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Budget 101

Most, if not all, municipalities operate with an annual budget that runs from July 1 to June 30 of the following year. It’s called a “fiscal year.”

A fiscal year is a period of time lasting one year but not necessarily starting at the beginning of the calendar year. Countries, companies, and organizations can start and end their fiscal years differently, depending on their accounting and external audit practices.**

** Plagiarism alert. I stole this from a website somewhere.

The July-June model is not set in stone. For instance, many schools use an August-July fiscal year to encompass the entire school year. I worked at a land trust and we used a fiscal year of January-December to encompass the entire growing season. (We later changed it to match up with state organizations.) It seems like a good idea to avoid having important budget meetings around the holidays, but that doesn’t appear to enter into the thinking of most organizations.

Anyway, the Carolina Beach fiscal year starts on July 1 and runs until June 30 of the following year. The fiscal year is referred to by the years it operates. Therefore, the budget will be referred to as the 23/24 Budget. We’re currently about halfway through the 22/23 budget.

Staff and Council start planning the next budget in January with a citizen poll, open house and two days of budget retreat. There will be multiple meetings dedicated to it, with a final budget approved in June. (State law requires that the budget be adopted by June 30.)

 General Fund vs Utility Fund

The General Fund includes all of the basic operating expense of the town… police, fire, parks, employees, road work, etc… The revenue sources are property taxes, sales taxes, parking revenue, road taxes, Room Occupancy Taxes (ROT) and others.

The Utility Fund just focuses only on basic utilities… water, sewer and stormwater management in our case. The revenue sources are mainly the fees  you pay for the services. The important thing about having a utility fund is that we cannot hide the cost of bringing you these services.

If your water bill goes up, it’s not because we decided to build a park or hire another fireman… it’s because the costs associated with bringing you the service have gone up. We are not allowed to transfer money from the General Fund to the Utility Fund, because that would obscure the cost of providing water/sewer/stormwater.

The Budget Retreat

Recently we started the process of creating the 2023/24 Budget. We polled the citizens (lots and lots of responses which we appreciate) and we held a budget open house (not well attended… your loss if you didn’t go.)

Then we had our “Budget Retreat.” Two full days (January 26 and 27) of discussion at a location away from town hall. (In this case the little restaurant down in Fort Fisher.) The group consisted of the Town Council, Town Manager, Town Attorney, all of the department heads and an outsider to help guide the conversation.

It’s an official meeting and while we’re free to vote on specific issues, we don’t. The idea is to have free wheeling discussions, build consensus and give staff direction as they create the next budget. To a government nerd like me, it’s quite interesting.

Our Priorities

This is our second year together, so we aren’t starting from scratch. Last year we spent the first day developing a strategic plan which laid out our priorities and corresponding objectives. This year is a continuation of that. These are our priorities in no particular order:

1. Infrastructure
2. Communication
3. Quality of Life
4. Fiscal Responsibility

Infrastructure

Infrastructure… This is the biggest enchilada of them all. CB is growing and the pressure is on to ensure quality water, sewer and stormwater services going forward.

The headworks (the system of sewer lines that connect to the sewer treatment plant) are aging. This is a $4-5 million upgrade. Last year we asked staff to start planning and start looking for money, and that’s what they’re doing. Keep in mind that Kure Beach will pay about 22% of this because we treat their waste water too. This will not be in the 23/24 budget, but it’s very much on our minds.

We need more water storage capacity, another well and upgraded water lines. Upgrades pushing $8 million or more. Right now we have plenty of water, but we are pushing our capacity on the busy weekends. The big concern is a fire. We have to make sure that we have water to put out a major structure fire. Again, we’re ok now, but we need to prepare. Last year we committed money to start the planning process. This year we’re acquiring land in case our US Army neighbors won’t allow us to build a water tank on their property.

Stormwater improvements are ongoing. We currently have 11 projects underway all over town. 11! It’s ongoing. Staff is asking us to fund 12 more projects in the next budget. To me there’s only one way forward on the stormwater piece… constant continuous improvements. Can we fund 12 more projects in 23/24? We’ll see.

And then there’s Canal Drive. Many of the stormwater projects I mentioned are related to this difficult area. Continuous improvement is still the name of the game.  

My take… you might hear some “sky is falling” rhetoric from people, but we’re doing fine… for now. But it’s imperative that we plan for the near future. I liken it to a family with kids in middle school. College is looming and you’d better be getting ready, but there’s no need to panic. Make a plan and prepare for the future expenditures that are coming. That’s what we’re doing.

Staff is actively seeking grants, but let’s be real. Free money isn’t so easy to get. Most grant funding goes toward middle and lower income communities. We are not middle or lower income. We just aren’t. I’m all for trying, but we have to be prepared to pay for these things the old-fashioned way… ourselves.

As stated in the Budget 101 section, increases in utility expenses will show up on your water bill, not your tax bill. And I hate to say it, but more increases will come. Maybe not this year, but definitely in future years. Why is that? Partly because the things we need to buy to bring you water keep going up (materials and manpower) and partly because we’re constantly fixing aging infrastructure.

When it comes to utility bills, you’re welcome to think we’re making terrible decisions, but you can’t say that we’re wasting money on frivolities. Any money spent in the utility fund budget is purely for utilities.

Communication

It’s important to us that we share information with you, the public. Last year we committed funds to hire a communication professional and to improve the audio-visual equipment at town hall. Nothing specific has been proposed for 23/24.  

My take… I voted against the 22/23 budget mainly because I was uncomfortable bringing on more staff, specifically in communications. While not perfect, I think our communication is adequate. Our website stays up to date, meetings are live streamed (and available for later viewing), town staff sends regular press releases and each of our 5 council members shares information regularly (like this blog.) And don’t forget that communicating is a two-way street.  Any citizen is free to visit our website, attend a meeting or reach out.

That being said, I recently screwed up by not including some business owners in a conversation about S Lake Park bike lanes… so yes, there can always be improvements.

Quality of Life

This is where we focus on things like park maintenance, events, nonprofit support, bike/ped improvements, beautification and safety. The Parks & Rec team is proposing to double the size of the skatepark and improve the Rec Center. We’re looking at a new bathroom at the Boardwalk, bike/ped enhancements along S Lake Park Blvd, improving CB Lake and general beautification efforts. Our public safety departments are always in need of new equipment.

