION PAGE TWO AND THREE.
JUST KIND OF GO THROUGH THE OVERVIEW VERY QUICKLY.
UM, I GUESS I, I'LL CONTROL THAT.
JUST GOTTA GO THE OTHER DIRECTION.
SO, UM, UH, WE'LL GO THROUGH MULTIPLE TOPICS HERE.
WHY SHOULD THE TOWN CONSIDER BORROWING NOW AN OVERVIEW OF OUR CURRENT DEPOSITION, AN OVERVIEW OF OUR DEBT MILLAGE HISTORY, AND HOW WE COMPARE TO OTHER SOUTH CAROLINA MUNICIPALITIES, UH, THE, OUR FUND BALANCE AND REVENUE HISTORY, UH, THE SOURCES OF PAYBACK FOR THE PROPOSED BONDS, ESPECIALLY IN THE FIRST YEAR, THE EFFECT OF THE POTENTIAL, UH, NEW GENERAL OBLIGATION BOND ON OUR DEBT CAPACITY, UH, THE POTENTIAL PROJECTS TO BE FUNDED, THE POTENTIAL DEBT SCENARIOS, AND, UH, A FUTURE DEBT ISSUANCE TIMELINE AND SOME ADDITIONAL DETAILS.
AND WE'LL END WITH SOME QUICK TAKE TAKEAWAYS FROM S AND P'S JULY, UH, RATINGS UPGRADE REPORT ON THE TOWN.
SO WHY SHOULD THE TOWN BORROW NOW TO FUND CAPITAL PROJECTS WE DESCRIBED BROADLY ABOVE? AND WE'LL GO INTO A LITTLE MORE DETAIL ON SOME FOLLOWING PAGES.
UH, THE TOWN HAS SIGNIFICANT, UH, REVENUE SOURCES HERE ALREADY IN HAND.
UH, TO COVER THE FIRST PAYMENT WE'VE ALREADY REQUESTED DEBT SERVICE MILLAGE OF APPROXIMATELY TWO MILLS THAT WAS INCLUDED IN OUR 2026 BUDGET TO COVER A BOND ISSUE ISSUED IN FISCAL YEAR 26.
WE'VE GOT ABOUT 11.7 MILLION IN DEBT SERVICE FUND BALANCE THAT'S ACCUMULATED OVER THE LAST SEVERAL YEARS TO USE FOR THAT FIRST PAYMENT AS WELL.
AND THE TOWN CAN TAKE ADVANTAGE OF VERY, UM, UH, COMPETITIVE BORROWING RATES.
AND WE'LL GO INTO WHY WE HAVE THOSE SUCH GOOD RATES AVAILABLE TO US.
AND THERE'S NO NEED IN ANY OF THESE SCENARIOS THAT WE'LL GO OVER TO INCREASED OUR FUTURE DEBT SERVICE MILLAGE AT ALL.
IN FACT, WE COULD POTENTIALLY LOWER OUR DEBT SERVICE MILLAGE EVEN WHILE ISSUING FUTURE DEBT IN FUTURE YEARS.
SO, UH, WE'LL SPEND A FEW MINUTES ON AN OVERVIEW OF OUR EXCELLENT FINANCIAL POSITION.
WE'LL START OUT WITH OUR EXISTING GOS.
UH, AS YOU CAN SEE, UH, WELL AS YOU CAN'T SEE 'CAUSE IT'S, UH, UH, PATSY AND CURTIS HAVE IT COVERED UP THERE,
WE'VE GOT ABOUT 41.8 MILLION AND EXISTING, UH, GEO DEBT OUTSTANDING, OF WHICH ABOUT 28 MILLION OF THAT IS, UH, NON REFERENDUM DEBT.
AND WE'LL TALK ABOUT THE IMPORTANCE OF REFERENDUM VERSUS NON REFERENDUM DATE DEBT IN A FEW MINUTES.
UH, YOU CAN SEE ON THE NEXT SLIDE, UH OH, HOLD ON ONE SEC.
MAKE SURE EVERYTHING'S PLUGGED IN HERE ON THE NEXT SLIDE.
YOU CAN SEE OUR GEO BONDS OUTSTANDING BY YEAR.
UH, OBVIOUSLY WE HAD A SIGNIFICANT SPIKE IN OUR GEO BONDS OUTSTANDING AFTER HURRICANE MATTHEW.
WE'VE BEEN PAYING THAT DOWN EVER SINCE.
AND WE STAND NOW WITH THAT ABOUT $42 MILLION.
OUR SPECIAL REVENUE DEBT, UH, IS RIGHT NOW WE'VE GOT ABOUT 11 MILLION OUTSTANDING.
WE DO HAVE THAT BEACH PRESERVATION FEEDBACK BOND THAT WILL BE CLOSING IN EARLY DECEMBER, AND THAT'LL GET US TO OUR $30 MILLION NUMBER THAT YOU SEE THERE.
BUT, UM, YOU CAN SEE SIMILAR PATTERN THAT WE SAW IN THE GOS.
WE HAD A LOT OF DEBT THAT WE ISSUED RIGHT AFTER HURRICANE MATTHEW, AND WE'VE BEEN PAYING THAT DOWN EVER SINCE.
AND WE'RE NOW AT THAT 11.8, WHICH WILL GO UP TO 30 MILLION ONCE WE CLOSE ON THE BEACH PRESERVATION BONDS.
AS FAR AS OUR MILLAGE HISTORY, UH, YOU CAN SEE AGAIN THAT SPIKE IN 2018 POST HURRICANE MATTHEW, AND WE STAYED IN THE 28 RANGE THROUGH 2022, AND WE'VE LOWERED THAT TO 19.4 IN THIS FISCAL YEAR.
OF THAT 19.4, 14.3 COVERS OPERATIONS AND THE BALANCE 5.1 COVERS DEBT SERVICE.
OF THAT 5.1, ABOUT THREE OF THAT IS FOR EXISTING DEBT, AND TWO OF IT, TWO, TWO OF THOSE MILLS WOULD BE FOR, UH, THIS NEW POTENTIAL, UH, 2026 DEBT ISSUE.
OKAY, UH, THIS SLIDE KIND OF SPEAKS FOR ITSELF.
UM, WE ARE IN EXCELLENT SHAPE AS FAR AS OUR MILLAGE RATES RELATIVE TO OUR BEAUFORT COUNTY PEERS AND TO SEVERAL COASTAL SOUTH CAROLINA COMMUNITIES.
[01:15:01]
LARGELY DUE TO WELL GOOD MANAGEMENT AND, AND GOOD GUIDANCE FROM TOWN COUNCIL.BUT ALSO WE'VE GOT A LOT OF DIFFERENT REVENUE SOURCES THAT A LOT OF THESE COMMUNITIES DON'T HAVE FULL ACCESS TO.
AS FAR AS, UM, THE SPLIT BETWEEN FOR THE AVERAGE HILTON HEAD TAXPAYER ON WHAT GOES TO WHICH ORGANIZATIONS, WE'VE GOT A COUPLE OF OVERLAPPING DISTRICTS OBVIOUSLY, THAT WE PAY INTO.
UH, BEAUFORT COUNTY SCHOOLS REPRESENTS THE BULK OF THAT.
A GOOD CHUNK ALSO GOES TO BEAUFORT COUNTY ITSELF, SOME TO THE PSD AND ABOUT A LITTLE LESS THAN 8% OF THE TOTAL MILLAGE ACTUALLY GOES TO THE TOWN OF HILTON HEAD.
UH, ALSO A GOOD TREND IN ASSESSED VALUE.
UH, AND AGAIN, THAT'S, UH, A TRIBUTE TO TOWN COUNCIL AND SENIOR MANAGEMENT THAT'S GONE UP STEADILY SINCE 2015.
OUR FUND BALANCE MORE GOOD NEWS, UH, IT'S UP TO $240 MILLION, A 65% INCREASE SINCE 2021.
OUR GOVERNMENT REVENUES HAVE GONE UP ABOUT 40% SINCE 2021.
WE KNOW, UH, THE COMPOSITION OF THOSE ARE LISTED ON THE BOTTOM THERE, BUT I'LL JUST SPEND A SECOND.
UM, HIGHLIGHTING OUR INTEREST EARNED.
WE EARNED ABOUT $11 MILLION IN INTEREST LAST YEAR ON THAT SIGNIFICANT FUND BALANCE THAT WE GREW, UH, THAT WAS FEATURED IN THE PRIOR SLIDE.
ALSO, SPEND A MINUTE ON REAL ESTATE TRANSFER FEES.
AND THE REASON WE'RE HIGHLIGHTING THIS IS, IS IT HAS BEEN A TRADITIONAL SOURCE OF FUNDING FOR OUR LAND ACQUISITION PROGRAM.
UH, IT DOES VARY A BIT FROM YEAR TO YEAR.
UM, I JUST HEARD DAVE SAY THAT, UH, THAT THOSE NUMBERS LOOK GOOD FOR Q1.
UH, BUT LAST YEAR WE ENDED UP AT ABOUT A $14 MILLION BALANCE, AND WE JUST CHECKED LAST WEEK AND WE'RE AT ABOUT A $16 MILLION BALANCE AS OF LAST WEEK.
UH, THE DEBT SERVICE FUNDS ACCUMULATED BALANCE, UM, WE ARE PROPOSING THIS AS A PARTIAL SOURCE OF, UH, PAYMENT OF OUR FIRST GEO DEBT SERVICE PAYMENT.
THE DEBT SERVICE FUND IS FUNDED BY DEBT SERVICES, COLLECTED DEBT, UH, EXCUSE ME, MILLAGE COLLECTED BY THE COUNTY.
UH, THAT FUND HAS GROWN TO ABOUT 14 POINT MILLION DOLLARS, UH, THIS PAST, AT THE END OF THIS PAST FISCAL YEAR, UH, WE'VE ALWAYS HAD CONSERVATIVE REVENUE PROJECTIONS IN CASE, UH, UH, TAXPAYERS WEREN'T PAYING THE FULL AMOUNT.
SO WE'VE, WE'VE BUILT UP THAT RESERVE.
UH, I'LL JUST SKIP TO SLIDE 17, UH, TO SHOW YOU THIS IN NUMBERS.
SO IF WITH THAT $14.2 MILLION BALANCE, WE'RE SUGGESTING THAT WE LEAVE IN TWO AND A HALF MILLION, UH, AS A RESERVE.
IN FACT, WE SUGGEST THAT WE HAVE A POLICY GOING FORWARD TO KEEP THAT RESERVE AT TWO AND A HALF MILLION DOLLARS IN CASE THERE IS UNDER COLLECTIONS GOING FORWARD.
IF WE WERE TO ADD IN THE TWO MILLS THAT I MENTIONED EARLIER, THAT WE'VE ASKED THE COUNTY TO COLLECT ON OUR BEHALF FOR DEBT SERVICE FOR THIS NEW BOND ISSUE, WE'RE AT ABOUT $14.3 MILLION JUST TO PAY OFF THAT FIRST YEAR'S PAYMENT.
SO YOU'LL SEE IN SOME SLIDES IN THE, IN THE NEAR FUTURE HERE, UH, WE'VE GOT A A WE'RE PROPOSING A VERY LARGE PAYMENT IN THE FIRST YEAR.
AND THEN, THEN, UM, LEVELING OFF AFTER THAT.
WE'LL JUST SPEND A MINUTE OR TWO ON THIS SLIDE.
THIS IS OUR DEBT INSURANCE CAPACITY.
THE STATE OF SOUTH CAROLINA, UH, IMPOSES ON ALL, UH, MUNICIPALITIES A LIMIT OF, UH, THE ABILITY TO BORROW NON REFERENDUM DEBT UP TO 8% OF THE TOTAL AV OF THE TOWN.
SO THAT, THAT NUMBER WOULD BE 105 MILLION IN 2025.
THE TOWN IMPOSES ITS ADDITIONAL $20 MILLION CEILING.
SO IT GETS US DOWN TO ABOUT 85 MILLION.
UH, GIVEN OUR DEBT OUTSTANDING, RIGHT NOW WE'VE GOT ABOUT A $57 MILLION, UH, ESTIMATED DEBT CAPACITY.
IF WE WERE TO, I'M SKIPPING AHEAD A LITTLE BIT, BUT IF WE WERE TO ISSUE IN THIS SCENARIO 35 MILLION IN BONDS, AND WE'RE NOT, WE'RE NOT SETTLING ON THAT NUMBER BY ANY MEANS AT THIS POINT, BUT IF WE WERE TO ISSUE $35 MILLION IN BONDS, HAVE A CLOSE ON APRIL 1ST, HAVE THAT FIRST PAYMENT ON JUNE 1ST, THAT WOULD GIVE US 37 30 7 MILLION IN DEBT CAPACITY AT AS OF JUNE 2ND.
UM, AND OBVIOUSLY IF WE'RE TO BORROW LESS, THAT WOULD INCREASE OUR CAPACITY.
WE KIND OF START TO DELVE IN OUR SCENARIOS HERE, BUT WE'VE, WE'VE FRAMED THIS AS, UH, TWO SEPARATE AMOUNTS, 25 OR $35 MILLION.
WE'VE GOT A COUPLE OF DIFFERENT PAYBACK SCENARIOS ON EACH OF THOSE.
WE ARE PROPOSING THAT WE DEVOTE 9 MILLION OF THIS, OF THIS ISSUE TO FIRE AND RESCUE EEOC.
AND THEN THE BALANCE, WHETHER IT'S 25 OR 35 MILLION, OR SOMEWHERE IN BETWEEN OR SOMEWHERE HIGHER OR SOMEWHERE LOWER, UH, CAN BE SPLIT BETWEEN LAND ACQUISITION AND OTHER SHOVEL-READY PROJECTS.
AND WE'RE LOOKING TO, UM, TO THIS COMMITTEE AND COUNCIL TO
[01:20:01]
GIVE US GUIDANCE ON THAT.AND THAT'S A LIST ON THAT SLIDE OF POTENTIAL PROJECTS.
UH, THESE WILL LIKELY BE IN OUR FISCAL YEAR 2027 CAPITAL PROJECTS BUDGET.
UH, JUST THIS SLIDE JUST BASICALLY SUMMARIZES ALL OF OUR, UH, THE BENEFITS OF OUR LAND ACQUISITION PROGRAM, UH, WHICH OBVIOUSLY WE'VE HAD IN PLACE FOR MANY YEARS, OKAY.
SO WE'VE, WE'VE RUN, WE'VE ASKED OUR FINANCIAL ADVISOR TO RUN FOUR SCENARIOS FOR US.
ONE, WE BORROWED $25 MILLION AND WE PAY IT BACK OVER 20 YEARS.
UH, ONE B WOULD BE BORROWING 25 MILLION, BORROW AND PAYING BACK OVER 15 TWO A IS BORROWING 35 MILLION AND PAYING BACK OVER 20 YEARS.
AND TWO B IS BORROWING 35 MILLION AND PAYING BACK OVER 15 YEARS.
ALL THESE SCENARIOS WOULD KEEP OUR TOTAL DEBT SERVICE MILLAGE FOR THIS ISSUE, PLUS THE EXISTING DEBT UNDER FIVE AT OR UNDER 5.1 MILS.
OKAY? UH, AND THE NEXT SLIDE WE'LL SPEND A MINUTE OR TWO ON.
WE KIND OF USE THIS AS OUR BASE, AND THEN WE CAN HOPEFULLY MOVE FAIRLY QUICKLY THROUGH THE OTHER THREE SCENARIOS.
THE, UM, THE BLUE PART OF THAT BAR CHART IS OUR EXISTING DEBT SERVICE.
AND YOU COULD SEE IN 2030 AND 2036 AS A DROP OFF THAT SAYS WE PAY OFF A PARTICULAR BOND ISSUE IN THIS CASE, TWO PARTICULAR BOND ISSUES.
THE ORANGE PIECE IS THAT DEBT SERVICE THAT WE'RE PROPOSING IN THIS SCENARIO FOR THE NEW DEBT.
AND, UH, THAT KIND OF YELLOWISH ORANGE LINE THAT GOES FROM LEFT TO RIGHT THERE IS, UH, OUR DEBT SERVICE MILLAGE, IF WE WERE TO GO WITH 5.1 MILS, UH, AND WE'RE ASSUMING A 2% AV GROWTH.
SO THAT'S WHY YOU SEE THE GROWTH IN THAT, IN THAT LINE.
SO REALLY ANY SPACE UNDERNEATH THAT YELLOWISH LINE TO THE BARS IS SPACE TO EITHER LOWER OUR MILLAGE IN THE FUTURE OR ISSUE ADDITIONAL DEBT.
AND USING SCENARIO ONE A AS THE EXAMPLE, AGAIN, THAT'S BORROWING 25 MILLION, PAYING BACK OVER 20 YEARS.
YOU SEE THAT BIG PRINCIPLE AND INTEREST PAYMENT ON JUNE ONE OF 26.
AND THEN THE WAY OUR FINANCIAL ADVISOR HAS STRUCTURED THIS, UH, WE'RE MAXING OUT AT 5.1 MILS FOR THE FIRST TWO YEARS.
