WRIGHTSVILLE BEACH — One local beach town is looking to adopt a revenue-neutral tax rate, though that term may be a misnomer; the town is expecting to reduce its revenue by almost $200,000.
READ MORE: Republicans lean toward further reducing NHC tax rate, NHCS capital ask diluted
ALSO: Beach towns divided over potential New Hanover tax rate, sales tax impact
The Wrightsville Beach Board of Aldermen heard a draft presentation on next fiscal year’s budget last week, in which Town Manager Haynes Brigman recommended reducing the property tax rate from 9.23 cents to 5.31 cents per $100 dollars in value.
The rate represents what it would take for the town to bring in the same amount of ad valorem revenue as it did the year prior; this reduction is possible through Wrightsville Beach’s property revaluations, which show values rose 77% since 2021.
“[It’s] a pretty substantial increase,” Brigman said. “As you get closer to the water, you saw a larger increase across the municipality.”
New Hanover County as a whole experienced a 66% increase in values, with county commissioners last being presented with a 35-cent rate — not revenue neutral, which is 29.1. The City of Wilmington has also been presented with a 28.25-cent rate, 0.1 cents above revenue neutral. Neither budgets are finalized.
Brigman echoed what Carolina Beach council discussed a few weeks ago: that other municipalities raising the rate above revenue neutral would put a dent in their sales tax revenue, budgeted for $1.5 million next year.
Due to the way the county distributes sales tax revenue, towns with higher tax levies than neighboring towns receive a larger piece of the sales-tax pie. Based on North Carolina Department of Revenue shared tax data from 2024, Wilmington received $90 million, Carolina Beach received $6.6 million, Kure Beach had $3.4 million, and Wrightsville Beach, $3.5 million. New Hanover County received a total of $240 million.
Brigman is estimating a $200,000 loss in revenue if it adopts a revenue-neutral rate. The town will also lose another $200,000 as a result of its merger with Cape Fear Public Utility Authority. Brigman explained the town had historically used transfers from the town’s enterprise fund; after publication, a WB spokesperson explained the town applies its administrative fee from the enterprise fund to the general fund. This transfer helps cover the cost of administrative services that support both General Fund and Enterprise Fund operations; however, when that fund goes away in September, the town will no longer be able to do that.
Despite these losses, other sources of revenue are expected to increase in the next fiscal year, including the town’s largest source of budget money — the parking fund.
Wrightsville Beach, which charges visitors $5 per hour and up to $35 per day, is anticipating $6.7 million in parking revenue next fiscal year. It projected $5.75 million for this year, but the town has far surpassed estimates in the past several years.
Aside from parking payments, the town is also expecting to bring in $800,000 in parking citations next year, up $50,000 from what was budgeted last year. Like the parking fund, actual revenue has exceeded projections in recent years; the town brought in $822,000 and $841,000 in fiscal years 2022-2023 and 2023-2024.
By comparison, parking enforcement is budgeted for $1.58 million, though this doesn’t include maintenance of parking spaces. The streets and facilities budget is projected at $1.25 million. Both budget lines have increased in the last few years.
After raising daily rates in January, the board of aldermen did not indicate they were going to increase parking rates more at last week’s meeting, a long-criticized move by the public. Residents of both Wrightsville Beach and other New Hanover County municipalities have spoken out in recent meetings requesting the town stop charging at 5 p.m. Parking hours run from 9 a.m. to 8 p.m. in the summer. The aldermen have not discussed the proposal publicly.
Property taxes, estimated at $3.5 million next year, are typically the next largest revenue source, but this budget cycle the town is planning to transfer $4.7 million from its capital reserve fund. The money will go toward many capital improvements across the town, the major one being an $875,000 renovation of the town hall building. Improvements will enhance customer access, ADA compliance, staff workspace, and overall building efficiency.
The town will also invest $1 million in a new fire pumper truck, allowing WB to station vehicles on both sides of the bridge and reduce emergency response time.
“It’s important for us to get that apparatus ordered today so that we can take on that vehicle and have it operational prior to the bridge replacement projects taking place,” Brigman said, referring to the North Carolina Department of Transportation’s plan to replace three bridges to the island. Work is planned to begin in spring of 2028.
Other capital improvements include:
- $100,000 upgrade to the police department’s records management system
- $500,000 replacement of the Town’s fuel system, which is “beyond service life and critical for onsite fueling” during storms or supply disruptions
- $300,000 design project to enhance the Town’s Loop, aimed at improving accessibility and adding trees and landscaping
- $632,000 extension of a multi-use path, expanding safe pedestrian and bike access
- $25,000 distributable emergency network, ensuring internet and cellular communication remains intact during hurricanes or network failures
- $130,000 investment in holiday decorations
- $250,000 investment to repair or replace dune walkovers at public beach access points
The remaining $2.25 million would be put away for future capital needs.
Brigman’s draft budget also includes several new positions, many going toward public safety:
- 2 in public works, $60,000 each
- 3 police officers, increasing the force from 27 officers to 30, totaling $190,000
- 3 firefighters so the department can have 4 each shift, totaling $310,000
The budget has cost-of-living increases baked in, though Brigman noted an ongoing compensation study would inform the town on further pay adjustments.
Aside from a few questions, the aldermen didn’t offer thoughts on the budget or suggest any changes at last week’s meeting. Residents will have the opportunity to offer feedback at the alderman’s June 12 meeting.
Tips or comments? Email info@localdailymedia.com.
Want to read more from PCD? Subscribe now and then sign up for our morning newsletter, Wilmington Wire, and get the headlines delivered to your inbox every morning.
