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: peter@ravellaconsulting.com

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