Post Office Box 549 101 Veterans Memorial Drive Kitty Hawk, NC27949  Phone (252)261-3552 Fax (252)261-7900 tpVPAtysMacgo.  TOWN OF KITTY HAWK PROPOSED AGENDA KITTY HAWK1 TOWN COUNCIL Monday, November 4th,2024 Kitty Hawk Town Hall, Smith Room  5:00PM  1. Call to Order  2. Moment of Silence/Pledge of Allegiance  3. Approval of Agenda  4. Staff Introduction- Dave Zimneck, Public Works  5. Presentation-  a) State Historic Preservation- Kristi Brantley b) Fiscal Year 2023-2024 Audit  6. Public Comment - The public isi invited to address the Town Council on any topic. Please sign up with the Town Clerk before the meeting and when your name is called, come forward and speak into the microphone at the lectern. Please limit comments to 3 minutes. 7. Consent Agenda - Items on the consent agenda are considered to be non-controversial, routine in nature, or items not requiring a presentation to discuss by the Town Council in order to consider the items(s). Any item may be removed for discussion by the council or by any member of the audience who wants to hear the item presented and discussed. a) Approval of September gth, 2024, and October 7th, 2024, Regular Session Council Minutes - Approval of the consent agenda will approve these minutes. b) Resolution- Operation Green Light in support of honoring veterans c) Planning & Inspections Refund Policy- Proposed refund policy for permitting d) Adoption of 2 Policies Required by the PCI Standards- PCI Compliance and PCI  Incident Response Plan  8. Items Removed from Consent Agenda 9. Planning- Schedule Public Hearing  a) Zoning Text Amendment - 42-360.- Sound waters district. Scheduling a new public hearing on previously heard proposal due to procedural issues. Proposal to reclassify piers as permitted use, and amend maximum pier length  10. Planning - Public Hearing  a) a) Zoning Text Amendment- 42-1.- Definitions; 42-504.- Yards generally. Proposal to define accessory structures and allow accessory structures no larger than 144  1IPase Town Council Proposed Agenda November 4. 2024    TOWN OF KITTY HAWK  sq. ft. and no taller than 15 ft. in height to be located as close as 5 feet to side and  rear property lines.  11. Old Business: 12. New Business:  a) Village Residential Development Regulations- Discussion to provide staff with Council opinion and direction on potential revisions to development regulations in  the Village Residential zoning districts.  b) Fire engine purchase  13. Reports/General Comments from Town Manager 14. Reports/General Comments from Town Attorney 15. Reports/General Comments from Town Council  16. Adjourn  *To Watch Livestream on YouTube: nttps/youtube.com/ve/4duDhDw.Q7featuresshare The meeting will also be available to watch on the Town's YouTube channel on demand the next  day.  **Send Comments and/or Questions via email:  Your may always send comments or questions at any time to nfoPkityhawAtownnet. If you would like your question or comment read at this meeting, please send it by 2:30 PM on November 4, 2024, and note that you would like it to be read at the meeting. Be sure to include your full name and address. Please keep your Si habla espahol, los servicios de asistencia linguistica estdn disponibles de forma-gratuita. Llame al  comments to three minutes. 252-261-3552 para obtener ayuda.  2/Page Town Counci Proposed Agenda November4,2024    Historic Preservation Program Presentation  AGENDA ITEM # 5A  DATE: November 4, 2024  SUBMITTED BY: Kitty Hawk resident Ron Tumolo  SUBJECT:  Presentation by Kristi Brantley from the North Carolina State Historic Preservation Office about establishing a historic preservation program for the Town of Kitty Hawk. Kitty Hawk resident Ron Tumolo has suggested considering a new program focused on the historic preservation of our Town. Recognizing the importance of maintaining our Town's unique history and character, Mr. Tumolo has proposed the development of a program that would help identify, preserve, and celebrate sites of historic and Kristi Brantley will present an overview of the steps required to establish a historic preservation program. This presentation will include details on the program's goals, potential benefits for the community, and initial ideas for how such an initiative might be structured. It will also offer an opportunity for Council members to discuss  BACKGROUND:  cultural significance in our area.  and provide feedback on the proposal.    NClegislation-Historic Preservation  North Carolina General Statutes can be found here:htips/Awww.ncleg.govAlawsSGeneralStatutes  $160D-940. Legislative findings. $160D-941. Historic preservation commission. $160D-942. Powers of the historic preservation commission.  $160D-943. Appropriations.  $160D-944. Designation of historic districts. $160D-945. Designation of landmarks.  $160D-946. Required landmark designation procedures. $160D-947. Certificate of appropriateness required. $160D-948. Certain changes not prohibited.  $160D-949. Delay in demolition of landmarks and buildings within historic district. S160D-950. Demolition by neglect to contributing structures outside local historic districts.  $160D-951. Conflict with other laws. $160D-303. Historic preservation commission. $160D-406. Quasi-judicial procedure. $105-278. Historic properties.    LOCAL GOVERNINGI BOARD establishes a preservation commission bya adopting preservation ordinance consistent with statel law G.S. 160D-3 -303;4 406; and 940-951. PRESERVATION COMMISSION adopts 1.Rules ofP Procedure 2.0 Design Standards in consultation with State Historic Preservation Office PRESERVATION COMMISSION conducts ani informal inventory ofa allp potentiall landmark within itsj jurisdiction PRESERVATION COMMISSION makes, ord cause tob ber made,a formal report fore eachi inventoried potentiall landmark  The Basic  Local Landmark  Designation Process  PRESERVATION COMMISSION notifies 1.owner/occupant 2.city/countyi tax officials 3.n register ofc deeds 4.t town clerk or other 5.building inspector  No  PRESERVATION COMMISSION submits the reportt tos State Historic Preservation Office  LOCAL GOVERNING BOARD approves landmark designation  LOCAL GOVERNINGI BOARD adopts ordinance of designation  COAF REQUIRED before beginning work  Yes  STATE HISTORIC PRESERVATION OFFICE 30 days toreview and provide advisory comments  PROPERTY OWNER* may claim 50% property tax deferral ine each taxing unit (G.S. 105-278) *Individually designated proper only. Thereis no 50%t tax defer for properties inal local historic district.  PUBLICI HEARING isheld  DOES THE REPORT establisht thep property/sh historical significance andf fully account for S condition/degree ofi integrity?  PRESERVATION COMMISSION recommends landmark designation tol local governing board  No  Yes    TOWN OF KITTY HAWK, NORTH CAROLINA ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2024  Craig Garriss, Mayor Jeff Pruitt, Mayor Pro-Tem David Hines, Council Member Dylan Tillett, Council Member Charlotte Walker, Council Member  Melody Clopton, Town Manager Liliana Noble, Finance Director Casey' Varnell, Town Attorney    TOWN OF KITTY HAWK, NORTH CAROLINA  TABLE OF CONTENTS June 30, 2024  3xhibit  Page 1-3 4-11 12 13 14 14 15 16 17 18 19-45  Financial Section: Independent Auditors' Report Management Discussion and Analysis Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet-Governmental Funds Statement of Net Position Governmental Funds  1 2 3 3 4 4 5 6  Reconciliation of the Governmental Funds Balance Sheet to the Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Statement of Revenues, Expenditures, and Changes in Fund Balances - Annual  Fund Balances to the Statement of Activities Budget and Actual General Fund Statement of Fiduciary Net Position Notes to Financial Statements Required Supplemental Financial Data: Local Government Employees' Retirement System- = Schedule of Proportionate Share of Net Pension Liability (Asset) Local Government Employees' Retirement System - Officers' Special Separation Allowance  46 47 48 49 50 51-54 55  Schedule of Contributions  Schedule of Changes in Total Pension Liability - Law Enforcement Schedule of Total Pension Liability as al Percentage of Covered Payroll Schedule of Changes in Total OPEB Liability and Related Ratios Schedule of Revenues, Expenditures, and Changes in Fund Balance = Schedule of Revenues, Expenditures, and Changes in Fund Balance =  Individual Fund Statements and Schedules: Budget and. Actual = General Fund Budget and Actual - Capital Reserve Fund    TOWN OF KITTY HAWK, NORTH CAROLINA  TABLE OF CONTENTS June 30, 2024  Schedule of Revenues, Expenditures, and Changes in Fund Balance = Budget and Actual - Beach Nourishment Capital Project Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance = Budget and Actual - Police Building Capital Project Fund-Purchase and  56 57 58 59 60  Remodel  Statement of Changes in Assets and Liabilities- - Agency Fund - Firemen's Relief Fund Schedule of Ad' Valorem Taxes Receivable Analysis of Current Tax Levy- Town-Wide Levy  Other Schedules:  Compliance Section:  Report on Internal Control Over Financial Reporting and on Compliance And Other Matters Based on an Audit of Financial Statements Performed in  Accordance with Government. Auditing Standards  61-62    JOHNSON  MIZELLE,  Partners:  Richard B.. Mizelle, Jr, CPA Richard D. Straub, CPA, PC George C. Consolvo, CPA  STRAUBACONSONYOU CERTIFIED PUBLIC ACCOUNTANTS  INDEPENDENT AUDITOR'SI REPORT  The Honorable Mayor and Members of the Town Council Town of] Kitty Hawk, North Carolina Report on the. Audit of Financial Statements  Opinions  Wel have audited thei financial statements oft the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Kitty Hawk, North Carolina, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Town of Kitty In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, thei respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Town of Kitty Hawk as of. June 30, 2024, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.  Hawk's basic financial statements as listed in the table of contents.  Basis for Opinions  We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are: required to be independent ofthe Town ofKitty Hawk, and toi meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our  audit opinions.  Responsibility of Management's, for the Audit of the Financial Statements  Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, andi maintenance ofinternal control relevant tot the preparation and: fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raises substantial doubt about the Town of Kitty Hawk'sability to continue as a going concern for the twelve months beyond the financial statement date, including any  currently known information that may raise substantial doubt shortly thereafter.  MEMBERS OF AICPA, AND NCACPA  ph: 252.261.2333 252.261.0414- Post Office Box 2229, 40161 N. Crontan Highway, Kitty Hawk, NCIP-amhalammi    Auditor's. Responsibility, for the Audit of the. Financial, Statements  Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is al high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofi internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the Inj performing an audit in accordance with GAAS, and Governmental. Auditing Standards, we Exercised professional judgement and maintained professional skepticism throughout the audit. identify and assess the risks of material misstatement of the finançial statements, whether due to fraud or error, and design and perform audit procedures responsible to those risks. Such procedures include examining, on a1 test basis, evidence regarding the amounts and disclosures in the finançial statements. obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness oft the Town of Kitty Hawk'si internal control. Accordingly, no such opinion is expressed. evaluate the appropriateness: of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation ofthe financial conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town of Kitty Hawk's ability to continue as a going concern for a We are required to communicate with those charged with governançe regarding among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters  judgment made by a reasonable user based on the financial statements.  statements.  reasonable period oft time.  that wei identified during the audit. Required Supplementary Information  Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, and Other Post Employment Benefit and Law Enforcement Officers' Special Separation Allowance Schedules of the Funding Progress and Employer Contributions, and the Local Government Employees' Retirement System's Schedules of the Proportionate Share of the Net Pension Liability (Asset) and Contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a required part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers itt tol be an essential part of financial reporting for placing thel basic financial statements in an appropriate operational, economic, orl historical context. Wel have applied certain limited procedures to thei required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted ofi inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion orprovide any assurance ont thei information because the limited procedures doi not provide us with sufficient  evidence to express an opinion or provide any assurance.  2    Supplementary Information  Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Kitty Hawk's basic financial statements. The combining and individual fund financial statements, budgetary schedules, and other schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility ofmanagement and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. This information has been subjected to the auditing procedures appliedi in the audit oft the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used toy prepare thel basic financial statements or tot thel basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, based on our audit, the combining and individual fund financial statements, budgetary schedules, other schedules and the schedule of expenditures of federal and state awards are: fairly stated, in  all material respects, in relation to thel basic financial statements as a whole.  Other Information  Management is responsible for the other information included in the annual report. The other information comprises the introductory information and the statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance on thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statement, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information  exists, we are required to describe it in our report.  Other Reporting Required by Government Auditing Standards  Ina accordance with Government Auditing Standards, wel have alsoi issued our report dated October 15,2024 on our consideration of the Town ofl Kitty Hawk's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose ofthat report is to describe the scope ofour testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town of] Kitty Hawk's internal control over financial reporting or on compliance. That report is an integral part of an audit performedi in accordance with Government. Auditing Standards inc considering Town  of Kitty Hawk'si internal control over financial reporting and compliance.  JOHNSON, MIZELLE, STRAUB, & CONSOLVO,LLP Johnson, Mizelle, Straub GI Consolvo, LLP  Certified Public Accountants  Kitty Hawk, North Carolina October 15, 2024  3    Management Discussion and Analysis  Town of Kitty Hawk  Management's Discussion and Analysis  As management of the Town of Kitty Hawk, we offer readers of the Town of Kitty Hawk's financial statements this narrative overview and analysis of the financial activities of the Town of Kitty Hawk for the fiscal year ended June 30, 2024. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the Town of  Kitty Hawk's financial statements, which follow this narrative.  Financial Highlights  The assets and deferred outflows of resources of the Town of Kitty Hawk exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $ 30,092,348 The budget was adopted with a town-wide tax rate of$ .30 cents per $ 100 of valuation of The budget was adopted with a municipal service district tax for beach nourishment at a At the end of the current fiscal year, the Town of Kitty Hawk's governmenta. funds reported combined ending fund balances of $ 18,329,861. Approximately 55% of this amount or $ 10,147,941 is non-spendable, restricted, committed or assigned. At the end of the current fiscal year, unassigned fund balance for the General Fund was $8,181,920, an increase of $ 964,994 over the prior year. The unassigned fund balance at June 30, 2024, represents 79% of total general fund expenditures for the year. The Town has established a fund balance policy further reducing unassigned fund balance by $ 3,500,000 for unanticipated expenditures and revenue shortfalls as may be determined by Council. The portion of general fund balance that is available for The Town has reserve funds for future capital improvements of $ 3,932,208 at June 30, 2024, including $ 3,123,075 for beach nourishment and $ 809,133 for other equipment  (net position).  The government's total net position increased by $ 689,301. which $ 0.035 cents is restricted for beach nourishment. rate of $.10 cents per $ 100 of valuation.  appropriation is $ 4,681,120. andi improvements.  4    Management Discussion and Analysis Overview of the Financial Statements  Town of Kitty Hawk  This discussion and analysis are intended to serve as an introduction to the Town of Kitty Hawk's basic financial statements. The town's basic financial statements consist of three components; 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the town through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader's understanding of the financial condition of the Town of Kitty Hawk.  Required Components of Annual Financial Report  Figure 1  Management's Discussion and Analysis  Basic Financial Statements  Government-wide Financial Statements  Fund Financial Statements  Notes to the Financial Statements  Summary  Detail  Basic Financial Statements  The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government- wide Financial Statements. They provide both short and long-term information about the town's The next statements (Exhibits 3 through 6 are Fund Financial Statements. These statements focus on the activities of thei individual parts of the town's government. These statements provide more detail than the government-wide statements. There are three parts to the Fund Financial  financial status.  5    Management Discussion and Analysis  Town of Kitty Hawk  Statements: 1) the governmental funds statements; 2) the budgetary comparison statements; The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the town's individual funds. Budgetary information required by the General Statutes also can be found in this part of the  and 3) the fiduciary fund statements.  statements.  Government-wide Financial Statements  The government-wide financial statements are designed to provide the reader with a broad overview of the town's finances, similar in format to a financial statement of a private-sector business. The government-wide statements provide short and long-term information about the The two government-wide statements report the town's net position and how they have changed. Net position is the difference between the Town's deferred outflows of resources and deferred inflows of resources. Measuring net position is one way to gauge the town's financial condition. The government-wide statements are divided into three categories: 1)governmental activities; 2) business-type activities; and 3) component units. The governmental activities include most of the town's basic services such as general government administration, planning and development, public safety including police, fire and ocean rescue, streets and garbage collection. Property taxes and shared revenues including sales tax, occupancy tax, land transfer tax and utilities franchise tax, finance most of these activities. The town does not have any business-type  town's financial status as a whole.  activities or component units. Fund Financial Statements  The government-wide financial statements are in Exhibits 1 and 2 of this report.  The fund financial statements (see Figure 1) provide a more detailed look at the town's most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The town, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance-related legal requirements, such as the General Statutes or the town budget ordinance. All the funds of the Town of Kitty Hawk can be divided into two categories: governmental funds and proprietary funds. The town has only governmental funds. Governmental Funds - Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. All of Town of Kitty Hawk's basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting that provides a short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are more or less financial resources available to finance the town's programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a The Town of Kitty Hawk adopts an annual budget for its General Fund, as required by the General Statutes. The budget is a legally adopted document that incorporates input from the  reconciliation that is a part of the fund financial statements.  6    Management Discussion and Analysis  Town of Kitty Hawk  citizens of the town, the management of the town, and the decisions of the Council about which services to provide and how to pay for them. It also authorizes the town to obtain funds from identified sources to finance these current period activities. The budgetary statement provided for the General Fund demonstrates how well the town complied with the budget ordinance and whether or not the town succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format, language, and classifications as the legal budget document. The statement shows four columns: 1) the original budget as adopted by the council 2) the final budget as amended by the council 3) the actual resources, charges to appropriations, and ending balances in the General Fund; and 4) the difference or variance between thet final budget and the actual resources and charges. To account for the difference between the budgetary basis of accounting and the modified accrual basis, a reconciliation showing the differences in the Notes to the Financial Statements - The notes provide additional information that is essential toal full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information - In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the town's progress in funding its obligation to provide pension benefits and retiree healthcare benefits to its employees. Required supplementary information can be found beginning on pages Other Supplementary Information - This includes combining statements for selected funds  reported activities is shown at the end of the budgetary statement. The notes to the financial statements are on pages 20-44 of this report.  45-50 of this report.  showing additional detail for revenues and expenditures. Government-Wide Financial Analysis  The Town of Kitty Hawk's Net Position  Figure 2  June 30,2024 $ 19,352,570 19,458,343 1,939,563 40,750,476 7,835,142 1,531,824 1,291,162 10,658,128 16,446,086 5,775,422 7,870,840 $ 30,092,348  June 30,2023 $ 17,155,070 21,437,178 2,043,337 40,635,585 8,693,322 1,514,754 1,024,462 11,232,538 17,420,835 4,944,253 7,037,959 $ 29,403,047  Current and other assets Capital assets Deferred outflows of resources Total assets and deferred outflows of resources Long-term liabilities outstanding Other liabilities Deferred inflows of resources Total liabilities and deferred inflows of resources Net Position: Net investment in capital assets Restricted Unrestricted Total net position  7    Management Discussion and Analysis  Town of Kitty Hawk  As noted earlier, net position may serve over time as one useful indicator of a government's financial condition. The assets and deferred outflows of the Town of Kitty Hawk exceeded deferred inflows by $ 30,092,348 as of June 30, 2024. The town's total net position increased by $6 689,301 for the fiscal year ended June 30, 2024. 55% or $ 16,446,086 of total net position reflects the town's net investment in capital assets (e.g. land, buildings, machinery, and equipment), less any related debt still outstanding that was issued to acquire those items. Thisi is a decrease over the prior year of $ 974,749 because depreciation exceeded capital asset acquisitions and debt repayment. The Town of Kitty Hawk uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town of Kitty Hawk's net investment in its capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used to liquidate these liabilities. An additional portion of the Town's net position of $ 5,775,422 represents resources that are subject to external restrictions on how they may be used. The remaining $ 7,870,840 is unrestricted. This unrestricted portion on the government-wide basis increased $ 832,881 from the prior year, largely due to investment income that exceeded budget estimates and expenditures less than budget estimates.  Town of Kitty Hawk Changes in Net Position  Figure 3  June 30, 2024 $  June 30,2023  Revenues: Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions General Revenues: Property taxes Municipal service district taxes Sales, occupancy and land transfer taxes Other unrestricted intergovemmental revenues Investment earnings Miscellaneous revenues Total Revenues Expenses: General government Public safety Transportation Environmental protection Beach nourishment Interest Total Expenses Increase in net position Net position, July1 Net position, June 30  194,018 $ 29,515 375,344 4,660,988 562,204 4,857,532 685,036 844,455 203,245 12,412,337 3,299,511 4,926,961 472,025 1,077,945 1,873,497 73,097 11,723,036 689,301 29,403,047  262,686 1,327,739 4,106,382 4,549,196 550,319 4,833,380 644,010 571,475 161,135 17,006,322 3,596,765 5,282,245 158,271 1,193,773 1,436,937 93,982 11,761,973 5,244,349 24,158,698  $ 30,092,348 $ 29,403,047  Operating grants and contributions decreased $ 1,298,224 primarily due to an American Rescue Plan Act grant in the prior year of $ 1,138,069 used for police salaries and benefits. Capital grants and contributions decreased $ 3,731,038 due to a prior year NC grant for beach nourishment of $ 1,408,247 and prior year Dare County contributions for beach nourishment of  $2,292,293.  8    Management Discussion and Analysis  Town of Kitty Hawk invested.  Investment earnings increased by $ 272,980 due to increased earning rates and larger amounts General government expenses decreased $ 297,254 due primarily to the following: a reduction of $339,826 for actuarial adjustments to the NC Local Government Retirement System and retiree health insurance actuarially determined liabilities and $ 104,599 for computer upgrades offset by Public safety expenses decreased $ 355,284 due to the following: a reduction of $ 618,510 for actuarial adjustments to the NC Local Government Retirement System, Law Enforcement Separation Allowance and retiree health insurance actuarially determined liabilities offset by Transportation expenses increased $ 313,754 due primarily to $ 320,000 payment to NC Beach nourishment expenses increased $ 436,560 due to a full year of depreciation expense on  $88,397 increase in salaries and benefits.  $251,398 increase in salaries and benefits. Department of Transportation for town-wide sidewalk.  