UH, ESSENTIALLY WE'D BE MAKING A DECISION IN, WE HAVE THE ABILITY TO MAKE A DECISION IN FISCAL YEAR 28, UM, ON WHETHER WE WANTED TO ISSUE MORE DEBT OR LOWER OUR MILLAGE OR BOTH.
SO, AND WE CAN GO FAIRLY QUICKLY THROUGH THE NEXT THREE SCENARIOS.
UH, IN FACT, I'LL JUST SKIP TO THE NUMBERS ON SCENARIO ONE B, WHICH IS BORROWING 25 MILLION TO 15 YEAR PAYBACK.
AGAIN, THOSE BIG NUMBERS IN YEARS ONE, TWO, AND THREE.
AND THEN FROM YEARS THREE TO THROUGH, IN THIS CASE 15, WE'RE LOOKING AT, UM, TOTAL, UH, A TOTAL ANNUAL PAYBACK OF, OF ABOUT $483,000.
THAT REPRESENTS WELL UNDER A MILL 0.37 MILLS.
UH, SO THAT'S WHERE YOU SEE THE ROOM TO EITHER LOWER DEBT, LOWER MILLAGE IN THE FUTURE, OR RAISE ADDITIONAL DEBT.
AND I DIDN'T HIGHLIGHT THAT IN ONE A, BUT IT APPLIES TO ALL FOUR OF THESE SCENARIOS.
SO TWO A, WE'RE LOOKING AT A 20 YEAR PAYBACK ON 35 MILLION.
AND AS YOU CAN SEE, AGAIN, THOSE BULKY NUMBERS THE FIRST COUPLE OF YEARS.
AND THEN WE LEVEL OUT DEBT SERVICE AT ABOUT 1.3 MILLION, WHICH IS EQUAL TO A MIL, APPROXIMATELY A MILL IN FISCAL YEAR 26.
AND THEN JUST SKIPPING TO THE LAST SCENARIO, 15 YEAR PAYBACK ON THAT 35 MILLION.
AND WE SEE, UH, WE'VE GOT ABOUT A $1.56 MILLION PER YEAR PAYBACK FOR THE REMAINING YEARS.
AND THAT'S STILL WELL UNDER TWO MILLS.
AS FAR AS, UM, CALENDAR ON THIS, UH, IT'S FAIRLY TIGHT.
WE'RE PROPOSING THAT TOWN COUNCIL AT THE TOWN COUNCIL MEETING IN DECEMBER THAT WE HAVE A FIRST READING OF THE ORDINANCE.
THE SECOND READING WOULD BE AT THE JANUARY MEETING.
UH, WE PROPOSE CLOSING ON THIS IN APRIL.
AND, UM, HAVING THAT FIRST PRINCIPLE AND INTEREST PAYMENT ON JUNE 1ST, AND AGAIN, THAT WOULD BE FUNDED BY THE DOLLARS FROM THE ACCUMULATED DEBT SERVICE FUND BALANCE, PLUS THE DOLLARS WE'VE ASKED THE, THE, UH, COUNTY TO COLLECT ON OUR BEHALF, UH, FOR THIS DEBT ISSUE.
UM, AND THE FIRST THREE BULLET POINTS BASICALLY ARE, ARE ALL LOW BORROWING COSTS.
OBVIOUSLY WE'VE GOT OUR AAA RATINGS FROM MOODY'S S AND P AND FITCH, UH, THAT EQUALS LOW BORROWING COSTS.
WE KNOW WE COULD ISSUE THIS TAX EXEMPT LOW BORROWING COSTS.
WE WOULD TAKE THIS TO THE PUBLIC DEBT MARKETS GIVEN ITS SIZE AND PROPOSED TERM, UH, EQUALS LOW BORROWING COSTS.
UH, WE HAVE A GREAT FINANCIAL ADVISOR IN FIRST TRYON.
WE HAVE A GREAT, UH, BOND COUNCIL
[01:25:01]
AND BERT FOREMAN WHO'S BEEN WORKING WITH THE TOWN, OR THEY OF THEIR PRE PREDECESSOR FIRM HAVE BEEN WORKING WITH THE TOWN SINCE BEFORE ITS INCEPTION.UH, SO THEY, THEY HAVE, UM, A GREAT WORKING HISTORY WITH THE TOWN.
AND I'LL JUST CLOSE ON, UM, A FEW OF THE COMMENTS THAT WE PULLED FROM S AND P'S UPGRADE REPORT FROM JULY OF THIS YEAR.
AND THE THEMES HERE ARE, UM, S AND P UH, GREATLY APPRECIATES OUR RESERVE LEVELS AND THE FACT THAT THEY'VE IMPROVED OVER THE LAST SEVERAL YEARS.
THEY'RE VERY COMFORTABLE WITH OUR DEBT LEVELS.
UH, YOU SEE IN THAT LAST SECOND TO LAST BULLET POINT, THE TOWN'S NET DIRECT DEBT AS A PERCENTAGE OF TOTAL REVENUES AND MARKET VALUE ARE LOW COMPARED WITH ITS AAA PEERS.
AND, UM, THIS REFLECTS VERY WELL ON TOWN COUNCIL AND SENIOR LEADERSHIP IN MANAGING THAT.
SO WE'RE HAPPY TO TAKE ANY QUESTIONS, BUT WE'RE ULTIMATELY LOOKING FOR THE COMMITTEE AND COUNSEL FOR GUIDANCE ON, ON WHERE WE GO WITH THIS.
UH, WE'LL OPEN IT UP FOR DISCUSSION AMONGST THE COMMITTEE AT THIS POINT.
UH, I JUST WANNA BE CLEAR, MR. MCGOWAN, THAT, UH, YOU PROPOSING 25 35 AS SCENARIOS, BUT WE CAN ULTIMATELY DECIDE ON A NUMBER OUTSIDE OF THOSE TWO.
MS. TURNER IN BETWEEN OR LESS OR MORE? OKAY.
SO, AS OUR PROPERTY VALUES HAVE INCREASED, THE AMOUNT OF MONEY COMING IN, UH, THROUGH OUR MILLAGE FOR OUR DEBT, UM, HAS ALLOWED US THE OPPORTUNITY TO HAVE THE, EXCUSE ME ONE SECOND, I'M JUST GONNA PUT THIS ON BECAUSE YES.
IT, AND IT HAS ALLOWED US TO ACCUMULATE THIS BALANCE YES.
UM, IN OUR FUND AND, UM, WHICH IS CURRENTLY AT 14.2 MILLION, ONE OF THE THINGS THAT YOU WANT US TO DECIDE UPON IS A, UM, MINIMUM RESERVE IN REGARDS TO THE DEBT.
UM, AND SO YOU TALKED ABOUT TWO AND A HALF MILLION DOLLARS, UH, AS A MINIMUM, AND I AM SUPPORTIVE OF THAT.
UM, YOU KNOW, I, I'M VERY FISCALLY CONSERVATIVE AND, AND WE HAVE, UM, ADDED AN INCREASED RESERVE MINIMUMS ON OUR OTHER, UH, AREAS OF REVENUE AND, AND SAVINGS AS WELL.
AND I THINK THIS IS A GOOD, UH, NEXT STEP.
SO JUST WANNA MAKE THAT CLEAR CHECK MARK.
UM, WHAT'S INTERESTING IS THAT WE HAVE THIS MONEY SITTING THERE, BUT THE ONLY WAY WE CAN GET TO IT IS IF WE, UH, GO OUT AND PURCHASE DEBT IS SHOULD.
IT, IT'S, I'M FROM THE BUSINESS WORLD, SO THAT JUST REALLY SEEMS ODD.
BUT, AND THAT'S THE PROCESS THAT WE HAVE TO USE.
SO THAT'S WHY WE'RE HERE TODAY TALKING ABOUT GETTING ACCESS TO THAT MONEY AND THEN ALSO, UM, MAKING A DECISION ABOUT WHETHER WE WANT TO BO BORROW MORE THAN THAT, UH, AT THIS TIME.
UM, IF YOU COULD GO BACK TO SLIDE NUMBER, UM, OH, I DON'T HAVE THE NUMBER ON HERE.
AND IT SHOWS HOW OUR MILLAGE RATE, UM, IS DIVIDED BETWEEN DEBT AND, UM, OTHER YEP.
AND WE'RE AT 5.1, AND YOU CAN SEE THAT WE DID HAVE A DECLINE IN OUR MILLAGE RATE ASSOCIATED WITH DEBT, UH, OF FOUR MILS.
AND YOU SAID OUT OF THAT FIVE MIL, THREE OF VISITORS USED FOR EXISTING DEBT? ABOUT 3.1.
AND SO THE REMAINDER IS WHAT'S AVAILABLE, UH, TO BE USED.
AND THAT'S WHY WE'RE HAVING THIS CONVERSATION MM-HMM
AND THAT WAS IN THE BUDGET, IN THE FISCAL YEAR 26 BUDGET.
SO, YOU KNOW, IN THE PRESENTATION IT'S VERY CLEAR WE HAVE THE CAPACITY TO BORROW.
UM, WE HAD THE MILLAGE TO PAY THIS BACK GIVEN THE SCENARIOS THAT ARE LAID OUT HERE.
SO IT BECOMES MORE OF A PHILOSOPHICAL, UH, DECISION IN MY OPINION, VERSUS A FINANCIAL DECISION BECAUSE WE HAVE THE CAPACITY, UH, ET CETERA.
SO FOR ME, AND, AND THOSE OF YOU KNOW ME, I'M A FISCAL CONSERVATIVE, SO I'M ALWAYS VERY CAREFUL WHEN WE LOOK AT, AT BORROWING AND, YOU KNOW, SO YOU COULD PROBABLY GUESS WHAT MY, UM, RESPONSE IS GONNA BE.
YOU KNOW, I'M LOOKING FOR LOWER AND QUICKER PAYOUT.
UM, SO I'M MORE COMFORTABLE WITH THE 25 MILLION AND THE 15 YEAR, UM, TIMEFRAME.
AND I THINK IT'S ALSO VERY IMPORTANT TO HAVE, UM, A DEFINED, UH, APPROACH AS TO HOW WE'RE GOING TO SPEND THE MONEY.
AND SO I APPRECIATE THAT CONVERSATION TODAY.
SO I AM COMFORTABLE WITH, UM, MONEY GOING TOWARDS THE FIRE AND RESCUE HEADQUARTERS AND THE EMERGENCY OPERATION CENTERS.
UH, IT'S A STRATEGIC, UH, IMPORTANCE.
UH, THAT HEADQUARTERS IS A BUILDING THAT IS OUTLIVED ITS USEFUL LIFE.
UM, AND IT IS, UH, NOT VERY SUPPORTIVE OF EDUCATION JUST BECAUSE OF THE LACK OF, UH, SPACE AND
[01:30:01]
ROOM.UM, YOU KNOW, THERE'S A NUMBER OF ITEMS THAT THAT TICK OFF AS WELL AS THE, UM, EMERGENCY OPERATIONS CENTER MOVING THAT OVER FOR, UH, FROM THE PSD.
AND SO WE'VE APPROVED THE PURCHASE OF THAT NEW HEADQUARTERS, WHICH MAKES A LOT OF SENSE.
AND, AND I THINK IT'S A GOOD USE OF FUNDS, UM, TO BE ABLE TO PAY THAT OFF.
UH, THE OTHER AREA THAT IS ALSO CRITICALLY IMPORTANT, IF WE LOOK AT OUR NUMBER ONE, UM, ITEM ON OUR STRATEGIC PLAN, IT'S ABOUT MANAGING OUR DEVELOPMENT.
AND THE BEST WAY TO MANAGE DEVELOPMENT IS TO OWN THE LAND.
AND SO HAVING MORE FUNDS FOR, UH, LAND PURCHASES, I THINK IS VERY IMPORTANT.
YES, WE HAVE ACCESS TO THE GREEN SPACE FUNDS IN BEAUFORT COUNTY, UH, AND WE'RE A VERY GOOD CUSTOMER OF, OF GATHERING THOSE FUNDS, BUT AT SOME POINT, UM, YOU KNOW, WE'RE GONNA USE THAT UP AND HAVING, UH, OUR OWN MONEY AS WELL, UH, OVER AND ABOVE THE REAL ESTATE TRANSFER FEE IS A GOOD STRATEGY FOR US AS WE WANT TO, UM, MANAGE OUR DEVELOPMENT, UM, ON THE ISLAND.
UM, THE OTHER ITEM OF SPEND THAT YOU HAVE IN THE PACKAGE HAS TO DO WITH SHOVEL READY CAPITAL PROJECTS.
PERSONALLY, I'M MORE SUPPORTIVE OF PAYING FOR CAPITAL PROJECTS WITH OUR MONEY AS WE GO, UH, AND NOT TO BORROW, UH, FOR THAT, FOR THESE SHOVEL READY PROJECTS THAT WE'VE LAID THEM ALL OUT.
UM, YOU KNOW, WE'RE GONNA BE DOING ANOTHER EXERCISE IN REGARDS TO OUR CAPITAL RELATED PLAN, AND I WOULD BE VERY INTERESTED TO KNOW, UM, IF WE FEEL THAT WE HAVE THE, UH, FUNDS THROUGH OUR CURRENT REGULAR OPERATING, UM, APPROACH, UH, TO COVER THOSE PROJECTS, UH, THAT WERE LISTED.
THAT'S WHY I THINK IT'S SO IMPORTANT TO HAVE A FIVE YEAR CAPITAL PLAN SO THAT WE CAN LAY OUT EXACTLY WHAT THOSE COSTS ARE OVER A PERIOD OF TIME, AND WE CAN TALK ABOUT HOW WE ARE GOING TO FUND THESE, HOW MUCH CAN WE FUND FOR OUR REGULAR OPERATIONS, AND IF THERE IS MORE FUNDING NEEDED, YOU KNOW, WHAT DO WE DO ABOUT THAT? DO WE SLOW DOWN OUR TIMELINE? DO WE BORROW MONEY? YOU KNOW, THERE ARE MANY THINGS THAT, THAT WE CAN LOOK AT.
SO I DO HAVE A QUESTION ABOUT THE FUNDING OF THESE SHOVEL READY PROJECTS AND WHETHER THEY CAN BE COVERED THROUGH OUR REGULAR OPERATIONAL, UH, FINANCIALS, UH, FOR NEXT YEAR.
UH, CERTAINLY FROM A FUND BALANCE PERSPECTIVE.
YEAH, WE'VE GOT PLENTY OF CASH TO DO THAT.
IT'S A QUESTION OF WHICH I'M GONNA TAKE THIS OFF, WHICH IS THE MOST EFFICIENT WAY TO DO IT.
WE, BY THE WAY, THE, WE'LL HAVE THE CLOSING ON THE, UH, BEACH BOND IN A COUPLE OF WEEKS, AND WE'VE GOT THE WINNING BID IN HAND.
UH, I THINK THE WAY DAVID IS SET UP THESE SCENARIOS, WE'RE BORROWING, HE'S ESTIMATING, WE'RE BORROWING IN THE 3.5 TO 4% RANGE.
I THINK THAT'S VERY CONSERVATIVE.
GRANTED, WE WOULDN'T SELL THESE BONDS FOR ANOTHER SEVERAL MONTHS, SO INTEREST RATES COULD CHANGE, BUT I THINK IT'S VERY CONSERVATIVE TO ESTIMATE IN THAT RANGE.
LAST YEAR WE MADE, UH, I MENTIONED WE MADE $11 MILLION IN INTEREST, THAT WAS, UH, THROUGH A 4.8% INTEREST RATE MM-HMM
SO OUR RATE OF RETURN WAS 4.8%.
JUST WANTED TO MAKE, JUST WANNA MAKE SURE YOU'RE AWARE OF THAT, THAT WE'RE AT LEAST THIS POINT IN TIME, GIVEN THE INTEREST RATES, UH, SITUATION, NOW WE'RE ABLE TO INVEST OUR MONEY AT A HIGHER RATE THAN WE'RE BORROWING OUR MONEY.
IT'S ALWAYS A NICE PLACE TO BE
PARDON ME? THAT'S ALWAYS A NICE PLACE TO BE.
UM, YEAH, SO, SO YOU ANSWERED THE QUESTION THAT WE DO HAVE MONEY WITHIN OUR CURRENT, UM, FINANCIALS TO, UM, SUPPORT THESE SHOVEL READY PROGRAMS. UM, ANOTHER REASON WHY I THINK ABOUT BORROWING LESS THAN MORE IS I'M ALWAYS THINKING ABOUT THE FUTURE.
AND SO, UH, ONE OF THE THINGS THAT I'D LIKE TO DO IS TO MOVE TO THE SLIDE, UM, NUMBER 25.
AND, UH, THIS ONE IS REALLY TELLING AND, AND THIS ONE, UH, WE STARTED TO TALK ABOUT THIS WHOLE PROCESS.
THIS IS WHERE I WAS GOING, AND I'LL JUST BE TRANSPARENT ABOUT MY THOUGHTS.