My take… we’ll do what we can, when we can. Infrastructure and safety must come first. You may recall from the 2021 election that I like bike and pedestrian improvements. Well it’s true, and I’ll continue to harp about them. My goal for the next budget is to see projects get going.

I generally prefer spending money on permanent features (parks, bike paths, etc…) over ephemeral events (movies, fireworks, etc…)

Fiscal Responsibility

There is no specific budget appropriation here, it’s just a philosophy that we try to maintain. We’re looking at every expenditure and revenue closely. As discussed in the “infrastructure” section, we have some large expenses coming our way. Staff is not only seeking grant funding and state legislature help, but also examining the best way to borrow money and when to do it. The money required to complete the needed water, sewer and stormwater projects is too much for a “pay as you go” approach.

My take… I don’t like borrowing money, but there’s no way around it for the very big stuff. That being said, I’m a Dave Ramsey kind of guy. Whenever we can pay cash for something I’d rather do that. I don’t like paying interest if it can be avoided.

As I said earlier, I’m much more comfortable spending money on permanent amenities than on ephemeral events. I think we should stick to simpler things rather than things that have long-term maintenance costs. I’d rather spend money on bike paths and trees vs splash pads and swimming pools… but that’s just me.

Parking

You didn’t think I’d avoid this issue, did you? Let’s face it, parking is a big part of the fiscal responsibility picture. We have basically 3 ways to raise money that are within our control… taxes, parking and Freeman Park. That’s it. Yes, we receive money from many sources (ABC store, sales tax, road taxes, etc…) but we can only control those three.

The parking policy will remain the same since our reforms voted on last November. The debate is over. I wanted to sell season passes to off-island residents and I wanted to make December free. But I don’t have the votes. That being said, the reforms are a solid compromise. A committee was formed that has a good cross representation of the town. They made 12 recommendations and 11 were adopted.

Click here for the updated policies.

A temporary committee was formed to study the parking issues. The Committee was made up of the Chair of each standing town committee. So these people have not only been serving the town, but they’ve also been selected by their peers to be leaders. The Committee was represented by business owners, retirees and working parents… a good cross-section of our community if you ask me. I can’t imagine a more logical way to form such a committee.

They made 12 recommendations. (Bold text is the recommendation, blue text is my commentary.)

#1 Protect the residential zones west of 3^rd Street

This is a much bigger deal than I realized. People are parking further and further from downtown or the beach in an effort to find free parking. They park in the right-of-way (that grassy area between the sidewalk and the road.) It may be public property, but the homeowner maintains it, uses it for their own parking and doesn’t appreciate it being an unofficial parking lot. I get that. I also think that the lack of OTB passes is making the issue worse.

Council adopted a plan to create a residential zone west of 3^rd Street (or west of Swordfish in Wilmington Beach) where you can only park in the right-of-way if you have a parking pass. The police won’t automatically enforce it but will instead reply to complaints.

#2 Improve handicap parking options

A no-brainer. We all agree. Staff has been instructed to git-r-dun.

#3 Add clear signage distinguishing between town and private lots

Also a no-brainer. We also agree that wayfinding signage could help here too. i.e. signs pointing to where the public lots are. Staff has been instructed to git-r-dun.

#4 Work with Kure Beach to offer reciprocal parking passes

It’s done. KB residents can buy a CB pass for $40. CB residents can buy a KB pass for $20. I’m going to buy one just for going to the diner.

#5 Take no action on creating different parking zones

This means offering different prices at different lots. The further from the beach, the cheaper the cost. We agree that this would be too confusing.

#6 Change the 2-hour parking on Cape Fear Blvd west of Lake Park to daily parking

A minor adjustment that we agree on. This change has been adopted.

#7 Offer discounts to people who pay fines promptly

Yes! This change has been adopted.
Parking tickets are now $50 if paid within 48 hours. $100 otherwise.

#8 Reduce the number of tickets for minor infractions

Yes! This change has been adopted. If you paid for parking, but did something wrong (took up 2 spaces, used a non-designated spot, hanging over the line, etc…) it’s now a $25 fine.

#9 Enforce our current parking regulations for right-of-way parking

There are already regulations that govern parking in the right-of-way. Enforce them where necessary. This goes back to recommendation # 1.

#10 Free parking in January & February

Agreed upon and approved. This change has been adopted.

#11 Do not offer OTB passes

No action taken, which means that the policy remains as is. I wanted to sell OTB passes, but so be it, I’m in the minority.

#12 Free Parking in December

Council did not approve this. I wanted free parking in December, but so be it, I’m in the minority.

Bonus Change

Council also voted to start parking enforcement at 9am (vs 8am in 2022) A helpful change for surfers and beach walkers.

** Blue text = Mike’s opinion **

Consent Agenda

This is where we approve a bunch of administrative things all in one go. The biggest here being the 2023 budget calendar. Here we go with the 2023/24 Budget process…

Open House, Wednesday, January 18, 4-6pm, Town Council Chambers

Budget Retreat, Thursday and Friday, January 26&27, all day, Fort Fisher Military Recreation Area

Manager’s Update

This is where Bruce Oakley gives us an update on all the projects going on around town. Playground at CB Lake, North End rocks, new bathroom at the Boardwalk, city-wide paving, Starfish access improvements.

click this link for all the latest on town projects.

Golf carts… in November we approved new golf cart safety regulations with a long term goal of having all golf cars registered with the state as “low speed vehicles.” This means license plates, safety features and insurance. Council agreed to set a goal of 2027, meaning you have 5 years to get your golf cart up to snuff to be registered by the state… or get a new one.

There’s a 21,000 sf parcel right at the entrance to Carolina Sands (my neighborhood.) For some reason it has never been incorporated into the town, but it does have a zoning designation – “conservation.” This means that one (and only one) home can be built on the lot.

It was recently sold by a family that owned it for a very long time. The new owners voluntarily asked to be annexed into the town. Council approved their request 5-0.

My take… a number of neighbors opposed the annexation. Why? Because they think it’s the first step before asking to rezone it to R-1, which allows single family and duplexes which would possibly result in 8 units being built. I understand the concerns, but I’m not going to turn down their request based on something they might do. Interestingly, they could build a house without being incorporated… they would use tour roads, utilities and fire/police protection… all without paying taxes. The lot should be annexed. And they should pay town taxes. So I voted yes.

