Thanks for Being Here

1. Thanks for Being Here

2. Beach Project FinancingTopsail 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 Presentation of Draft Beach Funding Report Topsail Beach Town Hall, June 8, 2011 PETER A. RAVELLA, PRINCIPAL PAR CONSULTING, LLC

3. Goal: Build on the Community’s History of Successful Planning and Savings Develop a Funding Plan Fair & Equitable in the Eyes of Most in the Community

4. Beach Funding Philosophy • 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

5. Secret #1: “Discover” What is Fair 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

6. Secret #2: Recognize Communities are Unique • “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

7. Secret #3: Plan Ahead • 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

8. Secret #4: Avoid the Perfection Trap • 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 a reasonable solution, and financially prepare to restore the beach and dunes

9. Build Funding Coalitions Based on the “Duality” of Beaches 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

10. Current Beach Funding Plan

11. Proposed Topsail Beach Funding Principles • Start Saving Now – delay will increase tax rates • Avoid Debt Financing – Plan to Pay Cash • Work to Maximize State & County Contributions • Use ad valorem Tax Mechanism to preserve tax deduction • Use Equal Tax Ad valorem Rate on all Parcels (No MSD) • Limit cost to $75/month on a $500,000 Home and avoid increase in current ad valorem rate of 31 cents/$100 value • Establish a dedicated Beach Maintenance Savings Account • Adopt Option 2 & Dedicate 12 cents/$100 value to BMSA • Secure “FEMA Beach” Eligibility

12. Comparison of Options

13. Option 1: Enhanced Maintenance

14. Option 2: Enhanced Maintenance

15. Funding Plan Options Option 1- Enhanced Beach Maintenance Option 2 - Base Beach Maintenance

16. Secure “FEMA Beach” Eligibility • 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

17. Not All Beaches Are “FEMA Eligible” • 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

18. Extend the TB Beach Fund • 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

19. Open DiscussionLET’S TALK ABOUT IT.

20. How 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

21. Part I Secrets to Successful Beach Project Funding (Review from Workshop #1)

22. Part II Initial Public Comments & Input

23. Part III Training – Topsail Beach Project Funding Calculator

24. Part V Observations about Topsail Beach March Interviews

25. Topsail Beach is Unique • 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!

26. Discerning Residents • Skeptical of Federal Project • Skeptical of Municipal Services Districts • Concerned about those on Fixed Incomes • Concerned about Rising Property Values