UM, I AM VERY MUCH LOOKING FORWARD TO THE DAY WHEN, UM, OUR DEBT IS REDUCED IN 2029.
AND I THINK THAT ALLOWS US AN OPPORTUNITY TO, AS YOU HAVE DESCRIBED, TO PERHAPS DO TWO THINGS, BORROW MONEY AND REDUCE MILLAGE.
UM, SO I'M ALWAYS LOOKING FOR AN OPPORTUNITY TO, UM, YOU KNOW, REDUCE MILLAGE THOUGHTFULLY, UM, YOU KNOW, OVER TIME TO SUPPORT OUR, UH, PROPERTY OWNERS AND OUR BUSINESSES.
AND SO I WANNA MAKE SURE THAT WE HAVE THE OPPORTUNITY TO DO THAT IN, IN THE FUTURE.
UM, THERE ARE ALSO A LOT OF OTHER IMPORTANT DECISIONS THAT WE'RE GONNA BE NEEDING TO MAKE OVER THE NEXT SEVERAL YEARS.
UM, STORM WATER, YOU KNOW, WE'VE
[01:35:01]
TALKED ABOUT STORM WATER AND WE'VE GOT $41 MILLION WORTH OF PROJECTS AND, UM, YOU KNOW, HOW ARE WE GONNA FUND THOSE? AND WE CAN BORROW MONEY AGAINST OUR STORMWATER, UH, BUT THAT YOU CAN ALSO BORROW MONEY FROM OTHER, UH, SOURCES AS WELL.SO THAT, THAT'S AN ISSUE THAT WE NEED TO SOLVE.
WE'VE GOT THE FUTURE OF TOWN HALL.
THIS BILL BUS, UH, BUILDING IS PAST, ITS A LIFE.
AND ALTHOUGH WE, I APPRECIATE THE TOWN MANAGER CHANGING THE CARPET OUT AND HELP, IT'S HELPED A LOT, UH, IN REGARDS TO THE SMELL, BUT THERE ARE STILL SOME, UH, STRUCTURAL AND ENVIRONMENTAL ISSUES IN THIS BUILDING.
AND SO WE DON'T HAVE AN ANSWER FOR THAT YET.
UH, BUT IT IS SOMETHING THAT WE'RE GONNA HAVE TO ADDRESS, UM, MOVING FORWARD.
AND SO WE NEED TO BE THINKING ABOUT THAT.
AND THEN WE HAVE THIS WHOLE QUESTION ABOUT PUBLIC SAFETY.
UM, WE ARE GONNA DO A PUBLIC SAFETY REVIEW AND WHAT DOES THAT MEAN IN REGARDS TO THE TOWN? SO, SO FOR ME, WE HAVE A LOT OF BIG THING, UH, BIG, UM, EXPENSIVE THINGS THAT WE NEED TO THINK ABOUT IN THE FUTURE AS WELL.
AND SO THAT'S WHY I FOCUS ON LESS AND FASTER PAYBACK.
SO, UM, THAT'S WHERE I STAND,
THANK YOU VERY MUCH MR. MCGOWAN, FOR ANOTHER EXCELLENT PRESENTATION.
UM, AND I CAN'T SAY ENOUGH ABOUT HOW, UH, BLESSED WE ARE TO HAVE YOUR EXPERTISE IN THESE MATTERS, SO THANK YOU FOR THAT.
UM, THE, UM, THE ANALYSIS PROVIDED BY MS. HUNTER IS JUST RIGHT ON AS ALWAYS.
UM, A COUPLE OF THINGS THAT I WOULD POINT OUT OR ASK QUESTIONS ABOUT.
FIRST OF ALL, THIS BORROWING WOULD NOT BE AN INCREASE IN
IT WOULD BE THE SAME AS MS. HUNTER POINTED OUT.
THE RESULT IS THAT WE HAVE EXTRA MONEY THAT WE MUST DO SOMETHING WITH BY JUNE 30 OF NEXT YEAR.
UM, AND, AND I ALSO ECHO HER COMMENT THAT THE DEBT SERVICE RESERVE, I SUPPORT THAT AS WELL.
I THINK I SAW YOUR NOTE THAT THAT WOULD BE PART OF THE FY 27 BUDGET.
UM, THEN, UM, ALSO I APPRECIATE IN YOUR SLIDE 18, JUST BACK UP A FEW.
UM, AND THIS IS, UH, ADMITTEDLY UNDER THE THREE $5 MILLION BORROW THAT WE DO HAVE, UM, ESTIMATED DEBT CAPACITY AT THE SAME MILLAGE RATE AS I UNDERSTAND IT MM-HMM
SO IT'S GOOD TO SEE THAT THIS DOESN'T LOCK US OUT, UM, OF FUTURE BORROW FOR OTHER PROJECTS, UM, IN THE, UM, BASED ON THE SAME MILITARY.
UM, SO, UM, I THINK MS. HUNTER AND I HAD THE SAME QUESTION ABOUT, UM, THE LIST OF PROJECTS, THE SHOVEL READY PROJECTS, ANOTHER SOURCE OF FUNDING.
SO I, I RECALL LAST NIGHT THAT WE HAD A WORKSHOP ON CAPITAL IMPROVEMENT PROJECTS, UM, ON AUGUST 26TH, AND I APPRECIATE YOUR RESPONSE TODAY ABOUT OTHER FUNDS AVAILABLE.
UM, BUT I WAS LOOKING AT PRESENTATION OF THE STAFF AND, AND I, I'M GETTING AN ECHO.
UM, OTHER POTENTIAL FUNDING SOURCES FOR CAPITAL PROJECTS, THE BEACH PRESERVATION FEE FUND, WHICH IS RELATED TO OTHER WORK THAT WE DO OTHER THAN RENOURISHMENT, UM, WITH MONEY SAVED BASED UPON OUR PLAN FOR BEACH RENOURISHMENT IN THE FUTURE.
THEN THERE'S THE DEBT SERVICE FUND, ACCUMULATED BALANCES, WHICH IS WHAT WE'RE TALKING ABOUT.
UM, THEN THERE'S A GENERAL OBLIGATION PROPERTY DEBT SERVICE TAX MILEAGE, WHICH IS DIFFERENT, THE STORMWATER UTILITY FUND, UH, TO BE ABLE TO FUND STORMWATER IMPROVEMENTS, WHICH WE ARE CONTINUING TO LOOK AT.
UM, AND THEN, UH, POTENTIAL ESTABLISHMENT OF A NEW TAX INCREMENT FINANCE DISTRICT FOR CERTAIN CAPITAL NEEDS.
UM, AND THEN, AS YOU MENTIONED, CASH ON HAND IN VARIOUS FUNDS.
UM, I, I AM CONCERNED ABOUT BEING ABLE TO GO AHEAD, UM, WITH, UH, SOME OF THE SHOVEL-READY PROJECTS LISTED.
UM, AND I'M ALSO CONCERNED ABOUT THE FUTURE ONES THAT MS. HUNTER HAS MENTIONED, AND THERE ARE OTHER, FROM OTHERS FROM OUR PLAN AND FROM WHAT WE'RE LEARNING ABOUT, UM, SOME OF OUR, UM, UH, FACILITIES AND STRUCTURES.
UM, BUT IN LOOKING AT THIS LIST OF SHOVEL-READY PROJECTS, UM, UH, I LONG ADVOCATE AND CONTINUED ADVOCATE FOR THE PICKLEBALL COMPLEX, AND THAT'S SHOWN AS $10 MILLION, UM, IN SHOVEL READY PROJECTS.
UM, SO IF, IF WE USE WHATEVER OTHER FUNDS WE HAVE AVAILABLE FOR $10 MILLION, THAT REDUCES
[01:40:01]
OTHER FUNDS AVAILABLE.AND IT, SO IT DEPLETES OUR FUNDS AVAILABLE IF WE DON'T, IF, IF WE DON'T INCLUDE 10 MILLION FOR PICKLEBALL IN THIS BORROWING, UM, ALSO MITCHELLVILLE FREEDOM PARK, UH, 2.3 MILLION.
NOW, THAT WOULDN'T REDUCE IT AS MUCH AS 10 MILLION.
UM, BUT IT IS SOMETHING THAT I THINK WE'RE COMMITTED TO DO TO HELP MITCHELLVILLE, HISTORIC MITCHELLVILLE FREEDOM PARK, I'LL SAY THE FULL NAME.
UM, SO, AND THERE'S SOME IMPROVEMENTS TO OWNERS BEACH PARK, WHICH HAVE BEEN, UM, PROMISED IN THE PAST, AND WE DON'T YET, UM, HAVE, UH, WE DON'T YET HAVE A, A CLEAR PLAN ON WHEN THOSE WOULD HAPPEN.
UM, AND SO A LOT OF MY CONSTITUENTS HAVE BEEN CONCERNED ABOUT THE IMPROVEMENTS TO HONORS BEACH PARK.
THEY CONTINUALLY ASK ME ABOUT THEM.
UM, SO I THINK YOU SEE WHERE I'M HEADED.
UM, IT, IT'S MY UNDERSTANDING THAT WHAT WE ARE CONSIDERING TODAY IS THE AMOUNT OF DEBT TO BORROW AND THE TERM, AND THAT WE ARE NOT LOCKED INTO, UM, EXCEPT FOR THE 9 MILLION FOR FIRE AND RESCUE, WHICH I WHOLLY SUPPORT.
UM, SO OTHER THAN THAT, UM, THE LAND ACQUISITION AND THE SHOVEL READY PROJECTS, WE CAN CHOOSE WHAT TO DO AND IN WHAT AMOUNT BASED ON THE BORROW AMOUNT LEFT AFTER THE 9 MILLION FOR FIR AND RESCUE.
UM, SO IS, IS THAT CORRECT? SO IT'S NOT LIKE, UM, A GEO BOND REFERENDUM WHERE YOU MUST LIST THE PROJECTS AND THE AMOUNTS.
THIS IS THE TOTAL AMOUNT, AND IT WILL BE UP TO US AS TO HOW TO DECIDE THAT.
IS THE TOWN COUNCIL UP TO US TO DECIDE HOW TO APPLY THOSE FUNDS AVAILABLE? IS THAT CORRECT, MR. MCGOWAN? IT IS.
AND THE BOND ORDINANCE, AND IT'S, IT'S FAIRLY, UM, VAGUE AT THIS POINT.
IT'S, IT'S GENERIC, BUT WE COULD FILL IN EITHER BROAD LANGUAGE OR VERY SPECIFIC LANGUAGE IN THAT ORDINANCE.
AND I, I COULD, IF YOU'D LIKE, I COULD BRING UP OUR BOND COUNCIL TO DESCRIBE THAT.
UH, MORNING, UH, CHAIRMAN, UH, BROWN COMMITTEE MEMBERS, UH, MY NAME IS MICHAEL SEASON, I'M WITH PERFORIN.
THE DRAFT ORDINANCE THAT HAS BEEN INCLUDED IN YOUR PACKET CURRENTLY DEFINES PROJECTS THAT WOULD BE FUNDED TO INCLUDE THE ACQUISITION, CONSTRUCTION, AND RENOVATION OF CERTAIN PUBLIC FACILITIES.
WE DID INCLUDE A LITTLE BIT MORE OF SPECIFIC LANGUAGE TO SAY THAT IT WOULD INCLUDE A NEW HEADQUARTERS FOR FIRE AND RESCUE IN THE EMERGENCY OPERATIONS CENTER AND THE ACQUISITION AND RENOVATION AND LAND AND EXISTING IMPROVEMENTS THERE ON, UM, THE, THE LANGUAGE STARTS BY TALKING ABOUT JUST CERTAIN PUBLIC FACILITIES.
I THINK THAT'S SUFFICIENTLY BROAD TO COUNCIL'S.
WE CAN, WE CAN ADD AS MUCH DETAIL AS, AS, AS DESIRED OR SPECIFICITY OR, OR LEAVE IT BROAD WITH THE EXCEPTION OF THOSE, THE TWO LISTED, CORRECT.
UM, SO, SO MR. CHAIR, UM, I, I ALWAYS LIKE TO THINK THAT I'M FISCAL CONSERVATIVE.
I DON'T LIKE TO BORROW MONEY EITHER.
UM, AND I CERTAINLY WANNA BE PROTECTIVE OF, UM, OUR PROPERTY OWNERS, UM, THROUGHOUT OUR JURISDICTION WITH REGARD TO MILLAGE RATE.
UM, SO I'M, I'M HAPPY TO SAY THAT WE'VE BEEN ABLE TO REDUCE THE MILLAGE RATE TWICE DURING THE TERM I'VE SERVED ON COUNCIL SO FAR.
UM, SO I, I WANNA KEEP IT THAT WAY, BUT I WANT US TO BE SMART ABOUT HOW WE MAKE BORROW.
UM, IF, IF WE, UM, IF WE BORROW AT THE HIGHER AMOUNT, ONE OF THE SCENARIOS WE PROVIDED THAT IS THE 35 MILLION, I THINK WE HAVE MORE ABILITY TO DO THAT, TO DO THINGS NOW, AND, AND NOT TO PUT THEM OFF IN THE FUTURE.
UM, AND THEN WE STILL HAVE THE BONDING CAPACITY WITHOUT INCREASING VILLAGE RATE IN THE FUTURE, AS MS. TANNER POINTED OUT, WE, WE HAVE A COUPLE CHOICES, WE CAN GO AHEAD AND BORROW MORE, OR WE CAN BORROW MORE AND REDUCE THE MILLAGE RATE, OR WE CAN REDUCE THE MILLAGE RATE.
SO I LIKE HAVING THOSE OPTIONS AS OPPOSED TO BEING FACED WITH, WE MUST BORROW MONEY NOW BECAUSE OF SOME OTHER ISSUE.
UM, SO I, I REALLY LIKE THE FLEXIBILITY IN THE FINANCING OPTIONS THAT WE'RE BEING GIVEN.
UM, SO, UM, MY, UM, LEANING AT THIS TIME IS 35 MILLION, AND I CAN GO WITH A SHORTER TERM OF 15 MILLION, I'M SORRY, 15 YEARS, UH, BECAUSE I'LL TAKE THE EXAMPLE OF IF YOU HAVE A 30 YEAR MORTGAGE ON YOUR HOME AND THEN YOU ARE ABLE TO REFINANCE BECAUSE OF A LOWER INTEREST RATE AND PAY OFF IN 15 YEARS, THERE'S A SIGNIFICANT BENEFIT IN REDUCTION IN INTEREST AND YOUR ABILITY, UM, TO DO OTHER THINGS WITH THE FUNDS YOU HAVE.
[01:45:01]
UM, SO I, I LIKE THE SHORTER PAYBACK TERM, AND IT SEEMS AS THOUGH WE'RE FINANCIALLY ABLE TO DO THAT.SO I WOULD, UM, UH, LEAN TOWARDS THE 35 MILLION BORROW TO BE ABLE TO DO MORE NOW WITH THE OPPORTUNITY OF TO SELECT FROM THE LIST THAT OUR BOND COUNCIL JUST, UH, PROVIDED TO US WITH A SHORTER TERM OF 15 PAYBACK.
UM, ONE OF THE SLIDES, UH, LAYS OUT OUR TIMELINE HERE THAT I AM PARTICULARLY INTERESTED IN.
SO I'M GONNA TAKE THIS MOMENT, UM, AS, UH, THE CHAIR OF THIS COMMITTEE, BUT ALSO UNDERSTANDING THAT THIS WILL BE BEFORE COUNCIL SOONER THAN LATER, UM, TO OFFER UP OUR COUNCIL THAT IS IN THE ROOM TO OFFER YOUR THOUGHTS.
UH, RIGHT NOW, WHAT I'M HEARING FROM COMMITTEE MEMBERS IS, UH, 25 MILLION AT 15 YEARS AND 35 MILLION AT 15 YEARS.
SO I AM INTERESTED IN WHERE YOU ALL, UH, ARE LANDING AND REASONING BEHIND, UM, SO THAT WE CAN COME TO SOME AGREEMENT HERE ON THE DAIS.
UM, SO, UM, I'M NOT GONNA BE PICKY AS FAR AS WHO'S FIRST.
SO ANYONE WANT TO COME UP AND, AND GIVE SOME COMMENTS? MR. ALFRED? COME ON, PLEASE, SIR.
UH, LET ME START OFF WITH SOME PHILOSOPHY ABOUT MUNICIPAL BORROWING.
UM, I THINK WE NEED TO START WITH THE PREMISE THAT MUNICIPAL BORROWING IS NOT SIMILAR TO CORPORATE BORROWING OR INDIVIDUAL BORROWING.
UH, MOST OF US FOR OUR OWN FINANCIAL PLANNING AND SECURITY FEEL THAT WE SHOULD KEEP OUR BORROWING TO A MINIMUM AND PAY IT BACK AS QUICKLY AS POSSIBLE.
I DO NOT BELIEVE THAT THAT'S AN APPROPRIATE APPROACH IN THE MUNICIPAL ARENA.