As for future re-zoning…  I think the zoning should remain the same and they should be allowed to build their one house if they wish. But that’s a question for another day.  

Conditional Zoning for 22 Units on Spartanburg

This is one of the last big chunks of land… between Spartanburg, Greenville and 2^nd Street. By it’s current zoning (R-1) it could be built as 11 different lots resulting in 21 total units. The development group proposes to build it as an organized development of 22 units with a pool and pickle ball court. Council approved it 4-1

My take… I was the dissenting vote. The good – since it’s developed as one project, the stormwater system will be better (no water dumped onto the streets) and they won’t try to cross the big (and important) stormwater ditch on 2^nd street. (they’ll build their own access within the project.) The bad – we allowed them to build within 10’ of the front property line on Spartanburg and Greenville. (Normally you must be 20’ from your front property line.)

I think that the reduced setback will render any sidewalks useless. Our enormous American vehicles will be parked all over the place and in the right-of-way making Spartanburg messy. Along with the uninspired architecture (all of the buildings will be essentially identical and 40+ ft) the reduced setbacks will result in a looming cavern along Spartanburg. (My opinion.)

Often a centrally planned development works out nicer… they’re more cohesive and organized. For this one I’d prefer just letting them build one at a time. Then there’s at least a chance that they aren’t all duplexes, 40+ feet, identical and so close to the road!

Oh well, all I can do is vote my conscience.  

Next council meeting… Tuesday, January 10, 6pm

The Current Sitch

Last Tuesday (10/11) Council voted 4-1 to approve a set of new parking rules for 2023. I was the dissenting vote. Not that I’m opposed to all of the changes, but I felt that we weren’t ready to vote on a complete policy for 2023. Why? Because we still don’t have all the data! The 3^rd Quarter (July, August and September) are the busiest months of the year. It’s important to know how we’re performing before we set policy for 2023.

Plus, there’s still discussion about OTB passes, Kure Beach passes, free winter parking, protecting our residents and parking in the right-of-way. All of which affect our total policy. We shouldn’t be going through rules one at a time without considering the policy as a whole.

But that’s the road we started down. Therefore, I am offering the Hoffer Plan. This is exactly what I think we should do, and I will present it to Council for a vote. It’s later in the article, but first I’d like you to read this stuff:

The Parking Committee Recommendations

A temporary committee was formed to study the parking issues. It was made up of the Chairs of each standing town committee. So these people have not only been serving the town, but they’ve also been selected by their peers to be leaders. The Committee was represented by business owners, retirees and working parents… a fine cross-section of our community if you ask me. I can’t imagine a more logical way to form such a committee. Their recommendations carried a lot of weight with us all.

The committee made 12 recommendations.
(Bold text is the recommendation, italics is my commentary.)

1. Protect the residential zones west of 3^rd Street
   This is a much bigger deal than I realized. People are parking further and further from downtown or the beach in an effort to find free parking. They park in the right-of-way (that grassy area between the sidewalk and the road.)
   
   It may be public property, but the homeowner maintains it, uses it for their own parking and doesn’t appreciate it being an unofficial parking lot. I get that. I also think that the lack of OTB passes is making the issue worse.
   
   Council adopted a plan to create a residential zone west of 3^rd Street (or west of Swordfish in Wilmington Beach) where you can only park in the right-of-way if you have a parking pass. The police won’t automatically enforce it but will instead reply to complaints. (More on this down below.)
   
   
2. Improve handicap parking options
   A no-brainer. We all agree. Staff has been instructed to git-r-dun.
   
   
3. Add clear signage distinguishing between town and private lots
   Also a no-brainer. We also agree that wayfinding signage could help here too. i.e. signs pointing to where the public lots are. Staff has been instructed to git-r-dun.
   
   
4. Work with Kure Beach to offer reciprocal parking passes.
   Nothing has been adopted, but it appears that the deal would be us selling them $40 passes and them selling us $20 passes. I think this would be essentially giving them away and that this policy can’t be separated from OTB pass policy. Recommendation # 12. (More on this down below.)
   
   
5. Take no action on creating different parking zones.
   This means offering different prices at different lots. The further from the beach, the cheaper the cost. We agree that this would be too confusing.
   
   
6. Change the 2-hour parking on Cape Fear Blvd west of Lake Park to daily parking
   A minor adjustment that we agree on. This change has been adopted.
   
   
7. Offer discounts to people who pay fines promptly
   Yes! This change has been adopted. Parking tickets now start at $100, but are $50 if paid within 24 hours or $75 if paid within 48 hours. The fines increase, but only if unpaid after 30 days (vs 7 days in the old system.)
   
   
8. Reduce the number of tickets for minor infractions.
   Yes! This change has been adopted. If you paid for parking, but did something wrong (took up 2 spaces, used a non-designated spot, hanging over the line, etc…) it’s now a $25 fine, but only $12.50 if paid within 48 hours.
   
   
9. Enforce our current parking regulations for right-of-way parking.
   There are already regulations that govern parking in the right-of-way. Enforce them where necessary. Refer to recommendation # 1. (More on this down below.)
   
   
10. Free parking in January & February.
    Agreed upon and approved. This change has been adopted.
    
    
11. Free parking in December.
    Council did not approve this. I think we should. (More on this down below.)
    
    
12. Do not offer OTB passes.
    No action taken, which means that the policy remains as is. But we’re still preparing to sell $40 passes to Kure Beach residents? I disagree. (More on this down below.)
    
    
13. A bonus change
    Council also voted to start parking enforcement at 9am (vs 8am in the old system.) A helpful change for surfers and beach walkers.

Protecting the Neighborhoods

The current plan creates a residential zone west of 3^rd Street (or west of Swordfish in Wilmington Beach) where you can only park in the right-of-way if you have a parking pass. The police won’t automatically enforce it, but will instead reply to complaints. Oh, and my favorite… it will require more signs (full sarcasm included.)

I think we should allow people to protect their spot. A well-placed rock or reflector pole goes a long way. I believe that there’s a partnership between the property owner and the town. The property owner should keep their little piece of right-of-way nice and in exchange they should get some autonomy over it. No – you shouldn’t plant trees or install a fence, but bushes, a garden or some big rocks should be allowed.