the 2023 nourishment project.  Financial Analysis of the Town of Kitty Hawk's Funds compliance with finance-related legal requirements.  As noted earlier, the Town of Kitty Hawk uses fund accounting to ensure and demonstrate Governmental Funds. The focus of the Town of Kitty Hawk's governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing the Town of Kitty Hawk's financing requirements. Specifically, unreserved fund balance can be a useful measure of a government's net resources available for spending at The general fund is the chief operating fund of the Town of Kitty Hawk. At the end of the current fiscal year, unassigned fund balance of the General Fund was $ 8,181,920 while total fund balance reached $ 14,034,214. The unassigned portion increased primarily due to investment income that exceeded budget estimates and expenditures less than budget estimates. As a measure of the general fund's liquidity, it may be useful to compare general fund unassigned fund balance to total fund general fund expenditures which is 79% which is comparable to the prior The Town has established at fund balance policy to maintain a minimum unassigned fund balance of$3,500,000 for unanticipated expenditures and revenue shortfalls, therefore the board met its General Fund Budgetary Highlights: During the fiscal year, the town revised the budget on several occasions. Generally, budget amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; 2) amendments made to recognize new funding àmounts from external sources, such as Federal and State grants; and 3) increases in appropriations that become necessary to maintain services. The largest amendments included 1)$ 289,000 transfer from capital reserve fund and $ 31,000 appropriation of fund balance for the Town's commitment tol NC Department of Transportation for sidewalk, 2)$ 230,307 appropriation of fund balance for the police department building renovation, 3)$ 100,000 appropriation of fund balance for access control project in Town buildings and 4) $ 84,646 appropriation of fund balance for police  the end of thet fiscal year.  year  target at June 30, 2024.  department radio service contract.  9    Management Discussion and Analysis  Town of Kitty Hawk  Capital Asset and Debt Administration  Capital assets. The Town of Kitty Hawk's investment in capital assets for its governmental activities as of June 30, 2024, totals $ 19,458,343 (net of accumulated depreciation). These  assets include buildings, land, machinery and equipment, and vehicles. Major capital asset transactions during the year include the following additions:  Ocean rescue vehicle $ 50,427 Police vehicle $ 45,178 Air Paks for fire department $ 102,100 Police department remodel $: 246,882 Street repairs $ 103,967  Town of Kitty Hawk's Governmental Activities Capital Assets  Figure 4 (net of depreciation)  June 30,2024 5,835,026 312,458 3,478,401 8,403,250 382,340 1,046,868 $ 19,458,343  June 30.2023 5,834,226 65,576 3,631,520 10,283,497 371,923 1,250,436 $ 21,437,178  Land Construction in process Buildings Infrastructure Equipment Vehicles Total  Additional information on the town's capital assets can be found in the Notes to The Financial Long-Term Debt. As of June 30, 2024, the Town had total long-term debt for beach nourishment special obligation bonds issued in the current fiscal year for $ 3,012,257. North Carolina General Statutes limit the amount of general obligation, installment purchase and capitalized lease debt that a unit may have up to 8% of the total assessed value of taxable property located within that governments boundaries. The legal debt margin for the Town of Kitty Additional information regarding the Town's long-term debt can be found in the Notes to The  Statements on page 30.  Hawk is $ 124,195,253. Financial Statements on page 43.  10    Management Discussion and Analysis  Town of Kitty Hawk  Economic Factors and Next Year's Budgets and Rates  Nationwide economic factors have not typically been applicable to the Town of Kitty Hawk due to at tourist-Dased economy that experiences seasonal activity and population fluctuations.  Travel and tourism in Dare County remained steady in fiscal year 2024. Overall County occupancy tax collections increased 1.51%. Kitty Hawk received $ 39,920 or 1.8% more. Property sales in Dare County softened from the pandemic highs experienced in fiscal years 2021 and 2022. Overall land transfer tax collections decreased 8%. Duck received  Kitty Hawk's portion of general fund sales taxi increased $ 28,055.  $43,832 or 8% less.  Budget Highlights for the Fiscal Year Ending June 30, 2025  The town-wide property tax rate remains the same at 30 cents per hundred dollars of valuation The municipal service district tax for beach nourishment remains the same at 10 cents per The Town anticipates decreased occupancy, sales and land transfer taxes as these revenues are distributed based on the Town's proportionate share of the Town's tax levy compared to the County and other municipalities in Dare County. Due to tax rate increases by neighboring The budget includes a 4.0% market pay plan adjustment for all positions and an additional one- The budget implements a performance evaluation process and merit pay incentive to reward The budget includes capital reserve funding for a future fire truck, boardwalks and dock repair, public works vehicle, a modest public works building addition, beach nourishment projects and The budget includes an upgrade to current permit management software which will allow online The budget includes an updated fee schedule which better aligns to other Towns in our area.  (3.5 cents of this is designated for beach nourishment). No unrestricted fund balance is used to balance the budget.  hundred dollars of valuation.  governments the Town anticipates its shared percentage will decrease. The overall increase in health insurance contributions is 9%. The budget includes the purchase of a single axle dump truck.  step increase for all employees. employees who exceed expectations. public safety equipment and vehicles. applications and payments,  Requests for Information  This report is designed to provide an overview of the town's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to the Finance Director, Town of Kitty Hawk, P.O. Box  549, Kitty Hawk, North Carolina, 27949.  11    TOWN OF KITTY HAWK, NORTH CAROLINA  STATEMENT OF NET POSITION June 30, 2024  Exhibit1  Governmental Activities  ASSETS Current assets: Cash Investments Restricted investments Taxes receivable Due from governmental. units Miscellaneous accounts receivable Lease receivable Prepaid expenses Total current assets Non-current assets: Lease receivable, non-current Capital assets: Land and construction in process Other capital assets, net of depreciation Total capital assets Total non-current assets Total assets DEFERRED OUTFLOWS OF RESOURCES Pension deferrals OPEB deferrals Total deferred outflows of resources Accounts payable Accrued salaries and benefits Deposits Current portion of long-term liabilities Total current liabilities Long-term liabilities: Due in more than one year Total liabilities DEFERRED INFLOWS OF RESOURCES Pension deferrals OPEB deferrals Leases Total deferred inflows of resources NET POSITION Net Investment in Capital Assets Restricted for: Powell Bill Streets Stabilization by State Statute Capital Reserve Funds Public Safety Unrestricted Total net position  $  1,073,819 12,161,166 4,209,250 51,165 1,296,381 30,124 157,485 33,433 19,012,823 339,747 6,147,483 13,310,860 19,458,343 19,798,090 38,810,913 1,674,560 265,003 1,939,563 376,278 94,968 6,492 1,054,086 1,531,824 7,835,142 9,366,966 249,836 547,520 493,806 1,291,162 16,446,086 242,495 1,606,172 3,892,208 34,547 7,870,840 30,092,348  $  12  The accompanying notes are ani integral part oft the financial statements.    TOWN OF KITTY HAWK, NORTH CAROLINA  Exhibit2  STATEMENT OF ACTIMITIES For the Year Ended. June 30, 2024  Net (Expense) Revenue and Changes in Net Position  Program Revenues Operating Grants and Contributions Contributions  Charges for Services  Capital Grants and Governmental  Functions-Programs Primary government: Governmental activities: General government Public safety Transportation Environmental protection Beach nourishment Interest onl long-term debt Total primary government  Expenses $ 3,299,511 $ 4,926,961 472,025 1,077,945 1,873,497 73,097 11,723,036 11,723,036 $  Activities  Total  192,754 $ 1,264 194,018 194,018 $ General revenues: Taxes: Propertyt taxes, leviedf for general purpose Municipal serviçe district taxes Sales, occupancy and land transfer taxes Other unrestrictedi intergovernmental revenues Investment earnings, unrestricted Miscellaneous, unrestricted Total general revenues Change in net position Net position-beginning Net position-ending  28,603 $ 912 29,515 29,515 $  $ (3,078,154) $ (3,078,154) (4,924,785) (340,300) (1,077,945) (1,629,878) (73,097) (11,124,159) (11,124,159) (11,124,159) (11,124,159)  (4,924,785) (340,300) (1,077,945) (1,629,878) (73,097)  131,725 243,619 375,344 375,344  4,660,988 562,204 4,857,532 685,036 844,455 203,245 11,813,460 689,301 29,403,047 30,092,348 $ 30,092,348  4,660,988 562,204 4,857,532 685,036 844,455 203,245 11,813,460 689,301 29,403,047  The accompanying notes are ani intergral part ofthef financials statements.    TOWN OF KITTY HAWK, NORTH CAROLINA BALANCE: SHEET-GOVERMMENTAL FUNDS  Exhibit 3  June 30, 2024  MAJOR FUNDS Beach Nourishment Capital Fund 471,900  Police Building Capital Fund $ 3,829,317  Total Governmental Funds $ 1,073,819 12,161,166 4,209,250 51,165 1,296,381 30,124 497,232 33,433 19,352,570 376,278 94,968 6,492 477,738 51,165 493,806 544,971 33,433 3,426 1,606,185 242,495 34,547 3,932,208 471,900 3,823,747 8,181,920 18,329,861  General 1,073,819 $ 7,859,949 4,209,250 51,165 1,296,381 30,124 497,232 33,433 $15,051,353 $ 471,900  ASSETS Cash and cash equivalents Investments Restricted investments Taxes receivable Due from governmental units Miscellaneous accounts receivable Leases receivable Prepaid expenses Total Assets LIABILITIES Accounts payable Accrued salaries and taxes Customer deposits Total Liabilities DEFERRED INFLOWS OF RESOURCES Property Taxes Receivable Leases Total Deferred Inflows of Resources FUNDBALANCES Non Spendable: Prepaid expenses Leases Restricted: Stabilization by State Statute Streets Powell Bill Public Safety Capital Reserve Fund Committed: Beach nourishment Public Safety Unassigned Total Fund Balances and Fund Balances are different because:  3,829,317  370,708 $ 94,968 6,492 472,168 51,165 493,806 544,971 33,433 3,426 1,606,185 242,495 34,547 3,932,208 8,181,920 14,034,214  $  5,570 $ 5,570  471,900 471,900  3,823,747 3,823,747 $ 3,829,317  Total Liabilities, Deferred Inflows Of Resources  $15,051,353 $ 471,900  Amounts reported for governmental activities int the Statement of Net Position (Exhibit 1) Capital assets used in governmental activities are not financial resources and Deferred outflows of resources related to pensions/OPEB are not reported ini the funds Liabilities for earned revenues considered deferred inflows ofr resources Deferred inflows of resources related to pensions/OPEB are not reported in the funds Long-term liabilities usedi in governmental activities are not financial uses and are therefore not included in the funds. Net position of governmental activities (Exhibit 1) The accompanying notes are ani integral part of thef financial statements.  therefore are not reported in the funds.  19,458,343 1,939,563 51,165 (797,356) (8,889,228) 30,092,348 14  int fund statements    TOWN OF KITTY HAWK, NORTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES INF FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2024  Exhibit4  MAJOR FUNDS Beach Nourishment Capital Fund Capital Fund  Police Building  Total Governmental Funds $ 5,209,732 4,857,532 685,036 404,858 182,791 11,227 844,455 203,245 12,398,876 2,972,326 4,865,760 451,362 1,077,946 130,459 1,004,086 73,097 10,575,036 1,823,840  General 5,209,732 $ 4,857,532 685,036 393,505 182,791 11,227 844,455 203,245 12,387,523 2,972,326 4,618,878 451,362 1,077,946 119,106 1,004,086 73,097 10,316,801 2,070,722 (230,307) (230,307) 1,840,415 12,193,799  REVENUES: Ad valorem taxes Other taxes and licenses Unrestricted intergovernmental. revenue Restricted intergovernmental revenue Permits and fees Sales and services Investment earnings Other revenues TOTAL REVENUES EXPENDITURES: Current: General government Public safety Transportation Environmental protection Beach nourishment Debt service: Principal Interest TOTAL EXPENDITURES  11,353  11,353  246,882  11,353  11,353  246,882 (246,882) 230,307 230,307 (16,575) 3,840,322  REVENUES OVER UNDERIEXPENDTURES OTHER FINANCING SOURCES (USES): TOTAL OTHER FINANCING SOURCES (USES): REVENUES AND OTHERFINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES: Beginning of year- July 1 End of year- June 30  Transfers  1,823,840 16,506,021  471,900  14,034,214 $ 471,900 $ 3,823,747 $ 18,329,861  The accompanying notes are ani integral part of thei financial statements.  15    TOWN OF KITTY HAWK, NORTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2024  Exhibit 4 (continued)  Amounts reported for governmental activities in the statement of activities Net changes in fund balances total governmental funds Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation exceeded capital outlay in the current period. Capital outlay expenditures which were capitalized Depreciation expense for governmental assets  are different because:  1,823,840  560,707 (2,539,544)  (1,978,837) 436,375 64,867 110,029 13,461  Contributions to the pension plan in the current fiscal year are not included in the Statement of Activities Benefit payments paid and administrative expense for the LEOSSA are not included in the Statement of Activities OPEB beneift payments and administrative costs made in the current fiscal year are noti included in the Statement of Activities Revenues in the statement of activities that do not provide current financial resources are not reported as revenues ini the funds: Change in unavailable revenue for tax revenue The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long- term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net position. This amount is the net affect of these differences in the treatment of long- Some expenses reported ini the statement of activities do not require the use of current financial resources and, therefore, are not reported  term debt and related items: Principal payments on long-term debt as expenditures in governmental funds: Increase in compensated absences Pension expense-LGERS Pension expense-LEOSSA OPEB plan expense  1,004,086  1,004,086  (53,982) (632,921) (47,848) (49,769)  (784,520) $ 689,301  Total changes in net position of governmental activities (Exhibit 2)  The accompanying notes are ani integral part ofi thei financial statements.  16    TOWN OF KITTY HAWK, NORTH CAROLINA BUDGET AND ACTUAL GENERAL FUND For the' Year Ended June 30, 2024  Exhibit 5  STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUNDI BALANCE  General Fund  Variance With Final Budget- Positive (Negative 42,762 20,621 50,336 5,862 (10,609) (773) 321,627 71,812 501,638 307,763 676,905 12,638 188,054 63,770 1,249,130 1,750,768 (480,908) (29,490) (510,398)  Actual Amounts 5,209,732 $ 4,857,532 685,036 393,505 182,791 11,227 668,627 203,245 12,211,695 2,972,326 4,618,878 451,362 1,077,946 1,196,289 10,316,801 1,894,894  Original 5,166,970 4,836,911 634,700 382,643 193,400 12,000 150,000 112,383 11,489,007 3,036,450 5,156,609 144,000 1,266,000 1,172,924 10,775,983 713,024 10,703 20,000 (743,727) (713,024)  Final 5,166,970 4,836,911 634,700 387,643 193,400 12,000 347,000 131,433 11,710,057 3,280,089 5,295,783 464,000 1,266,000 1,260,059 11,565,931 144,126 480,908 349,000 (230,307) (743,727) (144,126)  REVENUE: Ad valorem taxes Other taxes and licenses Unrestricted intergovernmental revenues Restricted intergovernmental revenues Permits and fees Sales and services Investment earnings Other revenue Total Revenues EXPENDITURES: General government Public safety Transportation Environmental protection Beach nourishment Total Expenditures  REVENUES OVER UNDERIEXPENDTURES OTHER FINANCING SOURCES (USES): Fund balance appropriated Transfer from special revenuei fund Transfer from capital reserve fund Transfer to capital project fund Transfer to capital reserve fund Total Other Financing Sources (Uses) REVENUES AND OTHER FINANCING SOURCES OVER UNDERIEXPENDTURES AND OTHER  349,000 (230,307) (773,217) (654,524)  FINANCING USES FUND BALANCE: Beginning Ending  $  $  1,240,370 $ 1,240,370  8,861,636 10,102,006 175,828 773,217 (349,000) 3,332,163 14,034,214  Alegally adopted Capital Reserve Fund is consolidated into  the General Fund for reporting purposes: Interest income Transfer from General Fund Transfer to General Fund Fund Balance, Beginning Fund Balance, Ending (Exhibit 4)  The accompanying notes are ani integral part of thef financial statements.  17    TOWN OF KITTY HAWK, NORTH CAROLINA STATEMENT OF FIDUCIARY NET POSITION  Exhibit6  FIDUCIARY FUND June 30, 2024  Agency Fund $ 71,470 71,470  ASSETS Cash Total Assets LIABILITIES AND NET POSITION Liabilities: Due to Firemen's Relief Fund NETI POSITION  71,470  $  The accompanying notes are ani integral part oft thef financial statements.  18    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  . Summary of Significant Accounting Policies  The accounting policies of the Town of Kitty Hawk (the "Town") conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more  significant accounting policies: A. Reporting Entity four-member council. B. Basis of Presentation  The Town of Kitty Hawk is a municipal corporation that is governed by an elected mayor and a  Government-wide Statements: The statement of net position and the statement of activities display information about the primary government. These statements include the financial activities of the overall government. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the Town. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The town only has The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the Town and for each function of the Town's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as Fund Financial Statements: The fund financial statements provide information about the Town's funds. Separate statements for each fund category - governmental and fiduciary- are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major  governmental activities.  program revenues, including all taxes, are presented as general revenues.  funds.  The Town reports the following major governmental funds:  General Fund. The General Fund is the general operating fund of the Town. The General Fund accounts for all financial resources except those that are required to be accounted for in another fund. The primary revenue sources are ad-valorem taxes, State grants, and various other taxes and licenses. The primary expenditures are for general government services, public safety and street and sanitation services. Additionally, the Town has a legally adopted Capital Reserve Fund. Under GASB 54 guidance the Capital Reserve Fund is consolidated in the General Fund. The budgetary comparison for the Capital Reserve Fund has been included in the supplemental Beach Nourishment Capital Project Fund. This fund is used to account for the beach  information.  nourishment construction project.  19    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  Police Department Building Capital Project Fund. This fund is used to account for the purchase and renovation of the old Regional Medical Center where a new police station will be  located.  The Town reports the following fiduciary fund types:  Agency Funds. Agency funds are custodial in nature and do not involve the measurement of operating results. Agency funds are used to account for assets the Town holds on behalf of others. The Town maintains one agency fund for the Firemen's Relief Fund, which accounts for the money invested and distributed on behalf of the Firemen's Relief Fund. The fund is established based on state statutes to provide funds for specific expenses and to assist firefighters injured or killed in the line of duty and to provide length of service awards to eligible  firefighters.  C. Measurement Focus and Basis of Accounting the year using the modified accrual basis of accounting.  Ina accordance with North Carolina General Statutes, all funds of the Town are maintained during Government-wide Fund Financial Statements. The government-wide fund financial statements are reported using the economic resources measurement focus. The government-wide fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the Town gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures ing governmental funds. Proceeds of general long-term debt and acquisitions under capital leases The Town considers all revenues available if they are collected within 90 days after year-end, except for property taxes. Ad-valorem taxes receivable are not accrued as revenue because the amount is not susceptible to accrual. At June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered to be an available resource to finance the operations of the current year. Also, as of September 1, 2013, State law altered the procedures for the assessment and collection of property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are registered. The billed taxes are applicable to the fiscal year in which they are received. Uncollected taxes that were billed in periods prior to September 1, 2013 and for limited registration plates are shown as ar receivable in these financial statements and are offset by deferred inflows of resources. Sales taxes and certain intergovernmental revenues, such as the beer and wine tax and utilities franchise tax, collected and held by the State at year-end on behalf of the Town are recognized as revenue. Sales taxes are considered a shared revenue for the Town of Kitty Hawk because the tax is levied by Dare County and then remitted to and distributed by the State.  the fiscal year in which all eligibility requirements have been satisfied.  and IT subscriptions are reported as other financing sources.  20    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  Intergovermental revenues and sales and services are not susceptible to accrual because generally they are not measurable until received in cash. Grant revenues, which are unearned at year-end are recorded as unearned revenues. Under the terms of grant agreements, the Town funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net position available toi finance the program. It is the Town's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block  grants, and then by general revenues.  D. Budgetary Data  The Town's budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the General Fund and Capital Reserve Fund. All annual appropriations lapse at the fiscal-year end. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the functional level for all annually budgeted funds. Project ordinances are adopted for the Beach Nourishment Capital Project Fund and Police Department Purchase and Remodel Capital Project Fund. During the year, several amendments to the original general fund budget were necessary. The largest amendments included 1)$2 289,000 transfer from capital reserve fund and $ 31,000 appropriation of fund balance for the Town's commitment to NC Department of Transportation for sidewalk, 2) $ 230,307 appropriation of fund balance for the police department building renovation, 3) $ 100,000 appropriation of fund balance for access control project in Town buildings and 4)$ 84,646 appropriation of fund balance for police department radio service contract. The budget ordinance must be adopted by July 1 of the fiscal year or the governing board must adopt an interim budget that covers that time until the annual ordinance can be adopted. E. Assets, Liabilities, Deferred Outflows/Inflow of Resources, and Fund Equity  1. Deposits and Investments  All deposits of the Town are made in board-designated official depositories and are secured as required by State law [G.S. 159-31). The Town may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the Town may establish time deposit accounts such as NOW and SuperNOW accounts, money market State law [G.S. 159-30(c)] authorizes the Town to invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States; obligations of the State of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high-quality issues of commercial paper and bankers' acceptances and the North Carolina Capital Management Trust (NCCMT). The Town's investments are reported at fair value. The NCCMT Government Portfolio, a SEC-registered (2a-7) money market mutual fund is measured at fair value. Because the NCCMT Government Portfolio has a weighted average of less than 90 days, it is presented as  accounts, and certificates of deposit.  an investment with a maturity of less than 6 months.  2. Cash and Cash Equivalents  The Town pools money from several funds to facilitate disbursement and investment and to maximize investment income. Therefore, all cash and investments are essentially demand  deposits and are considered cash and cash equivalents.  21    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  3. Restricted Assets  Money in the Capital Reserve Fund is classified as restricted assets because its use is restricted to the Capital Reserve Fund per G.S. 159-18. Powell Bill funds are classified as restricted cash because it can be expended only for the purposes of maintaining, repairing, constructing, or reconstructing or widening of streets per G.S. 136-41.1 through 136-41.4. Drug forfeiture funds are classified as restricted cash because its use is restricted for purposes that enhance law  enforcement activities. Governmental Activities: General Fund: Capital reserve fund Powell Bill-Streets Public Safety  Town of Kitty Hawk Restricted Investments  $ 3,932,208 242,495 34,547 4.209,250 $4,209.250  Total Restricted Investments 4. Ad-Valorem Taxes Receivable  Ina accordance with State law [G.S. 105-347 and G.S. 159-13(a)), the Town levies ad-valorem taxes on property other than motor vehicles on July 1, the beginning of the fiscal year. The taxes are due on September 1 (lien date); however, interest does not accrue until the following January  6. These taxes are based on the assessed values as of January 1,2023.  5. Allowances for Doubtful Accounts were written off in prior years. 6. Leases Receivable  All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. This amount is estimated by analyzing the percentage of receivables that  The Town's leases receivable are measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the Town may receive variable lease payments that are dependent upon the lessee's revenue. The variable payments are A deferred inflow of resources is recorded for leases. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of  recorded as an inflow of resources in the period the payment is received.  the lease. 7. Prepaid Items as the items are used.  Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements and expensed  22    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  8. Capital Assets  Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are recorded at their estimated fair value at the date of donation. General infrastructure assets acquired prior to July 1,2003, consist of the road network, which is not capitalized as the town has not opted to do retroactive reporting for infrastructure. