New Deadline for OT Requests

New or modified applications are due May 15th at Ride the Wind Surf Shop by 5pm.

The Occupancy Tax Board (OTB) usually meets in early April to appropriate funds for the next fiscal year. Requests were due in early March for the board to look over before the appropriations meeting. Due to event cancellations and other consequences of the COVID-19 shutdown, the OTB held a special meeting yesterday to discuss how they could best help Ocracoke organizations after the one-two punch of Dorian and a pandemic. 

They decided to accept additional of modified requests for "essential needs focusing on infrastructure."

The five members of the OTB are Bob Chestnut (chair), Trudy Austin, Nancy Leach, Byron Miller, and Ann Warner. They all attended this morning's Zoom meeting, joined by Ocracoke Tourism Development Authority (TDA) board member Greg Honeycutt and members of the local press. 

Bob opened the meeting by announcing that the OTB's current fund balance is $720,000. For the 2019-20 fiscal year, the OTB appropriated about $450,000, but not all of that has been distributed. Bob estimated that around $171,000 wouldn't get spent before June 30th because of project deferrals or cancellations due to the pandemic. So even though OT revenues are down for this year because of Dorian and the COVID-19 shutdown, the OTB can honor their commitments because they have over $300,000 in reserve, saved for a rainy day. 

Well, it's raining now. (Literally, as I type this, and figuratively, as well. It's been a rough 8 months on Ocracoke.)

Trudy has the most longevity on the board; in fact, I can't remember a time when she wasn't on the board and I've been writing these articles for ages. She referred to "fifteen or sixteen years ago" so it's been at least that long. "The reserve fund was for a catastrophe," she said. "We always said it was for a really bad year."

"This is it," said Nancy. "Dorian and the pandemic are crippling." Nancy asked if the board could distribute funds directly to island businesses in addition to grants to non-profits. The other board members demurred, citing that they didn't think it was a legal use of the funds. (Per NC statute, Ocracoke's OT funds can be used for "any public purpose.") 

"We can help businesses indirectly," Byron added. "We could help out, for example, by funding the walking map so businesses wouldn't have that cost." 

Bob also mentioned that the board might have to consider funding some basic services on the island that are usually covered by the county (school positions, deputies, etc.) because Hyde County's revenues will be low this year. There's a precedent for that; according to Trudy the board funded a county EMS position some years ago.

Also under consideration: the TDA, which collects a 2% tax on overnight stays and is legally required to spend 2/3 of its proceeds on marketing Ocracoke, does NOT have a rainy day fund and might come to the OTB for help paying for their commitments.

Bob attended the last TDA board meeting, by Zoom, on Monday April 20th. At that time, he mentioned that he believes it's legal for the OTB to grant funds to the TDA. 

"The TDA will have a budget shortfall," Bob said. "I threw it out there at the meeting that the TDA could ask OTB for help." 

Greg spoke up as a TDA representative. "The big takeaway from our meeting is that we don't have a reserve. We're being extremely conservative with our budget now," he said. "After this virus is over, marketing the island will be so important."

Greg suggested that the OTB consider taking on the mortgage payments for the Island Inn, which is a TDA commitment to the Ocracoke Preservation Society. The TDA pays about $18-19,000 for the mortgage, Greg said. He also suggested that Bob meet with OPS president Ken DeBarth and TDA chai Amy Howard to "talk it out."

"The Island Inn [restoration project] is part of visitor enhancement, which we can spend up to 1/3 of the TDA budget on," Greg explained. "If we could free up that money, it could go back into marketing."

"I supported the Island Inn project because it provided land for eventual public restrooms," Bob said. "Taking over the payments doesn't put any stress on [the OTB] because we have money left."

The OTB hasn't set a date yet for their appropriations meeting, but Bob hopes it can happen before the June 1 Hyde County Board of Commissioners [BOC] meeting. The BOC will vote on the funding appropriations recommended by the OTB, and that should take place before the end of the fiscal year on June 30th. 

Stay tuned for a little update about the TDA meeting! Maybe tomorrow!

See below for official information on asking for money:

OCRACOKE OCCUPANCY TAX BOARD

Modification to the 2020/2021 Funding Request Process 

The Ocracoke Occupancy Tax board will accept additional or modified funding requests for essential needs focusing on infrastructure.  Non-profits should submit any changes or new requests by 5pm on May 15, 2020.  Funding requests should follow the attached guidelines.  Requests can be mailed to Bob Chestnut, PO Box 517, Ocracoke, NC 27960 or dropped off at Ride The Wind Surf Shop.

Questions can be directed to Bob Chestnut, Board Chair at 252-921-0231 or bob@surfocracoke.com. 

Application Requirements

• Single page summary of the project identifying the use of funds and amount requested.
• Completed checklist of requested information.
• Detailed estimate as to the “use of funds” with a description/itemization of how the funds will be used (specific project) and estimated “line item costs.” ALL ADVERTISING AND PROMOTIONAL COSTS SHOULD BE LISTED AS A SEPARATE LINE ITEM.
• Time line as to when funds will be needed (from July 1 to June 30; this is the Occupancy Tax budget year).
• Current (no older than 90 days) Balance Sheet of the organization that reflects the cash and investment position of the organization to include all assets and liabilities.
• Prior year’s Profit and Loss Statement or Cash Flow Statement (funds in and cash out) that reflects the use of any Occupancy Tax funds (description of use and amount).
• Budget (Profit and Loss or Cash Flow Statement) for the year the Occupancy Tax funds are requested to include an explanation (identify by line item) as to the amount of the Occupancy Tax funds requested.  The grant request amount should be identified so as to be considered along with other budgeted items of the organization.
• Such other information that the requesting organization feels would benefit the Occupancy Tax Board relative to the request (matching funds issues etc.).

Occupancy Tax Funding Request Checklist

Please provide the completed checklist with your submitted request.

• Single Page Summary of Request
• Name and contact information(Name, phone, email) for organization submitting request.
• Detailed description/itemization of how requested funds will be used.  Promotional and Advertising costs identified separately.
• Project timeline showing when funds will be needed and when the project will be completed.
• Current Balance Sheet of organization
• Current Profit & Loss Statement of organization
• Budget for the organization for July 1, 2020-June 30, 2021 that includes funds requested from occupancy tax.