That being said, the rule passed, so now it’s law. I won’t try to undermine it.

Next Step

So there you have it… the Hoffer plan.

I believe this to be the most reasonable, inclusive and equitable plan. It protects the taxpayers (we’re not just giving our valuable resource away), it’s friendly to our neighbors (they have better options) and it’s good for our businesses (it promotes more customers in the off-season.)  Now we need to make it consistent and predictable. Let’s settle in and stay with the program. 2022 was an over-correction and this change brings us back to the center. I’m not mad, I think they made what they thought was the best decision at the time. Move on.

Unless new information arises, I will present this to Council at our November 9 meeting. And we’ll see what happens.

At a recent Town Council Workshop (8/25) our town attorney updated us on the current legal status of Short Term Rentals (STRs) in North Carolina. She told us about decisions made in courts in North Carolina regarding what we can and cannot do in regards to STRs.

Naturally some people took this to mean that we are considering new laws, regulations, etc… Uh no, we’re just doing our jobs. We research and explore all options to understand the legal framework of things. We discuss the issues amongst ourselves in a public forum.

We’re hearing from citizens the same concerns people have in resort areas all over the country. Namely that STRs bring noise and traffic to previously quiet residential areas and that STRs are contributing to the high cost of living that’s driving regular-folk renters out of these towns. (These regular-folk also being the ones who work in the local businesses.) If you think that’s all a crock of shit, then ok, I won’t argue with you. I’m just saying that we hear the concerns, and we would be derelict in our duty if we didn’t look into things.

Disclaimer: I (with a partner) own a few rental properties in and around Carolina Beach. We do not have any short term rentals.

The Housing Issue

My house is at 5^th and Augusta and holy crap it has turned into AirBnB-land overnight. A house that was a small family home… AirBnB. A triplex that used have long-term renters… 3 AirBnBs. A brand new duplex… 2 AirBnBs. A house with a mother-in-law suite… 2 AirBnBs. There’s a triplex across the street with long-term renters. Will they be kicked out next? I hope not, because I like these people.

I’ll just say it… long-term renters are being pushed out of CB by STRs. I don’t think it’s debatable. It’s simple economics. If a person can make more money operating their property as a Short Term Rental, then the average person will probably choose that option. That leads to fewer long-term rentals and higher prices for the ones that are left. But it’s not just STRs making the long-term rentals so scarce. People are moving here in droves (perhaps you’ve noticed) and that’s part of the reality too.

I’ll also say this… I hate it. It breaks my heart that regular-folk are being forced off the island. If my friends across the street get booted it will be their loss, my loss and the community’s loss. It makes me sad.

It’s also a looming problem for local businesses. While more and more businesses are opening, the housing inventory for lower income workers is diminishing rapidly. I won’t pretend that my graph (pictured below) is scientific, but it’s how I see it. I suspect that most local business owners would agree that we’re already in the trouble zone. (I’ve talked to business owners in Monkey Junction who say that their employees can’t afford to live close to work.)

The Quiet Enjoyment Issue

Has the change in my backyard affected me personally? Not really. I’ve barely heard a peep out of any of the 5^th & Augusta places. And to be perfectly honest, the houses all look much better now. Fresh paint, repairs, landscaping… that sort of thing.

But I don’t think everyone has been as lucky as me. I’ve heard too many stories, from too many people. Cars parked all over the place, golf carts on the sidewalks, loud music on weeknights, and trash cans left out are the common complaints. It used to be if you wanted to stay away from tourists, you moved to 4^th Street or further west. Just stay off the north end, or few blocks back from the beach and you were good. Not anymore. STRs are popping up all over.

Limitations to Our Authority

Understand that I’m quite libertarian in my beliefs. I think people should be able to do with their property what they want, so long as it doesn’t cause other people problems. And I’m very hesitant to restrict private property rights. Which is a good thing, because recent North Carolina court rulings have opposed local governments placing special restrictions on STRs. Wilmington and Southport tried it and they were told that restrictions were illegal… and it cost Wilmington a lot of money to find out!

Check out this link from WECT

I don’t want that for Carolina Beach.

We can’t expect a short term rental to follow rules that aren’t the same as any other property in the same zoning district. For instance, we can’t require more parking or a 6’ fence just because the house is used as an STR.

My understanding is that we could outright ban STRs in certain zoning districts, but even if we did, any current STRs would be grandfathered in. Such a ban would offer no relief to someone already being bothered by a poorly run STR.

What To Do – The Quiet Enjoyment Issue

In my opinion, if the STRs behind my house don’t bring noise, clutter, traffic and other nuisances to my neighborhood, then it really shouldn’t be my business. But if they do bring those things… well, we already have the answer. It’s called our Code of Ordinances. Rules that we all must follow so that we don’t impede on our neighbors’ rights to enjoy their lives.

We have ordinances about excessive noise, returning trash cans and parking on town roads. (The three basic complaints.) Let’s enforce them. My understanding is that noise ordinance violations result in fines paid by the property owner. So if a particular property is a repeat offender, the owner will get sick of paying the fines and they’ll be more cautious about who they rent to.

Parking violations are paid by the car owner. If they’re getting parking tickets because the rental property doesn’t have enough spaces… the owner is going to hear about it!

I’m reminded of the “wedding house.” A few years ago a large house was marketed as great place to host your wedding. Loud parties ensued with lots of cars parked up and down the street. People called for a new “no wedding houses” ordinance. That’ll stop ‘em!

Well, a new law wasn’t needed. Town police started enforcing the parking violations and viola! Problem solved. Enforcing our current ordinances works. If you’re being bothered, you have to contact code enforcement. You can call the CB Police Department non-emergency line at 910-452-6120, CB Code Enforcement at 910-458-2999 or register a complaint online at:

https://www.carolinabeach.org/i-want-to/request-service

I have suggested that STRs be required to have a sign with the phone number or email to the property manager. Why? Because I suspect the problem houses are owned by people so far away that they just don’t know there is an issue. If they heard from their neighbors they would better understand what is going on here. Call me optimistic, but I believe that people generally want to do the right thing. If they know they’re being a problem they’ll probably change their ways. It’s not about NARCing on your neighbor… it’s about letting them know there is a problem.

