Statement of the Mayor on behalf of the Board of Aldermen

**This statement was read by Mayor McDermon at the June 25, 2021 Board of Aldermen Special Meeting. At this meeting, the Board of Aldermen voted to establish two Municipal Service Districts as described in the Storm Damage Mitigation Project Report and accompanying map presented at the May 15, 2021 Board of Aldermen Special Meeting.**

Statement of the Mayor on behalf of the Board of Aldermen of the Town of North Topsail Beach, North Carolina

June 25, 2021

Today's Special Meeting has been convened for the purpose of discussing and voting on the establishment of Municipal Service Districts (MSD). There has been much discussion and confusion regarding MSD’s and the Board has received a number of comments from homeowners, so to provide clarification, let me state the following:

  1. Property taxes for the year have been established and they are the same Town wide. Earlier this week the Board approved the budget for the 2021-2022 fiscal year. This included a property tax increase of $0.05 per hundred of valuation “town wide” and there was no special or increased rate for properties in the proposed MSD’s. The annual budget is the only time these rates can be established so this rate will not change during the 2021-2022 fiscal year. All taxpayers in the Town of North Topsail Beach will pay the same rate.

  2. MSD’s function — FEMA Hurricane Florence Project financing. While MSD’s can and have been used to establish separate tax areas, they are also needed for financing/loans. This fall the Town will need “bridge” financing in place to do the FEMA Phase 5 Category G 637,000 cubic yards Florence and Dorian Project. FEMA reimburses the Town for their Projects which means the Town must initially pay or fund the Project and this will require the Town to initially finance the more than $15 million needed. Without the establishment of the MSD’s as proposed the Phase 5 FEMA Project will be at risk, thus it is critical that an MSD be established.

In summary the Board will discuss and vote on the establishment of MSD’s and this will not affect the property tax rates for Fiscal Year 2021-2022 the rates will be the same for all taxpayers.


Joann McDermon


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