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During their March 5 meeting, Nags Head commissioners received updates on various town initiatives and events, including plans for the Dowdy Park Farmers Market, Summer Concert Series and beach nourishment project, amid a budget workshop and discussions of revenue shortfalls and financial challenges.

Kelly Wyatt, planning director, provided an update on various events and initiatives on behalf of the Nags Head Arts and Culture Committee. According to the committee, the Dowdy Park Farmers Market will return this summer, featuring local vendors, fresh produce and family-friendly activities. The market will run from June 12 to August 21, with a focus on supporting local farmers and artisans.

In addition to the farmers market, the committee highlighted several other events and initiatives, including: the Summer Concert Series and “Family Fun Nights,” which will be shifted to accommodate working families; “Kids Day” events, featuring activities and entertainment for children; public art initiatives, including the installation of new art panels along beach road; fitness programs, such as yoga and “Fitness Friday;” holiday markets and events, including the annual tree lighting ceremony and flashlight candy cane hunt. In a new initiative, “Yappy Hour” at Satterfield Landing Dog Park is being introduced and will take place on Wednesdays from 10 a.m. to 11 a.m. from June 25 through August 6.

Looking ahead, the committee plans to expand its activities to other parks, including Whalebone Park, which is set to undergo improvements. The committee is excited to explore new opportunities for events and activities at this park. As Mayor Pro Tem Michael Siers noted, “The positivity that it [these events] brings to the community is wonderful.”

Public comment saw a few local residents, one of which being former mayor pro tem of Nags Head Susie Walters. She expressed her disappointment and concern that the Board of Commissioners cannot agree on appointing a new member to take former commissioner Kevin Brinkley’s seat. She suggested that “sexism” may “exist on this board.” Walters urged them to re-examine the applications and make a decision in the best interest of the community.

John Costulis, a former school board chairman, shared his observations and suggestions for both choosing a new board member and improving the board overall. He recommended structuring the board to allow for diverse perspectives and experiences; including young people in certain decision-making or participation, such as high school students, to bring fresh ideas; considering the motives and representation of individuals brought onto the board; ensuring boards represent the community, including employees, constituents and tourists.

Later in the meeting, Mayor Ben Cahoon addressed the board in regard to filling the open seat, suggesting that the commissioners essentially “take a step back” from the formal process and continue to have dialogue with one another in considering all options and applications received. If a member feels strongly about a candidate, he recommended then bringing the nomination before the board at a future meeting, to which the town attorney had no objections.

In other business, the board approved three resolutions related to financing for the ocean rescue housing project and the purchase of a parcel of land on South Croatan Highway.

Amy Miller, deputy town manager/finance officer, highlighted the resolutions during public hearing, as required by state statute. They included the financing terms for the ocean rescue workforce housing project, the purchase of 4222 South Croatan Highway, and a budget amendment to accommodate the land purchase. The financing terms for the ocean rescue project include a nine-year loan with an interest rate not to exceed 5.48%. However, town officials expect the actual interest rate to be lower, potentially around 4.32%, pending a letter from the town’s bond attorneys.

The purchase of 4222 South Croatan Highway, valued at approximately $1.5 million, will be financed over 10 years with an interest rate not to exceed 4.32%. The town plans to use proceeds from the sale of other properties to put cash down on the purchase. The budget amendment approved by the board will record all activity related to the land purchase, including the sale of other properties. This amendment ensures that the town’s budget accurately reflects the financial transactions associated with the land purchase.

During their budget workshop, the board of commissioners recognized a shortfall in revenue due to a decline in occupancy tax collections. According to recent projections, the town’s occupancy tax revenue is expected to fall approximately $400,000 short of budgeted amounts. This revenue shortfall, combined with the upcoming revaluation of property values, could present challenges for town officials as they prepare the budget for the upcoming fiscal year. The revaluation, which is conducted every five years, is expected to result in an average increase in property values of 71% across the town.

Town officials are also grappling with a significant increase in health insurance costs. The North Carolina League of Municipalities, which has provided health insurance to the town for over a decade, has announced that it will no longer offer health insurance effective July 1. This change has prompted the town to seek alternative insurance options, with renewal quotes potentially ranging from 11% to 20% increases.

Despite these challenges, Miller expressed that the town remains committed to providing essential services to residents while minimizing the impact of these financial challenges. The town’s finance team is working to identify cost-saving measures and explore alternative revenue sources to offset the anticipated shortfalls.

In addition to the revenue shortfall and increased health insurance costs, the town is also facing uncertainty regarding its beach nourishment project. The project, which is currently estimated to cost around $38 million, is expected to be funded in part by the county. However, the town has not yet received confirmation of the county’s contribution, which could impact the project’s timeline and budget. The town is also considering the potential impact of the revaluation on the town’s tax rates. While the town has historically been conservative in its budgeting, the increased property values could result in higher tax bills for residents. To mitigate this impact, the town may consider adjusting its tax rates or exploring alternative revenue sources.

In light of these financial challenges, town officials are prioritizing essential services and exploring ways to reduce costs without compromising the quality of services provided to residents. This includes reviewing the town’s capital improvement plan (CIP) and identifying areas where costs can be reduced or delayed. They found that there may be potential benefits of delaying certain projects, such as street work, in order to focus on more pressing priorities like the beach nourishment project. By taking a more strategic approach to budgeting and prioritizing essential services, the town aims to navigate these financial challenges while minimizing the impact on residents.

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