What To Do – The Housing Issue

As for the housing shortage… I don’t see what Town Council could (or should) do about it. It’s a matter of macro-economics and we can’t change that. We’ll have to let the free-market sort it out. Businesses will do what they do best, adapt to new circumstances.

I’m not saying I’m opposed to any action, it’s just that I don’t see what action is appropriate.

My Prediction

Look, I quit fantasy football years ago because I’m terrible at predictions, but I’ll try anyway. STRs aren’t going away because a) they’re profitable; and b) more and more people all over the country can afford a second home at the beach. And if you have that second home, you might as well bring in a little money while you’re at it.

But it also seems to me that there’s a lot of inventory out there. I suspect that some of these places further from the beach will eventually revert back to regular housing. But it won’t be cheap.

The deal is done. Carolina Beach officially purchased the 9 properties making up Freeman Park (or the North End as many refer to it) on April 11.

I take no credit here. Previous councils worked long and hard to put this together. The credit belongs to them. I will however, take the time to explain it to you and tell you why I think it’s a wise move. 

A Brief History

The largest of the nine parcels has been owned by members of the Freeman family of Sea Breeze, an unincorporated part of the county that was once home to a thriving African American resort area. The Freemans were prominent members of their community and at one time were major land owners in southern New Hanover County. They literally owned thousands of acres from the river all the way to ocean. There are still many Freemans today living in Sea Breeze.

Back in the days of segregation African Americans were strongly discouraged from coming to Carolina Beach. The African American community developed thriving beach community know as Seabreeze.  The site was famous throughout the south.  In the way back days of the early 20th century Snow’s Cut didn’t exist and neither did the ICWW in our area. It was just called Myrtle Grove Sound and it petered out in Carolina Beach. The patrons of the Sea Breeze resort area would swim in the sound or just wade across (it was very shallow) to the area we now call Freeman Park to swim in the ocean.

In the 20s and 30s the ICWW was dredged and Snow’s Cut was created. The water got deeper and the currents (which until then were almost nonexistent) became strong. For context, sit by Snow’s Cut while the tide is running – it’s powerful. What we now call Freeman Park was cut off from Sea Breeze.

As far as I can figure, people have been driving out on the sand up there as long as there have been vehicles to do so. Ask any old timer around CB and they’ll talk about riding dune buggies and camping out there. It has never been Carolina Beach property (it’s in unincorporated New Hanover County) so the only law was the Sheriff’s Department. As the area grew more crowded, the lassie faire approach became untenable. The fires, trash, parties and bullshit got to be too much to ignore. It was getting too dangerous, too crazy and too dirty… it had to be managed. So CB took it over and started charging to enter. We could do that because we own the very first tract of land (see image.)

The Freeman family was always easy going about it. They didn’t make a fuss and in fact 2 to 3 family members served on the Freeman Park Committee for many years. 

Then an investor group started buying the parcels including a legal action to acquire the Freeman Tract. Ultimately they purchased all but one of the other tracts. The Town of Carolina Beach in a preemptive move to forestall possible development acquired one. When the town asked for easements to complete beach renourishment the investor group was unwilling to grant those without significant concessions that may have allowed a large-scale development. The Town, through the powers of eminent domain, took temporary easements to place a dredge pipe on the dry sand in front of the dunes. The investors sued and things got messy. Legal battles ensued and it’s way too complicated for me to explain here. To be honest, I barely understand it all.

Did they actually plan to build on this land? They did present several plans with a huge development, lots and a massive hotel complex. They had multiple appraisals which established values based on development. The erosion rate there is high, so it would be very risky to build there. There is no water, sewer or road, and the town had no obligation to provide these services. The land isn’t in the city limits.

But, why speculate about their plans? It really doesn’t matter. The deal is done.

The Terms

$ 7 million purchase price

–   $ 350,000                     from sand fund (2021/22 budget)
–   $ 2,300,000                  from sand fund (carry over from previous years)
–   $ 1,100,000                  from ROT (carry over from previous years)

=  $ 3,250,000 loan          from Truist Bank at 2.3% fixed rate

The Sand Fund

The “sand fund” is money that has been stashed away for about 8-10 years. It came directly from entrance fees, which are substantial. The purpose of the sand fund was to save for a potential renourishment project, because the federal government will not contribute. Why? Two reasons: 1) federal money only goes to beaches that protect houses or infrastructure (Freeman Park has neither); and 2) federal money will not go to designated Inlet Hazard Zones (Freeman Park is one.) If we want to add sand, it’s going to be on our dime.

We Can Afford This

It’s only a 10-year note. No balloon payment, no early payment penalty. An average payment of $366,000 per year.

Like I said, the entrance fees are substantial. In fact the entrance fees have been enough to manage the property, contribute to the town general fund AND add to the “sand fund.” Now instead of putting money in the “sand fund” it will be going to pay off the loan, and in 10 years we’ll be free and clear.

Here’s how much we’ve brought in the last two years, and what we project to bring in this year:

FY 2021 … $884,000 … (actual)
FY 2022 … $885,000 … (actual)
FY 2023 … $822,000 … (projected)

We also have an application in for a grant from the North Carolina Land and Water Fund. We’re requesting $3.25 million – enough to pay off the entire loan. Understand that a grant means limitations on what we can do out there. I certainly have no desire to develop the land, so the restrictions may be perfectly reasonable. We’ll see. 

On To the “Mike’s Opinion” Part…

Why do I think this is a good thing? Let me count the ways:

1. We protect a delicate ecosystem (300 acres!)
2. We preserve open space.
3. We provide access for recreation.
4. We create a source of town revenue.
5. We keep local control… It will be incorporated as a part of Carolina Beach and we are not beholden to New Hanover County or the State. We make our own decisions.
6. We end the lawsuits… The legal fees have been sizeable. Fortunately, New Hanover County pitched in, but we couldn’t have expected that to last forever.
7. We make beach renourishment possible… as discussed, there will be no federal money for renourishment. But when they dredge Carolina Beach Inlet or the Intracoastal Waterway (ICWW), they have to put the sand somewhere. Now it can go on Freeman Park.

Just this winter they dredged the ICWW and put the sand on Masonboro Island! Why? Because the old owners of the Freeman Park land wouldn’t allow it. The next time one of these areas is dredged, the sand may be put on Freeman Park. That could alleviate the narrow spot, or pinch point, but also the rest of the beach strand, because sand moves around.

