Fears that the federal government will drop financial support of beach renourishment projects prompted concerns by local officials Wednesday about how accommodations tax dollars are split between sand and tourism.
The discussion arose as members of the Wilmington-New Hanover Port, Waterway and Beach Commission were discussing scheduled studies and updates for upcoming sand replenishment projects on Wrightsville Beach, Carolina Beach and Kure Beach.
Carolina Beach Councilman Steve Shuttleworth noted only about 30 percent of the revenue from New Hanover County’s 6 percent occupancy tax goes toward beach renourishment; the rest is earmarked for tourism-related municipal projects, marketing and the Wilmington Convention Center. Carolina Beach officials attempted unsuccessfully last year to get greater discretion over how it spends its share of the occupancy tax.
But as the expense of beach projects is increasing, the federal government — which currently pays 65 percent of the cost of dredging and sand replenishment — has threatened to revoke its support. Although a push by members of Congress representing coastal states has helped save funding in recent years, local officials fear that may not always be the case.
Shuttleworth and Kure Beach Councilman Craig Blozinsky worried the current allocations, while sufficient as long as the federal government is paying the lion’s share, would not be enough to continue periodic renourishment. Tourism promotion is important, Blozinsky said, “but we’ve got to find a way to get a little more for sand.”
Under the current program, local room-tax funds pay 17.5 percent of the cost of dredging and pumping sand, and the state pays 17.5 percent. It is not clear that the state would continue its support if the federal government share disappears, Shuttleworth said. If the worst came to pass, the entire burden could fall on beach towns and the room-tax fund.
Said commission member and former Carolina Beach Mayor Dennis Barbour, “Without the beaches, we don’t have the tourism dollars.”
Moreover, the local tax base could suffer. While the beaches attract tourists, they also protect the valuable property and infrastructure along the oceanfront from erosion, Shuttleworth said.
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