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful  lives:  Estimated Useful Lives 20 years 40 years 5-10 years 5-10 years 5years  Asset Class  Infrastructure Buildings Vehicles Furniture and equipment Beach nourishment  9. Deferred outflows/inflows of resources  In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Town has several items that meet this criterion, contributions made to the pension plans and OPEB plan in the 2024 fiscal year and other pension and OPEB deferrals. In addition to liabilities, the statements of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and sO will not be recognized as revenue until then. The Town has several items that meet the criterion for this category = property taxes receivable,  pension and OPEB deferrals and lease deferrals.  10. Long-Term Obligations  In the government-wide financial statements, long-term debt and other long-term obligations are  reported as liabilities in the applicable governmental activities.  11. Compensated Absences  The vacation policy of the Town provides for the accumulation of up to thirty days earned vacation leave with such leave being fully vested when earned. For the Town's government-wide funds, an expense and a liability for compensated absences and the salary-related payments are recorded as the leave is earned. The Town has assumed a first-in, first-out method of using accumulated compensated time. The portion of that time that is estimated to be used in the next fiscal year has been designated as a current liability in the government-wide financial statements. The Town's sick leave policy provides for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since the Town does not have any obligation for the accumulated sick leave until it is actually taken, no accrual  for sick leave has been made.  23    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  12. Net position/Fund Balances  Net position  Net position in government-wide financial statements are classified as net investment in capital assets, restricted and unrestricted. Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of In the governmental fund financial statements, fund balance is composed of five classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. Non-spendable Fund Balance = This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be  other governments or imposed by law through state statute.  Fund Balances  The governmental fund types classify fund balances as follows:  maintained intact:  Prepaid items - portion of fund balance that is not an available resource because it represents the year-end balance of prepaid expenses, which are not spendable Leases = portion of fund balance that is not an available resource because it represents the balance of the year-end lease receivable in excess of the deferred inflow of resources Restricted Fund Balance - This classification includes amounts that are restricted to specific  resources.  for the lease receivable, which is not a spendable resource.  purposes externally imposed by creditors or imposed by law.  Restricted for Stabilization by State Statute - North Carolina G.S. 159-8 prohibits units of governments from budgeting or spending a portion of their fund balance. This is one of several statutes enacted by North Carolina Legislature in the 1930's that were designed to improve and maintain the fiscal health of local government units. Restricted by state statute (RSS), is calculated at the end of each fiscal year for all annually budgeted funds. The calculation in G.S. 159-8 (a) provides a formula for determining what portion of fund balance is available for appropriation. The amount of fund balance not available for appropriation is what is known as "restricted by State statute". Appropriated fund balance in any fund shall not exceed the sum of cash and investments minus the sum ofl liabilities, encumbrances, and deferred revenues arising from cash receipts, as those figures stand at the close of the fiscal year next preceding the budget. Per GASB guidance, RSS is considered a resource upon which a restriction is "imposed by law through constitutional provisions or enabling legislation." RSS is reduced by inventories and prepaid items as they are classified as non-spendable. Outstanding encumbrances are included within RSS. RSS is included as a component of restricted net position and restricted fund Restricted for Streets - Powell Bill portion of fund balance that is restricted by revenue source for street construction and maintenance expenditures. This amount represents Restricted for Public Safety - portion of fund balance that is restricted by revenue source for use by the Police Department to enhance law enforcement activities.  balance on the face of the balance sheet.  the balance of the total unexpended Powell Billi funds.  24    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  Restricted for Capital Reserve Fund - portion of fund balance that is restricted for the legally adopted Capital Reserve Fund which has been consolidated with the General Committed Fund Balance = portion of fund balance that can only be used for specific purposes imposed by majority vote by quorum of Town of Kitty Hawk's governing body (highest level of decision-making authority). The governing body can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or Committed for beach nourishment projects - portion of fund balance that has been budgeted by the Town Council for al beach nourishment project. The governing body Committed for public safety - portion of fund balance that has been budgeted by the Town Council for the purchase and renovation of a police department building. The Assigned Fund Balance - portion of fund balance that Town of Kitty Hawk intends to use for  Fund due to GASB 54.  revise the limitation.  approves the capital project ordinance.  governing body approved the capital project ordinance.  specific purposes.  Subsequent year's expenditures portion of fund balance that is appropriated in the next year's budget that is not already classified in restricted or committed. The governing Unassigned fund balance = the portion of fund balance that has not been restricted, committed, The Town has also adopted a fund balance policy for the general fund which sets aside $3,500,000 for unanticipated expenditures, revenue shortfalls and emergencies. Ift this amount is not available after the audit is complete, Council will develop a plan to restore the balance within  body approves the appropriation. or assigned to specific purposes or other funds.  24 months.  13. Defined Benefit Cost-Sharing Plans  For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Governmental Employees' Retirement System (LGERS) and additions to/deductions from LGERS' fiduciary net position have been determined on the same basis as they are reported by LEGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Town of Kitty Hawk employer contributions are recognized when due and the Town has al legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of  LGERS. Investments are reported at fair value.  25    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  14. Recent Accounting Pronouncements GASB Statement No.62  GASB Statement No. 100.Accounting Changes and Error Corrections = An Amendment of In June 2022, the GASB issued GASB Statement No. 100, Accounting Changes and Error Corrections = An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting- understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. The Town has implemented the requirements of the new standard for the year  comparable information for making decisions or assessing accountability.  applicable, be displayed by reporting unit in the financial statements.  balances as previously reported to beginning balances as restated.  ended June 30, 2024.  GASB Statement No. 101.Compensated Absences  In June 2022, the GASB issued GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by  26    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. The Town is currently reviewing this statement to determine  the effect on the financial statements. GASB Statement No. 102, Certain Risk Disclosures  In December 2023, the GASB issued GASB Statement No. 102, Certain Risk Disclosures. The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government's financial condition. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Earlier application is encouraged. The Town is currently reviewing this statement to determine  the effect on the financial statements.  GASB Statement No. 103, Financial Reporting Model Improvements.  In April 2024, the GASB issued GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a governments accountability. This Statement also addresses certain This Statement continues the requirement that the basic financial statements be preceded by management's discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government's financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that "boilerplate" discussions should be avoided by presenting only the most relevant information, focused on the primary government. In addition, this Statement continues the requirement that information included in MD&A distinguish between This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows. This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. Operating revenues and expenses are defined as revenues and expenses other than nonoperating  application issues.  that of the primary government and its discretely presented component units.  27    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund's current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund's current or future pricing policies, and (3) all This Statement requires governments to present each major component unit separately in the reporting entity's statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements. This Statement requires governments to present budgetary comparison information using a single method of communication-RSl. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged. The Town is currently reviewing  and (5) investment income and expenses.  other transfers.  this statement to determine the effect on the financial statements.  II. Detail Notes on All Funds  A. Assets 1. Deposits  All the deposits of the Town are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Town's agents in these units' names. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Town of Kitty Hawk, these deposits are considered to be held by the Town's agents in their names. The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Town, or the escrow agent. Because of the inability to measure the exact amounts of collateral pledged for the Town under the Pooling Method, the potential exists for under-colatenzation, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. At June 30, 2024, the Town's deposits had a carrying amount of $ 1,144,964 and a bank balance of$1,179,559. Of the bank balance, $ 250,000 was covered by federal depository insurance, and  28    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  the remainder was covered by collateral held under the pooling method. At June 30, 2024, the  Town's petty cash fund totaled $ 325.  2. Investments  At. June 30, 2024 the Town's investments were as follows:  Valuation Measurement Method Fair Value Level 1  Book' Value At6/30/24  Maturity Rating  NC Capital Management Trust: Government Portfolio Total Investments of assets.  $16,370,416 N/A $16.370.416  AAAm  All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group Level of fair value hierarchy: Level 1: Debt securities valued using directly observable, quoted Interest Rate Risk. The Town's cash management policy does not address interest rate risk. Credit Risk. The Town's cash management policy does not address credit risk but has internal management procedures that limits the Town's investments to the provisions of G.S. 159-30. The Town's investment in the NC Capital Management Trust Government Portfolio carried a credit  prices (unadjusted) in active markets fori identical assets.  rating of AAAm by Standard & Poor's as of June 30, 2024.  29    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  3. Capital Assets follows:  Capital asset activity for the primary government for the year ended June 30, 2024 was as  Beginning Balances  Ending Balances $5,835,026 312,458 6,147,484 6,132,401 32,855,169 10,695 1,184,654 138,220 3,470,783 148,915 43,643,007  Increases  Decreases  Governmental Activities: Capital assets not being depreciated: Land Construction in process Total capital assets not being depreciated Capital assets being depreciated: Buildings Infrastructure Equipment Vehicles Total capital assets being depreciated Less accumulated depreciation for: Buildings Infrastructure Equipment Vehicles  $5,834,226 $ 65,576 5,899,802 6,132,401 32,739,849 1,093,249 3,513,398 43,478,897 2,500,881 22,456,351 721,326 2,262,961 27,941,519 15,537,378 $21.437.180  800 $ 246,882 247,682 115,320 102,100 95,605 313,025 153,119 1,995,568 91,683 299,174  2,654,000 24,451,919 802,314 13,310,859 $19.458.343  10,695 138,220 2,423,915  Total accumulated depreciation Total capital assets being depreciated (net) Governmental activity capital assets,  $2,539,544 $ 148,915 30,332,148  net  Depreciation expense was charged to functions/programs of the primary government as follows:  General Government Public Safety Beach nourishment Transportation 4. Leases Receivable  274,445 386,077 1,754,392 124.630 $2.539.544  On October 1, 2022, the Town recorded a 36-month lease for the use of office space at 5200 N. Croatan Highway, Kitty Hawk, NC. An initial lease receivable was recorded in the amount of $200,896. As of June 30, 2024, the value of the lease receivable is $ 85,687. The lessee is required to make monthly fixed payments of $ 5,828 and the lease has an interest rate of 3.00%. The value of the deferred inflow of resources as of June 30, 2024, was $ 83,716, and Kitty Hawk recognized lease revenue of $ 66,960 during the fiscal year. The lease has 3 extension options On November 1, 2023, the Town recorded a 60-month lease for the use of office space at 5200 N. Croatan Highway, Kitty Hawk, NC. An initial lease receivable was recorded in the amount of  for 60 months each.  30    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  $362,429. As of June 30, 2024, the value of the lease receivable is $ 315,645. The lessee is required to make monthly fixed payments of $6,342 and the lease has an interest rate of 2.00%. The value of the deferred inflow of resources as of June 30, 2024, was $3 314,109, and Kitty Hawk recognized lease revenue of $ 48,320 during the fiscal year. The lease has 4 extension options On June 1, 2024, the Town recorded a 60-month lease for the use of office space at 5200 N. Croatan Highway, Kitty Hawk, NC. An initial lease receivable was recorded in the amount of $97,608. As of June 30, 2024, the value of the lease receivable is $ 95,900. The lessee is required to make monthly fixed payments of $ 1,708 and the lease has an interest rate of2.00%. The value of the deferred inflow of resources as of. June 30, 2024, was $ 95,981, and Kitty Hawk recognized lease revenue of$ 1,627 during the fiscal year. The lease has 4 extension options for  for 36 months each.  36 months each.  Principal and interest expected to maturity on this lease is as follows:  Fiscal Year 2025 2026 2027 2028 2029 Total  Principal  Interest $ 9,051 5,703 3,781 1,905 293 $20,733  157,485 108,381 92,819 94,695 43,852 $497,232  B. Liabilities  1.F Pension Plan and Postemployment Obligations a.! Local Governmental Employees' Retirement System  Plan Description. The Town of Kitty Hawk is a participating employer in the statewide Local Governmental Employees' Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State of North Carolina. LGERS membershipis comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities, Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members = nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees' Retirement System is included in the Annual Comprehensive Financial Report for the State of North Carolina. The State's Annual Comprehensive Financial Report includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919)707-0500, or at www.0Sc.nc.g0V. Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member's average final compensation times the member's years of creditable service. A member's average final compensation is calculated as the average of a member's four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years. of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last  31    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  day of service and who have either completed 20 years of creditable service regardless of age (15 years of creditable service for firefighters and rescue squad members who are killed in the line of duty) or have completed five years of service and have reached age 60. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit for life or a return of the member's contributions. The plan does not provide for automatic post-retirement benefit LGERS plan members who are LEOS are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age or have completed five years of creditable service as aLEO and have reached age 55 or have completed 15 years of creditable service as a LEO ifk killed ini the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit for life or a return of the member's contributions. Contributions. Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. Town of Kitty Hawk employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Town of Kitty Hawk's contractually required contribution rate for the year ended June 30, 2024, was 13.9% of compensation for law enforcement officers and 12.85% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Town of Kitty Hawk were $436,375 for the year ended June 30, 2024. Refunds of Contributions - Town employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60-day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual's right to employer contributions, or any other benefit Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred At. June 30, 2024, the Town reported al liability of $ 2,392,855 for its proportionate share of the net pension liability. The net pension liability was measured as of. June 30, 2023. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. The total pension liability was then rolled forward to the measurement date of June 30, 2023, utilizing update procedures incorporating the actuarial assumptions. The Town's proportion of the net pension liability was based on a projection of the Town's long-term share of future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2023, the Town's proportion was 0.03613% which was a  increases. Increases are contingent upon actuarial gains of the plan.  provided by LGERS.  Inflows of Resources Related to Pensions  decrease of 0.00376% from its proportion measured as of June 30, 2022.  32    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  For the year ended June 30, 2024, the Town recognized pension expense of $632,921. At. June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources  related to pensions from the following sources: Differences between expected and actual experience Net difference between projected and actual earnings on Changes inj proportion and differences between Town contributions and proportionate share of contributions Town contributions subsequent to the measurement date  Deferred Outflows ofResources 266,635 101,683 640,433 27,961 436.375 1,473,087  Deferred Inflows ofResources $ 5,740  Changes of assumptions pension plan investments  99,774 105,514  Total  $436,375 reported as deferred outflows of resources related to pensions resulting from Town contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows:  Year ended June 30: 2025 2026 2027 2028 2029 Thereafter  335,953 165,343 402,821 27,081 $_931.198  Actuarial Assumptions. The total pension liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the  measurement: Inflation Salary increases Investment rate of return  2.5 percent factor of 3.25%) inflation at 2.5%)  3.25 percent to 8.25 percent (includes inflation and productivity 6.50 percent, net of pension plan investment expense (includes  The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality The actuarial assumptions used in the December 31, 2022, valuation were based on the results of an actuarial experience study for the period January 1, 2015 through December 31, 2019. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections  improvements.  noti included in the measurement.  33    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected andi interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies' return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2023 are summarized  int the following table: Asset Class Fixed Income Global Equity Real Estate Alternatives Credit Inflation Protection Total  Long-Term Expected Real Rate of Return .9% 6.5% 5.9% 8.2% 5.0% 2.7%  Target Allocation 33.0% 38.0% 8.0% 8.0% 7.0% 6.0% 100%  The information above is based on 30-year expectations developed with the consulting actuary for the 2022 asset liability and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 2.50%. All rates of return and Discount rate. The discount rate used to measure the total pension liability was 6.50%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to Sensitivity of the Town's proportionate share of the net pension asset to changes in the discount rate. The following presents the Town's proportionate share of the net pension asset calculated using the discount rate of 6.50 percent, as well as what the Town's proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.50 percent) or one percentage point higher (7.50 percent) than the  inflation are annualized.  determine the total pension liability.  current rate:  1% Decrease (5.50%)  Discount Rate (6.50%)  1% Increase (7.50%)  Town's proportionate share of the net Pension liability (asset) State of North Carolina.  $4,145,527 $2,392,855 $949,891  Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued Annual Comprehensive Financial Report for the  34    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  b. Law Enforcement Officers Special Separation Allowance  Plan Description. The Town of Kitty Hawk administers a public employee retirement system (the "Separation Allowance"), a single-employer defined benefit pension plan that provides retirement benefits to the Town's qualified sworn law enforcement officers under the age of 62 who have completed at least 30 years of creditable service or have attained 55 years of age and have completed five or more years of creditable service. The Separation Allowance is equal to .85 percent of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of creditable service. The retirement benefits are not subject to any increases in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisions All full-time law enforcement officers of the Town are covered by the Separation Allowance. At December 31, 2022 (the valuation date), the Separation Allowance's membership consisted of:  to the North Carolina General Assembly.  Retirees receiving benefits benefits Active plan members Total  5 16 21  Terminated plan members entitled to but not yet receiving  Summary of Significant Accounting Policies.  Basis of Accounting. The Town has chosen to fund the Separation Allowance on a pay as you go basis. Pension expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. Benefits are recognized when due and payable in The Separation Allowance has no assets accumulated in a trust that meets the criteria which are Actuarial Assumptions. The entry age actuarial cost method was used in the December 31, 2022, valuation. The total pension liability was determined using the following actuarial assumptions,  accordance with terms of the plan. outlined in GASB Statement 73.  applied to all periods included in the measurement:  Inflation Salary increases Discount rate  2.50 percent 4.00 percent  3.251 to7.75 percent, including inflation at 2.50%  The discount rate used to measure the total pension liability is the S&P Municipal Bond 20 Year High Grade Rate Index. The actuarial assumptions used in the December 31, 2022, valuation were based on the results of an experience study completed by the Actuary for the Local Government Employee's Retirement System for the five-year period ended December 31, 2019. The plan currently uses mortality tables that vary by age and gender. The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality Contributions. The Town is required by Article 12D of G.S. Chapter 143 to provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through appropriations in the General Fund operating budget. There were no contributions made by employees. The Town's obligation to contribute to this plan is  improvements.  35    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  established and may be amended by the North Carolina General Assembly. The Town paid Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred At June 30, 2024, the Town reported a total pension liability of $ 857,234. The total pension liability was measured as of December 31, 2023 based on a December 31, 2022 actuarial valuation. The total pension liability was then rolled forward to the measurement date of December 31, 2023 utilizing update procedures incorporating the actuarial assumptions. For the year ended June 30, 2024, The Town recognized pension expense of $ 47,848. At June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of  $130,902 as benefits came due for the reporting period. Inflows of Resources Related to Pensions  resources related to pensions from the following sources: Differences between expected and actual experience Town benefit payments subsequent to the measurement  Deferred Outflows Deferred Inflows  of Resources  of Resources 37,920 106,402  58,460 $ 78,146 64,867  Changes of assumptions date Total  $  201,473 $ 144,322  $64,867 reported as deferred outflows of resources related to pension resulting from benefits payments made and administrative expenses incurred subsequent to the measurement date will be recognized as a decrease of the total pension liability in the year ended June 30, 2024. Other amounts reported as deferred inflows of resources related to pensions will be recognized in  pension expense as follows:  Year ended June 30: 2025 2026 2027 2028 2029 Thereafter  $ 36,409 (9,655) (27,099) (7,371)  Sensitivity of the Town's total pension liability to changes in the discount rate. The following presents the Town's total pension liability calculated using the discount rate of 4.00 percent, as well as what the Town's proportionate share of the net pension asset or net pension liability would be ifit were calculated using a discount rate that is one percentage point lower (3.00 percent) or  one percentage point higher (5.00 percent) than the current rate:  1% Decrease (3.00%) $920,942  Discount Rate (4.00%) $857,234  1% Increase (5.00%) $799.544  Town's pension liability  36    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024 Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance  Total pension liability December 31, 2022 Changes for the year: Service cost at end ofy year Interest Change in benefit terms Benefit payments Other changes Net changes  950,518 30,620 37,820 0 (47,899) 17,400 (131,225) 0 (93.284) 857,234  Differences between expected and actuarial experience Changes of assumptions and other inputs  Total Pension liability December 31, 2023  Changes in Assumptions. The discount rate decreased from 4.31% (December 31, 2022 Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources of Related to  measurement date) to 4.00% (December 31, 2023 measurement date).  