How I’d Do It

I spent 5 years with a land trust in Wisconsin, and we made all land management decisions after input from an expert advisory committee. We had 3 wildlife biologists, a herpetologist (amphibians), an ornithologist (birds), a botanist (plants), a tree expert and 2 private landowners to offer some good-old-fashioned regular folk input.

When we took on a new preserve we would start slowly. We’d explore it, map it and mark the boundaries. We’d note interesting features, unique habitats and rare species. We’d remove any man-made structures and junk. We’d note the invasive species present (that was a big problem up there.) And then we would watch, for a year or more. In short, we would learn the land before we took any major action. Only then would we devise a management plan, which always included a public access component.

With that as my experience, it should come as no surprise that I’d like to see it stay natural, but accessible to the public.

The soft sand area east of the dunes should stay open to vehicles. It’s become a traditional use and I wouldn’t change it. (Besides, the entrance fees will pay for the maintenance.) The areas west of the dunes should remain unspoiled, but open for passive recreation. (Hiking, bird watching, fishing, wading, etc…) I’m open to hiking paths, observation towers or kayak launches. Things of that nature. Maybe even a paved bike path, but we’ll have to see.

First things first, we need an advisory committee of experts. Marine biology, wildlife biology, ornithology, erosion, coastal resources, botany, etc… I’m not looking to stock a committee with my buddies, I’m looking for expert advice. If they live in CB great, if not, I’d look elsewhere.

Financially, we must be cautious. Management of Freeman Park should be paid for by user fees only. This should not be a drain on our budget. In fact, if run properly it should also contribute to the general operation of the town. Perhaps we set it up as an enterprise fund. That means it is operated essentially as a separate budget, so that we can assure the public that its being run efficiently. (Just a thought, I’m not 100% about this idea.)

Let’s try again shall we? Yes, Town Council has approved funding to complete the CB Lake dredge after a 5-year delay.

First a little history. CB Lake has been there forever. It was part of a salt marsh, the southernmost part of Myrtle Sound. It was once noted in the Guiness Book of World Records as being the freshwater lake closest to salt water. Now it serves as a strategic retention pond in the center of a park. 65% of all rainfall in Carolina Beach drains into CB Lake. It is still in communication with the ocean via two stormwater pipes from the north side of the lake to the south end of the yacht basin. And it is home to quite a bit of local wildlife.

As it slowly filled in, it held less water and flooded more frequently. In the 2010s it became evident that it must be dredged. In fact, a large area in its center wasn’t even water anymore. It was straight up filling in. In 2016 Carolina Beach issued a revenue bond and raised $26 million for infrastructure projects around town. (water, sewer, stormwater, paving, etc…) $2.7 million was designated for dredging the lake to a depth of 6 – 8’ The dredge material was to be transported to the back of the island and deposited on the MOTSU land by the river.

And then it got all messed up. We deposited the sediment in the wrong place, MOTSU shut the project down, we couldn’t find an alternate place for the sediment and we only finished about half the lake (the west side.) We spent about $1.4 million. (That’s a very short summation of the drama.)

Fast forward to 2022. The eastern part of the lake is about 2 inches deep and it looks terrible. Our current Council (yours truly included) is determined to find a reasonable solution. We think we have.

The plan is to dredge the east side to about 2’ deep, but keep the sediment on site. It will be put into “dredge socks” – permeable bags that will hold the sediment. Vegetation grows through them and they are stacked along the edge of the lake, making the lake surface smaller, but the lake deeper. They work as a living bulkhead if you will. It will also serve to add more useable land for the park. The land on the eastern side of the lake will be much bigger, which is consistent with the CB Lake Park Master Plan.

Click here for a PDF of the Dredge Project and the Lake Master Plan

The price? Roughly $2.5 million. Good ol’ Charlie Miller, our State Representative found us $2 million to help pay for it. Thanks Charlie. Town staff has submitted an application to the US Army Corps of Engineers. (USACE) It is expected to be approved, because they’ve been working with USACE staff prior to the submittal. The approval process could take up to 4 months, then we select a contractor and hopefully go to work this winter.

** For the record, I am not the expert on this subject. Councilman Joe Benson and Town Manager Bruce Oakley helped me write this summation. If everything I wrote is accurate, thank them. If anything is wrong, blame me. **

Now, about those geese…

Well, the budget has passed by a 4-1 vote. I was the one who voted against it. Here’s why:

1. First and foremost, I’m uncomfortable growing the budget by 20% (from $16.6 million to $19.8 million.) It’s great that our revenues are growing, but I’d like to be more cautious. Keep in mind that these are PROJECTED revenues… not guarantees.
2. I’m not comfortable hiring 6 new employees. There’s too much uncertainty in the world right now.
3. I don’t like the reliance on parking revenue. We’re banking on over $1 million more revenue than last year. A bold assumption. This includes $140,000 more from citations. I didn’t support changing the 2022 parking program (see my blog post about it here) but at the same time I don’t want to get addicted to the citation money.

Click here for the budget summary

LET’S GET TO WORK

I voted against it, but WE passed it. It’s my budget now, so I support it and will do my part to make it successful. Want a rugby analogy? You got it:

In college I played rugby (I think Joe Benson was on the butterfly collecting team or something like that.) I played a position similar to running back. I was pretty good and I wanted the ball. But after much debate we decided to kick more and my job was to chase the ball down and make tackles. So what did I do? Did I chase the ball half-heartedly to prove that the strategy was bad? Hell no! I ran it down with everything I had! Weekdays were for arguing about a game plan. Saturdays were about executing the plan we decided on… no matter how I felt.

And man, there’s a lot to execute. Road paving, CB Lake dredge, stormwater improvements, water/sewer improvements, a sidewalk on Ocean Blvd, a multi-use path on St. Joseph St, 4.5 miles of street paving, Canal Drive improvements, marina repair, a playground for CB Lake, crosswalk at Spartanburg, the Freeman Park purchase… if we’re successful it will be a great year for Carolina Beach. I will do my small part.

Allow me to address some comments I received:

You should pass this budget because Bruce Oakley (Town Manager) is great. You shouldn’t question his judgement.

It’s my job to question his judgement. Setting parameters for the size and scope of our government is absolutely the role of Town Council. Bruce is a fine administrator, but if I don’t like his budget then I’m not going to vote for it. Am I supposed to just rubber stamp everything he does? I think not.

