Narragansett reports $5.87M in beach enterprise reserves; storm account separated

Michelle, speaking for beach operations, reported the completed audit and fund balance for the Beach Enterprise Fund. She said the unrestricted balance is $4,371,696 and that an additional $1,500,000 is held in a separate storm reserve account, which the town treats as distinct from the general operational balance. "Therefore, the total unrestricted Enterprise Fund balance is... $5,871,000," she said.

Michelle emphasized the enterprise fund pays for all beach operations from user fees — daily admissions, parking, cabana rentals, lockers and other beach receipts — and that the beach returns about $500,000 annually to the town as a payment in lieu of taxes. She noted the department made no fee changes for the coming season: weekday parking remains $10 and weekends/holidays $15; resident passes and other fees were left unchanged.

On capital and maintenance: - The north beach clubhouse roof replacement (NBC deck roof) and other building repairs have been funded from the enterprise balance; Michelle gave $260,000 as a recent example for roof work. - Lifeguard and seasonal staffing remain significant line items: seasonal wages were shown at roughly $503,000 and full-time wages near $100,000 in the current budget. - Sand nourishment: the town placed 2,000 cubic yards after last year's storms and the presenter said only modest sand purchase (an estimated 200 cubic yards) is likely this year given recent natural replenishment. The adopted multi-year sand budget is shown over six years at roughly $108,000.

Councilors asked about disaster exposure and insurance. Michelle said insurance and FEMA reimbursements support some rebuilding but rarely cover 100%: "FEMA will only do up to 75%... a lot of the insurances won't cover dunes." The $1.5 million storm reserve was described as specifically earmarked for storm response and kept apart from routine enterprise funds.

Other items discussed: - South and North pavilions and clubhouse upgrades are in multi-year capital planning; full renovation work would not be ready before this summer and would require design and bidding. - An existing CRMC permit allows dune and sand work; the presenter said the town will continue daily sand management during the season. - Benches and lockers: new benches purchased and in stock will be installed in May; the town reported 218 storage lockers at the beach, plus a separate waiting list for North Pavilion changing-room slots.

Michelle framed the fund balance as healthy relative to past storms and COVID-era revenue drops, but she warned a severe storm or catastrophic event could exhaust reserves. "If we have a horrific Category 5, probably not, but knock on wood we're in a good place right now," she said.