Sunset Beach presentation outlines town finances, capital plans and Powell Bill use

Tara Childress, the town’s finance presenter, gave a detailed public briefing on Sunset Beach’s finances at a special Jan. 7 meeting, outlining revenue sources, fund balances and several capital projects that will affect the upcoming budget.

Childress told the council and attendees that local finance in North Carolina is governed by the Local Government Budget and Fiscal Control Act (N.C. Gen. Stat. §159) and explained the duties of the finance officer and the state Local Government Commission’s role in monitoring debt and audits. "All finance officers across the state have to be bonded," she said, adding, "here in Sunset Beach, I am bonded at a at $1,000,000." (Presenter words.)

The presentation listed the town’s major funds — general, Powell Bill (street) fund, accommodation tax, beach erosion, capital reserve, community park and a pump/dredging project fund — and stressed that fund balance is a flexible snapshot rather than a statutory minimum or maximum. Childress said property taxes account for roughly 39% of the town’s current budget, a figure she described as close to typical guidance offered in municipal finance training.

Childress reviewed recent and upcoming capital spending. She said the town ordered a new fire truck with a total price of $933,000; the town put $150,000 down and has accumulated about $706,000 in a capital reserve fund, leaving an estimated $77,000 to budget in the next fiscal cycle to cover the remainder. "That truck should be here late 2026," she said. She also summarized a Catchment 7 project with an estimated current cost around $460,000 and provided a cost and funding overview for a Majestic Oak land purchase and Phase 1 construction; Childress said grant proceeds of about $750,000 helped reduce the town’s purchase cost and that the Phase 1 total is currently estimated near $4,250,000.

On recurring and nonrecurring revenue, Childress described the mix of local receipts (property tax, motor vehicle tax, sales/use tax and county/state allocations), fees and special revenues such as grants and donations. She said occupancy/accommodation tax revenues are collected at 6% locally and that the town allocates that 6% with 1% for administrative return to the county, 2% to the beach erosion fund and 3% to the accommodation tax fund; transfers into the general fund for public safety and infrastructure occur at year-end as revenues allow. Childress noted a $50,000 donation designated for a plaque at Majestic Oak Park.

Childress provided an update on the parking program: total parking revenue as reported for the season through Dec. 31 was $766,000, with revenues minus expenditures leaving a shortfall of just over $300,000; she directed the public to the full spreadsheet and presentation PDF posted on the town’s agenda page for line-by-line details.

Council members pressed for clarification about outstanding loans and Powell Bill spending. When asked how many outstanding loans the town has, Childress confirmed there are three loans (two associated with fire apparatus and one for the Majestic Oak land purchase) and that one truck loan will be paid off in the next fiscal year. On the Town Park/parking work, Childress said $489,000 of Powell Bill funds were used for the on-street parking construction on Sunset Boulevard and that Powell Bill receipts run at roughly $200,000 per year; she said part of the Powell Bill contribution came from that fund’s existing balance.

The meeting packet and the full presentation are posted on the Town of Sunset Beach website under the Jan. 7 agenda, Childress said, and she offered to address line-by-line budget questions at the council’s next scheduled presentation on Jan. 12. With no public comments, the chair moved to adjourn the financial portion of the meeting; the motion was seconded and the chair called the meeting portion adjourned after an 'Aye' vote.

The council will consider budget items, debt service and follow-up detail at upcoming meetings; technical backup, spreadsheets and the full presentation are available on the town website for residents seeking the underlying figures.