Pensions Pension expense Pension liability  LGERS $632,921 2,392,855 .03613% 266,635 101,683 640,433 27,961 436,375 5,740  LEOSSA TOTAL $47,848 $680,769 857,234 3,250,089 N/A 58,460 325,095 78,146 179,829  Proportionate share of pension liability Deferred of Outflows of Resources Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on plan investments Changes in proportion and differences between contributions and proportionate share of contributions Benefit payments and administrative costs paid subsequent to the measurement date Deferred of Inflows of Resources Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on plan investments Changes in proportion and differences between contributions and proportionate share of contributions  640,433 27,961  64,867 501,242 37,920 106,402 106,402  43,660  99,774  99,774  37    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  C. Supplemental Retirement Income Plan for Law Enforcement Officers  Plan Description. The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan provides retirement benefits to law enforcement officers employed by the Town. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Annual Comprehensive Financial Report for the State of North Carolina. The State's Annual Comprehensive Annual Financial Report includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Funding Policy. Article 12E of G.S. Chapter 143 requires the Town to contribute each month an amount equal to 5% of each officer's salary; and beginning July 1, 2002, the Town began matching an additional contribution of 2% for officers who contribute to the plan for a possible total of 7% and all amounts contributed are vested immediately. Also, the law enforcement officers may make voluntary contributions to the plan. Contributions for the year ended June 30, 2024, were $ 131,664, which consisted of $ 74,798 from the Town and $ 56,866 from law Plan Description. The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan provides retirement benefits to non-law enforcement officers employed by the Town. The Town has no requirement or obligation under North Carolina Funding Policy. Beginning July 1, 2002 the Town began making a matching contribution of 2% for non-law enforcement officers who contribute to the plan and all amounts contributed are vested immediately. Contributions for the year ended June 30, 2024, were $115,539, which consisted of Plan Description. The Town adopted a Supplemental Retirement Income Plan, a defined contribution plan, for regular employees and law enforcement employees beginning April 2010. Funding Policy. The Town does not match contributions to the 457 deferred compensation plan. Total contributions for the year ended. June 30, 2024, were $ 12,977, which consisted of$ 4,227  Raleigh, North Carolina 27699-1410, or by calling (919)707-0500.  enforcement officers.  d. Supplemental Retirement Income Plan for Non-Law Enforcement Officers  General Statutes to contribute to the plan.  $34,381 from the Town and $ 81,158 from employees.  e.457 Deferred Compensation  from regular employees and $ 8,7501 from law enforcement employees. f. Firemen's Relief Fund and Supplemental Retirement for Firemen  The Town maintains a Firemen's Relief Fund pursuant to North Carolina General Statutes to financially assist a firefighter that has been injured or killed while performing fire department duties. Additionally, a portion of these funds are set aside to provide supplemental incentive  benefits to fire fighters that meet minimum requirements.  38    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  9.9 Other Postemployment Benefit Healthcare Benefits  Plan Description. Under the terms of a Town policy, the Town administers a single-employer defined Healthcare Benefits Plan (the HCB Plan).. As of October 2023 this amended plan provides postemployment healthçare benefits to retirees of the Town as defined by the Local Government Employees' Retirement System, until the employee becomes Medicare eligible. Benefits are calculated on a prorated basis using years of service. Some grandfathered" retirees still receive Medicare coverage. Also, the Town's retirees can purchase coverage for their dependents at the Town group rates. A separate report was not issued for the plan. Membership of the HCB Plan consisted of the following at June 30, 2023, the date of the latest  actuarial valuation: Active Members Total Membership TOTAL OPEB LIABILITY  Inactive Members or Beneficiaries Currently Receiving Benefits Inactive Members Entitled To, But Not Yet Receiving Benefits  13 0 44 57  The Town's total OPEB liability of $ 2,358,243 was measured as of June 30, 2023, and was Actuarial assumptions and other inputs. The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to  determined by an actuarial valuation as of that date.  all periods included in the measurement unless otherwise specified:  Inflation Real wage growth Wage inflation Salary increases, including wage inflation: General Employees Firefighters Law Enforcement Officers Municipal Bond Index Rate: Prior measurement date Measurement date Health Care Cost Trends: Pre-Medicare Medicare  2.50% .75% 3.25% 3.25%-8.41% 3.25%-8.15% 3.25%-7.90% 3.54% 3.65%  7.00% for 2022 decreasing to an ultimate rate of 4.50% by 2032 5.125% for 2022 decreasing to an ultimate rate of 4.50% by 2025  The discount rate used to measure the total OPEB liability was based on the. June average of the Bond Buyer General Obligation 20-year Municipal Bond Index published weekly by The Bond  Buyer.  39    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  Changes in Total OPEB Liability Total OPEB liability June 30, 2022 Changes for the year: Service cost at end of year Interest on TOL and Cash Flows Change in benefit terms Differences between expected and actuarial experience Changes of assumptions and other inputs Benefit payments Other changes Net changes Total OPEB liability June 30, 2023  2 2,315,525 80,569 83,246 0 (5,975) (25,337) (89,785) 0 42,718 2 2,358.243  Mortality rates were based on the Pub-2010 mortality tables, with adjustments for LGERS The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increases used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period January 1, 2015 - December 31, 2019, adopted by LGERS. The remaining actuarial assumptions (e.g. initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2022, valuation were based on ar review of recent plan experience done concurrently with the June 30, 2022, valuation. Sensitivity of the Town's total OPEB liability to changes in the discount rate. The following presents the Town's total OPEB liability calculated using the discount rate of 3.65 percent, as well as what the Town's total OPEB liability would be ifi it were calculated using a discount rate that is one percentage point lower (2.65 percent) or one percentage point higher (4.65 percent) than the  experience and generational mortality improvements using Scale MP-2019.  current rate:  1% Decrease (2.65%) $2,604,219  Discount Rate 1% Increase (3.65%) $2,358,243  (4.65%) $2,145,265  Town's total OPEB liability  Sensitivity of the Town's total OPEB liability to changes in the healthcare cost trend rates. The following presents the Town's total current OPEB liability as well as what the Town's total OPEB liability would bei ifit were calculated using healthcare cost trend rates that are -percentage-point lower or 1-percentage-point higher that the current healthcare cost trend rates:  1% Decrease $2,099,569  Current $2,358,243  1% Increase $2,666,235  Town's total OPEB liability Related to OPEB  OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30, 2024, the Town recognized OPEB expense of $ 49,769. At. June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related  to OPEB from the following sources:  40    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  Deferred Outfiows Deferred Inflows  of Resources $ $  of Resources $ 323,979 223,541 $ 547,520  Differences between expected and actual experience Benefit payments and administrative costs subsequent to  9,240 145,734 110,029 265,003  Changes of assumptions the measurement date Total  $110,029 reported as deferred outflows of resources related to OPEB resulting from benefits payments made and administrative expenses incurred subsequent to the measurement date will be recognized as a decrease of the total pension liability in the year ended June 30, 2025. Other amounts reported as deferred inflows of resources related to pensions will be recognized in  pension expense as follows:  Year ended June 30: 2025 2026 2027 2028 2029 Thereafter  $ (92,085) (89,224) (89,369) (89,003) (31,277) (1,588)  2. Other Employment Benefit  The Town has also elected to provide death benefits to employees through the Death Benefit Plan for members of the Local Governmental Employees' Retirement System (Death Benefit Plan), a multiple-employer, State-administered, cost-sharing plan funded on a one-year term cost basis. The beneficiaries of those employees who die in active service after one year of contributing membership in the System, or who die within 180 days after retirement or termination ofs service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employee's 12 highest months salary in a row during the 24 months prior to the employee's death, but the benefit may not exceed $ 50,000 or be less than $ 25,000. Because all death benefits are made from the Death Benefit Plan and not by the Town, the Town does not determine the number of eligible participants. The Town has no liability beyond the payment of monthly contributions. The contributions to the Death Benefit Plan cannot be separated between the post-employment benefit amount and the other benefit amount. Contributions are determined asa percentage of monthly payroll based upon rates established annually by the State. Separate rates are set for employees not engaged in law enforcement and for law enforcement officers. For the fiscal year ended June 30, 2024 the Town made contributions to the State for death benefits of $ 3,742. The Town's required contributions for employees not engaged in law enforcement and for law enforcement officers represented 0.10% and 0.14% of covered payroll  respectively.  41    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  3. Deferred Outflows and Inflows of Resources  Deferred outflows of resources at year-end is comprised of thet following:  Statement of Net Position 436,375 64,867 110,029 334,335 325,563 640,433 27.961 $1,939,563  Contributions to pension plan in the current fiscal year LGERS Benefit payments made for LEOSSA subsequent to measurement date Benefit payments made for OPEB subsequent to measurement date Differences between expected and actual experience Net difference between projected and actual earnings on Changes in proportion and difference between contributions and proportionate share of contributions  Changes of assumptions plan investments Total  Deferred inflows of resources at year-end is comprised of the following:  Statement of Governmental Funds Net Position Balance Sheet  Taxes receivable (General Fund) Changes of assumptions plan investments Total 4. Risk Management  $ 493,806 367,639 329,943 99,774 $1.291.162  51,166 493,806  Leases  Differences between expected and actual experience Net difference between projected and actual earnings on Changes in proportion and difference between contributions and proportionate share of contributions  544.972  The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town participates in two self-funded risk-financing pools administered by the North Carolina League of Municipalities. Through these pools, the Town obtains general liability and auto liability coverage of $1 million per occurrence and property coverage up to the total insured values of the property policy, and workers' compensation coverage up to statutory limits. The liability and property exposures are reinsured through commercial carriers for claims in excess of retentions as selected by the Board of Trustees each year. Specific information on the limits of the reinsurance, excess and stop loss policies purchased by the Board of Trustees can be obtained by contacting the Risk Management Services Department of the NC League of Municipalities. The pools are audited annually by certified public accountants, and the audited financial The Town carries commercial coverage for all other risks of loss including employee health coverage. There have been no significant reductions in insurance coverage in the prior year and settled claims have not exceeded coverage in any of the past three fiscal years.  statements are available to the Town upon request.  42    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  The Town carries flood insurance through the National Flood Insurance Plan (NFIP). Because the town is in an area designated an "AE" area (a special flood hazard area) by the Federal Emergency Management Agency, the town is eligible to purchase coverage of $ 500,000 through the NFIP and has purchased that coverage for all eligible buildings. The Town carries a bond on its finance officer in the amount of $ 1,000,000, and employee dishonesty, forgery and alteration coverage of $ 50,000 per occurrence and theft of money or  structure  per  securities coverage of $ 5,000 per occurrence. a. Installment Purchase Contract  5. Long Term Obligations  In December 2021, the Town entered into a 5-year direct placement special obligation bond contract to fund a portion of beach nourishment maintenance. The Town's occupancy tax revenue is pledged as collateral for the debt while the bond is outstanding. The interest rate is 2.08% per annum. The contract requires semi-annual interest payments beginning in June 2022 and annual principal plus interest payments beginning Annual debt service payments on this agreement as of June 30, 2024 including principal  December 2022. and interest are as follows: Year ending June 30, 2025 2026 2027 Total  Principal $ 1,004,086 1,004,086 1,004.085 3.012.257  Interest 52,212 31,327 10,442 93.981  $ $  b. Changes in Long-Term Liabilities  Balance July1,2023 4,016,343 950,518 2,250,366 2,315,525  Balance  Current Portion  Increase  Decrease June 30,2024 ofE Balance 1,004,086 3,012,257 1,004,086  Governmental Activities: Compensated absences Direct placement installment purchase Total pension obligation (LEO) Net pension liability (LGERS) Total OPEB liability Governmental Activities Long-Term Liabilities  214,656 $ 53,983 $  $ 268,639 $ 50,000  93,284  857,234 2,392,855 2,358,243  142,489 42,718  9,747,408 $239,190 $1,097,370 $8,889,228 $1,054,086  The legal debt margin for the Town of Kitty Hawk is $ 124,195,253.  43    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  . Inter-fund Transfers  Transfers to/from other funds at June 30, 2024 consist of thet following: From General Fund to Capital Project Fund Police (police property From General Fund to Capital Reserve Fund (various equipment) From General Fund to Capital Reserve Fund (beach nourishment) From General Fund to Capital Reserve Fund (parks and recreation) From Capital Reserve Fund to General Fund (Various Equipment) From Capital Reserve Fund to General Fund (Beach Nourishment) From Capital Reserve Fund to General Fund (Sidewalk)  renovation)  230,307 239,500 393,717 30.000 $1,003.524 20,000 40,000 289,000 349,000  From General Fund to Capital Reserve Fund (various building and infrastructure)s 110,000  D. Fund Balance  The following schedule provides management and citizens with information on the portion of  General Fund balance that is available for appropriation:  Total fund balance = General Fund  $14,034,214  Less: Prepaid items Leases Stabilization by State Statute Streets-Powell Bill Public Safety Capital Reserve Fund Appropriated fund balance in 2023-2024 Working capital/fund balance policy Total reductions Remaining Fund Balance  $ 33,433 3,426 1,606,185 242,495 34,547 3,932,208 3.500,000 $9,352.294  $4.681.120  The Town has also adopted a fund balance policy for the general fund which sets aside $3,500,000 for unanticipated expenditures, revenue shortfalls and emergencies. After the annual audit is complete, if this amount is not available, Council will develop a plan to restore the  balance within 24 months.  44    TOWN OF KITTY HAWK, NORTH CAROLINA Notes to the Financial Statements For the Fiscal Year Ended June 30, 2024  Outstanding encumbrances at. June 30, 2024 in the General Fund were $ 279,680.  F. Beach Nourishment  The Town has completed two beach nourishment projects, one in fiscal year 2018 and one in fiscal year 2023. Both projects were financed with special obligation bonds, contributions from Dare County and grants. The Town is repaying the special obligation bonds with ai town-wide ad- valorem property tax dedicated to beach nourishment and a municipal service district tax. These restricted revenues are transferred to a capital reserve fund where they are held for future debt payments and beach nourishment expenses. Funds accumulated for debt repayment and beach nourishment included in the capital reserve fund at June 30, 2024 are as follows:  Tax Sales Collection MSD Tax/MSD Fees $ $ 499,184 513,079 514,848 514,868 544,623 558,951  Debt $  Beach $ (304,670) (97,025) (153,194) (565,601) (27,248) (45,430) (101,737)  Town-wide FY15 $ 224,904 $ FY16 455,562 FY17 464,484 504,202 FY18 473,457 FY19 477,577 FY20 480,151 FY21 524,123 FY22 527,379 FY23 532,323 FY24 542,109  Payment Nourishment Interest  Total $ 224,904 954,746 924,292 (87,519) 120,372 63,979 (240,172) 299,278 509,478 353,717 3,123,075  $  162,354 (14,128) (192,620) 170,808 (15,083) (925,110) 165,607 (15,525) (925,110) 162,881 (15,617) (925,110) 198,602 (16,809) (925,110) 227,601 (17,369) (855,838)  546,465 220,618 (16,883) (977,323) 549,332 225,649 (16,575) (841,523)  26,270 105,702  Totals $4,702,069 $4,745,552 $1,534,120 $(127,989) $(6,567,744) $(1,254,905) $ 131,972  III. Summary Disclosure of Significant Contingencies Federal and State Assisted Programs  The Town has received proceeds from several Federal and State grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant moneys to the grantor agencies.. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of grant  monies. Subsequent Events  Management has evaluated subsequent events through October 15, 2024, the date on which the financial statements were available tol be issued. No subsequent events occurring after this date  have been evaluated for inclusion in these financial statements.  45    TOWN OF KITTY HAWK, NORTH CAROLINA Town of Kitty Hawk's Proportionate Share ofNetF Pensionl Liability (Asset) Requlred Supplementary Information Last Ten Fisçal Years*  2024  2023  2022  2021  2020  2019 2018 2017 2016 2015  0.03613% 0,03989% 0,03743% 0,03936% 0.04285% 0,03490%  0,04391%  Town  1,170,200 1,041,458 703,975 931,917 209,542 (290,391)  3,162,832 75.66% 82,49%  2,680,867 2,542,931 2,530,703 2,493,079 2,513,483 $ 2,325,577 2,354,317  55.31% 88,61%  41.77% 28.01% 40.07%  84.14%  95,51%  90,86% 91,63% 94,18% 91,47% 98.08% 102.64%.  Thea presentedfor eachfiscaly lyeary  for alparticipant employersinth theLGERS    TOWN OF KITTY HAWK, NORTH CAROLINA Townd ofKitty Hawk's Contributions Requireds Supplementary! Information Last Ten Fiscal' Years Local Government! Employees' Retirement System Contracluallyr required contribution required  2023 436,375 436,375  2022  2021  2020  2019  2018  2017 2016 2015  391,890 277,116 277,116 232,986 201,506 192,289 187,415 158,178 172,444  391,890 277,116 277,116 232,986  201,506 192,289 187,416 158,178 172,444  (excess) rol percentageof payrol  3,307,124 3,162,832 $ 13.19%  2,680,867 $ 2,542,931 $ 2,530,703 $ 2,493,079 $  $ 2,325,577 $ 2,354,317  12:39%  9.86% 10.34% 9.16%  7.96% 7.71% 7.46% 6.80% 7.32%    TOWN OF KITTY HAWK, NORTH CAROLINA Schedule ofc Changes inl TotalF PensionL Liability Law Enforcement Officers' Special Separation Allowance LastE ElghtF Fiscal Years BeginningE Balance Service Cost Interesto onthet totalp pensioni liability Changesc ofbenefitt terms Differences betweene expecteda anda actual experience inthen measuremento ofthet totalp pensionliability Changes ofassumptions or olheri inpuls Benefitp payments Otherc changes Endingt balance ofthet total pension! liability yeare ending December3 31.  2024 2023 2022 2021 2020 2019 30,620 46,360 44,171 26,801 24,824 37,820 23,416 19,961 25,400 25,404 (47,899) 51,973 47,579 9,850 68,135 17,400 (158,060) (25,215) 263,584 20,366 (131,225) (93,571) (80,695) (60,376) (54,579)  2018 2017 25,089 21,287 21,763 22,401 24,503 24,068 19,332 55,181 (23,249) 36,669 (13,323) (54,579) (72,477) (71,294)  950,518 $ 1,080,400 $ 1,074,599 $ 809,340 $ 725,190 $ 736,196 $ 671,033 $ 709,819  857,234 $ 950,518 $ 1,080,400 $ 1,074,599 $ 809,340 $ 725,190 $ 736,196 $ 671,033  The amountsp presentedf fore each fiscaly yearv were determineda as ofthe priorf fiscal    TOWN OF KITTY HAWK, NORTH CAROLINA Schedule of Total Pension Liabilitya asaF Percentage of Covered Payroll Law Enforcement Officers" Specials Separation Allowance  LastE Eight Fiscaly Years Total pension liability Coverede employee payroll Total pension liability asa percentage ofc covered employee payroll Notes tot thes schedules:  2024  2023  2022  2021  2020 2019 2018  2017  $ 857,234 $ 950,518 $1,080,400 $ 1,074,599 $ 809,340 $ 725,190 $ 736,196 $ 671,033 $ 1,054,139 $ 1,017,950 $ 889,718 $ 928,685 $ 955,762 $ 911,211 $ 874,336 $ 874,838 81.32% 93.38% 121.43% 115.71% 84.68% 79.59% 84.20% 76.70%  Thel Town ofKittyh Hawk hasr no assets accumulated inat trustt thatr meets thec criteria inp paragraph4 4ofG GASB Statement? 73top payr related benefits.    TOWN OF KITTY HAWK, NORTH CAROLINA Schedule ofc Changesi in1 Total OPEBI Liability andR Related Ratios  Last Seven Fiscaly Years Total OPEBI Liability Service Cost Interesto tonthet total OPEBI liability Changes ofbenefitt terms Differences betweene expected anda actuale experience int ther measurement ofthet total pensionii liability Changes of assumptions oro otheri inputs Benefit payments Other changes Neto changei intotal OPEBI liability Total OPEBI liability- -beginning Total OPEBI liability- -ending Covered employee payroll Total OPEBI liabilitya asap percentage ofcoveredp payroll Notest tos Schedule Changes ofa assumptions: Changes ofa assumptions ando otheri inputs reflects thee effects ofc changes inthed discountr rate each period. Discountr rates usedi lineachp period:  2024 83,246 (5,975) (25,337) (89,785) 42,718 2,315,525 95.37%  2023 2022 40,815 39,977 944,530 (234,875) 14,559 (284,996) 12,102 (78,667) (58,482) 469,385 91,132 1,846,140 1,755,008 1,789,903 93.64% 78.83%  2021 64,351 (15,743) (349,092) 241,870 (49,535) (34,895) 74.94%  2020 2019 2018 68,090 $ 51,249 $ 54,742 62,174 55,240 48,345 1,468 2,778 (3,507) 81,689 (22,124) (117,307) (43,206) (37,923) (35,645) 170,215 49,220 (53,372) 1,619,688 1,570,468 1,623,840 75,77% 68.56% 73.58%  80,569 $ 82,578 $ 82,976 $ 73,254 $  2,358,243 $ 2,315,525 $ 1,846,140 $ 1,755,008 $ 1,789,903 $ 1,619,688 $ 1,570,468 2,472,812 $ 2,472,812 $ 2,341,899 $ 2,341,899 $ 2,362,360 $ 2,362,360 $ 2,134,362  3.65%  3.54%  2.16%  2.21%  3.50%  3.89%  3.56%    TOWN OF KITTY HAWK, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN For the Year Ended June 30, 2024 (with comparison to June 30, 2023)  GENERAL FUND  FUND BALANCE BUDGET AND ACTUAL  Variance Favorable (Unfavorable)  Budget  Actual  Prior Year  REVENUES AD VALOREM TAXES: Current year Municipal service district taxes Prior year Prior year MSD Penalties and interest OTHER TAXES AND LICENSES: Local option sales tax Occupancy tax Land transfer tax REVENUES: ABC Revenue Utilities franchise tax Video programming tax PEG Channel SW disposal tax Beer and wine tax RESTRICTED NIERGOVERMMENTAL REVENUES: Federal: Controlled substance distribution US Department of Homeland Security US Department of Commerce State: Powell Bill allocation Public safety grants NC Department of Agriculture NC Department of Environmental Quality Controlled substance distribution Local: OBCF-Icarus grant Dare County- BN debt reimbursement Dare County-government access channel Dare County sand fencing  4,596,712 $ 4,641,880 $  45,168 $ 4,583,994 9,102 (10,144) 591 (1,955) 42,762 (12,886) (4,558) 38,065 20,621  549,258 15,000 6,000 5,166,970 2,140,000 2,250,000 446,911 4,836,911  558,360 4,856 591 4,045 5,209,732 2,127,114 2,245,442 484,976 4,857,532  549,203 (20,124) 129 4,944 5,118,146 2,099,059 2,205,522 528,799 4,833,380  UNRESTRICTED INTERGOVERNMENTAL  82,000 434,000 75,000 25,700 3,000 15,000 634,700  86,170 487,193 64,615 25,806 2,934 18,318 685,036  4,170 53,193 (10,385) 106 (66) 3,318 50,336  81,540 445,727 71,131 25,641 3,016 16,955 644,010  1,000 119,297 30,000 3,000 3,000 221,346 10,000 387,643  (1,000) 12,428 (30,000) (2,088) 20,603 5,000 919 5,862  10,395 3,885 6,000 119,297 118,440 50,000 2,900 4,050 256,545 24,000 595,512  131,725 912 23,603 221,346 5,000 10,919 393,505  51    TOWN OF KITTY HAWK, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN For the Year Ended June 30, 2024 (with comparison to June 30, 2023)  GENERAL FUND  FUND BALANCE- BUDGET AND ACTUAL  Variance Favorable (Unfavorable)  Budget 2,000 175,000 16,400 193,400 2,000 10,000 12,000 347,000 10,000 250 1,500 84,333 35,350 131,433  Actual 3,465 160,581 18,745 182,791 1,264 9,963 11,227 668,627 24,865 8,219 200 1,690 134,670 33,601 203,245  Prior Year 2,845 230,485 17,282 250,612 1,084 10,990 12,074 451,702 28,535 38,359 1,400 1,750 64,646 26,445 161,135  PERMITS AND FEES: CAMA permits Building permits Other planning fees SALES AND SERVICES: Court costs Garbage carts INVESTMENT EARNINGS OTHER REVENUES: Sale of fixed assets Insurance reimbursements Fines and forfeitures Code enforcement fines Rents Miscellaneous TOTAL REVENUES EXPENDITURES GENERAL GOVERNMENT: Governing body: Personnel Operations Administration: Personnel Operations Finance: Personnel Operations Planning Department: Personnel Operations  1,465 (14,419) 2,345 (10,609) (736) (37) (773) 321,627 14,865 8,219 (50) 190 50,337 (1,749) 71,812  $ 11,710,057 $ 12,211,695 $ 501,638 $ 12,066,571  $  33,125 15,601 48,726 489,650 105,735 595,385 202,055 81,221 283,276 382,816 55,028 437,844  $ 30,164 8,977 39,141 489,419 78,206 567,625 195,180 65,386 260,566 320,323 112,149 432,472  52    TOWN OF KITTY HAWK, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN For the Year Ended June 30, 2024 (with comparison to June 30, 2023)  GENERAL FUND  FUND BALANCE-BUDGET AND ACTUAL  Variance Favorable (Unfavorable)  Budget  Actual 5,867 1,806 7,673 431,394 574,261 1,005,655 9,242 9,242 583,725 800 584,525 2,972,326  Prior Year 2,799 730 3,529 418,625 553,542 54,295 1,026,462  Planning Board and Board of Adjustment:  Personnel Operations Public Works: Personnel Operations Capital outlay Recreation Committee: Operations Non-Departmental: Operations Capital outlay  552,831 147,658 700,489 3,030,284  TOTAL GENERAL GOVERNMENT PUBLIC SAFETY: Police Department: Personnel Operations Capital outlay Fire Department: Personnel Operations Capital outlay Ocean Rescue: Personnel Operations Capital outlay TOTAL PUBLIC SAFETY TRANSPORTATION: Powell Bill operations Non Powell Bill operations