Cool heads, calm voices guide discussion on sand dollars
In a county that rests on the edge of the Atlantic Ocean, our beaches are more than a breathtaking amenity. Besides the protection they offer, they provide a livelihood for many local families, a respite for work-weary tourists and a robust tourism economy.
They also bring in money for local governments to use in providing services to residents. Sales and room occupancy taxes help keep property taxes lower than they otherwise might be.
For that reason, it’s important to ensure the sand that draws so many people to Wrightsville, Carolina and Kure beaches be replenished from time to time so we don’t lose our strands to erosion and high velocity storm surge.
Ongoing renourishment projects have helped keep sand on our beaches, but for years the federal government has threatened to stop funding these projects. That would be a significant blow, because the federal share is 65 percent. The state pays 17.5 percent, and the local match is 17.5 percent. The ratio is important; sand dredging and pumping operations typically cost more than $8 million each.
In New Hanover County, the local share is paid for through room occupancy taxes, but a 2011 agreement among the county and the three beach towns provides for continued funding in a worst-case scenario — that is, if federal and state money is severely reduced or disappears entirely.
For now, there is nothing to worry about. All projects scheduled for the next couple of years are safe, and the local match is taken entirely from room occupancy tax dollars. After that, it largely depends on Congress and the willingness of lawmakers from non-coastal states to subsidize beach sand and the economies that depend on it. But in 2011, local officials agreed on a contingency plan, just in case the funding formula changes.
In the event the state and federal share of beach renourishment drops below 17.5 percent, the beach town hosting the project would pay the difference, up to 17.5 percent. The county’s share, paid from room occupancy tax revenues, would be 82.5 percent.
At recent meetings of the Wilmington and New Hanover County Port, Waterway and Beach Commission, the mayors of Carolina and Kure beaches said the cost is a lot to bear on top of money they are already spending to serve tourists. They also noted the county’s three beach towns raise a large percentage of room-tax revenues.
For those and other reasons, the two communities want to renegotiate the agreement. Carolina and Kure beaches officials originally planned to back out of the agreement, but pushed instead for a six-month extension, during which time county, beach town and Wilmington city officials would reconsider the provisions of the inter-local agreement.
It’s never a bad idea to revisit agreements like this periodically, and the New Hanover County Commissioners have said they’re willing to do that.
The PWBC had recommended the agreement be extended by six months at the end of June, when the current agreement expires. However, lawyers for the county and Wrightsville Beach said no extension was necessary. The agreement automatically renews itself for another four years at the end of June, and members may opt out at any time.
Some of the county commissioners were concerned Carolina and Kure beach officials wanted someone else to pay the tab, but that’s not the case. Kure Beach’s mayor, in particular, worries about the impact of undertaking an expensive project on his small town.
That’s a fair point, but the commissioners made some good ones, too. Chairman Jonathan Barfield said it’s important for everyone to have “skin in the game,” and to him and some of his colleagues, the county’s 82.5 percent share represents significant “skin.” Sure, it’s coming from room-tax dollars, but it’s still the county’s money.
Wrightsville Beach officials, meanwhile, are willing to renegotiate the agreement to determine if there is a better way to divvy up costs, but they are in no hurry to opt out of what looks to be a fair compromise reached four years ago.
Over the coming weeks, a committee consisting mostly of local government staff will examine potential alternatives to the current funding formula. The group also will include former Carolina Beach Mayor Dennis Barbour, who is chairman of the port and waterway commission. They’ll deliver a progress report to the county commissioners in two months.
They may come up with a better solution and if so, everybody wins.
This situation could have turned into a battle over funding, territory and legal rules. Instead, the officials involved have thus far taken the high road, opting for a meaningful conversation about roles and responsibilities when it comes to keeping our beaches full of sand for all those sunbathers who head our way each summer.
