Fiscal Year 2021-2022 Budget Adopted
At their June 16, 2021 meeting, Nags Head’s Board of Commissioners adopted a budget for fiscal year 2021-2022.
The Town of Nags Head’s budget guides management throughout the year by clearly setting forth goals and objectives and authorizing programs for implementation. The budget includes the annual operating and capital budgets, as well as the capital improvement program. This year’s budget focuses on the following goals:
- Fully funding the Town’s equipment replacement schedule and no longer deferring needed equipment as has been done in prior years.
- Fully funding the capital improvement plan, which includes maintenance of key assets including streets, stormwater, waterlines, beach accesses, vehicles, and equipment, as well as planning-level funds to implement a public works master plan.
- Fully funding the recommendations of a pay and class study to be a leader in the regional market for local government employee compensation.
A total general fund budget of $26,405,466 was adopted and includes a two-cent ad valorem tax increase on all Nags Head properties, bringing the overall rate from 26.5 to 28.75 cents per $100 of valuation. A portion of the overall tax rate is dedicated to beach nourishment. The beach nourishment rate increased from 2.25 to 2.5 cents per $100 of valuation. The two-cent tax increase raises an additional $616,862 annually to fund Town operations.
Tax rates were adopted for the Town’s six beach nourishment municipal service districts (MSD), four of which were newly adopted in June to establish a more sustainable funding plan. The supplementary revenue from the new tax formula will build up the Town’s beach nourishment fund balance to support future projects and provide more stability for future tax rates. One cent was added to MSD 4, bringing the overall rate to 1.0 cent per $100 of valuation. One half (.5) cent was added to MSDs 3 and 6, bringing the overall rate to .5 cent per $100 of valuation. No tax rate was established at this time for MSD 5. The four new districts will raise an additional $135,069 annually for future beach nourishment efforts. There were no changes to MSDs 1 and 2, which have been in place since 2011 and have a tax rate of 14.30 cents. Special obligation bond debt for the 2019 beach nourishment project is included at $2,451,252. More information on the 2022 beach restoration project, as well as a map of the municipal service districts, can be found at https://nagsheadnc.gov/1042/2022-Beach-Restoration-Project.