Development News for Port Royal, South Carolina

Port Royal Finalizes 2026 Budget, Reallocates TIF Funds to Avoid Tax Increases Amidst Rising Personnel Costs

The Port Royal town council held budget workshop number three for the 2026 fiscal year, aiming to finalize the budget without increasing millage rates. The proposed budget totals $11,810,735,000, an increase of approximately $6,000,000 to $700,000 from the previous year, largely due to personnel costs including a 5% cost of living adjustment (3% COLA, 2% adjustment), increased retirement contributions, FICA, and liability insurance. To balance the budget, the town will reallocate approximately 50% of funds from an expired tax increment financing (TIF) district, avoiding a draw on the general fund balance. This reallocation addresses a projected deficit of $358,747 prior to the transfer. The budget also accounts for increased legislative mandated coverage for liability insurance and anticipates potential future shortfalls due to property tax exemptions. Staff are also reviewing the stormwater utility fee and development/site plan fees to align with capital programs and actual town costs, with the stormwater fee currently less than 50% of neighboring municipalities. Despite a reported decrease in population impacting millage rate increase potential (CPI 2.63% increase allowed, population reduction cited), the town is not pursuing millage increases and has healthy reserve funds, exceeding the MASC recommendation of 28-30%.