Financing

The beach nourishment project cost is approximately $36 to 37 million.

As of June 16, 2011, the Town's plan is:

  • $18 million in cash from the Dare County Beach Nourishment Fund (fund will replenish $3 to 3.5 million per year from the 1% occupancy tax that it currently receives)
  • $18 million revenue bond to be paid back over 6 years with proceeds from a 1% increase to the occupancy tax. The 1% tax increase will generate about $2 million per year. Nags Head will be able to use the $2 million per year revenue for 5 years to pay back $10 million of the bond.
  • The remainder of the bond will be paid back through an increase in taxes. The Board has adopted a town-wide tax increase of 2 cents (from last year's town tax rate of 15.75 cents to 17.75 cents) and a tax increase of 16 cents for the ocean-side from Bonnett Street (about Mile Post 11.25) south to the National Park Service line.
  • $1 million from the Town's general fund (engineering costs)