LOCAL FUNDING FOR BEACH PROJECTS NCBIWAs Conference Pine Knolls Shores, NC April 23, 2018 Peter A. Ravella, Principal PAR Consulting, LLC
PARC s Work Beach Nourishment and Shoreline Project Funding Navarre Beach, Santa Rosa County, Florida City of Destin, Destin, Florida Okaloosa Island, Florida Oak Island, North Carolina, Topsail Beach, North Carolina North Topsail Beach, North Carolina Surf City, North Carolina Bald Head Island, North Carolina Terminal Groin, Bald Head Island, North Carolina Manasota Key/Don Pedro Knight Island, Charlotte County Florida State of North Carolina Shoreline Funding Program Recommendations, North Carolina Beach & Inlet Management Plan (BIMP) Beach and Coastal Project Funding City of South Padre Island Access and Other Grants Port Mansfield Boat Ramps Port Mansfield Water System Improvements Laguna Point Recreation Area Funding Plan (New Park) Coastal Lands Resources Center Funding Plan & Grants (Enviro Education Center)
THE CHALLENGES OF FUNDING BEACH PROJECTS AT THE LOCAL LEVEL Why is it difficult
Challenge #1: Pennies From Heaven (Or, Federal Shore Protection Funds) Federal Shore Protection Project - The Illusive Unicorn 50-Year Federal Funding Commitment Pays 50% to 65% of the Cost USACE Planning & Engineering Expertise It is up to Congress.
H. Marlowe on New Federal Funds I m a tad cynical because I ve watched Congress attempt WRDA legislation and include a bunch of provisions that never get funded and so mean nothing. Howard Marlowe, Water Log, January 12, 2018 on Will There be a WRDA Bill this Year?
Challenge #2: Long-term, Steady, Predictable State Funds Rarely Find Dedicated State Funding Sources Annual Appropriations are Common and subject to Change State Funding is through Grants (Maybe Yes or No) Shoreline Response is a Long-Term Exercise State Funding can be too short-term, too unpredictable
Challenge #3: Futility, Fault & First Row Beach Projects Are Controversial Especially when Local Revenues and New Taxes Come Up No one Wants to Pay Willingly... Ways to Say No to Local Funds for Beach Projects You can t fight Mother Nature, it s futile. It will just wash away (More futility) I never go to the beach/i hate the beach (No benefit to me) Why should I pay for someone else s mistake (Fault-based escape) I didn t build there, I don t live on the beachfront Where is FEMA, the feds, the state (escaping the responsibility)
Challenge #4: There Will Always Be a Beach We All Take the Beach for Granted... In Fact, there will always be a water-land interface, a shoreline, a beach When Introducing Communities to Expensive Shoreline Management Programs for the First Time, This Challenge Must Be Overcome. Good Beaches require Investment Once Development is Allowed, the Question Isn t If there is a Beach, But Where the Beach Is. When a Line of Houses is built, we ve decided the beach is going to be over there. Now, Get Ready to Spend
Challenge 4: The Hawaiian Shirt Syndrome The Bias Against Beach Restoration Funding Rich, retired Couple Martinis in Hand Speculative second homeowners On the back deck overlooking a lovely ocean sunset Wearing a Bad Hawaiian Shirt Not a Sympathetic Character When your Asking folks for Money to Pay for a $25 million Beach Project, this is the Image You Must Confront It s Also Not True. This Challenge must be met to secure broad-based local funding
Challenge 5: Crossing the Causeway Establishing a Community of Interest Broad-based local funding Ideally Includes Beachfront Homeowners Off-Beach Island Homeowners Municipal Funds (Occupancy taxes) Mainland Contributions at County Level State Contributions Funding Support Must Begin at the Beachfront and Move Landward You Can t Cross the Causeway to Mainland Money if the Beachfront Folks are Squishy or Reluctant to Pay
Forcing the Issue There is No Escape Circumstances Are Slowly But Surely Forcing Local Governments to Take Responsibility for Funding Beach Projects Factor #1: Foundation for Third-Party Funds is Cracking No New Federal Shore Protection Projects Unsteady and Inadequate State Funding Factor #2: The Beaches are Moving The Persistence of Waves Political Process Drives Development and Drives the Project Need Factor #3: Projects Are Expensive and Long-Term Conclusion: Local Governments Are Forced to Act. The Time Will Come
