News Release

Town Council July 15, 2025, Meeting Highlights

July 23, 2025

During the regularly scheduled meeting on July 15, the Hilton Head Island Town Council’s actions included adoption of the Town of Hilton Head Island Strategic Action Plan for Fiscal Years 2026-2028, approval of a new South Carolina Accommodations Tax (SC ATAX) policy, opposition to proposed offshore drilling program as proposed by the National Bureau of Ocean Energy Management, approval of amendments to the Land Management Ordinance (LMO), and adoption of municipal code amendments governing Committees of Council.

A full recording of the meeting is available on the Town's YouTube channel, and a complete meeting overview (agenda and packet materials) is posted on the Town's website. The next regular Town Council meeting is scheduled for Aug. 19 at 3 p.m.

Actions taken by Town Council on July 15 include:

• Adopted the Town of Hilton Head Island Strategic Action Plan for Fiscal Years 2026 - 2028, which includes goals, strategies, action items and key performance indicators.  The ten goals included within the plan are:
  • Protect Island Character through Managing Growth.
  • Invest in Stormwater Management Infrastructure.
  • Enhance Major Corridors and Streets.
  • Enhance Public Safety Readiness and Facilities.
  • Support Economic Development and Business Recruitment.
  • Reinforce Island Resilience.
  • Preserve, Protect and Celebrate Gullah Geechee Culture and Heritage.
  • Advance Workforce Housing Opportunities.
  • Protect and Enhance Environmental Sustainability.
  • Enhance Community Well-being through Implementation of the Parks and Recreation Master Plan and Program Enhancements.
     
• Approved a comprehensive SC ATAX policy, including updates to ensure the process of allocating these public funds is transparent, consistent, and aligned with state law requirements. By adopting this structured program distribution framework, the Town aims to:
  • Provide predictable funding for eligible tourism initiatives.
  • Maintain oversight and evaluation of grant-funded projects.
  • Support Town-managed tourism operations through the General Fund.
  • Invest in tourism-related infrastructure and long-term capital needs.
  • Pilot and sustain targeted housing initiatives to support the tourism workforce.
  • The following outlines fund distributions:
    • Required distributions by state law:
      • First $25,000 to General Fund
      • 5% to General Fund
      • 30% to Destination Marketing Organization
    • Discretionary distributions:
      • 30% to DMO
      • 33% to ATAX Grant Awards
      • 20% to General Fund (Tourism Operating Expenses)
      • 7% to Capital Improvement Program (CIP)
      • 5% to Tourism-Serving Housing Program
         
• Adopted a resolution to oppose the inclusion of South Carolina in offshore drilling regarding the proposed Bureau of Ocean Energy Management 11th National Outer Continental Shelf Oil and Gas Leasing Program.
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• Considered the first readings of the following amendments to the LMO:
   
  • Enhanced tree protections including stronger preservation requirements for Live Oak and Laurel Oak trees, requiring larger replacement trees for mitigation purposes, an expanded native plant list, and extension of specimen tree protections to include all single-family lots to reduce unnecessary removal of significant trees.
  • Changes to design regulations and requirements for major subdivisions that improve common open space and pedestrian and cyclist connectivity. The changes will refine the definition, calculation, and design standards for open space within development, emphasizing connectivity and design consistency; prioritize functional, connected, and accessible common open space, enhancing the quality of life for residents; enhance walkability and improve community interaction; and ensure a cohesive aesthetic within the Town's subdivisions.
  • Amended the Major Subdivision, Minor Development Plan, and Major Development Plan review processes to improve transparency, enhance community involvement, and ensure that the public is better informed about potential developments in their neighborhoods. The updated process includes provisions designed to increase public notice and provide more opportunities for community engagement. The Planning Commission will ensure that community members have a platform to learn about proposed larger developments and certain minor improvements adjacent to residential areas, as well as the opportunity to ask questions.
  • Addition of a new section regarding construction management standards will require improved site management and safety during construction activities and certain severe weather events. The changes address noise and hours of operation, stormwater discharge, refuse and site cleanliness, traffic and parking, site management, and enforcement issues.
• Updated the municipal code provision governing Committees of Council (second reading), Section 2-5-60, to provide more clarity, consistency, and flexibility in how Town Council committees are formed and function.