UH, THERE ARE SEVERAL REASONS FOR THAT.
UH, FIRST OF ALL, IF YOU KEEP MORE CASH ON HAND, YOU HAVE GREATER FLEXIBILITY TO DEAL WITH UNFORESEEN THINGS THAT COME ALONG IN THE NEXT COUPLE OF YEARS.
SECOND, IF YOU PAY WITH CASH, UH, FOR PROJECTS THAT YOU'RE DOING NOW, IT MEANS THAT THE PEOPLE WHO PAY TAXES IN THE PAST ARE PAYING FOR THINGS THAT ARE AVAILABLE ONLY IN THE FUTURE.
WHEN YOU BORROW THROUGH BONDS, THE PEOPLE IN THE FUTURE ARE PAYING FOR ITEMS THAT BECOME AVAILABLE IN THE FUTURE.
FROM AN ECONOMIC STANDPOINT, UH, IT WAS JUST INDICATED THAT MAINTAINING A SIGNIFICANT CASH BALANCE HAS AN ENORMOUS ECONOMIC, UH, UPSIDE TO THE TOWN.
UH, IT WAS INDICATED THAT WE MADE $11 MILLION LAST YEAR ON, ON INVESTMENTS ON OUR CASH.
UH, AND THAT'S BECAUSE THERE'S A DIFFERENCE IN BETWEEN THE RATE THAT WE CAN EARN AND THE RATE THAT WE WOULD PAY ON A BOND ISSUE.
SO FOR ALL THOSE REASONS, BORROWING IS, IS NOT A BAD THING.
IT'S NOT THE KIND OF THING YOU SHOULD BE CONCERNED ABOUT IN TERMS OF YOUR OWN INDIVIDUAL, UH, BUDGET.
UH, WE, I THINK ARE ECONOMICALLY AND FINANCIALLY MUCH BETTER OFF TO BORROW THAN WE ARE TO USE OUR CASH IN MANY SITUATIONS.
MY OWN PERSONAL VIEW IS THE DETERMINATION OF THE AMOUNT THAT WE BORROW SHOULD BE BASED ON PROJECTS THAT WE FEEL AT THE PRESENT TIME, UH, SHOULD MOVE FORWARD.
WE HAVE AN OBLIGATION TO THE COMMUNITY, UH, TO PROVIDE, UH, THE BEST IN FACILITIES AND SERVICES THAT WE CAN.
AND WE HAVE DONE VERY WELL WITH THAT IN THE PAST.
AND I THINK THAT, THAT, THAT OBLIGATION TO THE PUBLIC SUGGESTS THAT WE LOOK AT, FROM A PROJECT POINT OF VIEW, HOW MANY PROJECTS DO WE HAVE? AND OF COURSE, IT'S BEEN INDICATED SHOVEL-READY, WHICH MEANS THAT THERE ARE MORE THAT WE WILL BE THINKING ABOUT IN THE COMING YEARS.
BUT I PERSONALLY WOULD LIKE TO SAY, LET'S DO, LET'S BORROW MONEY IN AN AMOUNT THAT COVERS THE PROJECTS FOR WHICH WE AS A COUNCIL PROVIDE A PRIORITY.
UH, AND WHETHER THAT COMES OUT TO BE 28 MILLION OR SOME OTHER FIGURE, THAT'S WHERE I WOULD GO.
UM, I THINK UNDER THE CIRCUMSTANCES, PAYING IT BACK OVER A SHORTER PERIOD OF TIME IS PROBABLY BETTER, BUT I DO THINK WE, WE HAVE A PHILOSOPHICAL QUESTION HERE, AND THAT IS, BORROWING IS NOT A BAD THING FOR A PUBLIC BODY.
WELL, MR. ALFRED, BEFORE YOU GO, MAKE SURE THAT MR. ALFRED, I'LL CIRCLE BACK.
COULD YOU COME BACK, SIR? JUST
[01:50:01]
THE NEED TO BORROW BASED ON THE SHOVEL READY PROJECTS, WHICH I THINK WAS 28 MILLION, IF I'M NOT MISTAKEN.I'LL LET MR. GOWAN SORT OF SPEAK TO THAT BEFORE YOU LEAVE.
CAN I SIT DOWN NOW?
UM, THANK YOU FOR THIS OPPORTUNITY AND THANK YOU FOR THE PRESENTATION THIS MORNING.
UM, I'M NOT GOING TO REITERATE A LOT OF WHAT I'VE HEARD, UM, SIMPLY TO SAY THAT, UM, MY COLLEAGUE, UM, MELINDA, UH, COUNCILWOMAN TANNER HIT THE NAIL ON THE HEAD.
I AGREE WITH EVERY DETAIL THAT SHE PRESENTED AND THEREFORE DOESN'T NEED TO BE RESET.
UM, HOWEVER, THERE ARE SOME CONCERNS THAT I HAVE.
UM, AND WITH REGARD TO BORROWING THE MONEY FOR LAND ACQUISITION, I WANT TO BE CERTAIN THAT THAT LAND ACQUISITION AS, UH, MS. HUNTER CORRECTLY POINTED OUT IS TO HELP CONTROL DEVELOPMENT MANAGE THE ISLAND AND PUT THAT LAND INTO CONSERVATION.
AND AS LONG AS THAT IS PART OF THE AGREEMENT, THEN I'M FINE WITH THAT PIECE OF IT.
SO THAT SPECIFIC, UM, MUST BE DETAILED FOR ME.
UM, WITH REGARD TO THE PROJECTS, I HAVE A PHILOSOPHY AND I DON'T THINK YOU SHOULD BUY SOMETHING YOU CAN'T PAY FOR.
AND SO EACH TIME WE PUT A VOTE TO APPROVE A PARK OR SOMETHING, WE NEED TO MAKE SURE THAT WE'VE THOUGHT ALONG WITH THAT WHERE THE MONEY IS COMING FROM AND WE SHOULD NOT BE THINKING THAT WE'LL MAKE A PROMISE AND BORROW THE MONEY LATER.
SO THOSE TWO MUST COORDINATE FOR ME.
AND SO I AM SUFFICIENTLY, UM, CONVINCED THAT, AS MS. TURNER CORRECTLY POINTED OUT, WE HAVE THOSE FUNDS, UM, AVAILABLE TO US IN OUR, UM, BUDGET.
AND WE SHOULD STICK WITH DOING THAT AND WE SHOULD KEEP THAT TYPE OF POLICY MOVING FORWARD.
YOU NEED TO BE ABLE TO PAY FOR WHAT YOU PROMISE.
UM, MR. TESTIMON, YOU GOOD? I'M SPECTATOR.
THOSE, THOSE COMMENTS WERE ABSOLUTELY HELPFUL.
UM, MR. MCGOWAN HAS, UM, SHOWN THE 28 2 DESK IN THE, DO YOU HAVE SOMETHING ELSE, MS. BECCA? YOU HAVE SOMETHING ELSE? NO, I'M FINE.
I JUST, IT'S ALL BACKED UP TO WHAT MS. KIND SAID.
UM, BASED ON MS. BECKER'S, UH, COMMENT AROUND LAND ACQUISITION, I'D ASK THAT THE BOND COUNCIL RE-APPROACH PLEASE SO THAT WE CAN ASK THE QUESTION, UM, AS FAR AS IF THERE'S AN OPPORTUNITY TO, TO TIGHTEN IT UP A BIT, UM, BASED ON HER COMMENTS OF THE LAND ACQUISITION PIECE BEING ASSOCIATED WITH CONSERVATION EFFORTS.
AND WE CAN, AND OF COURSE THE TOWN IS A, AS A, UH, THE USE OF THE REAL ESTATE TRANSFER FEES FOR VERY SPECIFIC PURPOSES.
UM, I THINK IT WOULD BE, WE COULD INCLUDE SOME LANGUAGE TO MAKE IT CONSISTENT WITH THAT.
I THINK THAT WAS AN EXCELLENT SUGGESTION.
WE WILL, UH, HAVE FURTHER DISCUSSION AMONGST THE COMMITTEE HERE.
UM, I'M GONNA MAKE SOME COMMENTS BEFORE I ASK YOU ALL TO, TO, TO WEIGH IN ON A POTENTIAL MOTION HERE.
UM, I THINK WE ARE DEFINITELY IN A VERY POSITIVE POSITION, UM, FOR A LOT OF REASONS AND A LOT OF GRATITUDE TO OUR STAFF, UM, FOR HELPING TO, UH, LEAD US IN THIS DIRECTION.
UM, I THINK THE LAND PURCHASE PIECE IS, IS CRITICAL.
PROBABLY THE MOST CRITICAL OF ALL THAT WE'RE, WE'RE TALKING ABOUT HERE.
UM, OBVIOUSLY WE'VE GOT, UH, A BALANCE THAT WE, THAT WE NEED TO DEAL WITH AS WELL.
UM, THE REAL ESTATE TRANSFER FEE, ALTHOUGH WE HAVE ENJOYED A CONTINUAL INCREASE IN THAT, UM, YOU JUST, YOU JUST NEVER KNOW.
AND I THINK, UM, BEING ABLE TO PRESERVE, UM, THROUGH ACQUISITION OF LAND CAN ONLY HELP OUR POSITION AS FAR AS OUR LAND VALUES HERE ON HILTON HEAD.
UM, THE OTHER KEY POINT FOR ME, UM, YOU KNOW, LAST YEAR WE MADE $11 MILLION IN INVESTMENT, AND WHEN YOU LOOK AT WHAT IT'S GONNA COST US TO BORROW THIS MONEY, IF IT'S 25 OR 35, WE'VE ULTIMATELY ALREADY PAID FOR IT WITH WHAT WE EARNED ON ON LAST YEAR.
UH, SO, UM, HAVING SOME FLEXIBILITY I THINK IS IMPORTANT.
[01:55:01]
DIRECTOR MENTIONED EARLIER THAT WE ARE ABOUT A 70% BURN IN OUR CIP, UH, SO THOSE PROJECTS THAT ARE LISTED AT THE 28 2, I'D HOPE THAT WE CONTINUE THAT TYPE OF PACE.AND, UM, I GUESS WHAT I'M LOOKING TO SORT OF AVOID IS AS WE GET INTO THE MEAT OF THE FIVE YEAR CAPITAL IMPROVEMENT PLAN, WHICH I, I, I FIRMLY BELIEVE WE'VE ALL TALKED ABOUT THOSE THINGS.
THEY'RE IMPORTANT TO OUR COMMUNITY, THEY'RE REINVESTMENTS, UH, BUT I DON'T WANT ANY OF THEM TO BECOME A POLITICAL FOOTBALL BASED ON MONEY.
AND THIS GIVES US SOME FLEXIBILITY BY GOING OUT AND BORROWING.
SO I'M MORE INCLINED TO BORROW AT A HIGHER AMOUNT, UM, THE 35 MILLION.
UM, BUT I AGREE, YOU KNOW, IF WE CAN CAN PAY IT BACK QUICKER, I'D LIKE TO PAY IT BACK QUICKER.
OBVIOUSLY IN TWO YEARS WE'RE GOING TO BE HAVING A SIMILAR DISCUSSION TO THIS ONE, UM, AROUND MILLAGE AND IF WE'RE GOING TO BORROW.
UM, SO I'M LEANING MORE TOWARDS THE FLEXIBILITY PIECE OF IT, UM, WITH HAVING A LITTLE BIT MORE OPPORTUNITY IN THE AMOUNT THAT WE'RE, THAT WE'RE BORROWING.
SO I'LL, I'LL LEAVE IT THERE, UM, AND LOOK FOR ADDITIONAL COMMENTS FROM COMMITTEE MEMBERS OR POTENTIAL MOTION SO THAT CAN OPEN UP TO THE FLOOR.
UH, MR. CHAIR, UM, I DON'T HAVE THE FULL LANGUAGE OF THE ORDINANCE IN FRONT OF US.
COULD WE BRING THAT UP? UH, SURE.
I THINK THERE'S SOME BLANKS TO BE FILLED IN.
UH, HERE, GIVE US A SECOND, BUT NOT MANY THAT WE NEED TO FILL IN TODAY.
I THINK THE MAIN THING FOR US TO FILL IN IS THE AMOUNT THAT FIRST LINE AUTHORIZING, ISSUANCE AND SALE OF NOT TO EXCEED.
AND THEN THAT'S THE NUMBER THAT WE'RE TALKING ABOUT TODAY.
UM, SO I WOULD ASK, UM, MR. MCGOWAN OR IVAN COUNCIL, IF THERE ARE ANY OTHER BLANKS THAT WE NEED TO FILL IN IN OUR MOTION COMMITTEE MEMBER? UH, BRYSON, YOU'RE CORRECTLY, UH, THE, UH, PRINCIPAL BLANK THAT IS, UH, INCLUDED BOTH IN THE TITLE HERE THAT YOU CAN SEE AND THROUGHOUT THE COURSE OF THE ORDINANCE IS THE, THE MAXIMUM AMOUNT OF THE BONDS THAT CAN BE ISSUED.
UM, CERTAINLY WE WOULD LIKE TO, TO GET SOME GUIDANCE IF POSSIBLE TODAY.
I MIGHT ALSO RECOMMEND THAT, OF COURSE, IS A NOT EXCEEDING AMOUNT.
SO COUNSEL COULD USE A, A HIGHER, IF THEY'RE TORN BETWEEN TWO NUMBERS, USE THE HIGHER OF THE TWO.
THAT CAN BE, UH, YOU KNOW, LOWERED DURING FIRST READING IF COUNCILS TOWN COUNCIL DECIDES TO DO SO, OR TO LEAVE IT THERE.
OR QUITE FRANKLY, THE AUTHORIZED AMOUNT COULD BE 35 MILLION AND THEN THE TOWN COULD ELECT TO ISSUE LESS THAN 35 MILLION.
IF THAT'S THE, IF THAT'S THE, UM, THE WISH OF COUNCIL.
AS FAR AS THE OTHER BLANKS, THEY REALLY ARE RESTRICTED TO, OR NOT BLANKS, BUT THE, THE, THE OTHER BRACKETED LANGUAGE RELATES TO THE PROJECT DESCRIPTION.
I THINK, UH, AT LEAST IF, IF IT'S A VIEW OF THE COMMITTEE THAT I'VE GOTTEN, UM, ENOUGH, UH, INPUT FROM Y'ALL TO BE ABLE TO TIGHTEN UP THAT LANGUAGE TO MAKE IT CLEAR THAT LAND ACQUISITION COST WOULD BE MENTIONED, BUT ON TO SPECIFY THAT IT'S FOR CON CONSERVATION PURPOSES.
UM, I THINK I WOULD ALSO RECOMMEND, UH, IN THE PROJECT DESCRIPTION INDICATING THAT, UH, IN ADDITION TO IT, UH, FUNDING CERTAIN PUBLIC FACILITIES TO SAY INCLUDING, BUT NOT LIMITED TO A NEW HEADQUARTERS FOR FIRE AND RESCUE IN THE EMERGENCY OPS BUILDING THAT WAY AND, AND THE LAND ACQUISITION.
THAT WAY, IF COUNCIL SHOULD CHOOSE TO, UM, OR DESIRE TO ISSUE BONDS FOR ANY OF THOSE OTHER SHOVEL-READY PROJECTS, THOSE WOULD BE INCLUDED WITHIN THE AUTHORIZATION GIVEN.
SO THOSE WOULD BE THE TWO PRINCIPLE, UM, ITEMS THAT I WOULD, I WOULD RECOMMEND OR MENTION.
AND I, I DIDN'T HEAR PAYBACK TIME PERIOD, SO WE DON'T NEED TO INCLUDE THAT WITHIN THIS MOTION.
THANK YOU FOR, FOR REMINDING ME THE WAY THAT THE, UH, THE AUTHORIZATION IS SET UP, IT DELEGATES THE AUTHORITY TO THE TOWN MANAGER IN ORDER TO PREPARE THE REQUEST FOR PROPOSAL, UM, OR THE, UH, PRELIMINARY OFFICIAL STATEMENT, SUMMARY NOTICE OF SALE, AND SEND THAT OUT IN ORDER TO TAKE BIDS.
VERY SIMILAR TO THE PROCESS THAT WE WENT THROUGH.
UM, WITH RESPECT TO THE BEACH PRESERVATION FEE, THE, THERE'S NOTHING IN THE ORDINANCE THAT SPECIFIES WHAT THE MATURITY IS, SO THAT THAT REALLY IS A CHOICE OR A CONVERSATION BETWEEN COUNCIL AND THE FINANCE DIRECTOR AND THE TOWN MANAGER AS FAR AS WHAT, WHAT THE APPROPRIATE, UM, MATURITY WOULD BE FOR COUNCIL TO DECIDE, BUT IT DOESN'T NEED A FURTHER, UM, UH, CHANGE TO THE ORDINANCE.
SO EVEN THOUGH IT'S NOT WRITTEN THAT WAY, IT COULD BE ADDED.
