Nags Head should cut its losses and fold the cards

"You got to know when to hold'em and know when to fold'em"...Old Gambler.

The Nags Head town council let it be known to oceanfront and oceanside property owners last week that they can expect to be re-assessed at such time any renourishment of the town’s beaches occurs, following the initial nourishment project.

The board had kept their “maintenance plan card” buried deep in the deck for as long as they could, knowing their proposed beach nourishment project would have to meet FEMA requirements if they stood a chance of qualifying for assistance following a federally declared storm disaster. A major part of those requirements calls for an upfront “method of financing renourishment via a stated and in-effect maintenance plan".

By a vote of 4-1, with Commissioner Wayne Gray voting “No”, the board instructed the town manager to draw up a resolution stating that the town will propose funding the maintenance plan through several potential sources, including occupancy taxes and/or special assessments.  The town’s share of the current countywide occupancy tax, if used, equates to approximately $1.8 million per year and is currently a part of the town’s general fund operating budget. Also, special tax assessments would, again, be necessary for those owning property within the designated project area.

In voting “No” on the resolution,  Gray told the board he was adamantly against raising ad valorem taxes for beach nourishment.  Gray reminded the board that the town’s residents had already voted twice against taxation for beach nourishment, and he was not in favor of using the occupancy tax if it meant replacing it with increased ad valorem taxes.

Commissioner Renee Cahoon told the board that if people in Nags Head didn’t think they benefited from the beach, perhaps the town should put all the occupancy tax into the project and raise ad valorem taxes to offset it. Cahoon said then everyone would truly pay for the services they receive on account of having the beach. Oakes pointed out that such action would require at least a six cents increase in property taxes and still not be enough to do the job. Cahoon didn’t think the town should “keep going to the same well” with the special assessment idea.

Commissioner Anna Sadler said she didn’t agree wholeheartedly with Cahoon and she thought a combination of special assessments, occupancy taxes and overall property tax increases might be a good idea.  Sadler said, “I’m telling them (oceanfront  owners) now, we may have to go back to the well”. Sadler added that  any town wide ad valorem tax increases might be done in increments, adding “If that sand is gone in three years, I will say I was wrong,” added Sadler.

Commissioner Doug Remaley's response was to bring up his old idea that Dare County should purchase its own dredge and thereby save money on beach nourishment. He didn’t see the FEMA requirement as a big stumbling block, and said he thought the board was “getting way ahead of itself” and they should just tell FEMA whatever it takes and get on with it.

Mayor Bob Oakes liked the idea of “mixing and matching” the funding sources and he was convinced that once the original project is completed and proved successful, that people won’t mind paying for it again. "If we haven't got sand in three years (after the project), we made a horrible mistake," said Oakes.

Gray told board members he thought the town should be honest about what they were going to tell FEMA. "Don't tell them one thing and plan on doing another," he said.

Cliff Ogburn, town manager, told the board they would have to start a special assessment almost immediately in order to have enough money to do maintenance or re-nourishment six years after the project is completed. In addition, their window on assessing tax for the current petition drive closes in the year 2013, said Ogburn.

It was clear to this writer, hearing the commissioners air their opinions, that  no one seemed to fully understand what the circumstances would be, before FEMA might offer assistance.  The board finally agreed that a maintenance plan would be put into effect  no later than 6 years after the initial project or when the sand loss equals 50%, whichever comes first.

Opinion: As the old gambler said, "You gotta know when to hold'em and know when to fold'em". Eyeondare thinks its time the Town of Nags Head got out of the game.