Posted on November 13, 2024
Dare County commissioners took the necessary financial actions to close out the 2022 Towns’ Beach Nourishment Capital Project as well as the 2022 Buxton and Avon Beach Nourishment Capital Project.
Both projects were under budget: the towns by $1,064,510 and the Hatteras project by $1,392,678. The excess funds, $2,457,188, were transferred from Capital Projects Fund to the Beach Nourishment Fund.
As of June 30, 2024, an arbitrage calculation report was issued for the towns project. Interest rate on the bonds was 0.98%. However, “interest rates increased rapidly after bond issuance and total investment earnings on bond funds was $454,322. Of that amount, Dare County retains $162,750 and sends to the Internal Revenue Service $291,572, as arbitrage liability,” which is held by the trustee, who will pay by Jan. 14, 2025, states the explanation in the agenda item.
For the Buxton-Avon arbitrage calculation, Dare County made investment earnings on the bond funds totaling $312,208. Of that total, $261,502 goes to Dare County and $50,706 goes to the IRS, which will be paid by the trustee by Feb. 2, 2025.
For the towns’ project, the underage was reduced by $573,284 in bond funds and interest earned and must be used for debt service on 2021B Limited Obligation Bonds.
For the Buxton-Avon project, $2,064,124 was transferred to the Beach Nourishment Fund. Of that amount, $1,090,575 must be used for debt service on 2022A Limited Obligation Bonds and $671,446 will be used for monitoring costs. The monitoring costs were reduced by $343,388 by moving the beach maintenance in Buxton and Avon up by one year.
Dare County commissioners adopted the necessary budget amendments to close out the capital project ordinances for the respective projects.