UM, MR. CHAIR, BASED UPON THAT INFORMATION AND THE OTHER INFORMATION PROVIDED TO US TODAY, I MOVE TO RECOMMEND THAT THE TOWN COUNCIL ADOPT AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $35 MILLION GENERAL OBLIGATION BONDS.
AND I'M NOT GONNA READ THE WHOLE REST OF THAT TITLE.
UM, AND TO INCLUDE IN THEIR A 15 YEAR PAYBACK AND THE LANGUAGE RECOMMENDED BY BOND COUNSEL BASED ON OUR COMMENTS BEFORE SHE TAKES A, A BREATH ON THAT MOTION
DO WE NEED TO DEAL WITH THAT IN
[02:00:01]
THIS MOTION AS WELL? MY IMPRESSION IS THAT IT COULD BE INCLUDED IN THE BUDGET FOR NEXT YEAR.MS. BRYSON, ARE YOU, YOU DONE WITH THAT MOTION? YES, SIR.
I WANNA MAKE SURE I'VE INCLUDED WHAT WE NEED TO INCLUDE IN THE MOTION.
ALRIGHT, DO WE HAVE A SECOND? OKAY.
WELL, POTENTIALLY, I JUST WANNA KNOW, DO YOU HAVE A, A A MOTION THAT YOU WOULD LIKE TO PRESENT FOR A SECOND, UM, THAT IS DIFFERENT FROM MS. BRYCE'S MOTION? IF THE ANSWER IS YES, YES, THEN I WILL NOT PASS OVER THE G THIS MOTION WILL FEEL AND THEN WE'LL GO TO YOU.
ALL RIGHT? YES, I DO HAVE A MOTION.
SO THERE'S NO SECOND ON MS. BRYCE'S MOTION AT THIS MOMENT, SO WE WILL GO TO MS. TURNER FOR A MOTION.
MY MOTION IS TO ADOPT AN ORDINANCE GRANTING, UM, ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS TO A TOTAL OF $25 MILLION FOR USE IN, AS YOU DESCRIBED, THE HEADQUARTERS AND LAND ACQUISITION FOR CONSERVATION FOR 15 YEARS.
I NEEDED TO DO THAT SO THAT I MAKE SURE THAT EVERYBODY'S AWARE AS TO WHAT IS ON THE TABLE.
UM, SO BOTH MISSIONS ARE FAILED AND, UH, NOW WE WILL ENTERTAIN A MOTION THAT MAY BE IN BETWEEN THE TWO NUMBERS OR SOMETHING THAT WE COULD MAYBE GET TO A SECOND, UH, MR. CHAIR BEFORE I WOULD SUGGEST ANYTHING ELSE.
I THINK AS I UNDERSTOOD OUR BOND COUNCIL, THAT IF THE ORDINANCE SAYS NOT TO EXCEED 35 MILLION, WE'RE NOT LOCKED INTO THAT NUMBER, IT COULD BE LOWER THAN 35 MILLION.
IS THAT CORRECT, MR. BOND COUNCIL? YES, THAT'S CORRECT.
UM, SO FOR THAT REASON, I WOULD RENEW MY MOTION, UM, FOR THE, UH, TO RECOMMEND ADOPTION OF AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED 35 MILLION WITH 15 YEAR PAYBACK AND THE LANGUAGE SUGGESTED BY THE BOND COUNCIL BASED ON OUR COMMENTS.
AND I WILL PASS THE GAVEL TO GET A SECOND.
NOW WE WILL OPEN UP FOR PUBLIC COMMENT.
ANYONE SIGNED UP? MR. WILLIAMS? YES.
ANYONE ELSE WANT TO MAKE COMMENTS ON THIS PARTICULAR ITEM? OKAY.
WE'LL BRING IT BACK TO THE DIOCESE.
ANY FURTHER DISCUSSION ON IT? IT'S BEEN, UH, MOTIONED AND SECONDED.
ALL IN FAVOR SIGNIFY BY RAISING YOUR RIGHT HAND.
THOSE OPPOSED A TWO TO ONE PASSES.
WE LOOK FORWARD TO SEEING YOU VERY SHORTLY AT TOWN COUNCIL.
SO I'M GONNA OFFER US ABOUT A FIVE MINUTE BREAK.
[5.b. Consideration of a Resolution for Reimbursement of the Fire Rescue Headquarters Acquisition - John McGowan, Assistant Finance Director]
UH, NEXT ITEM UNDER NEW BUSINESS CONSIDERATION OF RE RESOLUTION FOR REIMBURSEMENT OF DEFIANT RESCUE HEADQUARTERS ACQUISITION, MR. MCGOWAN.THE F AND A COMMITTEE IS REQUESTED TO REVIEW, UH, AND WE'VE GOT THE ORDINANCE UP THERE.
WE'VE GOT THE MEMO, UH, TO REVIEW AND APPROVE THE REIMBURSEMENT RESOLUTION, WHICH YOU GIVE THE TOWN THE ABILITY TO REIMBURSE FUNDS EXPENDED FOR PROPERTIES PURCHASED AT NINE IN 10 PARK LANE, AS WELL AS IMPROVEMENTS TO THESE PROPERTIES.
THESE PROPERTY ACQUISITIONS IMPROVEMENT WILL RESULT IN THE CREATION OF THE NEW TOWN FIRE AND RESCUE HEADQUARTERS IN E IN EMERGENCY OPERATION CENTER.
THE TOWN CURRENTLY ESTIMATES THE COMBINED COST OF ABOUT $9 MILLION, AND WE EXPECT THE LAND PURCHASE OF 7.7 MILLION WILL CLOSE IN JANUARY OF 2026.
THE TOWN WOULD REIMBURSE ITSELF FOR THESE EXPENDITURES FROM A PORTION OF THE PROCEEDS OF THE PROPOSED GENERAL OBLIGATION BOND ISSUE THAT WE ANTICIPATE CLOSING ON JUNE 1ST, 2026.
IS THERE A MOTION ON THIS ONE? YES, I MAKE A MOTION TO APPROVE A RESOLUTION RELATING TO THE DECLARATION OF INTENT BY THE TOWN OF HILTON HEAD ISLAND, SOUTH CAROLINA, TO REIMBURSE CERTAIN EXPENDITURES PRIOR TO THE ISSUANCE BY THE TOWN OF TAX EXEMPT DEBT, AS IN THE
[02:05:01]
MATERIALS PRESENTED.THE SECOND, UM, SORRY, MR. CHAIR, I DIDN'T HAVE MY, UM, VIDEO ON MUTE ON THAT.
UM, AND I THINK THE ONLY THING IS THERE IS A BLANK TO FILL IN, UM, IN THE LAST, WHEREAS, UM, OF WHAT WE RECENTLY ADOPTED WILL NOT EXCEED 35 MILLION.
YOU HAVE A, YOU HAVE SOMETHING TO ADD ON THAT? NO, SIR.
ANYHOW, THANK YOU FOR PUTTING THAT UP.
SO MY QUESTION IS, DO WE NEED TO ADD THE THREE 5 MILLION TO THE LAST WE'RE AT? SORRY.
UM, SO THE, THE ANSWER TO THE QUESTION IS THAT THE PURPOSE OF THIS RESOLUTION IS REALLY TO ESTABLISH THE, THE, UH, OFFICIAL, THE TOWN'S OFFICIAL INTENT TO, UH, TO ISSUE DEBT LATER IN ORDER TO REIMBURSE ITSELF FOR EXPENDITURES THAT IT'S INCURRING NOW.
SO THE INTENT, THE, THE WAY THAT IT READS, IT DOESN'T HAVE TO BE 35 MILLION.
IT COULD BE AN AMOUNT THAT'S LOWER.
IT COULD BE THE AMOUNT THAT WOULD BE, UH, EQUAL TO, OR SOME AMOUNT THAT IT THINKS WILL BE REIMBURSED.
SO IT COULD BE JUST THE LAND PURCHASES THAT IT INTENDS TO UNDERTAKE IN THE NEXT COUPLE OF MONTHS.
IT COULD BE THE AMOUNT FOR LAND ACQUISITION IN GENERAL THAT, THAT IT ANTICIPATES, UH, SPENDING.
IT DOESN'T HAVE TO BE THE WHOLE 35 MILLION.
IT IS, THAT IS NEW INFORMATION TO ME.
SO I GUESS JOHN, WHAT WAS THE, BECAUSE THE, THE STEP WRITEUP 9 MILLION WAS FOCUSED ON THE $9 MILLION FOR THE BUILDING.
SO IT WASN'T, THIS RESOLUTION WAS NOT SUPPOSED TO BE ABOUT THE ENTIRE AMOUNT CORRECT.
SO IF WE'RE, IF WE, IF I NEED TO MAKE A, AN ADDITION ONTO MY MOTION, I'LL GO WITH WHAT THE STAFF RECOMMENDS OF $9 MILLION.
YOU COMFORTABLE WITH THAT, MS. BRYSON? THAT TAKES CARE OF THE REIMBURSEMENT PIECE FOR YES.
THE LAND ACQUISITION OF FIRE AND RESCUE? YES.
AND THERE'S NO, UM, IS THERE ANYTHING ELSE THAT WE NEED TO BE CONSIDERING IN THE IMMEDIATE FUTURE, UM, BEFORE, UH, I GUESS BEFORE THE, UH, BOND IS ACTUALLY ISSUED, OTHER THAN I'M, I'M SUPPORTIVE OF THE 9 MILLION, DON'T GET ME WRONG ABOUT THAT ONE.
I, I JUST WANNA MAKE SURE THERE'S NOTHING ELSE THAT WE NEED TO BE CONSIDERING, UM, FOR REIMBURSEMENT FROM THE BONDS IN IMMEDIATE FUTURE.
ARE THERE ANY OTHER LAND PURCHASES THAT RIGHT, WELL, I MEAN WE COULD, WE COULD DO ANOTHER RESOLUTION.
YOU THAT'S ANSWER NO, ALL THE ANSWER IS NO.
I'M COMFORTABLE WITH THAT AND I'LL SECOND THE MOTION.
SO THE MOTION INCLUDES THE NOT TO EXCEED OF THE I NONILLION THAT IS IN THE STAFF REPORT.
UM, I'LL TURN TO COUNCIL FIRST.
UM, OTHER COUNCIL MEMBERS? UM, ANYTHING MR. ALFRED? MS. BECCA, MR. DESIMONE? WE'RE GOOD ON THAT.
ANY PUBLIC COMMENT ON THIS PARTICULAR ITEM? MS.
ANYONE ELSE? WE'LL BRING IT BACK TO THE DAAS.
ANY FURTHER DISCUSSION? READY FOR THE QUESTION? ALL IN FAVOR? SECOND FIVE BY RAISING YOUR RIGHT HAND, PLEASE.
[5.c. Consideration of a Resolution of the Town of Hilton Head Approving the Recommendation from the Accommodations Tax Advisory Committee for the Calendar Year 2026 Grants - Michele Bunce, Senior Grants Administrator]
ALL RIGHT.CONSIDERATION OF RESOLUTION OF THE TOWN OF HEALTH NET ISLAND PROVEN THE RECOMMENDATION FROM THE ACCOMMODATIONS TAX ADVISORY COMMITTEE FOR THE CALENDAR YEAR 2026.
UM, BEFORE WE GET STARTED, UH, WANT TO SAY THAT, UM, I'VE HAD DISCUSSIONS WITH, UM, OTHER COUNCIL MEMBERS WHO HAVE WATCHED THE DELIBERATIONS OF THE ATAC COMMITTEE, OBVIOUSLY, UM, VERY DIFFERENT ENVIRONMENT THIS YEAR BASED ON THE POLICY THAT THIS COUNCIL PUT IN PLACE, UM, TO SORT OF FORMALIZE THE AMOUNT OF MONIES THAT WOULD BE AVAILABLE FOR ATAC GRANTS.
AND, UM, I, I'M GONNA TAKE THE LIBERTY TO SPEAK FOR ALL THE COUNCIL HERE AND COMMENDING YOU ALL AT THAT COMMITTEE LEVEL.
UH, FOR THE VERY VIVID DISCUSSIONS, THOUGHTFUL QUESTIONS, UM, TO GET US TO THIS POINT.
IT WAS NO EASY TASK ABOUT, UH, 600 KI THINK WAS THE
UM, SO, UH, WE DO NOT TAKE THAT WORK LIGHTLY AT ALL.
UM, SO I JUST WANTED TO SET THE TABLE AS FAR AS
[02:10:01]
THE PRESENTATION IS CONCERNED.SO, CHAIRMAN BROWN AND COMMITTEE MEMBERS, UM, AND I JUST WANT TO REITERATE, THANK YOU A GREAT BIG THANK YOU TO THE ATAC COMMITTEE, UM, WHICH WE HAVE SEVERAL HERE TODAY.
I WANNA RECOGNIZE CHAIRMAN SCHLAGEL, VICE CHAIR, LES MEMBER FERGUSON, MEMBER FERRELL.
AM I MISSING ANYBODY? DON'T WANNA MISS ANYBODY.
AND JUST MANY THANKS FOR THEM EVEN BEING HERE TODAY AS WELL.
UM, AND DO YOU WANT TO COMMEND THEM, THEM? THAT WAS A VERY HARD TASK AT HAND, AND THEY DID A WONDERFUL JOB.
SO WE WERE VERY EXCITED, UM, TO HAVE THEM ALL HERE TODAY TO PRESENT THEIR HARD WORK TO YOU.
SO, ESSENTIALLY, THE COMMITTEE MET ON NOVEMBER 7TH TO FINALIZE ITS RECOMMENDATIONS THAT THEY'LL BE PRESENTING TO YOU TODAY VIA THE CHAIRMAN.
AND THESE RECOMMENDATIONS DEFINITELY ARE BASED ON TURK POLICY AS WELL AS THE TOWN'S NEWLY ADOPTED POLICY, UM, THAT THEY ADOPTED BACK IN JULY.
SO A TOTAL OF 37 APPLICATIONS WERE RECEIVED.
THEY'LL BE SUBMITTING TO YOU TODAY A RECOMMENDATION FOR 35 OF THOSE APPLICATIONS TO BE RECOMMENDED FOR FUNDING ONE APPLICATION TO GET WITHDRAWN VOLUNTARILY BY THE APPLICANT.
UM, THESE RECOMMENDATIONS DO ALIGN WITH THE TOWN'S NEW COMPREHENSIVE SOUTH CAROLINA ACCOMMODATIONS TAX PROGRAM, WHICH WE MENTIONED, WHICH IS WHERE THAT FUNDING NUMBER CAME FROM, THAT THEY WERE WORKING FROM.
SO JUST TO KINDA GIVE A REMINDER ABOUT THAT, UM, TUR LAW ENSURES THAT THE FUNDS ARE USED IN ACCORDANCE WITH THE PROVISIONS OF TITLE SIX, CHAPTER FOUR, WHICH WE HAVE MENTIONED IN THE SOUTH CAROLINA CODE OF LAWS.
AND THEN ALSO, AS I JUST PREVIOUSLY MENTIONED, THOSE RECOMMENDATIONS ALSO ALIGN WITH THE TOWN'S NEW PROGRAM AS WELL.
THE COMMITTEE DID HOLD APPLICANT HEARINGS WHERE AT THAT TIME THE APPLICANTS DID BRIEF PRESENTATIONS, AND THE COMMITTEE WAS ABLE TO ASK ADDITIONAL QUESTIONS, UM, THAT THEY MIGHT HAVE HAD AFTER REVIEWING ALL THEIR APPLICATIONS AND DOCUMENTATION THAT THE STAFF PROVIDED TO THEM.
SO, I'M NOT GONNA REITERATE WHAT THE CHAIRMAN'S GONNA DO.
UM, WANT TO WELCOME HIM UP AND JUST SAY THANK YOU AGAIN TO NOT ONLY THE ATAC COMMITTEE, BUT ALSO THE MANY APPLICANTS FOR THE GREAT JOB THAT THEY DID AS WELL.
AND THERE ARE SOME IN THE AUDIENCE HERE TODAY, AND WE APPRECIATE ALL THEIR HELP, UM, FROM THE STAFFING POINT, ALL THEIR FEEDBACK THAT HAS HELPED US IMPROVE THIS PROGRAM THIS YEAR.
SO, WITHOUT FURTHER ADO, CHAIRMAN SCHLAGEL.
I WANNA THANK ALL THE MEMBERS OF TOWN COUNCIL AND, UH, ALL OF THOSE WHO PAID INTO THIS AT TAX FUND TO MAKE THIS PROGRAM AVAILABLE.
I WANNA THANK THE TOWN STAFF, MICHELLE SHENA, AND ZENDAYA PUT A LOT OF WORK INTO IMPROVING THINGS THIS YEAR.
TAKING, UH, SOME OF YOUR COMMENTS, MS. HUNTER, ABOUT, UH, BEST PRACTICES.
I WANNA THANK THE WONDERFUL ORGANIZATIONS WHO APPLIED THROUGH THE GRANT PROGRAM THAT MAKE HILTON HEAD A VERY SPECIAL PLACE.