NCDOT contribution for sidewalk Powell Bill capital outlay TOTAL TRANSPORTATION  3,280,089  307,763  1,905,701 362,958 45,178 2,313,837 1,693,105 301,122 102,100 2,096,327 128,614 29,673 50,427 208,714 4,618,878 27,238 157 320,000 103,967 451,362 451,362  1,808,306 262,763 105,354 2,176,423 1,535,844 213,775 93,402 1,843,021 131,872 24,852 63,518 220,242 4,239,686 12,550 9,209 114,152 135,911 135,911 53  5,295,783  676,905  464,000  12,638    TOWN OF KITTY HAWK, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN Fori the Year Ended June 30, 2024 (with comparison to June 30, 2023)  GENERAL FUND  FUND BALANCE-BUDGET, AND ACTUAL  Variance Favorable (Unfavorable)  Budget  Actual  Prior Year  ENVIRONMENTAL PROTECTION:  Sanitation: Operations  1,077,946 1,077,946 119,106 1,077,183 1,196,289 10,316,801 1,894,894  1,193,773 1,193,773 62,005 1,098,068 1,160,073 9,759,727 2,306,844  TOTAL ENVIRONMENTAL PROTECTION BEACH NOURISHMENT: Operations Debt payment  1,266,000  188,054  TOTAL BEACH NOURISHMENT TOTAL EXPENDITURES  1,230,569 11,536,441 173,616 480,908 349,000 (230,307) (773,217) (173,616)  34,280 1,219,640 1,721,278 (480,908)  REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Fund balance appropriated Transfer from capital reserve fund Transfer from special revenue fund Transfer to capital project fund Transfer to capital reserve fund  349,000 (230,307) (773,217) (654,524)  97,735 1,138,069 (4,426,143) (1,540,358) (4,730,697) (2,423,853) 11,285,489 8,861,636  TOTAL OTHER FINANCING SOURCES (USES), REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER  (480,908)  FINANCING USES FUND BALANCE: Beginning of year, July 1 End of year, June 30  1,240,370 $ 1,240,370  8,861,636 10,102,006  54    TOWN OF KITTY HAWK, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN For the Year Ended June 30, 2024 (with comparison to June 30, 2023)  CAPITAL RESERVE FUND  FUND BALANCE-BUDGET AND ACTUAL  Variance Favorable  Budget $  Actual (Unfavorable) Prior Year $ 175,828 $ 175,828 $ 105,702  REVENUES Investment income TOTAL REVENUES OTHER FINANCING SOURCES (USES) Fund balance appropriated Additions to reserve Transfer to capital project fund Transfer to general fund Transfer from general fund TOTAL OTHER FINANCING SOURCES (USES)  175,828  175,828 (349,000) 743,727 29,490 424,217 600,045  105,702  349,000 (743,727) (349,000) 743,727  (1,203,583) (97,735) 1,540,358 239,040 344,742 2,987,421 $3,332,163  (349,000) 773,217 424,217 600,045 3,332,163 $3,932,208  REVENUES AND OTHER FINANCING SOURCES OVER OTHER USES FUND BALANCE Beginning of year, July 1 End of year, June 30  55    TOWN OF KITTY HAWK, NORTH CAROLINA BEACH NOURISHMENT CAPITAL PROJECT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET, AND ACTUAL From Inception and For the Year Ended June 30, 2024  Variance Favorable (Unfavorable) 16,359 (535,281) (518,922) (1,010) 539,949 (664) (5,507) 4,324 453,730 990,822 471,900  Project  Actual $ 16,359 $ 2,308,181 1,408,247 3,732,787 1,010 542,828 88,165 27,123 20,295 8,779,305  Actual  Project $ 16,359 $ 2,319,534 1,408,247 3,744,140 1,010 542,828 88,165 27,310 28,945 8,790,658 (5,046,518) 5,020,429 497,989 5,518,418  Authorization Prior Years Current Year To Date  REVENUES: Interest income Dare County allocation TOTAL REVENUES EXPENDITURES Legal Engineering Cost of bond issuance Turtle monitoring Benthic monitoring Dredging TOTAL EXPENDITURES REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Special obligation bonds Issued Transfer to/from capital reserve fund TOTAL OTHER FINANCING SOURCES 5,518,418 REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES FUND BALANCE Beginning of year, July1 End of year, June 30  2,854,815 4,263,062 1,082,777 87,501 21,803 33,269 8,556,130 8,099,884 9,781,480 (5,518,418) (5,046,518) 5,020,429 497,989  11,353 11,353  NCI Department of Environmental Quality 1,408,247  187 8,650 2,516 8,102,400 11,353  5,020,429 497,989 5,518,418 $ 471,900  $ 471,900 $ 471,900  471,900 471,900  56    TOWN OF KITTY HAWK, NORTH CAROLINA POLICE BUILDING CAPITAL PROJECT FUND-PURCHASE ANDI REMODEL SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL From Inception and For the Year Ended June 30, 2024  Variance Favorable (Unfavorable) 3,823,747 3,823,747 3,823,747  Project 236,481 4,136,204 4,107,622 8,480,307  Actual 236,481 65,575 4,107,622 4,409,678  Actual  Project 236,481 312,457 4,107,622 4,656,560  Authorization Prior Years Current Year To Date  EXPENDITURES Maintenance and repairs Building remodel Capital outlay-land purchase TOTAL EXPENDITURES REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer from general fund Transfer from capital project fund Transfer from capital reserve fund TOTAL OTHER FINANCING SOURCES 8,480,307 REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $  246,882 246,882  (8,480,307) 4,409,678 4,656,450 2,620,274 1,203,583  (246,882) (4,656,560) 230,307  4,426,143 2,620,274 1,203,583 8,250,000  4,656,450 2,620,274 1,203,583  230,307 8,480,307  $12,659,678 $ (16,575) $ 3,823,747 $ 3,823,747  FUND BALANCE Beginning of year, July1 End of year, June 30  3,840,322 $ 3,823,747  57    TOWN OF KITTY HAWK, NORTH CAROLINA Agency Fund Firemen's Relief Fund Statement of Changes in Assets and Liabilities  June 30, 2024  Firemen's Relief Fund $ 67,539 7,200 1,688 8,888 4,957 71,470  Balance June 30, 2023 Additions Department of Insurance Investment earnings Total Additions Deductions Benefits  Balance June 30, 2024  58    TOWN OF KITTY HAWK, NORTH CAROLINA SCHEDULE OF AD VALOREM TAXES RECEIVABLE  June 30, 2024  Uncollected Balance $  Uncollected Balance  Releases/  Collections 558,360 4,747 589 55 2 7 5 10 6 25 3,571  Fiscal Year June 30, 2023 Additions  Adjustments and Credits June 30, 2024 (338) $ 4,641,881 $ 19,153  2023-2024 2023-2024 MSD 2022-2023 2022-2023 MSD 2021-2022 2021-2022 MSD 2020-2021 2020-2021 MSD 2019-2020 2019-2020 MSD 2018-2019 2018-2019 MSD 2017-2018 2017-2018 MSD 2016-2017 2016-2017 MSD 2015-2016 2015-2016 MSD 2014-2015 2013-2014  $4,661,372 $ 562,280  (77) (41)  3,843 5,452 528 3,940 293 2,259 140 2,701 317 3,413 307 2,506 159 2,271 79 2,524 104 1,176  10,240 1,117 3,995 295 2,266 140 2,706 317 3,423 307 2,512 159 2,271 79 2,549 104 1,654 3,571  (478)  $ 37,705 $ 5,223,652 $  (934) $ 5,209,258 $ 51,165  Reconciliation of collections and credits to revenues:  Ad valorem taxes Schedule 1 Taxes written off over 10 years Penalties and interest  5,209,732 3,571 (4,045) 5 5,209,258  59    TOWN OF KITTY HAWK, NORTH CAROLINA  ANALYSIS OF CURRENT TAXLEVY  June 30, 2024  Property Excluding Registered Motor Vehicles  Registered Motor Vehicles  Property Valuation 1,552,482,333 65,000 (106,667)  Total Levy $4,657,447  Rate 0.30 0.300 0.30  Original levy: Discoveries Abatements Late list penalties Adjustments Total property valutation Net levy  Property taxed at current year's rate  $4,412,422 $ 245,025  195 $ (320) 3,718 (6) 4,661,034 (19,153) $4,641,881 $4,396,856 99.59%  195 (320) 3,718 (6) 4,416,009 (19,153) 99.57%  $1 1,552,440,667  245,025 245,025 100.00%  Uncollected taxes at. June: 30, 2024 Current year's taxes collected Current levy collection percentage  60    JOHNSON  MIZELLE,  Partners:  Richard B. Mizelle, Jr, CPA Richard D. Straub, CPA, PC George C Consolvo, CPA  STRAUBACONSOIYOUP CERTIFIED FUBLICACCOUNTANTS  REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE  WITH  GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S! REPORT  The Honorable Mayor and Members of the Town Council Town of Kitty Hawk, North Carolina  We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the: financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregated remaining fund information of the Town of Kitty Hawk, as of and for the year ended June 30, 2024 and the related notes to thei financial statements, which collectively comprises the Town'sbasic: financial  statements, and have issued our report thereon dated October 15, 2024.  Internal Control Over Financial Reporting  In planning and performing our audit of the financial statements, we considered the Town of Kitty Hawk's internal control over financial reporting (internal control) as al basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the finançial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Kitty Hawk'si internal control. Accordingly, we do not express an A deficiency in internal control exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, ini internal control, such that there is a reasonable possibility that ai material misstatement ofthe Town's financial statements will: notl be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet Our consideration ofi internal control was for thel limited purpose described in the first paragraph of this section and was not designed toi identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider material weaknesses. However,  opinion on the effectiveness of the' Town'si internal control.  important enough to merit attention by those charged with governance.  material weaknesses may exist that have not been identified.  MEMBERS OF. AICPAAND NCACPA  61  ph 252.261.2333 252.261.0414-Poast Ofice Box 2229, 4016N. Croatan Highway, Kitty Hawk, NCIPO--ah    The Honorable Mayor and Members of the Town Council Town of Kitty Hawk, North Carolina Page Two Compliance and Other Matters  As part of obtaining reasonable assurance about whether the Town of Kitty Hawk's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance or other matters that are required to be reported under Government  Auditing Standards. Purpose of this Report  The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other  purpose.  JOHNSON, MIZELLE, STRAUB & CONSOLVO,LLP  Certified Public Accountants  Johnson, Mizelle, Straub aI Consolvo, LLP  Kitty Hawk, North Carolina October 15, 2024  62    Ta  Post Office Box 549 101 Veterans Memorial Drive Kitty Hawk, NC27949  Phone (252)261-3552 Fax (252)261-7900 ntps/nww.atynewancA  TOWN OF  KITTY HAWK  Minutes  KITTY HAWK TOWN COUNCIL Monday, September gth, 2024 Kitty Hawk Town Hall, Smith Room  6:00PM  1. Callto Order  2. Moment of Silence/Pledge of Allegiance  3. Approval of Agenda  4. Town Staff Member Recognition- Aaron Nelson, five years of service, Police Department; new Public Comment - The public is invited to address the Town Council on any topic. Please sign up with the Town Clerk before the meeting and when your name is called, come forward and speak 6. Consent Agenda - Items on the consent agenda are considered to be non-controversial, routine innature, or items not requiring a presentation to discuss byt the Town Council in order to consider the items(s). Any item may be removed for discussion by the council or by any member of the a) Approval of August 5th, 2024, Regular Session Council Minutes - Approval of the b) Proclamation- Declaring Diaper Need Awareness Week September 23 -September 29, c) Reasonable Accommodation for Pregnant Workers Policy- Employee Handbook d) Budget Amendment #2 FY2024-2025- Transfer funds previously saved for the replacement of the AC system at the Fire Station from the Capital Reserve Fund 211 to  staff member Greg Hardin, Public Works  into the microphone at the lectern. Please limit comments to 3 minutes.  audience who wants to hear thei item presented and discussed.  consent agenda will approve these minutes.  2024  update Article VI, Section 11.2 the General Fund 10  7. Items Removed from Consent Agenda 8. Planning-Schedule Public Hearing  a. Zoning Text Amendment- - 42-360.- Sound waters district. Proposal to reclassify piers as a. Roosters in Kitty Hawk- Staff to report community survey results, and Planning Board  permitted use, and amend maximum pier length  9. Old Business:  recommendation.  1/Page Town Council Meeting Minutes September 9, 2024    TOWN OF KITTY HAWK  10. New Business:  a. Ordinance proposal- Live Oak as official Town tree b. Recreation Committee Trail Plan Proposal d. Appointment of Planning Board Alternate Member e. - Proposed Police Department Pay Plan Adjustment 11. Reports/General Comments from Town Manager 12. Reports/General Comments from Town Attorney 13. Reports/General Comments from Town Council  Subdivision- 800 W. Kitty Hawk Rd - proposed! 2 lot subdivision from 2.41-acre parent  parcel  14. Closed Session- Pursuant to N.C. Gen. Stat. 143-318.11(3), Town Council will now enter into closed session for the purposes of receiving legal advice from the Town Attorney and to preserve the attorney-client privilege concerning a recently filed lawsuit styled Mina V. Town of  Kitty Hawk, et al. 15. Adjourn Council Members Present: Walker, and Councilman Dylan Tillett. Staff Members Present:  Mayor Craig Garriss, Mayor Pro Tem. Jeff Pruitt, Councilman David Hines, Councilwoman Charlotte  Town Manager Melody Clopton, Town. Attorney Casey' Varnell, Administrative Services Director Laura Walker, Finance Officer Liliana Noble, Police Chief Mike Palkovics, Police Lieutenant James Helms, Fire Chief Mike Talley, Public Works Director Willie Midgett, Planning Director Rob Testerman, Public  Information Officer/Town Clerk, Lauren Garrett 2. Moment of Silence/Pledge of Allegiance  1. Call to Order 3. Approval of Agenda  Garriss: Council, Ineed a motion to approve tonight's agenda, please.  Pruitt: So moved, Mr. Mayor. Garriss: Motion by. Jeff, dol have a second? Walker, Charlotte: Second. Garriss: Second by Charlotte. Alli in favor?  All Council: Aye.  2IPage Town Council Meeting Minutes September 9. 2024    TOWN OF KITTY HAWK  Garriss: All opposed? None, thank you. Staff recognition, Chief Palkovics are you going first with Aaron Nelson?lunderstand you had to clear a call before you got here, thank you for that.  4. Town Staff Member Recognition  Palkovics: lam very pleased and honored to have Aaron join us tonight. Unfortunately, he is one of those guys who schedules something like this then he must go out and make at traffic stop: so there's always a chance he might not make it. That's the dedication he has here but I'm very pleased to have Aaron here tonight to recognize his five years of service to the Town of Kitty Hawk. Aaron is one of those guys you can'ts say enough about, the way he does his job each day, the passion he has for his job, he goes out and tries to help people but also take care of people who are not doing the right thing and address them to make our town. safer. We are grateful to have him and his leadership and what he contributes to the Town and Police Department, so Iwant to recognize Aaron. The plaque says. July 23, 2019, to. July 23, 2024, Aaron is presented this certificate of appreciation for five years of service to the Garriss: Congratulations, I've known Aaron for a while and we're thankful that you are here in Kitty Midgett, Willie: Mr. Mayor, Iwould like to present Greg Hardin. Hei is taking the custodial position for the Town of Kitty Hawk which is a new position we hired this year. Greg is a resident of Kitty Hawk, hei is a Marine veteran, he previously worked with al local real estate company fori ten years before joining us and we'rel happy to have him. He'salready taking the bull by the horns and taking care of items and doing some maintenance as well. We'd like to thank him for everything he's been doing and plans to do. Garriss: Thank you, we're glad to have new people coming to Kitty Hawk. Thank you for being here. Public Comment, Lauren do we have anyone signed up for Public Comment tonight?  Town of Kitty Hawk. Congratulations, we can't wait to do your 25th. Hawk. Willie, you have a new staff member, Greg Hardin.  Thank you.  5. Public Comment Garrett, Lauren: No sir, we do not.  Garriss: Thank you. Is there anyone who would like to speak at Public Comment tonight? Alright, let the  record show that no one chose to speak at Public Comment tonight.  6. Consent Agenda  Garriss: Council, Ineed a motion to approve tonight's Consent Agenda.  Walker, Charlotte: So, moved. Garriss: Motion made by Charlotte. Second? Tillett: Second.  3Page Town Council Meeting Minutes September 9. 2024    TOWN OF  KITTY HAWK  Garriss: Second by Dylan, alli in favor?  All Council: Aye.  Garriss: All opposed? None. No items removed from the Consent Agenda.  7. Items Removed from Consent Agenda  Garriss: Item 8A, we need to schedule al Public Hearing, Council. Zoning text amendment for sound  waters district.  8. Schedule Public Hearing  Tillett: Mr. Mayor, Imove to schedule a Public Hearing at the Town Council meeting on October 7th,  2024, to consider the proposed text amendment to! Section 42-360.  Garriss: Thank you, Dylan. Do have a second?  Pruitt: Second.  Garriss: Second by Jeff. All in favor?  All Council: Aye.  Garriss: All opposed? None. Thank you, Council. Old Business, Number 9, let's talk about roosters.  9. Old Business  Garriss: First of all, we had a survey that went out and we had a great response from the public on this topic and lwant to thank you, this entire Council wants to thank you, that was great. Testerman, Rob: Alright, as your mentioned a few months ago, the Council directed the Planning Board to talk about keeping roosters in Kitty Hawk. Town staff have put together the survey youj just referenced. After being online for some time, we have received 119 responses. Iwon't go through all the survey responses, but they are in the Council packets. Currently, the Town does not have any specific regulations on keeping roosters. It's always been handled under the noise ordinance and Planning Board after reviewing the survey responses and the information given to them, their recommendation was that no new specific regulations be drafted citing that it is already covered under Section 18-2F, specific prohibitions says animals and birds, owning or possessing or harboring any animal or bird which frequently or for continued duration howls, barks, meows, squawks, or makes other sounds which creates a noise disturbance across residential real property boundary or within noise: sensitive zone. I didn'ti include any recommended motions for Council. Ithink if the Council agrees with the Planning Board, thenl Idon't think there'sa any necessary motion. If they do want us to draft 4Page Town Council Meeting Minutes September 9, 2024  something, then come witha a motion to direct us to do so.    TOWN OF  KITTY HAWK  Garriss: Thank you, Rob. Personally, lagree with what the Planning Board has done. They puti in al lot of hard work along with you, Rob. l'agree with their findings. Casey, we do not need a motion, correct? Varnell, Casey: That's correct. It's fori informational purposes only. There's nothing being proposed asl Garriss: Any comments from Council? None? Okay, we will leave it as is. Thank you, Rob. Item 10, Mr. Tumolo let's have a presentation on the Live Oak. A lot of hard work has gone into this too, thank you.  understand it.  10. New Business  a) Ordinance proposal- Live Oak as official Town tree  Tumolo, Ron: Good evening, Mayor and members of Town Council and Town Manager. Backi in May,! I had the opportunity to come here and ask about a couple of things Ifelt are important to the Town. One of them was adopting the Live Oak as the official Town tree of Kitty Hawk. In addition to adopting the Live Oak as the Town tree, thought it made sense to propose an ordinance to include some controls and protections of our Live Oak. Pursuant toi that I coordinated with Melody and the Town Clerk as well as coordinating my findings and the draft ordinance with the Director of Planning. Idid research of most every jurisdiction in our area and found there they have protections fort the Live Oaks and other trees with the exemption of our Town. The Town of Nags Head and the Town of Manteo do enforce the protection of Live Oak withi fines and in the draft ordinance that submitted in coordination with the Town Clerk and Planner, there'sat fine proposed. Has everyone had an opportunity to review the proposal? So, just in addition to coming here and saying we need an ordinance, and we need to protect thei trees, we didn't just come up withi this. Ihad an opportunity to talk to with Councilmen as well as former residents of Kitty Hawk where they' re really disappointed and lunderstand. At some point in time, portions of the Town of Kitty Hawk were clear cut, to use the term, oft trees, especially Live Oak trees. That's happened in al lot of jurisdictions, and Ithink it'sag great opportunity to put some protection around the Live Oak trees in Kitty Hawk. In addition to being a great opportunity to preserve our environment, it's also clearly called out in our Town's Land Use Plan. Under the Land Use Plan and compatibility policy 4-3, enhanced tree cover in the Town of Kitty Hawk that's already listed as ongoing, perhaps this could be applied towards a goal in that effort moving int that direction. Trees provide several benefits including enhancing property values and aesthetics, inexpensively mitigating storm water management, improving air quality, providing wildlife habitat and energy savings. We have a Live Oak treei in our backyard that is 150 years old. Ican't tell you how many timesIhave seen Bald Eagles in that tree, osprey, and all other sorts of wildlife and it'sj just a great resource here on the Outer Banks. As you can see here ini the ordinance, Idid al bit of research since Ididn'twant to reinvent the wheel andI I thought the best thing to do would bei to identify a resource or ordinance already in use in Dare County, reached out to a couple of towns, reached out to our colleagues at the Town of Nags Head and their policy seemed the most simplistic and most reasonable. reached out to them and asked their permission to use that as a sort of baseline for crafting our own. Iremoved. ai few things out oft theirs because they had an entire table talking about other kinds of deciduous trees sO the ordinance that you have before youi is clean, cut and fair. Ithink it does what need it to do here ini the town. So, I'm here tonight to ask the Town Council to consider implementing this ordinance in addition to naming the Live Oak as our official town tree. Idon't think it makes sense to do anything unless we are going to do 5Page Town Council Meeting Minutes September 9. 2024    TOWN OF KITTY HAWK  something to protect it. I'm happy to answer any questions, anything Ifound during my research. Ido find that there are thousands of communities that are starting to do this because there is sO much building going on and this isn'ta anything to slow down building. This is an opportunity to integrate what wel have here in our environment with the design. Iwas driving around town the other dayi in Kill Devil Hills inas small neighborhood where they have literally built a single-family home around a 100-year-old Live Oak tree in the front yard. It's not that hard and Ithink we can do it. What helps us to do that is to have something in writing to protect that says you can't just knock down a tree in your backyard because it blocks the view of the sound. That's my story and I'm sticking toi it. Garriss: Thank you, Ron. So, would this be amending an ordinance that's already in place?  Testerman, Rob: We don't have anything currently in place. Garriss: So, why does this mention "amending"?  Clopton, Melody: The ordinance would be amending the Town Code.  Garriss: If Council chooses to adopt, we'll need to amend the date. He'sg got August 5th. Varnell, Casey: Yes, it would be effective if adopted. That's probably the date that it was presented. It would be effective as of the date of adoption which would be today, if action was taken today. Tumolo, Ron: Mr. Mayor, August 5th was the date Icame here to Town Hall to meet with Melody, Town Clerk, and Director of Planning. We went through and Mr. Testerman had some concerns about the ordinance that we went through and addressed those concerns completely. What you see ini front of Garriss: Great job. know we'v ve had this come up before, but we haven't acted on it so I'm glad we're Pruitt: Mr. Mayor, think this is a great ordinance, however sometimes with spur of the moment we might overlook something, and Iwas wondering if this is something we would like to have the Planning Board look over. I'mj just throwing it out there. I'm willing to go ahead and go but I'mj just saying that Garriss: I'm fine with that if that's what the Council would like to do, good idea. Just go ahead and let Tumolo, Ron: The best ordinances are the ones that are researched and have transparency. Ithinki it'sa Pruitt: Let them see it and you work with the Planning Board, Ron, andi if there'ssomething we can tweak a little bit more and this will also give opportunity for Public Comment. Thank you very much,  youisar result of that.  finally moving forward, hopefully, with it. Council?  maybe that would be a good idea. the Planning Board review. great opportunity.  great job.  6Page Town Council Meeting Minutes September 9. 2024    TOWN OF  KITTY HAWK  Tillett: Ido have a question while you're still upl here. Did you by any chance speak to an arborist too? Tumolo, Ron: l've spoken with an arborist informally and since you're bringing this up this up, the Director of Planning pointed out al lot of7 Town Codes, they like their Planning Directors to go out and say yes or no to whether you can cut at tree down or yes, that tree is sick. We don't have the resources to train everyone to be an arborist sO whoever wants to knock down a tree and there's no shortage of arborists on the Outer Banks. The applicant would have to hire an arborist to do an assessment or Tillett: I'd love to see some views from that point of view as well just see you know they've got any  Consult with an arborist on this?  review at no cost or little cost.  beneficial input as well ift that's possible. Tumolo, Ron: Absolutely.  Garriss: David, Iknow you. just walked in. We are talking about the Live Oak ordinance, maybe sending ittot the Planning Board and then seeing if they have any changes. Are you good with that?  Hines: Perfect.  Pruitt: Dolneed to make a motion? Casey, does this need a motion or is this good like iti is? Varnell, Casey: Are we going back to the Planning Board?lthink by consensus you all can just state that  you want it to go back to the Planning Board. Pruitt: Ithink that has been done.  Garriss: Good. Thank you, Ron. Okay, a big item here. Recreation Committee, Kitty Hawk Town Hall Trail. Come on up, Mr. Kip. Charlotte, I know you are the liaison sO any time you want to jumpi ini it will  be much appreciated.  b) Recreation Committee Trail Plan Proposal  Tabb, Kip: We have the full committee here and they willl be able to answer questions and come upa as needed or we can simply answer them at the end of the presentation. The Town of Kitty Hawk Recreation Committee is proposing a series of trails on Town Hall property, highlighting the beauty of our maritime forest that would benefit residents and visitors. We would like your approval of our proposal. This trail is consistent with the Town's CAMA Land Use Plan. The concept of a trail highlighting the maritime forest surrounding Town Hall is not new. The 1987 plans for Kitty Hawk Town Halli included an extensive trail network. Our preliminary walk of the property suggests the 1987 trail really is not practical, it would include swamp and marsh and that would just be difficult to do. In our initial walk back there, we found some beautiful areas. This is an American Beech that is on the Southwest side of the proposed trail system. There's some beautiful high ground on the North end up here, this is a ridge that runs North to the Sandpiper Cay property. Iti is possible that Sandpiper Cay may wish to connect to the Town trail although that of course would be their option. The Recreation Committee did create an online survey asking respondents to evaluate personal preferences and Town needs. The survey showed 7/Page Town Council Meeting Minutes September 9. 