You should pass this budget because it’s already June.

This was the first chance I had to vote. State law allows us until June 30 to approve a budget. If it hadn’t passed, Bruce would have made some changes and brought it back to us at a special meeting (or our regularly scheduled workshop.) I won’t be bullied into passing something I don’t like because it’s inconvenient.

You should never vote against more fireman.

The 6 new employees were 3 new fireman and 3 administrative staff. I asked Bruce to cut it back to 3 new employees total, and he can decide where they’re needed most. That being said, the fire department added 3 employees in 2018, 3 more in 2021 and now 3 more in 2023. How much is too much? I won’t pretend to be certain. But what if they were asking for 6 more? 9 more? How much is enough?

I acknowledge these immutable facts – we have more buildings, more people, more emergency calls and more restrictions on how the firemen do their job. We have fewer volunteers. (People just don’t volunteer like they used to.) The days of an all-volunteer fire department are over. We’re transitioning to an all-professional department.

With that being said, I asked Bruce to limit the hiring to 3 employees in total… and he can decide if firefighters should be 1, 2 or 3 of them.

3 Final Thoughts on the Process

1. I’d like to move the timeline up. Next year I’ll ask for a draft budget and budget summary by May 1 with a budget hearing at the May Council meeting. Give the public a chance to digest it before the budget hearing. We had a special budget workshop on May 3 this year, but there wasn’t enough information for the public. (In my opinion.)
2. I liked that we held a budget open house (even though the attendance was poor.) But again, we should have had more specific information.
3. I liked the 2-day budget retreat in January, but we should consider an evening or weekend as part of the event. Let the working public be present.

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Here’s What I Wrote BEFORE the Budget Was Passed (6/12/22)

We’ll be voting on a budget for fiscal year 22/23 on Tuesday night. (6/14)

For the uninitiated, the fiscal year runs from July 1, 2022 to June 30, 2023. This is consistent with most state and local governments, a tradition I suspect started because working on budgets during the Christmas holidays would be cumbersome. (But I have no proof to back this up.) This can be awkward for a beach town because the summer season gets split into two different budgets. But such is life.

These 3 links provide important information:

Manager’s Budget Overview
Coastal Town Comparisons
Town Staffing Levels

Here’s how the process has played out:

Jan 27 & 28        

We had a 2-day budget retreat (I used vacation time to attend.) Each department head presented their priorities/projects/requests. We went through various exercises to determine our priorities as Council. They are as follows: infrastructure, communication, quality of life, fiscal responsibility.

These priorities can be mutually exclusive, so it ain’t always easy. For instance, you can always axe a Parks & Rec program in the name of fiscal responsibility. Do you use money to build a sidewalk… or to replace an aging pipe? W e can’t do everything.

May 3

We held a Tuesday morning budget workshop. The hottest topic was discussing the Fire Department and their request to add 3 firefighters to the payroll, at a cost of $370,000/year. We had a few citizens in attendance, but they hadn’t yet seen much information, so it was difficult for them to make relevant comments.

That night we held a budget open house, with staff from each department attending to explain their goals. Three people attended if I remember correctly.

May 5

We received our first budget from Town Manager Bruce Oakley. This included recommendations from staff along with cuts he made, the next year’s fee schedule and staffing levels from the last 9 years. This is when I learned that Bruce recommends adding 3 new admin positions… finance, HR and Communications. I was expecting one new position.

May 10

At our regular Council meeting we had a public hearing to discuss the budget. One person spoke and his main point was that he couldn’t access the same information that we (The Council) had.

May 16

To Bruce’s credit, every time I asked for more information I got it quickly. I asked for comparisons to the previous budgets (proposed and actual.)

May 23

We received the “Manager’s Budget Message” which is a written overview of the proposed budget.

May 24

We discussed the budget again at our monthly workshop. I asked Chief Griffin of the Fire Department to explain once again his need for 3 new employees (because I’m apparently not smart enough to keep up!)  It goes something like this:

• They currently have 4 people on duty at any given time
• You need 3 people to send out the big engine truck
• You need 2 people to send out the ladder truck
• So if they want to send out both trucks, they have to wait for a volunteer, the Chief or the Assistant Chief
• By adding 3 people they can make each shift a group of 5 and they can send out both trucks immediately

We have a community rating of 2 on a scale of 1-10, where 1 is the best and 10 is the worst. This is quite good for a town our size… and it saves us money on our insurance. Investing in a great fire department pays off.

I again voiced my concerns about adding more staff in general.

June 8

I asked Bruce to provide me with information about our current large projects. He did so and it opened my eyes. We have a lot of big things going on, and most of them rely on grants that are time-consuming to report on. It helped me see the value in adding to our finance team. I don’t want to be stepping over dollars to pick up dimes.

GOING FORWARD

So here we are. Tuesday, June 14 we will vote. Here are my concerns:

• The budget is increasing by 20% from $16.55 million to $19.78 million.
• The parking revenues are estimated to rise $1.2 million (it feels quite optimistic to me and I don’t love the reliance on fines.)
• We want a healthy fund balance. It’s currently at 40%, but what happens to it as the budget increases? We’re adding $3 million to the budget, so if we were to maintain the fund balance of 40% wouldn’t we then have to dedicate 40% of the new money to it?
• We added 3 new firefighters in 2018 and 3 more in 2021. Is now really the time? Should we wait another year or two? Would adding just one firefighter help?
  This is a tough decision for me. It’s easy to say “You must support the fire department!” But what if they were asking for 6 new employees? Or 10? How much is appropriate?
• Do we really need 3 more administrative staffers? Someone said to me “Aren’t you worried about staff burnout?” No. I’m not. Our Assistant Manager, Planning Director and Operations Director have all been here for 20 years. We don’t have heavy turnover in Carolina Beach. I’d say we’re a good place to work.

CONCLUSION

I don’t have a conclusion. I’ve spent plenty of time studying the numbers, talking with staff, talking with citizens and talking with other Council Members that’s for sure. But I don’t know if 3 people will agree with the budget as presented. If we don’t pass it, then staff will go back to the drawing board, make some changes and bring it back to us.

If that’s the way it happens, then so be it. It’s a process.