THE NUMBER OF WORLD-CLASS EVENTS AND PROGRAMS THAT WE HAVE FOR A COMMUNITY THIS SIZE IS, IS JUST ASTONISHING.
I WANNA THANK THE MEMBERS OF THE COMMITTEE WHO, UH, WE THINK PUT IN AN AVERAGE OF 50 HOURS, UM, THIS YEAR INTO THIS PROGRAM.
SO COLLECTIVELY, 350 OR SO HOURS INVESTED IN TRYING TO MAKE THIS PROGRAM AS EFFICIENT AS WE POSSIBLY COULD.
UH, LAST YEAR THERE WAS DISCUSSION ABOUT BEST PRACTICES, AND AS A RESULT OF THAT, I JUST WANNA SUMMARIZE A COUPLE THINGS.
UH, TOWN STAFF HAS MET WITH OTHER ATAC, UM, COMMUNITIES AND COMMITTEES TO SEE HOW THEY DO WHAT THEY DO, AND ARE THERE WAYS THAT WE CAN IMPROVE THINGS.
UM, THIS YEAR, TOWN STAFF SPENT SIGNIFICANT AMOUNT OF TIME REORGANIZING AND SIMPLIFYING THE ONLINE PRESENCE IN FOLDERS THEY HAD ACCUMULATED OVER TIME AS DOCUMENTS WERE PUT IN.
AND SO EACH FOLDER FOR EACH APPLICANT LOOK COMPLETELY DIFFERENT.
AND THAT'S ALL BEEN CHANGED, WHICH MAKES THE PROGRAM MUCH SIMPLER TO FOLLOW.
UH, THIS YEAR WE ESTABLISHED A MORE ROBUST WORKSHOP PROGRAM AND ADDED AN EVENING PROGRAM TO ACCOMMODATE THOSE FOLKS WHO WERE NOT ABLE TO MAKE A MORNING SESSION.
UM, TOWN STAFF ALSO PROVIDED A WORKSHEET TO CONSIDER FIVE FOCUS ITEMS IMPORTANT TO THE TOWN, THE ALIGNMENT OF STRATEGIC PLAN WITH THE TOWN, THE COMMUNITY AND ECONOMIC IMPACT, GROWTH, POTENTIAL APPLICATION QUALITY, AND LONG-TERM SUSTAINABILITY.
THE ATAC PROGRAM HAS HAD SOME CRITICISM IN THE PAST AS BEING HEADS AND BEDS, AND IT'S IMPORTANT TO DO THAT BECAUSE THAT'S WHAT DRIVES THE DOLLARS.
BUT THERE ARE SO MANY MORE THINGS THAT GO INTO THE CONSIDERATION, AND I THINK TOWNS STAFF HELPED US UNDERSTAND THAT.
HEADING INTO NEXT YEAR, UM, WE'RE GONNA RECOMMEND THAT THE WORKSHOP BE MANDATORY.
WE FOUND SOME OF THE NEWER APPLICANTS WERE MISSING SOME THINGS, AND TOWN STAFF HAD TO CHASE 'EM A LITTLE BIT.
UM, WE'RE REVISING THE APPLICATION SO THAT WE GET SOME SPECIFIC DETAIL, MORE AND BETTER DETAIL WITH REGARD TO BUDGET ITEMS, MARKETING AD SPEND, AND WHAT THE ROI MIGHT BE ON THAT.
WE RECOGNIZE THAT NOT ALL OF THE APPLICANTS HAVE THE ABILITY TO, TO DRIVE THAT LEVEL OF, OF DATA AND DETAIL, BUT WE, AS WE WANT THEM TO ASPIRE TO TRY TO DO SO.
[02:15:01]
ARE GOING TO ASK THEM TO GIVE US A BETTER FOCUS ON THE TOURISM DATA.WE'VE CALLED IT A TOURISM SURVEY IN THE PAST, AND, AND WE HAVE HAD A HUNDRED SURVEYS TRANSFER INTO 29,000 TOURISTS AT THEIR EVENT.
THAT JUST SEEMS AN AWFUL STRETCH.
SO WE'RE TRYING TO GET BETTER AT HELPING THEM PUT THAT DATA TOGETHER.
UM, AND THE LAST, WE'RE GOING TO ASK THE F AND A COMMITTEE AND TOWN COUNCIL TO CONSIDER, UM, SPECIFYING THAT ANY DOLLARS ALLOCATED BUT NOT USED IN A IN A YEAR BE RETURNED TO THE GRANT PROGRAM IN FULL.
ONE OF THE CONSEQUENCES OF THE TOWN POLICY COULD HAVE BEEN THAT THOSE DOLLARS GO BACK IN THE GENERAL POOL FROM WHICH THE ATAC GRANT PROGRAM ONLY RECEIVES 33% BACK.
SO IF IT'S APPROVED IN THE GRANT PROGRAM, WE WOULD LIKE TOWN COUNCIL TO CONSIDER RETURNING THOSE DOLLARS.
UH, CHAIRMAN BROWN, THANK YOU FOR THE COMMENTS ABOUT THE DIFFICULTY OF THIS YEAR.
UM, WE HAD $4,655,000 REQUESTED, AND WE HAD 4,076,992 AVAILABLE.
THE DELTA IS $578,000 WHEN TOWN STAFF WENT THROUGH THE TURK LIMITATIONS, THAT DROVE $113,000.
UM, OUT OF THAT NUMBER IN ROUND ONE WITH, WITH THE COMMITTEE TRYING TO LIMIT INCREASES, WE GOT TO A $210,000 DIFFERENCE.
IN ROUND TWO COMMITTEE MEMBERS FOCUSED ON 2025 AWARD LEVELS FOCUSED ON APPLICATION QUALITY TOURISM PERCENTAGES, AND GOT DOWN TO $56,000 DIFFERENCE.
UM, UH, JOHN FARRELL AT ONE POINT, UM, MADE A COMMENT THAT, WELL, TELL ME IF ANYBODY HAS ONE THEY THINK IS AN EASY ONE TO CUT.
AND THE ANSWER IS, THERE ISN'T.
THESE ARE ALL VERY WORTHY ORGANIZATIONS.
THERE WERE A LOT OF ROBUST DISCUSSIONS.
THERE WERE A NUMBER OF VOTES THAT WERE FAR FROM UNANIMOUS.
AND I THINK THAT THE COMMITTEE DID A REALLY GOOD JOB TO PUT THESE RECOMMENDATIONS BEFORE YOU, SO YOU'VE SEEN THE RECOMMENDATIONS.
WE'LL START WITH YOU, MS. DUNNA.
UM, DON'T HAVE ANY QUESTIONS, BUT, UM, I SO APPRECIATE WHAT THE COMMITTEE DID.
I SENT YOU ALL AN EMAIL AS WELL AS MICHELLE, AND ALL THE WORK, UH, THAT SHE DID TO PREPARE FOR THIS.
I THOUGHT JUST, IT WAS AN EXCELLENT PROCESS.
THANK YOU FOR THAT GREAT DIALOGUE.
IT'S EVERYTHING THAT YOU WANNA SEE IN A COMMITTEE.
UH, AND SO I WAS VERY IMPRESSED BY THAT.
AND YOU HAD, I SAW YOU AGONIZE AS WELL.
SO, UM, AND, UH, I WATCHED ALL OF THE VIDEOS FOR THE PRESENTATIONS FROM THE NONPROFITS, WHICH I'VE NEVER DONE BEFORE.
UH, THEY DID, THEY HAD GREAT PRESENTATIONS.
I LEARNED SO MUCH ABOUT THEIR ORGANIZATIONS, UM, AND THE PEOPLE BEHIND THEM.
AND WHAT I REALLY, MY BIGGEST TAKEAWAY WAS, AS YOU SAID, IT'S NOT JUST ABOUT HEADS AND BEDS, BUT IT'S HELPING SUPPORT CULTURAL EVENTS THAT ARE UNMATCHED EITHER IN THE COUNTRY OR IN OUR REGION OF THE COUNTRY.
UM, WE GET ADDITIONAL MARKETING IMPRESSIONS FROM TELEVISION, UH, COVERAGE OF SOME OF THESE EVENTS AND SOCIAL MEDIA, UM, SUPPORT.
AND THEN THEY, WE ALSO GET SUPPORT OF OUR COMMUNITY BECAUSE MANY OF THESE NONPROFITS THEN GIVE MONEY BACK TO THE COMMUNITY TO HELP PEOPLE.
SO WHEN YOU THINK ABOUT THE ATEX DOLLARS, THEY'RE REALLY POWERFUL.
UM, AND SO I'M VERY SUPPORTIVE OF WHAT YOU, UM, ARE RECOMMENDING.
I'M NOT LOOKING TO TINKER WITH THAT AT ALL.
I I FULLY SUPPORT YOUR RECOMMENDATION.
THANK YOU FOR THE CONTINUED PROCESS IMPROVEMENT.
I'M A CONTINUOUS IMPROVEMENT TYPE OF PERSON, AND SO THANK YOU FOR THINKING ABOUT THAT.
AND I DO ALIGN TO THE THOUGHT THAT IF, IF THE NONPROFITS DO NOT USE THAT MONEY, THAT IT SHOULD GO BACK 100% INTO THE POOL BECAUSE THE INTENT IS NOT TO, UH, SAVE MONEY IN REGARDS TO THAT OR PUT IT BACK IN OUR RESERVE, OR THE INTENT IS FOR THAT TO GO TO A GOOD CAUSE.
AND IF I MAY, MUCH OF THE UNUSED FUNDS IN THE LAST COUPLE OF YEARS HAVE BEEN FOR EVENTS THAT ARE OUTDOOR AND THEREFORE WEATHER RELATED.
SO IT'S NOT AS IF THESE AGENCIES DON'T SPEND THE MONEY, BUT IF THE EVENT IS CANCELED OR CUT SHORT, IT CHANGES THE DOLLARS.
UH, THANK YOU MR. SCHLEGEL, APPRECIATE, UM, ALL OF YOUR WORK, YOUR COMMITTEE'S WORK AND STAFF'S WORK.
AND I ECHO COMMENTS FROM BOTH MY COLLEAGUES ON THE COMMITTEE WITH REGARD TO THAT.
AND, UM, I WAS ABLE TO EITHER SIT IN, UM, OR THERE WERE A COUPLE OF 'EM I DIDN'T CATCH AT THE BEGINNING OF THE, UH, COMMITTEE'S, UM, ANGUISH SESSION ABOUT HOW TO, UM, ALLOCATE WITHIN THE AMOUNT PROVIDED.
SO I, I DO THANK YOU FOR THAT, AND I APPRECIATE EACH ONE OF THE COMMITTEE MEMBERS.
UM, AND I'M SORRY THEY HAD TO GO THROUGH AGONY TO BE ABLE TO DO THIS, BUT THEY DIDN'T DO IT WITHOUT A LOT OF THOUGHTFUL CONSIDERATION
[02:20:01]
AND DEBATE.UM, AND I WAS ALSO ABLE TO LOOK AT A NUMBER OF THE PRESENTATIONS I COULDN'T QUITE GET TO A HUNDRED PERCENT.
AND THAT'S BECAUSE A NUMBER OF THEM, I HAD SEEN THEIR PRESENTATIONS IN PAST YEARS.
SO I FOCUSED ON CERTAIN ONES, ESPECIALLY ONES THAT THE COMMITTEE HAD QUESTIONS OR COMMENTS ABOUT, UM, IN MAKING THEIR FINAL DETERMINATIONS.
SO I'M GOING TO FOCUS ON THAT AS WELL.
UM, AND, AND WITH REGARD TO THE RECOMMENDATION, I'M GENERALLY SUPPORTIVE.
UM, AND I KNOW THAT THERE'S SOME FOLKS, UH, WHO OR APPLICANTS THERE TO MAKE COMMENTS, AND I WANNA WAIT TO HEAR THOSE COMMENTS BEFORE SAYING EXACTLY WHAT ALL I WOULD SUPPORT.
BUT I'M VERY, VERY SUPPORTIVE OF THE COMMITTEE'S WORK, UM, INCLUDING, AS MS. TUCK MENTIONED, THE CONTINUOUS IMPROVEMENT.
UM, AND I'M ALSO SUPPORTIVE OF RETURNING ANY FUNDS AVAILABLE BACK TO THE GRANT POOL AND NOT LIMITING 'EM TO 33% OF THE FUNDS THAT BECOME AVAILABLE LATER.
SO I'M SUPPORTIVE OF THAT AS WELL.
AND, AND WITH THAT, MR. CHAIR, I'M, UH, HAPPY TO LISTEN TO OTHER COMMENTS, UM, BEFORE WE CONSIDER, UM, OUR MOTION.
UH, I KNOW THAT THE ARE APPLICANTS HERE TODAY.
ARE THERE ANY APPLICANTS THAT WANT TO APPROACH THE COMMITTEE ON, UH, THEIR PARTICULAR REQUEST OR WHAT'S BEEN ALLOCATED? NO ONE.
UM, MS. BRYSON, UM, DID YOU HAVE SPECIFIC QUESTIONS FOR ANY OF THE APPLICANTS? YES.
UM, I DID, UM, PARTICULARLY, UM, THE LOW COUNTRY GOLF COURSE OWNERS ASSOCIATION, UM, IN LOOKING AT THAT, UM, AND IN LISTENING TO THE COMMITTEE'S DELIBERATION, THE COMMITTEE HAD SOME QUESTIONS ABOUT THIS.
UM, THEY DID RECOMMEND, UM, A REDUCTION FROM THE REQUEST FROM 150,000 TO 100,000.
UM, BUT QUESTIONS WERE ABOUT, UM, WE HAVE A DMO THAT HAS $4 MILLION, AND THEY MARKET TWO OF THE MAIN DRIVERS OF REVENUE TO OUR ECONOMY ON THE ISLAND.
ONE IS, OF COURSE, OUR BEACH, AND THE OTHER IS GOLF.
AND SO THERE'S SOME FUNDS PROVIDED BY THE CHAMBER OF COMMERCE AS THE DMOA DESIGNATED MARKETING ORGANIZATION.
AND THAT WAS A QUESTION RAISED BY THE COMMITTEE, IS INDEED THIS DOUBLE DIPPING INTO A TAX FUNDS OR MARKETING OF GOLF.
NOW, I SHOULD SAY THAT I'M A BIG SUPPORTER OF GOLF.
MY HUSBAND AND I PLAY, I I WANNA ASK YOU TO COME AND WATCH ME PLAY, AND I KNOW OTHER COMMITTEE MEMBERS PLAY GOLF AS WELL.
UM, AND I APPRECIATE VERY MUCH ALL THE GOLF COURSES WE HAVE ON THE ISLAND, UM, YOU KNOW, THEIR MAINTENANCE, WHAT THEY DO FOR OUR REVENUE STREAM, AND ALSO ALSO HOW MUCH PRESERVATION OF OPEN SPACE AND GREEN SPACE THERE DOES BY HAVING ALL THESE GOLF COURSES ON OUR ISLAND.
IT ALSO GIVES THIS GREAT OPPORTUNITY, AS MS. HUNTER MENTIONED, THROUGH NATIONAL PUBLIC NATIONAL, UM, BROADCAST OF THE RBC TOURNAMENT AND THE VARIOUS RUTGER OF WOMEN'S COLLEGIATE TOURNAMENT.
UM, IT, IT'S POSSIBLE TO PUT A PRICE TAG ON THE VALUE OF THAT MARKETING.
SO LET IT ME KNOW, THERE'S NOTHING THAT I'M SAYING OR ASKING ABOUT THAT MAKES THAT I WANT YOU TO THINK MAKES ME DIMINISH THE IMPORTANCE OF GOLF ON THIS ISLAND.
SO I, I WANNA SAY THAT, BUT BACK TO THE QUESTIONS, THE RELATIONSHIP BETWEEN OUR DMO, THE CHAMBER AND LOW COUNTRY GOLF, THERE'S STILL A NUMBER OF QUESTIONS ABOUT THAT.
UM, AND AS WE MAY RECALL, UM, IN 2023 WHEN THE CHAMBERS DMO SUPPLEMENTAL REQUEST, THIS REQUEST WAS IN THERE, AND ONCE THE TOWN COUNCIL DECIDED NOT TO GRANT SUPPLEMENTAL REQUEST THE DMO, THEN, IF YOU WILL, COMING IN THROUGH THIS ROUTE, SOME OF THE SAME FUNDS ARE BEING REQUESTED BY LOW COUNTRY GOLF OWNERS ASSOCIATION.
AND I HAVE ANYTHING BAD TO SAY ABOUT THE ASSOCIATION.
IT'S JUST A MATTER OF UNDERSTANDING THE FUNDS THAT ARE AVAILABLE AND LOOKING AT WHAT EXACTLY IS THIS ASSOCIATION DOING FOR MARKETING IF,
[02:25:01]
AND THIS WAS ANOTHER QUESTION, A COMMENT RAISED BY THE COMMITTEE, AND I'M SORRY MR. SLAGEL, IF YOU'RE STILL STANDING THERE, YOU DON'T NEED TO STAND FOR THIS.UM, BUT, UM, AT ANY RATE, ONE OF THESE OTHER COMMENTS IS WHEN YOU GO TO THE WEBSITE FOR THE LOW COUNTRY GOLF CLUB OWNERS ASSOCIATION, IT IMMEDIATELY GOES TO THE CHAMBER WEBSITE.
