Posted here for your review is the latest financial matrix being used by the Board of Aldermen in making decisions regarding the financing of the U.S. Army Corps of Engineers Storm Damage Mitigation Project with Surf City and North Topsail Beach.
The top section, Key Assumptions, outlines the challenge faced by the Board – $16.5 million for the initial phase of the project (which will require we raise $3 million per year), and maintain this revenue stream to perform required beach renourishment over a 50-year period.
The Board is making every effort to secure alternate revenue sources, and estimates are provided for what might be generated by paid parking fees and an increase in the occupancy tax for vacation rentals.
The lower section, Revenue Matrix, shows the additional tax needed to generate the $3 million each year. The Board assumes that there will be two Municipal Service Districts in the project area, one for the ocean side of Island Drive, and one for the sound side.
Each scenario shows the revenues generated with All Sources, Parking and Tax, and Tax only, and is further split by how the burden will be split between the ocean and sound side (65% Ocean, 35% Sound for example).
No Decision Has Yet Been Made on how to move forward, and the Board continues to work with our financial advisor to explore all possible alternatives.
View of PDF of the matrix here.
View other project documents here.