BE IT RESOLVED BY THE HILTON HEAD NO. 1 PUBLIC SERVICE DISTRICT COMMISSION, THE GOVERNING BODY OF THE HILTON HEAD NO. 1 PUBLIC SERVICE DISTRICT, SOUTH CAROLINA, IN A MEETING DULY ASSEMBLED, AS FOLLOWS: ARTICLE I - FINDINGS OF FACT Section 1.01 Recital of Findings of Fact The Hilton Head No. 1 Public Service District Commission (the “Commission”), the governing body of the Hilton Head No. 1 Public Service District, South Carolina (the “District”), has recently undertaken certain improvements to its waterworks and sewer system (collectively, the “System”) consisting of the installation of sewage collection lines and water distribution lines in and around Miller Road, Slim Loop Road, Steelpan Road, Squire Pope Road, Wild Horse Road, Farmers Club, Dillon Road, Wiley Road, William Hilton Parkway, Sunday Ford, Mitchellville Road, Juke Joint Lane, Marvin Lane, Azalea Street, William Drive, Beach City Road, Jonesville Road, Gumtree Road, Janis Manor, Elizabeth Road, Marshland Road, Outlaw Road, Spanish Wells Road, Old House Creek Drive, Conrad Court, Janis Manor and various other areas of the District (collectively, the “Project”). The construction and installation of the Project was completed between April 2023 and March 2026. The Project is separated into forty-three (43) divisions (each a “Division”, and collectively the “Divisions”). Each Division is separated on the basis of the construction costs attributable to the parcels therein. Parcels with equal construction costs or similar ownership were grouped into the same Division and individual parcels with unique construction costs were given their own Division. Only that portion of the total construction costs of the Project attributable to each Division shall be paid by each of the respective property owners of the parcels located within each Division. The Commission has been advised that the total cost of the Project was $866,511.22, including tap and inspection fees (the “Project Costs”). In order to reimburse the District for a portion of the actual costs of construction within all of the Divisions, the District issued its Waterworks and Sewer System Improvement Revenue Bond, Series 2026, in the principal amount of $750,000 (the “2026 Bond”). The 2026 Bond is dated February 27, 2026 and bears interest from such date at the rate of four and twenty-five hundredths per centum (4.25%) per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). Principal of and interest on the 2026 Bond shall be payable with respect to principal and interest each June 1 according to the following debt service schedule: Outstanding Rate Total Payment Interest Principal Balance $750,000.00 6/1/2027 4.25% $94,197.92 $40,197.92 $54,000.00 $696,000.00 6/1/2028 4.25% $94,580.00 $29,580.00 $65,000.00 $631,000.00 6/1/2029 4.25% $94,817.50 $26,817.50 $68,000.00 $563,000.00 6/1/2030 4.25% $94,927.50 $23,927.50 $71,000.00 $492,000.00 6/1/2031 4.25% $94,910.00 $20,910.00 $74,000.00 $418,000.00 6/1/2032 4.25% $94,765.00 $17,765.00 $77,000.00 $341,000.00 6/1/2033 4.25% $94,492.50 $14,492.50 $80,000.00 $261,000.00 6/1/2034 4.25% $94,092.50 $11,092.50 $83,000.00 $178,000.00 6/1/2035 4.25% $94,565.00 $7,565.00 $87,000.00 $91,000.00 6/1/2036 4.25% $94,867.50 $3,867.50 $91,000.00 $0.00 Totals $946,215.42 $196,215.42 $750,000.00 A general description of each Division along with an allocated portion of the total construction costs of the Project (not including certain legal fees, other reimbursable costs to the District and interest costs) attributed to each Division by the Commission is set forth as follows: Portion of Division Description Cost Attributed Division 1 Miller Road – Water/Sewer $ 8,954.72 Division 2 Slim Loop – Water/Sewer 40,960.00 Division 3 Squire Pope – Water/Sewer 31,210.61 Division 4 Wild Horse Road – Sewer 8,764.72 Division 5 Farmers Club – Water/Sewer 10,529.72 Division 6 Dillon Road – Water/Sewer 11,329.72 Division 7 Wiley Road – Sewer 9,189.72 Division 8 Rachel Lane – Water/Sewer 33,322.00 Division 9 Sunday Ford – Water/Sewer 4,040.00 Division 10 Mitchellville Road – Water/Sewer 11,389.72 Division 11 Juke Joint Lane – Water/Sewer 33,053.96 Division 12 Azalea Street. – Sewer 2,000.00 Division 13 William Drive – Sewer 3,750.00 Division 14 Beach City Road – Sewer 11,647.64 Division 15 Jonesville Road – Sewer 10,993.33 Division 16 Gumtree Road – Sewer 9,959.71 Division 17 Janis Manor – Water/Sewer 19,286.28 Division 18 Elizabeth Road – Water/Sewer 10,796.47 Division 19 Squire Pope Road – Water/Sewer 11,323.33 Division 20 Wright Place – Water/Sewer 1,770.00 Division 21 William Hilton Parkway – Sewer 9,379.09 Division 22 Wild Horse Road – Sewer 11,598.21 Division 23 Wild Horse Road – Sewer 8,640.71 Division 24 Wild Horse Road – Sewer 8,510.71 Division 25 Marshland Road – Water 9,798.93 Division 26 Pink Sand Lane – Sewer 12,523.02 Division 27 Outlaw Road – Water/Sewer 1,810.00 Division 28 Spanish Wells Road – Water/Sewer 2,970.00 Division 29 Old House Creek – Sewer 9,800.26 Division 30 Old House Creek – Sewer 223,287.54 Division 31 Old House Creek – Sewer 24,743.68 Division 32 Old House Creek – Sewer 24,788.68 Division 33 Old House Creek – Sewer 16,099.11 Division 34 Old House Creek – Sewer 24,789.74 Division 35 Old House Creek – Sewer 24,573.68 Division 36 Old House Creek – Sewer 25,814.74 Division 37 Old House Creek – Sewer 24,317.95 Division 38 Old House Creek – Sewer 24,536.02 Division 39 Old House Creek – Sewer 25,594.57 Division 40 Old House Creek – Sewer 24,275.46 Division 41 Old House Creek – Sewer 25,986.02 Division 42 Squire Pope Road – Sewer 8,098.08 Division 44 Conrad Court – Water/Sewer 10,303.37 Total $866,511.22 Section 1.02 Recital of Statutory Authorization In order to pay debt service on the 2026 Bond, the District intends to utilize the provisions of Sections 6-11-1210 through 6-11- 1260 of the Code of Laws of South Carolina 1976, as amended, in order to authorize the imposition of assessments on a per parcel basis on properties in the Divisions, as more fully provided herein. ARTICLE II - CREATION OF SPECIAL ASSESSMENT LIENS PROVISION OF NOTICE Section 2.01 Description of Affected Property The properties improved by the construction of the Project are within the District and are in the general locations of Miller Road, Slim Loop Road, Steelpan Road, Squire Pope Road, Wild Horse Road, Farmers Club, Dillon Road, Wiley Road, William Hilton Parkway, Sunday Ford, Mitchellville Road, Juke Joint Lane, Marvin Lane, Azalea Street, William Drive, Beach City Road, Jonesville Road, Gumtree Road, Janis Manor, Elizabeth Road, Marshland Road, Outlaw Road, Spanish Wells Road, Old House Creek Drive, Conrad Court, Janis Manor and various other areas of the District. A detailed description of each affected parcel, invoices and engineering reports for the affected parcels may be reviewed Monday through Friday during regular business hours of 8:00 a.m. to 4:00 p.m. at the office of the District located at 21 Oak Park Drive, Hilton Head Island, 29926. Section 2.02 Provisions for Payment of Assessments The cost of a portion of the Project has been reimbursed to the District from the proceeds of the 2026 Bond. All owners of properties (1) that are within the affected areas as described in Sections 1.01 and 2.01 of this Resolution, (2) that are devoted to residential or commercial purposes, and (3) to which water and/or sewer service is being or has been made available, shall pay an assessment (the “Assessment”) in order to defray the costs of the Project, plus interest. Based on these assumptions, the Project Costs, plus accrued interest thereon at the rate attributable to the 2026 Bond of 4.25% per annum over a period of ten years in the amount of $215,155.78, equals the total sum of $1,081,667.00 (the “Total Assessment”). Section 2.03 Calculation of the Assessments The pro-rata portion attributable to each Division shall be calculated by dividing the total costs of construction of such Division (as provided in Section 1.01 hereof) by the Project Costs ($866,511.22); the resulting percentage shall be multiplied by the Total Assessment to achieve each Division’s proportionate share of the Total Assessment. As stated above, the District has issued the 2026 Bond with a 10-year term. In order to minimize the annual costs to the owners of the properties in the Divisions, the District shall levy the Assessments over a 20-year term and shall reduce the interest rate to 2.212%¹. On this basis, the annual installment of the Total Assessment shall equal the sum of $54,083.35. On the basis of such calculations, the pro-rata share of the Total Assessment for each Division, the annual portion of the Assessment in each Division, the Total Assessment per service in each Division and the Payment (as defined below) per parcel in each Division, shall be as follows: Pro-rata Share Annual Portion of Assessments per