UM, SO IT, THAT WAS A CONCERN TO THE KITTY AS WELL.
BUT I THINK THERE'S STILL SOME QUESTIONS THAT REMAIN BEFORE WE CAN MOVE FORWARD WITH THE RECOMMENDATION THAT YOUR ASSOCIATION, SO THANK YOU, MR. CHAIR.
MR. SLAGEL, RELAX, YOU CAN TAKE A SEAT.
UM, AND SINCE THERE'S A MEMBER OF THE LOW COUNTRY GOLF ASSOCIATION HERE, I'D LIKE FOR THEM TO DI DIRECTLY, UH, RESPOND TO THE QUESTIONS AT HAND.
I ALSO HAVE COMMENTS IF MS. BRYSON WOULD LIKE TO HEAR.
HOW ARE YOU TODAY? UM, ON THE, THE, THE RELATIONSHIP WITH THE CHAMBER, UM, THEY, THEY DO SPECIFIC GOLF MARKETING OF ABOUT $200,000 A YEAR, A HUNDRED A THOUSAND OF THAT GOES TO VERB FOR A PPC AND THEN A HUNDRED THOUSAND OF THAT.
WE WORK WITH THEM TOGETHER ON WHAT'S THE BEST WAY TO, TO SPEND THAT GOLF DOLLAR.
IF YOU LOOK AT WHAT MYRTLE BEACH IS DOING, AND THE STATE IS DOING, 20% OF THEIR OVERALL MARKETING BUDGET GOES TO GOLF.
SO THAT'S $10 MILLION IN MYRTLE BEACH.
IF YOU DO THAT SAME EQUATION WITH US, THAT SHOULD BE $800,000 HERE.
BUT INSTEAD, WE DO $200,000 OR ONE FOURTH OF WHAT WE DO TO THE COMPETITIVE SET.
SO WHAT WE DO FROM A LOW COUNTRY GOLF COURSE OWNERS ASSOCIATION IS DO THE BEST WE CAN TO GET, TO GET MORE FUN.
SO ANOTHER A HUNDRED THOUSAND WE GET FROM ATAC, AND THEN WE GENERATE ANOTHER A HUNDRED THOUSAND OURSELVES.
SO THAT EQUATES TO ABOUT HALF OF WHAT THE STATE AND MYRTLE BEACH ARE DOING.
SO WHAT WE'RE DOING IS TRYING TO WORK WITH EVERYBODY TOGETHER AND DO THE BEST WE CAN TO GET AS MUCH FUNDING AS WE CAN FOR GOLF WITHIN THE AREA.
UM, ALL THESE LADIES GONNA HAVE SOME MORE QUESTIONS, BUT I JUST WANNA CLEAR UP THE, SO THE A HUNDRED K THAT YOU SAID YOU WORK WITH THE CHAMBER TO DECIDE.
CAN YOU JUST GIVE US A LITTLE BIT MORE UNDERSTANDING OF WHAT, WHAT THAT MEANS? YEAH, SO WE JUST HAD A, UM, A GROUP IN CALLED THE, UH, GOLF GIRLS.
AND THEY CAME IN AND THEY AT A LOT OF OUR DIFFERENT FACILITIES AND RESTAURANTS, AND WE SHARED THAT COST.
AND, AND BARRY, IF YOU WANNA HELP OUT ON THE, YOU KNOW, THE OTHER THINGS THAT WE DO WITH THE A HUNDRED THOUSAND DOLLARS, EVERYTHING THAT WE DO, WE WORK TOGETHER.
'CAUSE WE WANNA MAKE SURE THAT WE'RE, WE'RE WORKING TOGETHER WITH THE TOTAL FUNDS.
SO WE'RE MARKETING AS A TOTAL DESTINATION.
HI, UH, I'M BARRY FLEMING, THE EXECUTIVE DIRECTOR OF THE GOLF COURSE OWNERS ASSOCIATION.
AND I'VE BEEN EXECUTIVE EXECUTIVE DIRECTOR FOR THE PAST 13 YEARS.
SO YEARS AGO, WHAT HAS HAPPENED IS, AND PATSY, UM, THE CHAMBER DOES A GREAT JOB IN MARKETING OUR DESTINATION.
WE ARE ONE OF THE TOP GOLF DESTINATIONS IN THE UNITED STATES, BUT WHEN THE CHAMBER DOES THEIR MARKETING, AND IF I COULD GO BACK AND SHOW YOU AD AFTER AD OR MARKETING AFTER MARKETING, THEY HAVE TO REPRESENT THE ENTIRE ISLAND.
MEANING THE RESTAURANTS, THE HOTELS, ANY, ANYTHING AND EVERYTHING.
SO IN ALL OF THEIR MARKETING, THERE MIGHT HAVE BEEN A PICTURE OF A GOLF COURSE SAYING WE HAVE 14 GOLF COURSES, OR 15 AVAILABLE COURSES ON HILTON HEAD.
SO BACK WHEN CARRIE CORBET WAS, UH, PRESIDENT OF OUR ASSOCIATION, WE THOUGHT, YOU KNOW, WE ASKED THE CHAMBER, YOU KNOW, WOULD IT BE POSSIBLE IF WE HAD OUR OWN DOLLARS AND LET US DO MORE SPECIFIC GOLF MARKETING BECAUSE OF HOW IMPORTANT IT IS TO THE ISLAND AND TO THE RESORTS AND GOLF COURSES AND TO THE OVERALL ECONOMY OF THE ISLAND.
AND SO THAT'S HOW THE RELATIONSHIP CAME ABOUT WITH THE CHAMBER.
THEY, THEY HAVE TO REPRESENT EVERYONE, BUT THAT GOLF IS SO IMPORTANT TO OUR ECONOMY AND ISLAND.
THEY SAID, WE, WE HIRED OUR OWN GOLF.
UH, WE HAVE A COMPANY CALLED IMPACT GOLF MARKETING, WHO BASICALLY HANDLES ANY DOLLARS THAT WE GENERATE FOR MARKETING AND IT'S GOLF SPECIFIC.
UM, SO WE, WE THOUGHT IT IMPORTANT TO STAY ATTACHED OR KEEP THE RELATIONSHIP WITH THE CHAMBER.
SO BASICALLY THE DOLLARS THAT THE CHAMBER GET, THEY BASICALLY SAY, OKAY, WELL HERE'S $200,000 THAT WE'LL KEEP A HOLD OF THE MONEY, BUT YOU CAN HELP DIRECT WHERE THAT MONEY GOES.
WELL, A HUNDRED THOUSAND OF IT GOES TO VERB.
SO THEY IT DOES, SO IT'S A HUNDRED THOUSAND THAT WE, WE DISCUSSED TOGETHER.
SO A HUNDRED THOUSAND GOES TO WHAT YOUR, IT'S A, UH, ONLINE MARKETING COMPANY THAT THE CHAMBER USES.
JUST TO GIVE YOU AN EXAMPLE, UH, MYRTLE BEACH HAS BASICALLY 80 GOLF COURSES THAT THEY, THAT ARE, UH, PUBLIC ACCESS GOLF COURSES.
THEY'RE GOLF, NOT THEIR CHAMBER, NOT THEIR CVB.
THEIR GOFF ONLY MARKETING BUDGET IS ABOUT $5 MILLION A YEAR.
[02:30:02]
LAST YEAR WE HAD THE MOST WE'VE EVER HAD, AND THAT WAS AROUND 450,000, INCLUDING WHAT WE, THE ASSOCIATION.WERE VERY GOOD STEWARDS OF OUR OWN MONEY.
AND WE TRY TO RAISE UP, RAISE AS MUCH MONEY AS WE CAN THROUGH OUR GOLF PUBLICATION THAT WE DO.
SO WE TRY TO PUT IN AT LEAST A HUNDRED THOUSAND OF OUR OWN MONEY JUST TO BOOST THE MARKETING OF THE SECOND MOST IMPORTANT REASON WHY PEOPLE COME TO, TO OUR ISLAND.
SO I DON'T KNOW IF THAT EXPLAINS ANYTHING, BUT WE HAVE A GREAT RELATIONSHIP WITH THE CHAMBER.
UH, WE'VE, THEY ALLOW US, AND WE DO OUR OWN GOLF MARKETING, WHICH HAS BEEN VERY, VERY, VERY SUCCESSFUL.
AND I WOULD ONLY SAY, UM, I KNOW THERE ARE A LOT OF OTHER ASSOCIATIONS AND EVENTS THAT NEED DOLLARS, BUT ACTUALLY WE NEED MORE.
AND WE'RE PRO, UH, WE BRING, WE PROBABLY ARE ONE OF THE BIGGEST REASONS WHY THERE AS MUCH A TAX MONEY AS THERE IS.
SO I DON'T WANT DISCOURAGE MONEY BEING TAKEN AWAY FROM US.
'CAUSE WE STILL NEED GOLFERS AND WE PROMOTE DURING THE OFF SEASON, THE NINE MONTHS OF THE YEAR TO PUT HEADS IN BEDS AND TO SUPPORT THE ENTIRE ECONOMY WITH THAT MARKETING.
IF WE DON'T HAVE THE MARKETING DOLLARS, THEN THEY'RE GONNA GO SOMEWHERE ELSE.
AND IT WAS MY UNDERSTANDING THAT, UM, WHEN WE, UH, THE WEBSITE, THE REASON THAT'S, UH, LINKED OVER TO THE CHAMBER WEBSITE IS WE GAVE THEM OUR WEBSITE YEARS AGO, PROBABLY ABOUT 10 YEARS AGO.
'CAUSE WE DID NOT WANNA HAVE A COMPETITIVE WEBSITE WITH OUR OWN CHAMBER.
SO WE THOUGHT IF WE WORKED TOGETHER, UM, ON SOLVING THIS ISSUE, IT WOULD BE THE BEST WAY TO SOLVE THE ISSUE AS A WHOLE.
AND SO THAT'S WHY WE DID THAT.
AND THIS IS A REALLY IMPORTANT YEAR FOR US.
WE JUST HAD OUR, ONE OF OUR BIGGEST PARTNERS IN SEA PINE SOON, $15 MILLION RENOVATION.
WE HAVE THE KNOW WE'RE GONNA BE ON THE, UH, TV A LOT.
UM, THIS WOULD BE A REALLY TOUGH YEAR FOR US TO TAKE ANOTHER HIT WITH OUR SPEND.
'CAUSE WE REALLY WANTED TO AMP UP OUR MARKETING AND, AND SEE PINES.
AND WHAT THEY DO DOWN THERE IS SUPER IMPORTANT FOR WHAT WE DO HERE.
AND I DO AGREE, PATSY, THAT HAVING, UH, THE TELEVISION COVERAGE THAT WE HAVE, I MEAN, WE'RE BLESSED TO HAVE THAT AND NO AMOUNT OF MONEY CAN BE SPENT OR BE GENERATED FOR THE EXPOSURE THAT THAT BRINGS TO HILTON HEAD.
SO, UM, BRENT, YOU MENTIONED THAT THE CHAMBER WAS, UH, SORT OF GIFTED THE, THE WEBSITE TO SOME DEGREE.
IS THERE ANY FORMAL AGREEMENT BETWEEN THE ASSOCIATION AND THE CHAMBER? THERE IS NOT.
YEAH, I COULD JUST FOLLOW UP WITH THAT.
UM, IN ADDITION TO LOOKING AT, UM, THE COMMITTEE'S DELIBERATIONS AND ALSO THE PRESENTATIONS, I LOOK BACK AT THE APPLICATIONS INCLUDING THE FINANCIALS.
UM, AND, AND SO IT APPEARS AS THOUGH THE ASSOCIATION HAS ADDITIONAL FUNDS TO BE ABLE TO USE FOR MARKETING THAT ARE NOT BEING USED FOR MARKETING.
UH, WHICH FUNDS ARE YOU, ARE YOU TALKING ABOUT WE DO HAVE FUNDS, YES, WE DO.
YOU SUBMITTED WITH THE APPLICATION.
WE DO HAVE FUNDS IN SAVINGS THAT HAVE BEEN SAVED UP OVER 20 PLUS YEARS SINCE THE ORGANIZATION HAS BEEN IN EXISTENCE.
AND THOSE ARE THERE PRIMARILY FOR, IN CASE OF A CATA, A DISASTER, A CATASTROPHE THAT ALL OF A SUDDEN YOU DON'T HAVE ANY FUNDS.
WE HAVE, WE ACTUALLY HAVE MONEY FOR A RAINY DAY.
JUST IN CASE WE GET, WE WERE TO GET CUT FROM AT TAX OR THE CHAMBER DOESN'T FEEL LIKE SHARING ANY MONEY ANYMORE.
THAT'S WHAT THOSE FUNDS ARE THERE.
JUST TO MAKE SURE WE CAN GET THROUGH ABOUT A YEAR AND A HALF IF THAT PROBLEM OCCURS.
AND, AND CAN YOU TELL US HOW MUCH MONEY YOU HAVE IN THAT SAVINGS? UH, YES, THERE ARE ABOUT $280,000.
UM, I, I'LL SEE IF, UM, ANYBODY ELSE IN THE COMMITTEE HAS OTHER QUESTIONS OF THIS ORGANIZATION.
I DON'T HAVE ANY MORE QUESTIONS.
DO YOU HAVE ANY MORE QUESTIONS, MS. TURNER? UM, I DON'T HAVE ANY MORE QUESTIONS.
UM, I THINK THE COMMITTEE DID A GOOD JOB OF ASKING QUESTIONS.
UM, IF YOU RECALL, WHEN WE HAD AT TAX BEFORE, I RECOMMENDED A REDUCTION IN THE AMOUNT OF SPENDING.
AND WE'RE AT THAT LEVEL NOW WITH A HUNDRED THOUSAND.
UM, I, I UNDERSTAND THE IMPORTANCE OF GOLF.
UM, AND IN REGARDS TO SEA PINES, YOU KNOW, SEA PINES HAS SPENT TENS OF MILLIONS OF, I DON'T KNOW, I CAN'T EVEN IMAGINE HOW MUCH MONEY THEY SPENT ON THAT GOLF COURSE.
UM, THEY SHOULD BE MARKETING THAT, UH, YOU KNOW, THEY SHOULD BE PUTTING MONEY TOWARDS MARKETING THAT, UH, BEAUTIFUL NEW COURSE.
UH, I DON'T THINK IT SHOULD BE YOUR BURDEN.
UM, AND I ALSO THINK THAT THE CHAMBER PLAYS A BIG ROLE HERE IN REGARDS TO HOW THEY ALLOCATE THEIR MARKETING SPEND.
AND I HAD THE OPPORTUNITY TO SEE THEIR NEW, UM, STRATEGIC PLAN.
AND THEY DO CALL OUT GOLF MORE.
AND SO ONE OF THE THINGS THAT, UM, WHOEVER IS OUR DMO IN
[02:35:01]
THE FUTURE, UM, I'LL BE FO FOCUSING ON, UH, THAT PIECE AND, AND HAVING A BETTER UNDERSTANDING OF HOW THEY'RE SUPPORTING AND MARKETING GOLF.'CAUSE I THINK IT IS IMPORTANT.
UH, BUT I DON'T HAVE ANY QUESTIONS FOR YOU.
UM, WHEN WE'RE TALKING ABOUT SEA PINES, WE'RE JUST ADDING, THEY ARE GONNA BE MARKETING THEMSELVES.
UM, AND THEN WHAT WAS THE OTHER POINT YOU JUST MADE? I'M SORRY.
SO THE, THE STRATEGIC STRATEGIC PLAN WITH THE CHAMBER, UM, EVEN THOUGH THEY'RE ADDING MORE STUFF ABOUT GOLF, THERE'S NO ACTUALLY ADDED COST TO THAT.
SO WE'LL JUST BE, UH, YOU KNOW, RIGHT NOW, IF YOU LOOK AT THEIR INSTAGRAM ACCOUNT, THEY HAD 240 POSTS THIS YEAR.
SO I THINK WHAT THAT'S GONNA BE IS MAYBE WE'LL BE 10 POSTS NEXT YEAR.
SO IT'S NOT GONNA BE AN, UH, UH, ANY EXTRA COST TO THE CHAMBER AT ALL.
FROM WHAT I'VE READ IN IT'S, OR, AND WHEN I TALKED TO ARIANA AS WELL, WELL, THERE'S ALWAYS THE OPPORTUNITY TO HAVE A CONVERSATION 'CAUSE WE APPROVE THE, UM, D O'S MARKETING PLAN.
UH, SO THERE'S ALWAYS THE OPPORTUNITY TO HAVE CONVERSATIONS ABOUT HOW MANY IS ALLOCATED, UH, AGAINST THOSE PRIORITIES.
