Commissioners adopt initial $108.2M financing resolution, review $246M recommended budget

The Dare County Board of Commissioners on May 4 adopted an initial financing resolution that gives staff flexibility to finance the new public-works facility and upcoming beach-nourishment projects, with a not-to-exceed amount of $108,200,000. The resolution specifies $56,500,000 as the beach-nourishment allocation (Buxton, Avon and Nags Head) and $51,700,000 for the public-works project; collateral will depend on an anticipated FAA release that would allow use of the new public-works facility, otherwise the Justice Center would secure the beach-nourishment portion.

Matt (finance staff) explained the debt structure and how combining the financings could be more cost-effective if the FAA release arrives on schedule. "The collateral of the financing will be dependent on that decision," he said, describing the options. After a public hearing with no speakers, the board adopted the initial resolution by unanimous vote.

Staff also presented the manager's recommended FY2026–27 budget, a balanced proposal totaling $246,457,463. County leadership emphasized there is no proposed general-fund property-tax-rate increase and that the plan includes a 3% cost-of-living adjustment for full-time employees (presented cost: about $1.7 million), continued funding for local school current expense, and a package of capital and operating items. The manager and finance director explained the recommended budget uses some one-time fund-balance actions to smooth costs this cycle and that staff will present a final budget and the capital-improvements plan in June. The board set a public hearing on the budget for June 9.

Why it matters: the financing resolution clears the way for project-level contracting and allows staff to time any bond issuance for market advantage; the budget maintains service levels while relying in part on one-time fund-balance sources, a pattern staff warned cannot persist indefinitely.

Next steps: staff will proceed with the June public hearing on the budget and bring final budget documents and the CIP for board adoption; if FAA action allows, staff may proceed earlier with debt issuance for combined projects and will notify the board by email.