Hello there, here is my 5-year plan to improve the bike & pedestrian experience in Carolina Beach.

Read it here.

Let me start by reminding everyone that I didn’t devise this plan and I didn’t vote for it. While I knew we were interviewing parking companies, I was never aware that such a drastic change was coming.

It never came up in the campaign. We talked at length about improving parking availability, but not once did we discuss eliminating nonresident passes or charging all winter.

That being said, here are my thoughts:

On Public Input

Something I’ve heard loud and clear is that people are upset about the way this went down. I get that and I’m committed to having open debates prior to enacting any such legislation.

Well, your voice was heard on this one, and if you wanted to reach me I wasn’t hiding. I lost count of the phone calls, conversations, emails, texts, etc… andI learned a different nuance of this topic with each conversation. If we communicated, you influenced my opinion.

On “Special Treatment” for Boardwalk Businesses

We do spend a lot of money to support the downtown businesses, and here’s why: a big part of our marketing effort is selling our unique downtown area. And if the businesses down there are failing (or non-existent) that’s not good for anyone. It’s a synergistic relationship. The attractions (boardwalk, music, fireworks, landscaping…) help the businesses and the businesses help the attractions. Hand in hand they make Carolina Beach a fun, unique place.

Furthermore, supporting the downtown area isn’t just helpful to those businesses. If our downtown is fun, unique and attractive then more good people will visit and stay… and they’ll support all of the town businesses. (There’s that synergy thing again.)

On Consistency and Predictability

We owe it to residents, property owners and business owners to provide consistency. That’s why we have zoning laws. You bought your house in a residential zone so you won’t have to worry about a Scotchman being built next door. You deserve predictability. Therefore, any zoning changes should be small and incremental.

I apply the same logic to policies that affect our businesses. Things can’t always stay the same, but we can try to soften the changes. We should strive to keep roughly the same amount of parking spaces going forward. No more, no less. There’s no need to flood the town with spots, but it shouldn’t dry up either.

I get it that some businesses chose to open in places where they don’t have parking. And that’s a risk they took. But this change has been quite drastic. They opened their businesses based on town policies that were in place (like free winter parking) and now we’ve turned them upside down. Wouldn’t you be frustrated?

On Free Winter Parking

People have been arguing about how much revenue this will bring in. The truth is, we just don’t know. To those arguing that we can’t live without it… we already do. We have never charged for parking Nov-Feb, but we’re talking as if we always have.

I support making the meters free in the winter, but charging in the lots, because they are either closer to the beach or offer amenities (showers and restrooms.) To me, the revenue we give up should be considered a marketing expense, and we should try like hell to get a Room Occupancy Tax reimbursement for it.

And by the way… if the lots are completely full in the summer, that means we aren’t charging enough.

On Employee Parking

The new policy allows for employers to purchase a $100 annual pass for their employees. With the new License Plate Reader system, the passes are now transferrable. So if an employee quits, the pass can be transferred to a different employee at no charge. Last year an employer could only buy a $175 annual pass and if the employee quit, they took the pass with them. This is an improvement. Employees do not have to pay $25/day. That’s a myth.

There’s been discussion of a designated employee lot. I’m not sold on the idea. There are too many questions. Can we even find a place for this? Do employees want it, or will they just search for a closer spot? Will it just be a drop in the bucket? Will it sit empty half the time?

Here’s my take: every business has their own special problems. Let’s get out of their way and let them figure it out. The town trying to provide one solution for all these diverse businesses… I don’t see it being helpful.

On Non-Resident Passes

I often heard it said that we should run our town like a business. But we’re not a business, we’re a community. I think we should run our town like a smart family. Smart families are cautious with their money, but are still good to their neighbors.

Some have characterized our OTB friends as “entitled.” I don’t feel that way. They support our businesses and community organizations. I can think of ten who volunteered with me to improve the Island Greenway system.

These “freeloaders who don’t want to pay taxes” volunteer for the Sea Turtle Project and Ocean Cure, teach our children, support the Lo Tide Run and clean litter from the beach. They support our businesses in the winter. They treat our town with respect. They WANT to be a part of our community and they’re willing to PAY. And it just feels like we’re dismissing their contributions.

I believe that we can be fiscally responsible AND be good neighbors. We can optimize our income AND be an inclusive community.

The argument against offering nonresident passes seems to boil down to two points:

1)    Nonresidents would spend more on parking if they had to pay a la carte.

I’m not so sure. I think a lot of these OTBers will end up spending LESS on parking, not more. They’ll adapt, find free spots, park in friends’ driveways or go elsewhere.

2)    Nonresidents with passes take up spots that paying customers would otherwise use.

Yes and no. 4^th of July weekend, yes. The middle of March, no. Some type of peak season or peak time restrictions seem reasonable.

Season passes are guaranteed income. Why do you think that Jungle Rapids sells them? ($50/day or $180 for a season pass.) As a for-profit business I’m sure Jungle Rapids did some research before setting their price. They probably know that the average season ticket holder only goes 2.5 times (or something like that.) So I believe there is an appropriate price. I just don’t know what it is.

We can and should offer season passes. Charge more, offer them for a limited time and include restrictions… I’m not sure. But let’s give our OTB friends an OPTION.

It’s Not That Simple

We signed a contract with Pivot Parking that is specifically “based on the parking season, hours, fee schedule and number of parking spaces in existence as of 12/1/2021.” (That’s a direct quote from the contract.)

We also lease land from private owners to operate parking lots. And those leases are also based on our current policies.

Are we to tear up the contract and leases already, with the season started? That’s just bad business. What if Pivot walks away and now we don’t have anyone to manage the parking? What if lease holders bail? What if there’s a lawsuit? There are potential disasters here.

And what about staff time? They’ve spent considerable effort on negotiations and planning. And now we’re going to ask them to start over? That’s no way to run an organization.

We have important infrastructure projects that staff needs to be working on. (The marina rebuild, the Ocean Blvd sidewalk, the lake dredge, Canal Drive, and the Freeman Park purchase, just to name a few… and these are big!) We need to focus on these projects, not endlessly rehash parking.

Two of my campaign themes were “look out for the locals” and “make cautious decisions.” I cannot in good conscience vote for a policy change that could hurt our tax paying citizens.

Just because I disagree with the plan doesn’t mean it’s a good idea to change it.