MR. LEGO, YOU SAID YOU HAD, UH, ADDITIONAL COMMENTS TO THIS PARTICULAR ITEM.
YEAH, I, I WANT ECHO WHAT MS. HUNTER JUST SAID THAT, UH, LAST YEAR WAS $150,000.
THIS YEAR THE REQUEST WAS ONE 50 AND WE CUT THEM TO A HUNDRED.
SO PART OF THE REASONING IS THAT THE CHAMBER, UH, THROUGH THE VISITOR CONVENTION BUREAU HAS ALLOCATED FUNDS TO THE, THIS ORGANIZATION IN THE PAST, AND THEN THEY'VE TAKEN 'EM AWAY.
SO IF THEY'RE GONNA WHIPSAW SOME OF THESE DOLLARS TO US, THE IMPORTANCE OF GOLF, PEOPLE WHO COME HERE ON A GOLF TRIP ARE HERE FOUR OR FIVE, SIX DAYS.
THEY'RE NOT HERE FOR TWO NIGHTS AND THEY'RE SPENDING MONEY AT THE RESTAURANTS.
AND, UH, AS SOMEONE WHO PLAYS SOME OF THE PUBLIC GOLF COURSES, I WISH SOME OF THESE TOURISTS WERE NOT HERE YEAR ROUND.
BUT I WILL TELL YOU THAT WHAT USED TO BE, UM, QUIET TIMES IN JANUARY AND FEBRUARY AND MARCH ARE NO LONGER.
I MEAN, I THINK THAT THE CONSISTENT MARKETING EFFORT BY ALL OF THESE ORGANIZATIONS IS PART OF WHAT CONTINUES TO DRIVE THESE TOURISTS WHO ARE VALUABLE TO THE ISLAND HERE.
UM, WE FELT THAT WE DID NOT WANT TO CUT THEM COMPLETELY BECAUSE THE CHAMBER PUT MORE MONEY IN THIS YEAR BECAUSE THEY DON'T QUITE CONTROL WHAT THE CHAMBER SPENDS THE MONEY ON.
AND WE WANTED TO BE SURE THAT THEY HAD A SUSTAINABLE ORGANIZATION, WHICH IS PART OF, I THINK WHAT THE CHALLENGE FROM THE TOWN HAS BEEN.
WHAT'S THE LONG-TERM SU LONG-TERM SUSTAINABILITY OF THESE VARIOUS ORGANIZATIONS.
SO THAT'S HOW WE ENDED UP WHERE WE ENDED UP.
APPRECIATE YOUR COMMENTS AND YOUR LEADERSHIP AROUND THIS TOPIC.
UM, I'M GOING TO OPEN IT UP TO MY COLLEAGUES, UH, FOR ANY COMMENTS, BUT BEFORE I DO SO, UH, I THINK THIS IS, UH, FOR, FOR YOU MR. ORLANDO TO, TO HEAR AS FAR AS THE LOW COUNTRY GOLF ASSOCIATION AND THE CHAMBER OF COMMERCE.
I, I THINK THE COMMON THEME THAT I'M HEARING FROM THIS COMMITTEE IS THERE NEEDS TO BE SOME TIGHTENING OF THE RELATIONSHIP BETWEEN THE GOLF ASSOCIATION AND THE CHAMBER, PARTICULARLY WITH GOLF BEING SUCH, UH, AN IMPORTANT DRIVER TO OUR ECONOMY.
UM, AND I, ONE, I'M DISAPPOINTED THAT THERE'S NOT A FORMAL AGREEMENT BETWEEN DMO AND THIS ORGANIZATION WITH GOLF BEING SO IMPORTANT.
SO I THINK AS WE MOVE FORWARD WITH OUR ALLOCATION TO CHAMBER, UH, THAT NEEDS TO BE A LARGER DISCUSSION AS FAR AS WHAT NEEDS TO BE ALLOCATED AROUND THIS PILLAR, SO TO SPEAK.
I THINK THAT'S IMPORTANT, UM, THAT WE HAVE THAT CONVERSATION, UH, SO THAT WE'RE NOT EVERY YEAR PUTTING THE BURDEN ON THE ATAC COMMITTEE AND THIS COMMITTEE TO TRY TO FIGURE OUT HOW TO FIND ENOUGH DOLLARS TO MARKET SOMETHING THAT'S SO IMPORTANT TO US.
SO THAT'S, I THINK PROBABLY THE, THE SOLUTION TO THIS ALL MR. MANAGER.
ALRIGHT, MR. ALFRED, MS. BECKHAM, MR. DESIMONE, ANYTHING TO ADD, MR. ALFRED, PLEASE? I THINK WE ALL RECOGNIZE THE IMPORTANCE OF GOLF TO THE SUCCESS OF TOURISM INDUSTRY.
AND I DO, AND I AM ALSO QUITE SURE THAT THE CHAMBER RECOGNIZES HOW IMPORTANT GOLF IS.
UH, I AGREE WITH MR. BROWN'S COMMENTS THAT THIS ISSUE NEEDS TO BE RESOLVED BETWEEN THE ASSOCIATION AND THE CHAMBER IN TERMS OF, UH, HOW THESE DOLLARS ARE TO BE SPENT.
I WOULD BE SUPPORTIVE OF THE RECOMMENDATIONS OF THE ATEX COMMITTEE.
AND I, I THINK NEEDS TO BE POINTED OUT THAT IF WE WERE TO MAKE ANY CHANGES AND THE MONEY ALLOCATED TO THE GOLF ASSOCIATION, IT WOULD REQUIRE A REDUCTION ON A NUMBER OF OTHER ORGANIZATIONS.
AND I WOULD CLEARLY BE AGAINST THAT.
[02:40:14]
SO THANK YOU AGAIN AND, UH, THANK YOU COUNCILMAN BRYSON FOR BRINGING THIS ISSUE, UM, UP FOR DISCUSSION TODAY.I THINK REALLY MY, UM, SURPRISE, UM, CONTINUED SURPRISES I LEARN ABOUT THESE TWO ORGANIZATIONS AND HOW THEY INTERACT TOGETHER IS, UM, EYE-OPENING.
AND I WOULD ONLY STAND HERE TODAY TO SAY THAT I AM MORE INTERESTED IN THE CONVERSATION AS YOU'VE SUGGESTED, COUNCILMAN BROWN, CHAIR BROWN, UM, WITH THE CHAMBER, UM, WITH GOLF AS BEING AS IMPORTANT DRIVER, UM, WITHIN OUR VISITORS.
UM, HERE, I WOULD'VE EXPECTED AND EXPECT TO SEE MORE ALLOCATION OF FUNDS FROM THE MONIES THAT THEY GET FROM US AS A COMMUNITY TOWARDS THAT ENDEAVOR, UM, WITH REGARD TO GOLF.
AND I'M INTERESTED IN THAT CONVERSATION HAPPENING SO THAT WE KNOW EXACTLY WHAT IS BEING ALLOCATED, HOW IT'S BEING ALLOCATED, AND WHAT THE RELATIONSHIP IS AND, AND, UM, ALL THOSE DETAILS.
SO THAT'S AN OPEN CONVERSATION FOR ME THAT NEEDS TO HAPPEN SOON.
UH, LOOKING FOR SOMEONE ON THE COMMITTEE TO BRING FORTH A MOTION, PLEASE.
UM, JUST A COUPLE OF BRIEF THINGS BEFORE I INTRODUCE THE MOTION.
I WANNA THANK MR. SLAGEL FOR PART OF HIS REMARKS ABOUT USED TO BE FOCUSED ON HEADS AND BEDS.
UM, AND WHILE THAT'S STILL VERY IMPORTANT BECAUSE THAT PRODUCES A LOT OF THE INCOME THAT WE CAN DISTRIBUTE, UM, BUT IT'S IMPORTANT TO REMEMBER THE STATUTORY AUTHORITY IS NOT JUST ABOUT HEADS AND BEDS.
UM, IT'S RELATED TO TOURISM RELATED BUILDINGS, AND ESPECIALLY TO CULTURAL, RECREATIONAL, AND HISTORIC FACILITIES.
UM, AND ALSO OTHER TOURISM RELATED LANDS AND WATER ACCESS.
SO TO FOCUS SO MUCH ON HEAD BEDS, I'M GLAD WE'RE MOVING AWAY FROM ONLY THAT, NOT TO EXCLUDE IT, BUT TO REMEMBER THE APPROPRIATE USE OF A TAX FUNDS.
AND THERE ARE A NUMBER OF ORGANIZATIONS ON THIS LIST DON'T HAVE THE CAPACITY THAT THE CHAMBER, THE DMO WAS $4 MILLION HAS TO ALLOCATE TOWARDS GOLF.
SO ON THAT BASIS, I MOVE TO RECOMMEND TO THE FULL TOWN COUNCIL THE ADOPTION OF THE REGULATION, I'M SORRY, THE RECOMMENDATIONS OF THE ATAC COMMITTEE WITH THE FOLLOWING EXCEPTION OR EXCEPTIONS TO REDUCE THE AMOUNT TO THE LOW COUNTRY GOLF COURSE, ASSOCI OWNERS ASSOCIATION TO $75,000 AND TO REALLOCATE THAT $25,000 TO THE FOLLOWING CULTURAL WATER-BASED ENVIRONMENT ORGANIZATIONS, $5,000 EACH TO THE GALA MUSEUM, TO THE SYMPHONY TO LOW COUNTRY GALA, TO THE SEA TURTLE PATROL, AND TO THE OUTSIDE FOUNDATION.
AND I HOPE THAT THIS SENDS A MESSAGE TO THE CHAMBER ABOUT THEIR RELATIONSHIP THAT OUR CHAIR AND OTHER MEMBERS HAVE POINTED OUT.
AND IF THE IMPORT DUE TO THE IMPORTANCE OF GOLF, THAT RELATIONSHIP NEEDS TO BE WORKED OUT.
SEEING NONE, IT'S ANOTHER MOTION I MOVE THAT WE, UM, APPROVE THE RECOMMENDATION FROM THE AEC COMMITTEE IN REGARDS TO THE FUNDING OF OUR NONPROFITS AS WELL AS THE PROCESS IMPROVEMENT THAT THEY RECOMMENDED.
SECOND, I'LL PASS THE GAVEL AND SECOND MS. THOMAS MOTION.
[6. Public Comment - Non Agenda Items]
ALRIGHT, WE'LL NOW OPEN IT UP FOR PUBLIC COMMENT.ANYONE SIGNED UP? THE ONLY ONE I HAD WAS MR. WILLIAMS, BUT HE HAS SINCE LEFT.
WE WILL OPEN UP MR. LESH, PLEASE.
I'M THE VICE CHAIR OF THE ATECH COMMITTEE.
UM, REGARDING THE IDEA OF, UH, A FORMAL AGREEMENT BETWEEN LOWCOUNTRY
[02:45:01]
GOLF ASSOCIATION AND THE CHAMBER.I THINK THAT, UM, IT, NOW THAT WE'RE RENEGOTIATING THE, THE DMO CONTRACT, IT'S A GOOD TIME TO LOOK AT SOME OF THESE OPTIONS AS FAR AS HAVING FORMAL, UH, AGREEMENTS FOR NOT JUST MARKETING IN THE GOLF AREA AS WELL.
SO THERE'S, THERE'S OTHER OPPORTUNITIES THERE IN THE CULTURAL SECTOR AS WELL.
AND, UM, BECAUSE THERE, THERE ARE PEOPLE HEAVILY INVESTED IN THOSE AREAS THAT MIGHT BE BETTER AT, AT GETTING THEIR MESSAGE OUT AS FAR AS ON A MARKETING STANDPOINT.
SO I THINK THAT, UM, IN THESE NEGOTIATIONS CARRIED OUT BY THE TOWN STAFF, THEY SHOULD BE, UM, PUSHING THAT WITH THE CHAMBER AS FAR AS LOOKING AT PARTNERSHIPS WITH THESE ORGANIZATIONS.
ANYONE ELSE? MR. FERGUSON? I THANK YOU AND, UH, GOOD TO BE HERE.
UH, I, DAVE FERGUSON, I FIRST YEAR ON THE COMMITTEE FOR ME.
AND SO, UM, MELINDA, LIKE YOU, UM, I TAKE EVERY, I LOOK AT EVERYTHING FROM A BUSINESS PERSPECTIVE, TOTAL BUSINESS PERSPECTIVE, NOT ALWAYS A GOVERNMENT PERSPECTIVE.
AND, UM, YOU KNOW, I WAS ONE OF THE PEOPLE THAT DROVE THE CONVERSATION BETWEEN THE, YOU KNOW, BETWEEN THE CHAMBER AND THE LOW COUNTRY'S GOLF OWNERS ASSOCIATION.
PARTIALLY BECAUSE, UM, I FELT THE PRESENTATION DIDN'T CONVINCE ME, BUT THE BIGGER THING HERE IS, UM, NOW THAT I HEAR THEM TODAY, I THINK THE BIGGER CHALLENGE THAT YOU HAVE, ALL WE CAN DO IS MAKE RECOMMENDATIONS.
I THINK THE BIGGER CHALLENGE, UH, YOU HAVE, ESPECIALLY NOW THAT YOU'RE RENEGOTIATING THE DMO AGREEMENT WITH THE CHAMBER, IS, UM, THE LACK OF ECONOMIES OF SCALE.
UM, WE'RE GIVING MONEY TO ALL OF THESE GREAT, BELIEVE ME, ALL OF THEIR MISSIONS ARE WONDERFUL, UH, REALLY WONDERFUL.
UM, WE'RE GIVING MONEY, UM, TO SOME GREAT CAUSES, BUT I THINK WE'RE GIVING DUPLICATE MONEY.
WE'RE GIVING A TON OF MARKETING MONEY, AND WE ARE ALSO GIVING PRETTY MUCH THE SAME AMOUNT OF MONEY TO THE CHAMBER DMO TO DUPLICATE EFFORTS.
IN SOME CASES, AND THIS IS A PERFECT EXAMPLE, THEY, THEY CONVINCED ME A LITTLE MORE TODAY THAN WAS I WAS CONVINCED IN THE PRESENTATION.
AND I ALSO FEEL THEY'RE FALLEN A LITTLE BIT VICTIM TO THE LACK OF US HOLDING THAT DMO ACCOUNTABLE TO REALLY, UM, WORKING WITH THOSE 35 ORGANIZATIONS TO REALLY CREATE SOME ECONOMIES OF SCALE, SPECIFICALLY AROUND MARKETING, WHETHER THEY ARE A CHAMBER MEMBER OR NOT.
I REALLY THINK THE TOWN IN THIS CURRENT AGREEMENT, UM, AND LOOK, I'LL HELP ANY WAY I CAN FROM A BUSINESS PERSPECTIVE IN WITH THE ECONOMIES OF SCALES PIECE, BUT I REALLY THINK THIS GIVES YOU AN OPPORTUNITY RIGHT NOW AND THE TIMING'S PERFECT, UM, TO REALLY CREATE THIS, UH, AGREEMENT THAT HOLDS SOME LITTLE MORE ACCOUNTABILITY, BUT ALSO CREATE THESE ECONOMIES OF SCALE.
BECAUSE I FOUND THAT ONE OF THE AGONIES, I DON'T, I'M NOT SURE IT WAS AGONY, BUT ONE OF THE CHALLENGES ON THE COMMITTEE THIS YEAR WAS, WAS, WAS LOOKING AT THIS DUPLICATION AND ALSO HAVING TO KIND OF SAY, BOY, DO WE HAVE TO CUT MONEY FROM THIS GROUP BECAUSE WE'VE BEEN GIVING THEM MONEY FOR SO LONG, OKAY.
WHERE IF WE HAD THESE ECONOMIES AND SCALES IN PLACE, WE, THERE'D HAVE BEEN NO AGONY.
SO I REALLY WOULD SAY TAKE A LOOK AT THAT AND AS YOU'RE NEGOTIATING THE DMO AGREEMENT REALLY BUILD IN SOME, UH, SOME AGREEMENTS THAT, AND SOME ACCOUNTABILITY THAT, UH, WE CAN HOLD 'EM ACCOUNTABLE TO.
SEEING NOW WE WILL BRING AN ITEM BACK TO THE DIOCESE.
WE HAVE A MOTION AND A SECOND ON THE FLOOR.
ANY FURTHER DISCUSSION? READY FOR THE QUESTION? ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND.
THANK YOU AGAIN, WE WANT TO THANK ALL THAT PARTICIPATED IN THE DISCUSSION AROUND THE ATEX UH, ALLOCATIONS.
UH, NEXT UP WE HAVE PUBLIC COMMENT ON NON AGENDA ITEMS. MR. WILLIAMS. OKAY, ANYONE ELSE HERE WANT TO SPEAK ON A ITEM THAT IS NOT LISTED ON THE AGENDA? SEEING NONE? WE ARE.
AND I WANNA POINT OUT ADJOURN BEFORE 1:00 PM
THANK YOU FOR YOUR TIME LADIES AND GENTLEMEN.