Local Funding For CoastalProjects

An Overview of Practices, Policies, and Considerations

Funding for coastal projects has evolved since the firstproject left sand on the shores of Coney Island, New Yorkin 1923. The increasing size of projects, science, andenvironmental parameters have led to variations in cost.Federal projects are usually funded up to 65% federalfunds and 35% local cost share funds. Some states havededicated funds to support beach renourishment, butthese funds can be as fickle as the federal process.Communities seeking autonomy in their projects canutilize local funding strategies to fully or partially fundprojects.

Creating a funding strategy should begin by consideringcommunity and regional characteristics which influencefunds available to be collected for a project. Localdemographics, populations, use patterns, and existing taxstructures influence availability and support for projects.Regional approaches focusing on sharing costs throughsand or sediment investigations, shoreline surveys,environmental permitting, numerical modeling, andmobilization can lead to significant cost savings. Further,many partnership opportunities exist at the federal, state,and local levels for communities to utilize when fundinga project.

Funding Tools: Traditional and Emerging

Miami Beach, FL

Palm Beach, FL

Special Taxing DistrictsMany communities use variations of “specialtaxing districts” to generate revenue based onwho benefits from a project.

Inland ManagementDistrictsInland navigation districts are taxing districtsestablished to develop and fund long-rangeplans for maintenance of inland waterways, suchas the intercoastal waterway, and for disposal ofdredge material.

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Inlet Management DistrictsInlet management districts are taxing districtsestablished for the construction andmaintenance of inlets not federally maintained.

Erosion Control DistrictsErosion Control Districts are taxing districtsspecifically set up to address coastal erosion andwill have specific taxes and beach managementplans.

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Find the full paper and morecoastal resources online!

asbpa.org

@asbpa

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Geologic HazardAbatement DistrictsA Geologic Hazard Abatement District (GHAD,also referred to a Geologic Hazard AssessmentDistrict) is a taxing district, which may havean independent government agencyadministering it, to address multiplegeological threats.

Sales, Excise, and Use TaxesSales, excise, and use taxes are based on goodspurchased or services rendered.

Parametric InsuranceA parametric insurance policy compensatesthe buyer based on measurable physicalcharacteristics of storm being met orexceeded.

Environmental ImpactBondsEnvironmental Impact Bonds (EIBs) are apay-for-success debt financing mechanism,designed to reward superior outcomes andprovide a means to involve local asset ownersin aspects of funding the transaction.

Catastrophe BondsCatastrophe bonds, or 'cat bonds’, arefinancial instruments designed to help states,cities or other owners of large assets managethe financial risks associated with potentiallydevastating natural disasters and have beenused by private and public sectors sponsorsaround the globe.

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User FeesUser fees can take many forms but are basedon direct use of the beach or coastalresource.

Green BondsGreen bonds are a subset of conventionalbonds. Their unique characteristic is thespecification for the proceeds to be investedin projects generating environmentalbenefits.

Resilience BondsResilience Bonds could become a newcatastrophe bond-like product whichprovides funding for project-based riskreduction solutions.

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