2024    TOWN OF KITTY HAWK  very widespread support for Town trails. There was a total of 279 responses, 176 were from full-time Kitty Hawk residents. When you look at the responses, you see a very clear preference with 66.7% indicated hiking and walking as a preferred use. When you get into the Town residents, iti is really overwhelming with 84% of the Town residents wanting more trails. Again, the survey showed a very clear preference again for more trails. More than anything else, trails are the one thing that people wanted to see in the Town. That was across everyone including business owners and part-time property owners. This is what we are proposing, iti is a two-phase plan with Phase 1 in red which is a little more than a mile in length. Thet trail head is on the North side of the property by the parking area whichi is not used that much right now so that would probably work very well. The first phase of thei trail does bring the trail right in front of Town Hall. There's been a little bit of preliminary work on the trail just to geta sense of what it's going to be about. This is the North end of the trail where what would be the trail head. The trails are to be built to North Carolina Extension Service Guidelines, that's four feet in width, the clearing height depends on what we' re going to use them for, seven feet for foot trails, eight feet for bikes, and ten feet for equestrian trails. As we walked through, we realized that we are going to need bridges for low areas. A preliminary survey established three bridges will be needed, the proposed design is already in use in Kitty Hawk' Woods sound view trail. This is designed by Chairman Henriques, the approximate cost is $2,400 per bridge. It is possible a fourth bridge may be necessary and until we start putting the trail in, it's going to be difficult to tell. This is what the bridge looks like, and you'll notice the way this is designed and when the ground is very wet, this will allow water to flow underneath the trail and in the wetlands that is very important. This is what the overall design will be, right here. The approximate cost is $2,400 and this is where the budget is coming in. We are going to need a sign at thei trail head advising people about the trail. There may be tools and equipment we may also need. Ifai fourth bridge is needed, that would bring the cost to $9,600, if our estimates are correct. The total cost estimate willl be $7,600 to $10,000. The current fiscal year Recreation Committee budget is $10,000 SO we would be right within where we' re supposed to be. We do have a timeline which would be after the end of tick season, Ican't blow these photos up for obvious reasons. We are planning on beginning work on the trails pending Town Council approval in October. We anticipate completion of Phase 1 by March or April of next year. The Recreation Committee members are committed to working on the trail itself. We also have Wesley Robinson here, he's an Eagle Scout candidate who is going to work with us as part of his community service requirement. We anticipate getting additional volunteers. So, this is what the future holds. There's Phase 1B that think we'll need to discuss. If you notice this solid tan line, this will be area 1B which is right back here and you can see the yellow arrow over here, that is an area that is very low. It's right behind Town Hall, it's roughly 3701 feet in length. It's very poorly drained and it's not practical to have at trail there without some form of mitigation. The estimated cost to bring that up to al level that we could use that as a trail would be $8,000 whichi is really one reason why we are suggesting we need to put that off. Our budget is $10,000, obviously we can't invest $8,000 into that one section. Phase 2i is over here, on the East side of the VEPCO power line right of way, this is our right of way right here and Phase 2i is over here. We have had a chance to walk that, and it is wonderful back there. It will take some clearing; it is dense back there. So, that is it, there's still a couple issues to be resolved. We do need some waivers, especially if we have volunteers. Ithink it was in April or May, we met with' Willie and Melody and at that time we discussed whether Town staff could help with this project. Willie indicated that there mayl be an ability for the staff to help but we need to make sure that's all covered. We also must advise VEPCO power of the trail, Ithink that has been done. Ithink Alsu has sent an email to them, but we will double check on that. There's also a question about what exactly this is going to be, like a Town project and if so, we'll have to take al look because there could be 8Page Town Council Meeting Minutes September 9. 2024    TOWN OF KITTY HAWK  some issues. Casey, we are meeting tomorrow SO we can discuss. Other than that, we need the Town Council to approve the project sO we can move forward. Ify you have any questions, please let us know. Hines: Ihave ai few, Ithink thisi is a great idea. My personal vote would bet that if you do it your make it  We have everybody here. wide enough for horses.  Tabb, Kip: The four feet width would accommodate horses and riders.  Hines: Ithought you said it had to be ten feet.  Tabb, Kip: No, it would need to be ten feet in height. In other words, you'd have to clear up to teni feet. Hines: Got it. That might change ital little bit but that's where Iwould like to see it go. people like to get their horses on the trail, we certainly want to do that.  Tabb, Kip: That would be very doable. Obviously, it takes more to clear up to tent feet but since al lotof Hines: I'm sure they will pitchi in and help. I'm sure there are low-lying limbs and things like that, Iwould  imagine.  Tabb, Kip: Yes, that'sal lot of what would need clearing out.  Hines: When you talk about the cost of the bridge, where did you get that bid from? Is that volunteers Henriques, Paul: Imade a design and estimated the material cost. To explain a little more about it, it'sa 20 feet section of bridge with two tapered 5 feet sections. It'sa good-sized bridge, low only a foot or 16 inches above ground soi it doesn't need any rails, sO it has minimal cost. So, priced it as labor and materials for the building with the hope for all of us to purchase materials and have volunteers build them. Typically, the way it works is! 50% materials and! 50% labor. We could have a! 50% savings if could  doing or trying to hire someone?  get enough volunteers.  Tabb, Kip: Yes, and iflcould add, when you budget, you always budget high.  Hines: Trust me, Iget it. Then, the only other thing Iwould add is that Jeff, if you remember, we had some complaints last year about the Trex material being slippery. Iwould make sure you consider that,  ifit's not getting sun on it then it can get slippery. Pruitt: Ithink the horse felll last year.  Hines: Ithink the Fire Department had to respond. Just a suggestion on that, and you talked about the wetlands. Did anyone verify if that's CAMA? Did you say it's low ori it's wetlands back there?  Tabb, Kip: Iwould consider it low.  9Page Town Council Meeting Minuies September 9. 2024    TOWN OF KITTY HAWK  Hines: Did you see any cattails out there? Tabb, Kip: By the beech tree there are.  Hines: Okay, that would be CAMA jurisdiction. Have you guys requested any grants through the tourism  board?  Tabb, Kip: Idon't think we can request a grant until the Council approves the proposal.  Hines: lunderstand, but there is money there so it's worth asking.  Garriss: We may have a contact for you.  Hines: Mine are more just comments, Ithink thisi isagreat idea. I'm very interested in making sure the Tabb, Kip: That would bei thei intent, and that's why we want to make sure everyone can enjoyi it. Hines: Iwish we had the money to doi it all at one time. Ithink it's a wonderful idea and lappreciate you all putting the time into it. know there'sal lot that goes into that presentation to get to where it'sat  trail can be used by all, and Iknow thei folks who ride horses would really enjoyi it.  and I'm thankful for it. That's alll Ihave. Garriss: Thank you, David. Dylan?  Tillett: Melody, can we confirm that $10,000 was budgeted for this?  Clopton, Melody: Yes, that is correct. Tillett: Okay, that's alllhave.  Pruitt: Was there any left over from last year? Clopton, Melody: We don't carry over from previous years. Pruitt: Okay, it doesn'tcarry over. Idon't have anything else to add.  Garriss: Charlotte?  Walker, Charlotte: It has been very exciting to work with the committee on this project and Ihardly ever come to Town Hall when there's not someone here walking around this area as it is. They walk their dogs over here and itisa very popular place for people to use. Ihave all hopes thati it will go Garriss: Thank you, Charlotte. The Recreation Committee has done an outstanding job. Great job. 10Page Town Council Meeting Minutes September 9. 2024  through just like its should.    TOWN OF KITTY HAWK  Hines: Ican'ts say enough, there'sa lot of work that goes into that.  Garriss: Council, Iwille entertain a motion.  Hines: Imove to approve the proposed Kitty Hawk Town Hall Trail by the Recreation Committee. The Town Council finds the proposed trail project to be consistent with the Town's proposed Land Use Plan  as well as the Recreation Committee's adopted Master Use Plan. Garriss: Thank you, David. Dolhave a second?  Walker, Charlotte: Second.  Garriss: Second by Charlotte. Any further discussion? All in favor?  All Council: Aye.  Garriss: All opposed? None. It has passed. Kip, great job, great presentation.  c) Subdivision- 800 W. Kitty Hawk Rd  Garriss: Item 10C, we'v 've got a subdivision. Rob? Council, believe you all got an amended plat. Testerman, Rob: To start, note that you did have a revised play handed out at your seat this evening. That came because of last Friday afternoon, Councilman Tillett caught something that Ihad missed in the original plat. There was a shed that was shown to encroach the side yard setback. After discussing with the engineer this afternoon, he quickly put together a revised plat that shifts that lot line over by two and half feet to make it compliant so that the shed is no longer ini the setback area. So, this is fora two-lot subdivision, 800 West Kitty Hawk Road. The parent parcel is 2.41 acres, Ithink we' ve had a couple of these recently where it doesn't qualify as an exempt because parent parcel is greater than two acres, so iti must go to the Planning Board and Council for review. There are no new roads or infrastructure proposed as the new subdivision. There are two existing dwellings on the current parcel, this subdivision would put it sO that one dwelling is on each property. In VC1 district the minimum lot size is 15,000 square feet of contiguous upland area, with the revision the two lot sizes 35,210.46 square feet with 28,414 oft those being contiguous upland area and the other loti is 69,561.25 square feet with 69,800 square feet being contiguous uplands area. The maximum density in the VC1 district is two dwellings per acre this proposal comes out to 0.82 dwellings per acre. The minimum lot width in the VR1 district is 75 feet measured at the front setback, you can see on the plat that both lots are compliant with that requirement. As Imentioned with the revision that was presented tonight, the building setback issue has been taken care of. The Planning Board reviewed this at their August 15th meeting, and unanimously recommended approval. This is being presented as both preliminary and final plat since there's no infrastructure being proposed there's no need for them to bring a final plat. The engineer is on hand if there are any questions for him and with that, Iwill turn it over to the Council for any  questions to me as well.  Garriss: Council, any questions for Rob?  11Page Town Council Mceting Minutes September 9. 2024    TOWN  TOWN OF  KITTY HAWK  Pruitt: Ihave one, Rob. The easement that is shared for the two dwellings, how does that work out? Testerman, Rob: So, that would be just a recorded easement on the deed that would run with the property saying that in perpetuity unless both parties agree to abandon the easement, access would be Pruitt: So, the easement is going to be on lot A2. Are they the ones that are going to have to give  given through that existing driveway.  access?  Testerman, Rob: Yes.  Pruitt: Can they not agree to the easement ori is it once you plat it, they must agree?  Testerman, Rob: Ithink the owners are agreeing to put it in currently and then it will run with the land from there on out and if they ever wanted to abandon it, then both property owners in the future would  have to agree to abandon it. Varnell, Casey: Correct.  Pruitt: Ijust didn't want one person to abandon it and leave somebody hanging. Varnell, Casey: Yes, that is the entire idea of that recorded document.  Pruitt: Okay, Idon't have any more questions.  Garriss: Thank you, Jeff. Any questions for Rob? Is the applicant here? Any questions for the applicant,  Council?  Rubino, Brian: The applicant had an emergency this afternoon but I'm here with Garriss: Okay, any questions? Thank you. Alright Council, what would you like to do here? Pruitt: Mr. Mayor, Imove to approve the proposed preliminary plat for. Jean BI Beachem Heirs  WithersRavene/Quble.  subdivision as shown on the submitted plat. Garriss: Thank you, Jeff. Second by David. Hines: Second the corrected plat, right? Pruitt: Yes, the corrected plat. Thank you, David.  Hines: Second.  Garriss: Any further discussion? Alli in favor, signify by saying, "aye".  12Page Town Council Meeting Minutes September 9. 2024    1oWA  TOWN OF  KITTY HAWK  All Council: Aye.  Garriss: All opposed? None. Thank you, Council. Thank you, Rob. Council, Item 10D appointment of Planning Board member since Dr. Merrill has resigned and left the area. We've got a list of names here.  Go ahead, Charlotte.  d) Appointment of Planning Board Alternate Member  Walker, Charlotte: Mr. Mayor, Iwould like to make a motion to appoint David Morton as an alternate Garriss: Thank you, Charlotte. Any other names to come before Council? Do we have a second to  member of the Planning Board for1 the term of office to expire June 30, 2025.  Charlotte'smotion? Tillett: Second.  Garriss: Second by Dylan. Any further discussion? Alli in favor?  All Council: Aye.  Garriss: All opposed? None. Thank you, Mr. Morton and Melody, you will make the proper notifications tomorrow? Thank you SO much. Glad to have him. Okay, Item 10E, an important topic here. Proposed  Police Department Pay Plan Adjustment. Melody?  e) Proposed Police Department Pay Plan Adjustment  Clopton, Melody: As you know, we have had meetings with each of you to discuss the Police Department and some of the issues we're having with recruitment and retention. The proposal that we are coming up withi this evening is just one aspect of trying to level the playing field for recruitment of police officers. Laura, Chief Palkovics, and Ihave been gathering data from all departments and all positions. We have looked at our positions, years of experience, and everything like that. Based on the research, what we are proposing is to complete a new pay scale for the police. We're going to remove it from the Town's pay plan, and it willl be a separate pay: scale all its own. We determined that about 6 percent would level the starting pay of a police officer. In your materials, we are proposing the starting pay fora Police Officer lis $55,061. We have also given the starting pay for all the other departments, the average for those is $55,100. So, we' 're kind ofi ini the middle, we're not the highest and we'r 're also not the lowest. Currently, our starting payi is $51,000 so ifyou're going to Nags Head, you're making $56,900 or you can come here and make $51,000. So, where are you going to go? This is one way to level the playing field and of course in doing this, we must adjust everyone. We can'tjust start a new starting pay and not roll everyone else up because you then have compression in the pay scale then you'd have people coming in making more than the people who are already here working. We don't want to have that. I've presented in your packets the new pay scale with the minimum range and the maximum range for the police. This change for the remaining pay periods that we have in this fiscal year will cost $64,800 and that includes benefits and everything that goes up when you increase pay. We 13/Page Town Council Meeting Minutes September 9. 2024    IoW)  TOWN OF KITTY HAWK  have the money to cover this this year because of our vacancies. Iwill tell you though, next year when we get ready to do our budget, it is going to drastically affect our budget, sO be prepared. Does anyone Garriss: Ithink one of the big ones was for the public was where is the money coming from and you've addressed that. This is something that should have been done a while ago and it's never been acted on. Hines: Also, for public purposes, we talked about some other policies outside of pay and this may not be the place to discuss this but four-year degrees and things to that effect, is that going to be worked on Clopton, Melody: It's one of the Chief'sgoals by December to have redone the career development  have any questions for me or Chief or Laura?  Go ahead, David.  as well per our meetings we've had?  plan.  Hines: Because Idon't agree with that.  Clopton, Melody: Yes, Iknow. We've had conversations about that too and it's not done yet. Idon't  know what toi tell you it will include but we will certainly discuss further. Hines: lonly bring that up because we're discussing what we' re doing.  Clopton, Melody: Currently, we do have a career ladder that does have certain certifications and time. We want to have meaninglureguirements, things that really get you somewhere and help the Town, Hines: I'm all about training and putting these men and women in the best positions to succeed but not Garriss: Alright Council, you have the numbers here in front of you. I think this should have been done a  not just time in your job.  everyone went to college, that'st the bottom line. Thank you.  long time ago. Hines: We need a motion. Garriss: Yes, sir.  Clopton, Melody: lapologize, I did noti include a motion. Hines: I'm going to make a motion to approve Item 10E as presented.  Pruitt: I'II second it.  Hines: I'm sorry, Ido have one more question. With this approval, when does this become effective?  Clopton, Melody: September 14t,Ibelieve.  14Page Town Council Meeting Minutes September 9, 2024    TOWN OF KITTY HAWK  Hines: Thenldouble my motion. Pruitt: Second.  Garriss: Second by. Jeff. Any further discussion? Any comments, Council?  Walker, Charlotte: I'm glad to see it. Hines: Ithinkit's overdue.  Clopton, Melody: We really appreciate you all, thank you. Garriss: Let's vote on it first. All ini favor?  All Council: Aye. Great job. Melody?  Garriss: All opposed? None. Thank you, Melody, Lilliana, Laura, Chief, and staff for working on this.  11. Reports/General Comments from Town Manager  Clopton, Melody: Yes, this week int the Finance department, we have started our fiscal year 2023-24 audit. We hope to have thei final report in November, Ibelieve, so that will be coming up. I'm happy to report that the Police Department building is on schedule. The interior demolition has been completed and plumbing rough in is ongoing now. Next week, we expect to see foundation work for the new construction portion of the project as well as the two exterior walls that we're replacing. Just a reminder that the lifeguard stands have been removed from the beach and we're currently doing roving Ocean Rescue patrols through October 15th. In recognition of September 11th, Kitty Hawk public safety departments will be participating in two local events, A Walk to Remember, which will begin at Kill Devil Hills Fire Station and go to the Wright Brothers Monument and back. Then Kitty Hawk Baptist Churchi is alwaysgenerous hosting a Patriot Day luncheon honoring first responders from all the county and municipalities, SO we're very fortunate to have that support.I Iwant to thank the Council for proclaiming the week of September 23rd through 29th Diaper Need Awareness Week. To support this proclamation and the Children and Youth Partnership of Dare County, Kitty Hawk Town Hall will be accepting diapers donations between now and October 6th. We need sizes 1 through 6, we will also be doing a website and social media campaign where you can go online and buy diapers and have them sent directly to the Children and' Youth Partnership. Willie wants me to remind you that on demand large items pick up with resume on September 20th. You can go online and fill out your form and they'll come get your stuff. Fall chipping is scheduled to begin on October 14th, so there will be more information coming out about that  as well. That's it from me. Garriss: Thank you, Melody.  12. Reports/General Comments from Town Attorney  15/Page Town Council Meeting Minutes September 9. 2024    TOWN OF KITTY HAWK  Garriss: Casey?  Varnell, Casey: Mayor,lhave nothing. Garriss: Thank you, Casey.  13. Reports/General Comments from Council members  Garriss: David?  Hines: Mayor, can go second please? Garriss: Yes, you want us to come back to you?  Hines: Yes, sir. Garriss: Alright, Dylan? Tillett: Ihave nothing, thank you.  Garriss: Jeff?  Pruitt: Yes, Iwould like to thank Aaron for his five years. lappreciate his service and welcome Greg to our Public Works department. I'm sure you've found you've in good hands with Willie. I'd really like to thank the entire Recreation Committee; you did ai fantastic job with the presentation. I'm very impressed and Ican't wait to see it. Iwas on the Recreation Committee years ago and it was brought up and then just seemed to go away. Nowi it's back and Ihope to see it continue this time.Ihave nothing  else.  Garriss: Thank you. Charlotte?  Walker, Charlotte: Jeff, you must have been reading off my notes, but Iwould like to thank. Aaron Nelson, and 1 would also like to thank the Recreation Committee. Iknow how hard they worked on it, and have been very impressed with what they have been able to do. I'd also like to thank Melody and Chief Palkovics, you all really did do al lot of work, al lot of thought went into the police department and Garriss: Thank you, Charlotte. Recreation Committee, thank you. I'm sure you know Charlotte as your liaison has been pushing this project so it's obvious that you did a great job. Thank you, Aaron Nelson and Greg Hardin. Melody, your mentioned Kitty Hawk Baptist Church every' year puts on this luncheon for first responders. It is wonderful, Pastor Steve makes a visit to each table and says a prayer with each table. Igo every year and I'II be there this Wednesday so thank you to the church for doing that. David,  how to handle this and lappreciate it very much, thank you.  back to you.  16/Page Town Council Meeting Minutes September 9. 2024    TOWN OF KITTY HAWK  Hines: Iknow that we' ve already passed the motion on the pay but just out of curiosity, first I'd like to say thank you to Officer Nelson. Imissed that; lapologize. We're not giving a pay raise of high patrol sol didn't want to push it but why don't we go $12 more to be ahead of Southern Shores? $893 to be ahead of Kill Devil Hills and Nags Head is a push at $1,848, just out of curiosity. Iknowi it's budgetary. Clopton, Melody: Why? That's what the 6% came to and it's been my impression from Council that we don't want to be the highest paid, we want to be somewhere int the middle as competitive. If that has  changed, Iwill be happy to change it.  Hines: I'm all about it. How does 6 and a quarter look? Clopton, Melody: I'd have to get back to my spreadsheet.  Hines: That'sa alll Ihave, thank you.  Garriss: Thank you, David. Anything else, Council? Alright, Council, lam going to make a motion to go into closed session pursuant to NC General Statute 143-318.11 Subsection 3. The Town Council will now enter closed session for the purpose of receiving legal advice from the Town Attorney to preserve the attorney/client privilege concerning a recently filed lawsuit styled Mina versus Town of Kitty Hawk. Dol  have a second? Hines: Second.  Garriss: Thank you, Council. Okay folks, we'r re going to ask you to leave as we are now in closed session, 14. Closed Session- Pursuant to N.C. Gen. Stat. 143-318.11(3), Town Council will now enter closed session for the purposes of receiving legal advice from the Town Attorney and to preserve the attorney-client privilege concerning a recently filed lawsuit styled Mina V. Town of Kitty Hawk, et  and we will not be coming back to conduct any more business. Thank you: sO much.  al.  Varnell: Council and Iwent into closed session, we did SO to preserve the attorney-client privilege concerning a recently filed lawsuit that was read aloud earlier. No action taken at this time. Garriss: Thank you, Casey. Council, Iwas handed a document prior to the start of the meeting tonight by Mr. Terry Ziegler who could not be here tonight. He has a concern the first responders, particularly police officers, are in shortage to whichlresponded Iwas very aware. He has al lot ofi information which is not accurate and information from other departments. I let him know we are very aware of the matter, and we are working on something for tonight's agenda related to the police department. He said Ithink you all need to remember that next yeari is an election year. So, Isaid to Mr. Ziegler, "are you threatening me about whether Irun for re-election", and he said "no, sir".Isaid point well-taken and this information is available if you'd like to look at it. Melody, Iwill let you hang on to this and make a  copy.  Clopton, Melody: Ican make copies ify you'd like and send them out.  17/Page Town Council Meeting Minutes September 9: 2024    TOWN OF KITTY HAWK  Pruitt: What does he mean by there's an election?idon't understand what he's asking us to do. Garriss: Ithink he is saying that people are watching to see what is being addressed. Hines: Iwill say thatIdon'ta agree with how the information is being presented but that is what is Garriss: lunderstand, and he's done a good job gathering information but some ofiti is not accurate.  running around town.  Melody, can you email that information to everyone tomorrow?  Clopton, Melody: Absolutely. Iwill make another that has accurate information.  Hines: I'm going to go on the record and say that the mayor disclosed this information to everyone.  15. Adjourn  Garriss: Thank you, David. Any further discussion? Motion to adjourn?  Hines: So, moved. Garriss: Second? Walker, Charlotte: Second. Garriss: We are adjourned, thank you. Adjourned at 7:24 pm.  The Minutes of the September 9, 2024, Kitty Hawk Town Council Meeting are approved at the  October 7, 2024, Kitty Hawk Town Council Meeting.  D. Craig Garriss, Mayor  Lauren Garrett, Town Clerk  18Page Town Council Meeting Minutes September 9. 