Meeting The Challenges Shared Understanding of the Beach Value Beneficiaries Pay -- Those who Benefit Should Contribute Equity -- Find the Balance of Contributors Transparency Engage and Listen Discover the Funding Solution
So, How To Approach Local Funding Custom Built Solutions Find the Value of Beaches Establish a Shared Understanding and A Shared Commitment to Financially Participate Talk to People A Lot. Real Engagement Understand Community Forces Adjust the Funding Strategy to Fit the Local Conditions Be Flexible
Politics The Real Deal Public Funding is Implemented Through Elected Leaders Sometimes Public Votes are Required for Bonds & MSDs The Bottom Line: We are Raising Taxes That is Never Popular and Always Political Competing Community Interests Must be Balanced and Reconciled Embrace the Political Process of Balancing Interests
All In Blended Funding Streams Federal Funds WRDA, USACE Continuing Authority Programs, BUDM, Etc State Funds County and Municipal Funds Commercial and Residential Owners (Special Districts) Beachfront owners Off-beach owners Commercial Properties Public/Government Properties The Question is How to Balance the Contributions of Beneficiaries
CHARLOTTE COUNTY, FL NEW FUNDING PLAN FOR MANASOTA KEY AND DON PEDRO-KNIGHT ISLAND Adoption & Implementation Expected in 2018
Charlotte County Funding Plan 2018 Jan. Plan Completed April - MSBU Ordinance Draft May MSBU Final June-July Public Hearings August - Tax Notices
10 Public Workshops & Lots of Press
Charlotte County Critical Eroding Areas Manasota Key Don Pedro-Knight Island
Manasota Key We ve Seen This Before
Manasota Key -- Expensive and Detrimental Self Help Projects
Manasota Key: Self-Help Armoring Great Home Protection No Beach An Old Story
Charlotte County Integrated Funding Plan Source and Allocation of Local Revenues Charlotte County Funds To Match New MSBU Revenues $1,613,937 Per Year Charlotte County Money Flow County Matching Funds for Manasota Key $1,185,626 Stump Pass Annual Revenue West County MSTU County Matching Funds for Don Pedro- Knight Island $428,311 The Local Level $900,000 Manasota Key MSBU Annual Revenue $1,185,626 Don Pedro-Knight Island MSBU Annual Revenue $428,311 Manasota Key Total Local Investment $2.37 M Annually Stump Pass Investment $900,000 Annually DP-KI Total Local Investment $856,622 Annually TOTAL LOCAL INVESTMENT FROM ALL SOURCES $4,127,874 Annually
Percent of Source of Revenue All Funds State of Florida 39% County Matching Revenue 24% Manasota Key MSBU 17% Don Pedro-Knight Isl MSBU 7% West County MSTU 13% Total 100.0%
Parcel A Assessment (Nearshore Benefit Zone) Nearshore Benefit Assessment Front Footage 50 feet Area 0.5 acres Front Footage 5 points Points Area Points 5 points Total Points 10 points Cost per Point $70 NBZ Assessment Total $700 REC Benefit Assessment Number of units 1 Unit Rate $400 REC Assessment $400 Total TOTAL PARCEL A ASSESSMENT $700 + $400 = $1,100 Parcel D Assessment REC Benefit Assessment Number of units 1 Unit Rate $400 REC Assessment $400 Total TOTAL PARCEL D ASSESSMENT $400 Parcel E Assessment REC Benefit Assessment Number of units 2 Unit Rate $400 REC Assessment $800 Total TOTAL PARCEL E ASSESSMENT $800 Parcel B Assessment (Nearshore Benefit Zone) Nearshore Benefit Assessment Front Footage 100 feet Area 0.5 acres Front Footage 10 points Points Area Points 5 points Total Points 15 points Cost per Point $70 NBZ Assessment Total $1,050 REC Benefit Assessment Number of units 1 Unit Rate $400 REC Assessment $400 Total TOTAL PARCEL B ASSESSMENT $1,050 + $400 = $1,450 Parcel C Assessment (Nearshore Benefit Zone) Nearshore Benefit Assessment Front Footage 0 feet Area Front Footage Points Area Points Total Points 0.5 acres 0 points 5 points 5 points Cost per Point $70 NBZ Assessment Total $350 REC Benefit Assessment Number of units 2 Unit Rate $400 REC Assessment $800 Total TOTAL PARCEL C ASSESSMENT $350 + $800 = $1,150
Conclusions: 1. New Local Funds Will Be Required To Sustain Beaches The Sooner You Accept The Reality, The Better. 2. Local Funding Initiatives Take Time Because Political Alignment Takes Time. 3. Local Funding Is A Complex Puzzle And It s Not About The Math 4. Local Funding Initiatives Easily Fail But It Can Be Done.
PETER A. RAVELLA CONSULTING, LLC 4107 WILDWOOD ROAD AUSTIN, TEXAS 78722 512-784-3565 (Cell) peter@parccoastal.com