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Wrightsville Beach
Thursday, March 28, 2024

Parking rate increase helps balance budget and save for sand

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Wrightsville Beach leaders and staff have succeeded in balancing the town’s 2016 fiscal year budget, town manager Tim Owens said during the board of aldermen’s April 29 budget workshop. Funds generated from a 2015 parking rate increase help pay for equipment purchases and other short-term expenditures while allowing the town to save for major long-term projects like beach renourishment.

On the revenue side, the town has adjusted down its projections to reflect an $80,000 loss in sales tax it will face if the county increases its tax four or five cents.

The town is also budgeting to deposit $400,000 into its sand fund, which will pay for coastal storm damage reduction projects if federal funding runs out, as it is currently scheduled to do.

“We know that we’re going to have to contribute more to our beach renourishment program than we currently do due to a loss of federal funding — and since there are no matches yet — and we will eventually need sand on that beach,” Blair said during an April 22 phone interview. “We’re putting aside money today that we know we’re going to need in the next cycle because that’s the prudent thing to do.”

In 2014, the town was able to double the fund by adding $350,000, Blair said, so this year’s projected $400,000 transfer would put the pot of money at more than $1 million.

“But remember, one beach renourishment cycle is $8 million,” he said. “And granted, it will be matched in some form … but you can’t just all of a sudden decide you need $2 million … unless you go out and borrow it, and that puts the town in a long-term financial downward spiral.”

Blair said his financial planning also takes into account another, even larger project the town might have to help fund in the next few years. He said the town might have to pay as much as $18 million to help upgrade part of Cape Fear Public Utility Authority’s system following sewage spills in the early 2000s.

The town is currently undergoing study of its own water and sewer needs, he said, and town leaders will craft a solution to the potential CFPUA bill after that study is finished.

In terms of immediate expenditures, the town opted not to purchase a new $120,000 load packer for the public works department this year, but it was able to find money for an EMS vehicle for the fire department. Other upgrades, like resurfacing Pelican Drive and audiovisual enhancements in town hall council chambers, made the final cut as well.

The budget also reflects a restructuring of the police department to add a new officer position. Police chief Dan House said by eliminating unfilled reserve officer positions and the costs associated, he could add the new officer at no additional cost.

The purpose of the restructuring, he said, is to put an extra officer on the road, especially at the downtown bar district on weekend nights.

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