2024    la  Post Office Box 549 101 Veterans Memorial Drive KittyHawk, NC27949  Phone (252)261-3552 Fax (252)261-7900 tPS/wwAAtyPeAneA  TOWN OF KITTY HAWK  Draft Minutes KITTY HAWK TOWN COUNCIL Monday, October 7th, 2024 Kitty HawkTown Hall, Smith Room 6:00PM  1. Call to Order  2. Moment of Silence/Pledge of Allegiance  3. Approval of Agenda  4. Presentation by Outer Banks Visitors Bureau for Outer Banks Promise  5. Public Comment - The public is invited to address the Town Council on any topic. Please sign up with the Town Clerk before the meeting and when your name is called, come forward and speak 6. Consent Agenda - Items on the consent agenda are considered to be non-controversial, routine innature, or items not requringapresentation to discuss by the Town Council in order to consider the items(s). Any item may be removed for discussion by the council or by any member of the a) Budget Amendment #3 General Fund- The Police Department received a donation of b) Budget Amendment #4- Encumbrances from FY 2023-2024 = Open purchase orders for purchases or services that were contracted June 30, 2024, but are not completely delivered. These purchase orders are re-entered in the current FY 2024-25 because they c) Budget Amendment #5- Fund 30 Beach Nourishment Project CLOSING- Transfer the remaining balance to the Capital Reserve Beach Nourishment $471,900.  into the microphone at the lectern. Please limit comments to 3 minutes.  audience who wants to hear the item presented and discussed.  $1001 that willl be used for supplies.  will be paid from the current fiscal year budget.  7. Items Removed from Consent Agenda 8. Planning - Public Hearing  a) Zoning Text Amendment- 42-360.- Sound waters district. Proposal to reclassify piers  as permitted use, and amend maximum pier length  9. Planning-Schedule Public Hearing  a) Schedule Public Hearing-Zoning Text Amendment- 42-1.- Definitions; 42-504.-Yards generally. Proposal to define accessory structures and allow accessory structures no larger than 144: sq. ft. and no taller than 15 ft. in height to be located as close as! 51 feet  to side and rear property lines.  1Page Town Council Meeting Minutes October 7, 2024    TOW  TOWN OF KITTY HAWK  10. Old Business: 11. New Business:  a) 2023-24 Financial Statement Update b) NCDOT Sidewalk Project  a) Planning Subdivision- 4324 Carrenda Ln - proposed 5 lot subdivision from 2.96-acre  parent parcel  12. Reports/General Comments from Town Manager 13. Reports/General Comments from Town Attorney 14. Reports/General Comments from Town Council  15. Adjourn Council Members Present: Walker, and Councilman Dylan Tillett. Staff Members Present:  Mayor Craig Garriss, Mayor Pro Tem. Jeff Pruitt, Councilman David Hines, Councilwoman Charlotte  Town Manager Melody Clopton, Administrative Services Director Laura Walker, Finance Officer Liliana Noble, Police Chief Mike Palkovics, Chief Mike Talley, Public Works Director Willie Midgett, Planning  Director Rob Testerman, Public Information Officer/Town Clerk, Lauren Garrett  1. Call to Order 3. Approval of Agenda  2. Moment of Silence/Pledge of Allegiance  Garriss: Council, Ineed a motion to approve tonight's a agenda.  Hines: So, moved.  Garriss: Motion made by David. Dol have a second?  Walker, Charlotte: Second.  Garriss: Second by Charlotte. Alli in favor?  All Council: Aye.  Garriss: All opposed? None. Presentation by Outer Banks' Visitors Bureau, Jeff or Lee? Speak directly  into the microphone, please.  4. Presentation by Outer Banks' Visitors Bureau for Outer Banks Promise  2/Page Town Council Meeting Minutes October 7, 2024    TOWN OF KITTY HAWK  Nettles, Lee: Good evening, Mr. Mayor and Town Council. On. June 26th, we introduced the Outer Banks Promise. The Promise is a destination pledge that encourages responsible behaviors and helps to deepen respect for our local culture and natural environment. Your may recall that over the last couple of years, the Tourism Board has embarked on an ambitious effort to develop a long- range tourism management plan. The LTRM lays out a 10-year mapi that balances responsible tourism growth with the need to manage its negative impacts. I'd like to thank Counçilman Hines for his work on the Dare County Tourism Board, currently serving as the Board's' Vice Chairman and thanks also to Mayor Pro Tem Pruitt, who served on the Board earlier and served as Chair. We appreciate your leadership and your involvement in this effort. Once the LRMP was in our hand, the Tourism Board appointed a 22-member special committee to basically bring the plan to life. The Outer Banks Promise, the destination pledge, is one of the eoupieanyaomplahments and now to share a little more about the Promise, Iwould like to introduce Jeff Schwartzenberg. Jeffi is the Community Engagement Manager at the Visitors Bureau; this is a new position at the Bureau and another recommendation found within the LRMP. I'm happy to Schwartzenberg, Jeff: Thank you, Lee. Good evening, everyone. As we prepared to launch the Outer Banks Promise at few months ago, we collaborated with al local cinematographer, Nick McClain, to capture Outer Banks residents int their element, to help bring the Promise to life. The result is a powerful one-minute video that we'd like to share with you now. <Video plays> The Outer Banks Promise was created with the mindset of four key principles: kindness, responsibility, respect, and safety. The first promise line of seven is "Discover this land of history and inspiration with a spirit of kindness and appreciation". We all need to appreciate where we live and the history and the inspiration that was created here, from the Lost Colony to the Wright Brothers and forward to today. The second is, "Turn what-ifs into let's be prepared" which means let's be prepared for all different types of situations that can be thrown at us. Iwill preface this by saying this isn'tj just geared towards visitors, this is meant for everyone in our community including our residents. The third key promise line is to "Pack iti in, packi it out, leave no trace".It think that is self-explanatory. The fourth is "Wander with wonder, sticking to roads and paths". Kitty Hawk has some amazing trails and paths, basically again tying back into the safety aspect of don't wander where you shouldn't be but, enjoy the beautiful surroundings that we have here. "Love the beach, respect the ocean" is number five, to piggyback off what the County has created and done a great job in promoting. Number six is "Be a wildlife star, observing animals safely from afar", our wildlife was here before us so let's respect those creatures keeping our distance and enjoy them from afar. Number seven, is "Support local, small acts have big impacts',Ithink we'rea community that is blessed to have sO many small locally owned businesses. Ithink we do ag great job of supporting them, but this is a reminder on all these Promise lines certainly can't be overstated. You can find that video at OBXPromise.com. Basically, what this is as Isaid is we' re people, both residents and visitors, to be better stewards of the Outer Banks and make a promise to protect this place. By identifying those things Italked about, there are areas of what our place is special and why it's worth protecting. Our small actions will have big impacts over time. We launched the Promise, as Lee mentioned, in late. June and we're still int the early stages of awareness and education. Over the last few months we' ve activated our marketing channels, we've launched grassroots efforts at our welcome centers and at local events to educate the community, not just visitors but residents as well. So, as we move forward, how can you, our community, our neighbors, help to show support and spread the word about the Outer Banks Promise? The easiest thing you can do is visit OBXPromise.com. and make your Promise by filling out an online form. It's super simple, it takes just a couple seconds but it's the show of 3[Page Town Council Meeting Minutes October 7. 2024  have. Jeff ont the team and happy to turn it overt to him now.    TOWN OF KITTY HAWK  VMA  support that's taking what al lot of destinations have which are just words but here we are putting it into action. We're encouraging more than just reading a set of guidelines we didn't want it to be at finger- pointing mandate of welçome to the Outer Banks but while you're here don't do this or that, thisi is more about shining al light on what makes this place special. OBXPromise.com is where you cant find more information and make the Promise online. Ify you're affiliated with a Dare County business, association, organization, or municipality you can also consider supporting a couple of other ways. One is including al link to the Promise page on your website, crafting a blog or social media post, including the Promise is a newsletter, and making the Promise as a group allowing us to capture and share that photo opportunity with the world as a collective show ofs support. Outer Banks Blue, Hilton Garden Inn, Outer Banks Health are. just a few community partners who have recently stepped up and shown their support ini that way, which is tremendous, and wel look forward to many more down the line. We also created a partner toolkit that's available at OBXPromise.com which provides copy, links, images and more to make ite easy to plug in and play to share this information. The more support we receive in amplifying this message, the greater thei impact is going to be. This is not a short-term approach or quick fix campaign, it'sal key strategic step in our long-term commitment that the Visitors Bureau, the Tourism Board, and our special committee has made as we explore responsible ways to manage both the positive and negative impacts of tourism in our County. Thank you very muchi fori this opportunity to share information about the Promise and we always invite folks to reach out to us, the long-range tourism management plan is a community plan created by the community, and it will continue to be implemented by the community. We welcome any feedback, thoughts, or suggestions either tonight or Garriss: Thank you, Jeff. Council, any questions for. Jeff or Lee? Thank youi for your part in this, David. Hines: Thanks to these guys, they are the ones that have done it all. We underestimate all the time and engagement the Visitors Bureau puts into all these initiatives. Ibelieve because of the tourism dollars that are: spent in Dare County; each resident saves! $3,800 per year in taxes so it'sa very important Garriss: Thank you both. Okay, Public Comment. Lauren, do we have anyone signed up?  ini the future. Thank you very much.  organization. Thank you.  5. Public Comment  Garrett, Lauren: Yes, we have Deborah Stafford signed up to speak at Public Comment. Garriss: Come on up, ma'am. Three minutes, please, and speak directly into the microphone to make Stafford, Deborah: Good evening, my name is Deborah Corbell Stafford, and Ilive at 1211 West Kitty Hawk Road. l'am here tonight to voice my concerns about the subdivision on 4324 Carrenda Lane. Let me first tell yout that lam not against development, Ij just think we need to grow as a community responsibly. This property is 2.96 acres, to divide this propertyi into five lots seems al little excessive to me. Ibelieve that three nice lots would be more reasonable. If you approve five lots, each lot can put up an ADUifi it meets the requirements and that would mean ten units in the subdivision. My concerns are traffic, iti is hard to get onto Kitty Hawk Road now. There is no turnaround on Carrenda Lane, there are 4Page Town Council Meeting Minutes October 7, 2024  sure we can hear your recording.    TOWN OF  KITTY HAWK  low lying areas where there's water when we have rain, the water rises justl like any place else. lalso think there would be an issue with water pressure. The other thing is that Ihave asked how many septic tanks Kitty Hawk can handle. Iget enough standing water in my yard as iti is. believe this development will cause more standing water in my yard.I Ithink the Town did a survey, think it was earlier this year or late last year, wanting to know the concerns of the Town and one of them was growth. The Town Council needs to look at growth and how we are going to go forward to plan with development. Ithink it is time that Council looks at the size of the lots and the density of the lots. An amendment really needs  to be looked at. Thank you for your time. Garriss: Thank you very much. Lauren, next?  Garrett, Lauren: Next for Public Comment is Andrea Windle.  Windle, Andrea: Thank you and good evening. I live at 1022 West Kitty Hawk Road, and lam here speaking in opposition of the Carrenda subdivision. Al lot of what I'had written references al lot of what Ms. Stafford said earlier. Ifeel like in VR1, which is supposed to be low density residential, that five lots on that almost three-acre area is excessive. Earlier, we were really focused on a text amendment that was passed to help slow density development in Kitty Hawk and feel like maybe this text amendment is being interpreted in a way that is seemingly okay for this development and its not. I've lived in the village for 17 years and it doesn't take an environmental engineer or scientist to see the way the water stands and the floods now that used to not flood. That's all inj just the 17 years I've been here, Ican't imagine what some of the other people like Mr. Tillett or Mr. Pruitt have seeni ini their lifetime in the village. That's one of my main concerns in this andi in. January, the Town of Kitty Hawk hosted a flood informational workshop, and you asked for our input, and we gave you thei input. People let you know what is flooding now that didn't flood before. I don't think a high-density development in an area will help this problem at all. We also need to think about what Mayor Garriss referenced again the meeting what our fellow citizens in the Western part of the state are, going through right now and that we are very lucky, and we are as easily susceptible to that major weather event. What floods in Kitty Hawk now is sometimes just scary, not to think about when it was a major weather event like 2011 when Irene came through here, SO when we'r 're looking at the insurance situation now,! ir recently and I'm sure other people in this room in Kitty Hawk have to had to find new homeowners insurance because sO many companies are dropping out, FEMA is now making new recommendations for the National Flood Insurance Program which will prohibit coverage in new areas that are higher risk and will also cancel premiums in places that are continually paying out. Ifeel like we are in a situation in the village where Garriss: Thank you sO much. Lauren, anyone else who would like to speak at Public Comment? Let the Kupetz, Richard: I've got my 40-year pin in Kitty Hawk, and l've seen it go from my quiet little fishing town to an extension of Virginia Beach and Ileft Virginia Beach for a reason. lended upl here but regardless Ilive on Carrenda Lane and ify you go down Carrenda Lane everybody's house is nice and pretty, it's not a cluster of houses here and another cluster of houses there, it looks proportionate, aesthetically pleasing to the eye. Pulling into five houses, Ijust don't see it and they go back to the water problem, where are they getting the water from? Are they going to put in a water main down Carrenda 5Page Town Council Meeting Minutes October 7. 2024  we are in both of those situations. Thank yout for your time. record show no one else chose to speak. Sorry, come on up.    TOWN OF KITTY HAWK  Lane? There is not water, are they going to put in a fire hydrant because there is not one? What are we going to do with all the trash cans?lcan tell youwhatl I do with mine, Ikeep wood chips ini froma smoker,lcarry my trash out and other neighbors have trash cans at the end right on the road. So, now what are these five houses going to do? Are we. just going to refuse pick up, have no real fire protection? If you do have at fire back there, doy youl have to run al hose down Carrenda when they hook up because it's on the other side of the street?ldon't! know if you have got more problems than people really looking at and hope you curtail development sO we can stop this. just know how it needs to be and I'm thinking oft the future, and Ijust don't twant to see that far down here. Thank you and have a good Garriss: Thank you, sir. Is there anyone else who would like to speak at Public Comment? Good evening, Stone, John: Good evening, my name is. John Stone. Since 2012, with my wife and four children, Ihave been very blessed to live in Kitty Hawk on' Wind Grass Circle and I'm talking to you this evening to express my appreciation fory yout taking up the text amendment on the Sound Water District and the pier length. lappreciate you all considering it, Iwas here with my son at the August Planning Board Meeting and he's better at the testimony than! Isince he's the one responsible for dragging our boat through the sand when the wind blows from the east or from the northeast and we' re not able to use our pier. We have al beautiful waterway and beautiful recreation here in Kitty Hawk we're blessed with and when the wind is blowing from the northeast or the east it really limits the residents' access to the sound. The worst scenario is ify you're out on the water for the day and the wind kicks up and you're trying to get back home and you're stuck out on the sound because you can't get to your boat dock or boat lift so I'm expressing my appreciation and hope that you all will consider that this evening, thank you. Garriss: Thank you, sir. Would anyone else like to speak during Public Comment? Come on up, sir. Mr. Stafford, Jeffrey: Yes, that is correct. Ijust want to verify some of the other things about the water. You know, have a waterfront property, and we have a mosquito ditch in the backyard that was built to control mosquitos by our forefathers and of course now iti isa mosquito breeder, right, because that is how things change over the years. A lot of the septic is now running into the creek, so just want the Council to be aware of what's already in place. It's going to keep growing and Idon't want to pick on anybody, but you know when Iwanted to divide my property, my lot at the end of the road, it wasa no. Maybe I'll let you divide it in half, but it was five acres, and Iwas told no. We built a house on 20,000 square feet and we hadi to argue for coverage and how much concrete, you know,! put a concrete driveway in and it's like you can't have that much coverage. We all have a personal storyl like, you're three inches tall. How did that happen when someone was out every week you know and anyway, they wouldn'ts grant a variance. Ihad to cut three inches off my roof. Al lot of things we'v ve got to look at you know, but do we change the rules or ifs somebody makes an honest mistake, do we give al little variance? Garriss: Thank you, sir. Would anyone else like to speak tonight? Okay, Lauren let the record show no one else chose to speak tonight. Consent agenda, Councillneed a motion to approve tonight's Consent 6Page Town Council Meeting Minutes October 7. 2024  evening. sir.  Stafford, is that correct?  So just look at the overall picture, please. lappreciate, thanks for your time.  Agenda.    ow  TOWN OF  KITTY HAWK  6. Consent Agenda Hines: So, moved. Garriss: Motion made by David. Tillett: Second.  Garriss: Second by Dylan. Any further discussion? Alli in favor?  All Council: Aye.  7. Items removed from Consent Agenda Councill Ineed a motion to goi into Public Hearing.  Garriss: All opposed? None, thank you. We have no items removed from the Consent Agenda. Item 8A,  8. Planning - Public Hearing: Zoning Text Amendment-42360  Pruitt: So, moved. Hines: Second.  Garriss: Motion made by. Jeff; do I have a second?  Garriss: Second by David. All in favor?  AIl Council: Aye.  Garriss: All opposed? None. We are in Public Hearing. Rob?  Testerman, Rob: This hearing is for a proposed text amendment to Section 42-30, the Sound Waters District. It'sat two-part proposal, the first takes the language we have in place for private community or commercial piers and boat slips and reclassifies it from a special use permit to permitted use. As you all know the special use permits are aj judicial fact-based evidentiary hearing whereas the permitted use is more of an administrative decision where an application would come in showing that they meet the requirements laid out in the ordinance and it would be approved at a staff level rather than holding a hearing at al Planning Board or Town Council meeting. The second part proposes to extend the maximum length that we would commit as far as zoning goes. Currently, it is 1001 feet for a private residential pier or backing facility and 200 feet for a community or commercial pier. The proposal is to extend that to 400 feet. The reason this got started is at the beginning of the year we had a variance request that was ultimately approved for replacing a 100 feet pier to go to 300 feet because the existing 100feet at the end of the pier was about ten inches of water and that's not enough for them to get their boat slip in to effectively use the dock facility fori its intended purpose. At the end of the Board of 7Page Town Council Meeting Minutes October 7, 2024    TOWN OF KITTY HAWK  Adjustment meeting, had a request from one of the Board members to explore this as a possible text amendment because they could see this becoming a recurring application and had two other conversations with residents that were asking about the variance process. One application did come in from a third person, but it was withdrawn because the timing of the CAMA permit was going to expire so they withdrew that, so it is something that we're seeing more of. The 4001 feet that's proposed was not just plucked out oft the air, Iwas talking with CAMA officials and 4001 feet is the maximum that they will approve through their general permit, anything beyond that would require a CAMA major. Just because its part of their general permit does not mean that they will always approve a 400 feet pier, they have standards written in that once you exceed 200 feet in length you must demonstrate that for every 100 feet past that you would get another foot of depth in the water. They also have a standard stating that ina a row of properties that all have existing docks and piers that they will not permit one that extends further out than the one furthest out already sO it's not automatically rubber stamping 400 feet piers and docks, it's just stating that when someone has the need to do they're not having to continually come before the Board of Adjustments variance hearings for the same thing. Iguess it was kind of looked at asi ify you're in a position where you're going to have to keep issuing variances to keep usable docks and piers it might bei time to align the ordinance with the needs on the ground. That's the  background of that one, will turn it over to the Council for questions. Hines: You talk about ai foot of depth per 100 feet per CAMA, correct? Testerman, Rob: Yes, once youg get past the first 2001 feet.  Hines: Ilive right there so Iknow how bad it is, and the living shoreline has also hindered a couple people as well as I'm sure you're aware. How does that work, do you get them out there ina a southwest wind? Out there when you get a northeast wind, you're not going to gain ai foot. Testerman, Rob: Idon't know how CAMA looks at it, Ithink that they most likely are taking the normal high water and not the winds into consideration that will affect things differently. My guess is that they Tillett: Is that measured by if you can't gain another 100 feet int those 1001 feet horizontal length then CAMA won'tallow that 1001 feet extension? Is that how, if I'm understanding correctly? Testerman, Rob: The way that lunderstand it, with the general, they will grant upt to 200 feet and then once you go beyond that if you can't go another 100 feet, but you only get say 8 inches of depth, they  look at the normal high-water level.  won'tapprove that from whatlunderstand.  Hines: Thatswhatimeant by wind direction because northeast blows it all out. Tillett: Ist that the same starting measuring point as our ordinance?  Testerman, Rob: Ibelieve. so, yes.  Tillett: That would be the normal high-water line.  8Page Town Council Meeting Minutes October 7, 2024    ow  TOWN OF  KITTY HAWK  Hines: None of those piers along there are usable ini the northeast wind. Jeff, what is the history behind Pruitt: This history starts back to when development was going to build a! 5001 feet pier and put a fuel dock at the end ofa a community development with al large gazebo and fuel docks. That's when Council decided it may be time to look into the lengths of the piers and that's when they came up with the 100 feet and for the commercial. At that time, they felt like they were pushing out tooi fari into the sound to where there would be navigation issues and, ifi it's 4001 feet out, where is the private property line? Does that mean kayakers can't go in between the docks andi fish? It seems like they were trying to let everybody share the sound without shoving people further out. The gazebos and all that, they didn't want the loud music with the gazebos disturbing the wildlife and years ago they did not allow crab shedders along the sound and the reason were light. They didn't want they believe that all the lights sticking out along Kitty Hawk Bay would cause effects on migratory birds, flying in and seeing lights and choosing not to come to the Outer Banks anymore and heading on to Pea Island like they are pretty much doing anyway. That was the history of how we got there but Ihave a question, Rob. So, from what Testerman, Rob: No, this was spurred from the Board of Adjustments, recognizing that and in conjunction with the three or four folks that came to me afterwards inquiring about a variance because they're either about to build a dock or replace a dock and there's no use in building it at 100 feet Pruitt: You brought this up, not an applicant because of the number of requests that had come before? But usually if we have a request like an owner wants to do it, he's the one that submits the application and then we decide rather than the Planner bringing an issue if there are three people that want it. Testerman, Rob: Correct, and my rationale for being a variance is supposed to be applied for a unique situation. The fact that Ihad four requests within a six-month period shows me that it is no longera a peculiar situation, and it's become common and to try to align our regulations with what we're seeing in Pruitt: So, ifeverybody comes and starts asking for a variance on the height restrictions are we going to  that?  I'm getting, the applicant of this is somebody on the Board of Adjustments?  because they only have at few inches of water.  the field. go that route?  Testerman, Rob: There's no hardship on building with the heigh restrictions.  Pruitt: What are we going to gain as a Town by going out 4001 feet? What benefit does this give? The residents of Kitty Hawk, the handful of people who have a dock. For the residents, what benefit is there for us going out? Now, I'm not saying 1001 feet, but Ithink 400i is way too far so there could be al happy medium here, but 4001 feeti is a long way and that's al lot of lights out on Kitty Hawk Bay. Have you thought about where we' ve got a canal coming out that way and 400 going that way and another that Testerman, Rob: That would be what CAMA looks at and permits everything that's out on the water. Many localities do not have the regulations that we do and have let CAMA make the determination 9Page Town Council Meeting Minutes October 7. 2.024  way?    