thanks for being here
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Thanks for Being Here. Beach Project Financing Topsail Beach, North Carolina. Community Interviews March 7-18, 2011 Workshop Series 1 April 16 & 17, 2011 Workshop Series 2 May 14 & 15, 2011 Workshop Series 3 May 28 & 29, 2011 - PowerPoint PPT PresentationTRANSCRIPT
PARC
Thanks for Being Here
Community Interviews March 7-18, 2011Workshop Series 1 April 16 & 17, 2011 Workshop Series 2 May 14 & 15, 2011Workshop Series 3 May 28 & 29, 2011
Presentation of Draft Beach Funding ReportTopsail Beach Town Hall, June 8, 2011
PETER A. RAVELLA, PRINCIPAL PAR CONSULTING, LLC
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Goal: Goal: Build on the Build on the Community’s History of Community’s History of Successful Planning and Successful Planning and SavingsSavings
Develop a Funding Plan Fair & Equitable in the Eyes of Most in the Community
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Beaches are economic assets, pure and simple
Erosion is a natural process, like rust, even where we mistakenly help it along
Beach towns must invest in their top asset – the beach - with county, state and federal participation where possible
Work together for the greater good -- Local battles interfere with sound financial planning
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Within the Community -- The funding plan must be “fair and equitable” in the eyes of most in the community
Funding Process -- must be transparent, have wide participation, and discover what is “fair” for the community
At the City Government Level -- Community support must precede local government action
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“We’re all in this together” On narrow barrier islands like Topsail Beach, all
owners have a stake in the beach & the conceptual sand source plan calls for clearing channels
Community History Matters Topsail Beach has historically used a flat rate ad
valorem tax plus accommodations taxes for beach management costs
Our Work: Find an approach that builds on the unique character of the community
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Time is money Build Beach Account over time Start saving early Where possible, use ad valorem tax revenues,
not fees (as property taxes are deductible w IRS)
Beach Maintenance is on-going, and savings plan should be too
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Finance Strategies can become complex
Finer “distinctions” can always be found: Among beneficiaries Property characteristics, and Assessment strategies and rates
. . . And the discussions and debate can continue
Best Rule: Avoid the perfection trap, find trap, find a reasonable solution, and financially prepare a reasonable solution, and financially prepare to restore the beach and dunesto restore the beach and dunes
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Contributors should include:
State of North Carolina Public
Pender County Public Town of Topsail Beach Public Beachfront property owners
Private Off-beach property owners
Private
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Revenue Source 2010-2011 Projected Amount
Ad Valorem Taxes (4¢ per $100) $169,630
Town Accommodation Taxes $167,000
Pender Accommodation Taxes $255,000
Pender County Ad Valorem Rebate
$112,500
Interest Earned $ 10,000
Projected Total 2010-2011 $714,130
Current Beach Funding Current Beach Funding PlanPlan
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1. Start Saving Now – delay will increase tax rates
2. Avoid Debt Financing – Plan to Pay Cash
3. Work to Maximize State & County Contributions
4. Use ad valorem Tax Mechanism to preserve tax deduction
5. Use Equal Tax Ad valorem Rate on all Parcels (No MSD)
6. Limit cost to $75/month on a $500,000 Home and avoid increase in current ad valorem rate of 31 cents/$100 value
7. Establish a dedicated Beach Maintenance Savings Account
8. Adopt Option 2 & Dedicate 12 cents/$100 value to BMSA
9. Secure “FEMA Beach” Eligibility
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Comparison of OptionsComparison of Options
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Option 1: Enhanced Option 1: Enhanced MaintenanceMaintenance
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Option 2: Enhanced Option 2: Enhanced MaintenanceMaintenance
Funding Plan Options
Option 1- Enhanced Beach Maintenance
Option 2 - Base Beach Maintenance
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Purpose: Make Local Project Eligible for Federal Reimbursement if
the Beach is lost or damaged in a “Declared Disaster”
FEMA Beach Requirements: Monitor - Annual Beach Profiles Maintain - Annual Maintenance & 5 year Renourishment Fund - Establish Stable & adequate funding source*
* Note: 25 year funding plan also required for the Static Line Exception
Secure “FEMA Beach” Secure “FEMA Beach” EligibilityEligibility
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Emergency or one-time renourishments, even if to a design, are not eligible because they do not have an established and adhered to maintenance program
Emergency or “as needed” renourishments when the beach has eroded are not eligible maintenance programs. The beach must be maintained through scheduled renourishments
Renourishments must be to the project design; partial renourishments or “hot spot” nourishments are not considered maintenance
Not All Beaches Are “FEMA Not All Beaches Are “FEMA Eligible”Eligible”
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Set aside a Dedicated Fund Use Fund for Specified Purposes Only
◦Design, Permitting & Construction of the Next Beach Project
◦Annual Beach Monitoring Program
◦Annual Dune Maintenance Program
Extend the TB Beach FundExtend the TB Beach Fund
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How to ParticipateHow to Participate Come to Workshops or view on the Web
Setup a personal phone interview with PARC
Join the Facebook Discussion
Review and comment on the draft plans
Call me: 512-784-3565
Email me: [email protected]
Part ISecrets to Successful Beach Project Funding
(Review from Workshop #1)
Part II
Initial Public Comments & Input
Part III
Training – Topsail Beach Project Funding
Calculator
Part V
Observations about Topsail Beach
March Interviews
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Dedicated and Educated Beach Community
Organized & Committed Citizens - TBCC
History of Shared & Equal Contributions
Solid County Contribution to Beach Fund
Narrow Island = Strong Community Ties
Long History of Successful Planning
Planned and Paid Cash for a Beach Project!
Topsail Beach is UniqueTopsail Beach is Unique
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Skeptical of Federal Project
Skeptical of Municipal Services Districts
Concerned about those on Fixed Incomes
Concerned about Rising Property Values
Discerning ResidentsDiscerning Residents