Payment² per of Total the Assessment Parcels Parcel in each Parcel in each Division Assessment per Division Served Division Division Division 1 $11,178.19 $ 558.91 1 $558.91 $11,178.19 Division 2 51,130.42 2,556.52 1 2,556.52 51,130.42 Division 3 38,960.24 1,948.01 1 1,948.01 38,960.24 Division 4 10,941.01 547.05 1 547.05 10,941.01 Division 5 13,144.26 657.21 1 657.21 13,144.26 Division 6 14,142.90 707.15 1 707.15 14,142.90 Division 7 11,471.54 573.58 1 573.58 11,471.54 Division 8 41,595.89 2,079.79 1 2,079.79 41,595.89 Division 9 5,043.14 252.16 1 252.16 5,043.14 Division 10 14,217.80 710.89 1 710.89 14,217.80 Division 11 41,261.30 2,063.07 1 2,063.07 41,261.30 Division 12 2,496.60 124.83 1 124.83 2,496.60 Division 13 4,681.13 234.06 1 234.06 4,681.13 Division 14 14,539.76 726.99 1 726.99 14,539.76 Division 15 13,722.99 686.15 1 686.15 13,722.99 Division 16 12,432.72 621.64 1 621.64 12,432.72 Division 17 24,075.09 1,203.75 1 1,203.75 24,075.09 Division 18 13,477.25 673.86 1 673.86 13,477.25 Division 19 14,134.93 706.75 1 706.75 14,134.93 Division 20 2,209.49 110.47 1 110.47 2,209.49 Division 21 11,707.93 585.40 1 585.40 11,707.93 Division 22 14,478.06 723.90 1 723.90 14,478.06 Division 23 10,786.21 539.31 1 539.31 10,786.21 Division 24 10,623.93 531.20 1 531.20 10,623.93 Division 25 12,232.02 611.60 1 611.60 12,232.02 Division 26 15,632.50 781.63 1 781.63 15,632.50 Division 27 2,259.43 112.97 1 112.97 2,259.43 Division 28 3,707.45 185.37 1 185.37 3,707.45 Division 29 12,233.68 611.68 1 611.68 12,233.68 Division 30 278,730.11 13,936.51 14 995.46 19,909.29 Division 31 30,887.57 1,544.38 1 1,544.38 30,887.57 Division 32 30,943.74 1,547.19 1 1,547.19 30,943.74 Division 33 20,096.54 1,004.83 1 1,004.83 20,096.54 Division 34 30,945.06 1,547.25 1 1,547.25 30,945.06 Division 35 30,675.35 1,533.77 1 1,533.77 30,675.35 Division 36 32,224.57 1,611.23 1 1,611.23 32,224.57 Division 37 30,356.13 1,517.81 1 1,517.81 30,356.13 Division 38 30,628.34 1,531.42 1 1,531.42 30,628.34 Division 39 31,949.73 1,597.49 1 1,597.49 31,949.73 Division 40 30,303.09 1,515.15 1 1,515.15 30,303.09 Division 41 32,438.38 1,621.92 1 1,621.92 32,438.38 Division 42 10,108.84 505.44 1 505.44 10,108.84 Division 43 12,861.71 643.09 1 643.09 12,861.71 ¹This rate has been imputed by the District based on the interest accrued on the Project Costs financed over the same period as the 2026 Bond. The rate is substantially discounted from the rate attributable to the 2026 Bond. ²As defined below Section 2.04 Terms and Manner of Payment Each Assessment shall be divided into 20 equal annual payments (each a “Payment”, and collectively the “Payments”), that shall be included on each property owner’s annual tax notice, beginning in the fall of 2026 and ending in the fall of 2045. Each Payment shall be collected at the same time and in the same manner as county taxes. Each property owner may also elect, at any time, to pay the entire Assessment as one lump sum, instead of annual payments, without any prepayment penalty. If a property owner desires to pay the entire Assessment as one lump sum, he or she must contact the Commission prior to payment to verify the total amount owed to that date. Until fully paid, the Assessment shall constitute a lien upon the affected parcel(s) that will be superior to all other liens, except property taxes. Any delinquent payments of Assessments by a property owner will be penalized to the same extent and collected in the same manner as late payments on county taxes. Section 2.05 Publication of Resolution and Preparation of Poster Pursuant to the provisions of Section 6-11-1230(4)(a) of the Code of Laws of South Carolina 1976, as amended, this Resolution shall be published in a newspaper of general circulation in the District seven days before its effective date. Within thirty days (30) of the publication of this Resolution a poster shall be prepared setting forth each Division and providing notice of the proposed Assessment and generally describing the area affected. This poster shall be displayed in the Office of the Register of Deeds for Beaufort County, South Carolina. The poster shall be displayed until the assessment roll has been filed. ARTICLE III - EFFECTIVE DATE Section 3.01 Effective Date The effective date of this Resolution shall be seven days following its publication in a newspaper of general circulation in the District. DONE, RATIFIED AND ADOPTED on April 29, 2026.