At the May 20 Sullivan’s Island Town Council meeting, Comptroller Jason Blanton presented the draft general fund budget for fiscal year 2026, highlighting increased revenues, rising operational costs and major infrastructure investments.
Blanton attributed a projected $410,000 revenue increase primarily to higher property tax collections and business license fees. These gains are being used to offset a state-mandated 3.5% rise in employee pension and health benefit costs, which affect all town departments.
With limited flexibility to raise other revenue streams, such as franchise fees, sales taxes, or grants, the town relied on these traditional sources to balance the budget.
Despite rising costs, the town expects to end the year with a surplus of nearly $500,000 in the general fund, which will help finance capital projects. One of the largest expenditures is the replacement of the stormwater system, a project estimated at $15 million.
“Luckily, over the past few years the town has received grants, and those grants are covering almost all of that $15 million, with the town covering somewhere around $4 million,” Blanton said.
When combined with the capital improvement budget, the town maintains a balanced overall budget.
The town has also established an internal fleet service fund to manage and maintain municipal vehicles. This in-house approach has reduced downtime for essential services like police and fire, while also yielding cost savings.
The Water and Sewer Department is also facing cost pressures. While the sewer budget increased modestly by 1.47%—despite the 3.5% rise in staff benefit costs—the water budget is increasing by 11.6%. This sharp uptick is primarily due to a new 40-year agreement with Charleston Water System, which secures an additional 100,000 gallons of water capacity for the island.
Additionally, new Environmental Protection Agency PFAS compliance regulations, aimed at lowering the permissible levels of “forever chemicals” in drinking water, have added to the financial burden. Charleston Water System is passing these compliance costs on to customers.
The average island household using 6,000 gallons of water per month can expect a combined rate increase of about 4.8%.
“This is something that is hitting every single water system, and we are just caught up in it like everybody else,” said Justin Novak, chair of the Water and Sewer Committee.
Not all residents were reassured by the presentation. Barbara Spell, a resident of Atlantic Avenue, voiced concerns about the town's long-term financial trajectory.
“In 2014, the budget was about $4.5 million. Now, fast forward 10 years; the budget has doubled. We now have $40 million in debt, 42 vehicles, and we are borrowing $2.5 million every year just to pay the interest on the debt, yet the population on the island is essentially the same as it was in 2014,” Spell said. “How does all this borrowing and spending and taxing reflect the interests of islanders?”