TOWN  TOWN OF KITTY HAWK  because it's their jurisdiction. We have our Sound Waters District, which is an extra territorial jurisdiction that al lot of the other residents in coastal communities don't have. Pruitt: How far does that extend to?lhave that written down as one of them. How far is our ETG?  Testerman, Rob: One mile.  Pruitt: So, what kind of power does that give us?  Testerman, Rob: The ability to put this kind of regulation in an area that is typically into the state  jurisdiction.  Hines: Would that include duck blinds, things like that?  Pruitt: Anchored boats? How about anchoring boats? Is that the same? Testerman, Rob: Ithink there could be language in there for that.  Garriss: You know, we've talked about this before, Jeff. David brought up shoreline and about 100 feet pier could shut out from someone's property and then the property on both sides extends out more Pruitt: 400 feet of pilings sunk down out there one right after the other is going to do a lot of damage to that bottom.Ican tell you along the way and Iknow CAMA issues that but is CAMA going to be there when commercial fishermen set a crab pot or a gill net in between there? What happens in a place  than the 1001 feet pier, that'st true right?  where flounder fisherman usually catches them right on that edge? Testerman, Rob: Once you get on that edge, that's no longer private property.  Pruitt: But we see how that works, not too well. Garriss: How about a shorter length? where you own to the middle.  Hines: On navigable water though, everyone owns that water if you're on the sound front unlike a lake Pruitt: But youl know as well asl Ido, iflgo in between two of these piers at 2001 feet and go from one side to the other with a gill net, somebody'sg going to call the law. No question, sO now you've runa commercial fisherman off, pushed him out. So, youl know there's all sides and inar nor'easter 400 still Hines: Well, Ijust don't see and I'm noti in disagreement with what you're saying, Iran a tape to 400 feet before got here just sol could see compared to where Ilive in First Flight Ridge and with al hard northeast wind, Icould walk another 400 before I even touch water. Councilwoman Walker lives not that far from me right there on the other side of Tateway which is affected the same way. Idon'tsee 10Page Town Council Meeting Minutes October 7, 2024  isn'tgoing to be enough.    TOWN OF KITTY HAWK  CAMA permitting most of that area there anyway at 400 feet because Idon't see how you're going to gain a foot per 100 even ini the south if you're using the average water mark. I'm in agreement withy you Pruitt: Idon't either, butl Idon't think 400 would work. That's where I stand but Ido understand that 100 doesn't even work in a normal tide. Ithink the Council did this years ago just tol keep you from going out there. Ithink what is more sensible is 200 or 250, somewhere ini there but as far as 400 out there, Hines: Rob, what is the longest pier we have in Kitty Hawk? Is that in this staff report? Pruitt: How about other towns? How about Duck, how far can you go there?  butIdon'tt think 100 works either.  that is too far.  Testerman, Rob: Idon'tknow.  Hines: What you've got to realize is it's only going right on the other side of. Jejac, that's where it stops Pruitt: You can see where it's going, where it'sg going to end up right on that edge where people want to Walker, Charlotte: Well, 400 feet is the most that somebody can have without going to the Board of Adjustment that's what cuts the red tape, and you can't go any further than that, but CAMA is going to come over and put on waders to go out there and 200 is all you are going to get. You'll have to hope the wind is out of the southwest when they're there. But that just keeps everyone going to the Board of Hines: That's no question and that's the pointlwas getting at, no matterwhat we agree to, CAMA will  for Kitty Hawk.  fish and everything else.  Adjustments but that tells them how long they can have it.  be thei final approval.  Walker, Charlotte: 400 feet just keeps us from going back. Hines: That's 205 right there. Rob, is that the longest pier we have?  Testerman, Rob: Idon'tknow.  Hines: That one that you've got going out twice as far but where I'm going with that is if you see right there, Ibet youi in the northeast wind even that. What is that address on that one on Bay Drive, Rob?  Does it tell you? That'sa couple down from Councilwoman Walker'shouse. Walker, Charlotte: That is not a current picture, that pier has been remodeled.  Hines: So, 3518 Bay Drive, that pier measures 230 feet. What is that address? That's 3617 Windgrass  Circle.  11Page Town Council Meeting Minutes October 7. 2024    TOWN OF KITTY HAWK  Walker, Charlotte: AlI I'm saying is the number we come up with is totally subjective because CAMAis going to come out and say you can have this or not you cannot SO 4001 feet doesn't mean you're going to Hines: That's what Iwas referring to, once you get around that corner right past my house where that living shoreline is, you're not getting 4001 feet right there unless it's blowing south, unless it's blowing 50 Tillett: Jeff, as a lifelong waterman, do you think the 4001 feet distance would disrupt commercial fishing Pruitt: Ithink it's going to disrupt a lot. Ithink one of the pictures Isaw at 4001 feet looks like two people standing out there fishing. Righti int front of that long dock. That might be buoys and maybe some  get it.  miles per hour. activities?  waterfowl there, too.  Hines: That area is always changing.  Pruitt: Ijust think all those lights out there, it could be an issue.  Tillett: lagree with that, Ithink that we can go more than 100 but Ithink 400 might be a stretch.  Garriss: Keep in mind that we' 're still in Public Hearing. out then that stops navigation to that ditch. they are not going to let you mess that up. Walker, Charlotte: They are very particular about it.  Pruitt: Rob, ify you take, fori instance, on the corner if that was to come out, if any of those were to come Testerman, Rob: My guess is that CAMA would not permit it for that reason and ify you have al berm,  Hines: Rob, can your run a measurement from one of those properties? Can you measure from the living shoreline, from the start of that pier to where it ends now and then show what 300 feet looks like? Even Testerman, Rob: Iwant to reiterate that Iwas putting in 400 feet not as something we' 'd expect to see because CAMA is not going to rubber stamp 400 feet, that'sj just the max that they will do under their  better,go back to the one youj just had and go 4001 feet. See, that's long.  general permit.  Pruitt: Without going for major permit. for 1001 feet of pier length.  Testerman, Rob: 2001 feet is their threshold where they must start demonstrating the one foot of depth  12/Page Town Council Meeting Minutes October 7, 2024    TOWN OF KITTY HAWK  Hines: Rob, can you drop it back to 300 feet or 275 feet? We already have one at 231.4, correct? You don't have one at 300 feet in Kitty Hawk, doy you? Idon't want to mess with anyone who is fishing ori the duck blinds that's gone for the most part unless you want al homegrown or bufflehead, but Ican telly you Garriss: Alright, any more questions? Ifnot, we can go back into regular session for discussion. Hines: Ido have another question. What do you think is the number because if you go 200 feet to the Testerman, Rob: Evidently, he thought 400 feet to go to variance, correct? I'm not the expert on that but my reasoning for putting it to 4001 feet is because it's the max that CAMA allows under their general permit so it seemed like a logical number that we would allow and ifi it goes beyond that then a variance  what's not working is 1001 feet.  next one, 1001 feet is going to be on CAMA.  would be required if you wanted to go beyond that. Hines: Alright, Ihave no further questions.  Garriss: Any further question for Rob? Okay, iflcan get a motion to leave Public Hearing and go back  into Regular Session. Hines: So, moved. Tillett: Second.  Garriss: Motion by David. Dol I'have a second?  Garriss: Second by Dylan. Alli in favor?  All Council: Aye.  Garriss: All opposed? None. All right, we are back in Regular Session. Now, let's get some discussion. Is Hines: If we had a pier at 3001 feet already then, Iwould leave it at that.. Jeff, do you think 300 is going to Pruitt: Ithink we could do 2001 feet then make them go to variance then let CAMA decide after that. Did Testerman, Rob: After you get to 2001 feet, that's when you when they make you demonstrate that you  there an idea ofanother length? Would anyone like to make a motion?  affect things?  you say that 200i is the CAMA one?  gain inches of water access with the increase pier length.  Pruitt: So, you could come to the Town, without going to CAMA at 2001 feet.  Testerman, Rob: Correct, but yous still must go to CAMA.  13Page Town Council Meeting Minutes October 7. 2024    TOWN OF KITTY HAWK  Pruitt: Well, you would but you don't have to go to a major permit, that'stheir magic number, 2001 feet,  right?  Testerman, Rob: 500 feet is what requires CAMA major. Hines: 200 feet for the minor and after 400 it becomes the major.  Pruitt: But what happens at 200 feet?  Testerman, Rob: At 200 feet is when you must demonstrate that for every 100 feet of additional pier Pruitt: So, if we go to 2001 feet then CAMA comes out then let them draw the line and let them go to variance after they proved by CAMA that they can get their foot. If variance decides its worthwhile then fine. Ithink 2001 feet then let them because that's the magic number that starts tripping off stuff, sO why don't we start there and let CAMA go and then see if the variance committee thinks that the lights out Hines: The only issue with that. Jeff, is that we already have several that are past that point. So, why not  length you get an additional foot of water depth.  there are ag great idea. make it 300 and call ita day?  Pruitt: Well, if they think that at that location. Hines: CAMA is going to deny after 200 feet.  Walker, Charlotte: If we say it's 300 feet and they want 400 feet, then they go to variance. Then, CAMA  goes out and measures, but that is the most that CAMA will allow. Hines: Ijust don't see most people even getting past 300 feet. Garriss: llike 300 feet myself. I agree with. Jeff that 4001 feet is too long.  Hines: But here's the other side of it, Idon't want to mess these people up with pots and nets or any of that either. To me, that's more important than someone having enough water on a bad dayt to use their boat. I'm only saying 3001 feet because we already have one at 3001 feet. We have them at 205,231, who is the 3617 Windgrass? So, on a northeast wind blowing like it has been for the last month, do you have Stone, John: Iwould say 30-40% of the time during the summer, we can't use the boat. Hines: Imean this last month when it's been northeast mainly. Can you put your boat down offa lift  any water where your boat is?  right now and use it at 231 feet? Stone, John: Today, yes there is water there.  14Page Town Council Meeting Minutes October 7. 2024    TOWN OF KITTY HAWK  Garriss: Okay, Council, would anyone like to make a motion?  Hines: I've got one more question and lhaven't paid attention to the variances. Ihave been called a few times by residents in that area. Vaughn Robinson, being a close friend of mine, and Idon'tthink he's done anything with it yet but when people come in for that, is there a certain number that they've asked Testerman, Rob: One variance that was issued was for 300 feet and the one that was applied for but was withdrawn was forl believe was 2001 feet. Then the other one forj just conversation like want to  for during the variance meeting?  know what the max was, didn'treally have a number that they relayed to me.  Hines: That one right there is 287, is that right?  Testerman, Rob: No, that is where you had me pulling another measurement. For visual reference, this  isa little further south in KDH, but there's one that's about 300 feet.  Tillett: I'm hearing that even with 4001 feet, you're still not getting to the right depths.  Hines: Ithink some places in KDH but that's not our concern. Ithink in Kitty Hawk, Icould see there on Moore Shore Road area. Icould probably see that; Icould see Vaughn probably not being for him, butI think for everybody else I think that is sufficient. Ithink you're going to have an area or two, but we  don'thave that many.  Walker, Charlotte: Again, the 4001 feet is just subjective totally.  Hines: CAMA is extremely by the book, sO even if we agree at 3001 feet that doesn't mean you'll get to  300 feet but 400 is way too much.  Tillett: CAMA will give up to 200 feet before they start applying the one-foot rule.  Hines: Correct. Rob, correct me if I'm wrong. We're going to grant you 200 feet, then CAMA will grant  the extra 100 feet.  Testerman, Rob: The wayi it's written 200 feet, we're going to deny.  Hines: Let me back up, if 3001 feet were approved, the last 1001 feet is on CAMA to make the  determination.  Testerman, Rob: The whole 300 would be approved but they would have to go through variance first because the Town only allows 100. CAMA wouldn'teven look at it before the Town grants a variance.  Garriss: Would you like to make that a motion?  Hines: Not rely,Idontwant: to put it on me. You already have it sO that's why lam going to 300 feet. 15Page Town Council Meeting Minutes October 7. 2024    TOWN OF KITTY HAWK  MA  Tillett: Well, not all those docks are 300.  Hines: There are docks at 300 feet approved by variance committee and CAMA.  Pruitt: Board of Adjustments had to denyi it. Hines: Ithink you could appeal to CAMA directly.  Testerman, Rob: Not if the Board of Adjustments denies it then your must appeal to the Superior Court. Hines: That's right, you must go to see. Judge Tillett.Istand corrected and this is the recourse from Tillett: So, Rob question for you on the Board of Adjustments. Can anyone, if they don't like Kitty Hawk'sTown code, decide to apply for a variance and bypass the entire system we have in place? Testerman, Rob: They can, but it doesn't happen often because there'say very strict set of findings that the Board must make to grant a variance. Dealing with hardships that the existing language creates ona property, like mentioned height, it's hard to argue a hardship based on height requirement. Hines: Ithink there are seven questions. By the state, every town Board of Adjustments must answer  there ifit is denied then they can appeal to the CRC.  the same questions.  Pruitt: Why would al hardship be a shorter dock?  Testerman, Rob: The hardship doesn't have to be shown that it takes away any use of the property, it's worded in our ordinance that if it creates a situation where they can'te enjoy the same use of their property as their neighbor. Something like that, so that is where it is applied on that one. Fori the 100 feet, for that it would only have this much water sO you're not going tol be able to enjoy the use of your pier the way) your neighbors are. We had one ai few years ago, a house that was built on. Jejac, you can see it here, got a variance for a rear yard setback because 251 feet from back front to back left them about 51 feet ini the middle and that variance they had, Ithink the original variance was done in 2013. For the house, they had another building they were trying to do and the Board of Adjustment found that the setback variance applied to the whole lot rather than) just where the structure was, so the hardship  doesn'trule out any use of the property. Pruitt: The hardship says hey guys it not long enough.  Testerman, Rob: If someone built a pier without having a variance in place, we wouldn'tissue: a variance. We would site a violation and make them bringi it into compliance because they created the Pruitt: Ifind it hard that too short a pier goes to variance to begin with. That's just me. Idon't think there'sany hardship there. Ithink youl knew when you built it, when 1001 feet went out to ai foot of 16IPage Town Council Meeting Minutes October 7. 2024  issue.    oW  TOWN OF  KITTY HAWK  water. Ithought everybody knew that when they built it. It didn't create a hardship down the road. The hardship has been there since Moore Shore was created.. As a matter of fact, it was even worse. Ithink Testerman, Rob: Councilman Tillett, to get back to your question, if someone disagrees with an ordinance, they have the right to apply for a variance, but Itry to explain to them what those entails getting one. Ithink that's part of the reason in the 10 years I've been here we've only had four variance  variance is the wrong place for a pier.  requests.  Tillett: Have they all been docks? Testerman, Rob: No, just one.  Walker, Charlotte: As chair of the Board of Adjustments for four years, Inever even knew who was on Hines: Afterlfiled: a variance myself for that lot because Ihad both those lots, that one and one on Bay  the committee because we did not have an application for a variance. Drive.Isat on the Board of Adjustments and never had a meeting. Tillett: So, the four we've had have been in the past three years? Hines: The four that he's had, the one before that was me in 2013. Garriss: Alright, does anyone want to make a motion?  Pruitt: Anybody go to: 250? Walker, Charlotte: Ican't do that.  Tillett: Ithink 250isag good number to meet in the middle.  Pruitt: How about the rest of the stuff that's ini there that goes with it. If we find 250, how about all the Testerman, Rob: That is the same language that currently exists, so the prohibition on having fuel  other red here? facilities.  Tillett: So, we haven't discussed that.  Walker, Charlotte: I'm sorry to interrupt, you) just can't have a covered boat dock.  Tillett: So, this amendment is also not only changing the distance but moving it from a special use to a  permitted use.  17/Page Town Council Meeiing Minutes October 7, 2024    TOWN OF KITTY HAWK  Testerman, Rob: Correct. My reasoning for that is I'm not aware of any docks or piers that have come for a special use permit either before my time. They have got set standards that they review as it would Hines: Alright, Iwill tell you what I'm sure I'm going to make people mad, but it is what it is, and Ican't make everybody happy. We already have a pier at 300f feet, sO I'm going to make a motion at 3001 feet. Garriss: Alright, we' ve got a motion for 3001 feet and second. Any further discussion? All in favor, say  be in any other administrative decision.  Walker, Charlotte: Second.  "aye".  Hines, Tillett, Garriss, Walker: Aye. Garriss: All opposed? Pruitt: Aye.  Garriss: Okay, we have fouri ini favor and one opposed. Thank you, Jeff, thank you everyone. Thank you, 9. Planning- -Schedule Public Hearing- Zoning Text Amendment- 42-1.- Definitions; 42-504 Tillett: Mr. Mayor, Imove to set a Public Hearing at the Town Council Meeting on November 4",2024,  Rob. Item 9A, we need to schedule a Public Hearing for the next meeting.  to consider the proposed text amendment to Section 42-1 and 42-504.  Garriss: Thank you Dylan, canlget as second? Garriss: Thank you, David. All in favor?  Hines: Second.  All Council: Aye. finally up my friend. 10. Old Business:  Garriss: All opposed? None. Thank youall. Item 10 Old Business, Financial Statement. Liliana, you're  a) 2023-24 Financial Statement Update  Noble, Liliana: Good evening, Council. Tonight, I'm presenting the first quarter financial report for the current fiscal year 2024. I'm going to present Fund 10 whichisa a general fund operation, Fund 21 capital reserve, Fund 30 beach nourishment project, and Fund 41 police department remodel. I'm going to start with Fund 10 which is operations. In this first quarter, there's not too much remarkable there. Wej just started a fiscal year; our citizens already have their bills for property taxes, and we started seeing 18/Page Town Council Meeting Minutes October 7. 2024    TOWN OF  KITTY HAWK  collections in September. I'm going to focus briefly on the tax other which is our shared revenue, sales tax, occupancy tax, and land transfer. What you: see here is only the collection distribution from. July. There' not too much change from the previous year from the sales tax, but there is a decrease of21%i in occupancy tax compared to last year. This is a result of what we know to be shared revenue changes, will have more solid information ini the financial statement in December because we will have. July, August, and September distribution. This is a preliminary, what you see there are only. July collections. Interest earnings are another thing that we willl keep an eye on, we all know that interest rates are, going to slow down as the reserve has announced. So far, for July, August, and September, $145,146 for receipts. On the expenditure side, which is normal during the first quarter, our revenues are lower than expenses. The second fund we will talk about is Fund 30 beach nourishment, this project has been concluded but we need to close it in our books. We are going to transfer $479,9001 to capital reserves one year prior to the start of the project to initiate design and the permit steps. So, now that we have finished the project, that money is returning to the beach nourishment fund. The next fund we're going to talk about tonight is Fund 21 Capital Reserve. The capital reserve fund is part of the general fund, the money in the capital reserve fund is classified as restricted because itis put aside for a specific project or asset purchase, it'sas savings for thei future. The fund gets a distribution of the interest we earn globally, the fund gets a portion of the interest earned. At the end oft the current fiscal year in. June, that fund earned $175,000. In. July, Iwrote an entry to distribute this interest in all the projects by percentage of participation. Today, lam strongly recommending that we assign this interest to thei fire truck purchase. Which is one of the most important purchases we need. Currently, we have $400,000, so if we assign this interest to the fire truck, we will have more. We have received a quote for $961,0001 for the fire truck sO that will give us some money there. While this move is an accounting entry and doesn'tneed Council approval, Iwant to present it to you for your information to make sure we're in agreement with  this entry.  Hines: I'm sorry, how much are we moving over for the fire truck purchase? Clopton, Melody: No, we're allocating $175,000 of thei interest earnings.  Noble, Liliana: $400,000  Noble, Liliana: What lam proposing is the interest that the fund earned, in thei fiscal year just passed, instead of distributing like we usually do by percentage and participation, we allocate all the interest to  thei fire truck. Hines: Gotit. make sure all agree.  Noble, Liliana: Again, this does not require Council approval, but Iwant to present this information and Tillett: Do you feel that the departments that you usually divvy up the interest will be okay? The funds Noble, Liliana: It's by project by the savings. So, as you see now, we have different money put aside for different projects. Usually, the ones that have more participation get the interest earnings. 19Page Town Council Meeting Minutes October 7, 2024  in those departments were normally spread out to this interest money.    TOWN OF KITTY HAWK  Tillett: Those funds are okay without getting the interest earnings?  Noble, Liliana: Oh yes, they all are but right now our most urgent purchase is thei fire truck. Or we can at least place the order because it takes two years to build. So, it's $175,000 to help us with that. Clopton, Melody: Chief Talley was scheduled for training that got cancelled so we had pushed off the presentation of the fire truck until November but ify you want to discuss ordering it you can. It doesn't cost any more, the quote that we got is $961,000. He's here and can answer questions. It would be Hines: I'm with Councilwoman Walker if we can order it now, is the price locked in? That's what I want  delivered in 2027 or 2028, we think.  to know.  Chief Talley: Yes, it would be locked in. Do we have the TR: sheet? Hines: Ijust want to make sure that price is locked in.  Walker, Charlotte: You don't have to give them any money now? You order it andi it stays the same  price? Is that right? Chief Talley: Yes.  Garriss: This is on the November agenda because? Clopton, Melody: Unless you decide to doi it now.  Hines: We can wait until November; Ijust want to make sure the price is locked in.  Chief Talley: Once we accept the vehicle and it is built to specification, we have 30 days to pay the cost of thei truck which that is the proposed cost. Now, giveni in the next three years if they come up with newi federal guidelines, controls, anything like that then that would be added to the price because that's  the way it goes.  Hines: Right, that's out ofe everyodyscontro. Pruitt: Chief, they don'tr require a deposit?  Chief Talley: We're going to eat that cost based on that federal guideline, not the manufacturer.  Chief1 Talley: They don't. To be honest, ifi it's not built to our specifications, we don't have to take it. Hines: So, just for the record, unless there'saf federal guideline change, the price quoted is our price  then we have 30 days to give them payment, 30 days after we order it?  20Page Town Council Meeting Minutes October 7. 2024    TOWN OF KITTY HAWK  Clopton, Melody: It would be 30 days after we receive the fire truck that payment would be due.  Hines: Even better. turnaround time.  ChiefTalley: So, at this point if we order the truck today, for example, it will take 321 to 36 months  Hines: The other one that we have is two years old, right? are going to be probably pushed into 2028.  ChiefTalley: Yes, this is proposing a: 2027 fire truck that they are stating most likely with the way things Garriss: Iknow you're going into this further in November, but this truck would be very similar to the ChiefTalley: Right, it has the same specifications. The only difference is there have been some emission standard changes sO the motor will be different and that's one of the price increases but everything else Hines: That's good, Ijust want to make sure everything is locked in. I'm happy to discuss it more in  one you) just got? will be the same.  November but tonight I'mi fine. Tillett: Ithink it'sa wise allocation.  Noble, Liliana: Int the lines you can see that. July, August, and September for this current fiscaly year, we have already earned $53,000 in interest. Ify you all agree, Iwill continue allocating that interest toi thet fire  truck.  Hines: Oni top of the $175,000? This can bet for further discussion. Hines: Iwould rather save that for November.  Noble, Liliana: Yes, sO the fund is still earning, but Ionly do the transfer at the end of the fiscal year.  Clopton, Melody: Keep in mind that'sj just a percentage, it can be $55,000 towards the capitalreserve Noble, Liliana: Right now, as of September thati fund has earned $53,000, Imust make the distribution,  fund or at total of $55,000.  once again Ido that distribution at the end of thei fiscal year.  Hines: $53,327.22 truck.  Noble, Liliana: So, now' what percentage is initially earned ini the last fiscal year to put it straight to the 21Page Town Council Meeting Minutes October 7. 2024    TOWN OF KITTY HAWK  Hines: Iwould rather wait until November to discuss.  Noble, Liliana: That's fine. Last, Fund 41 is the police department building remodel, the construction is moving along, we have paid two invoices to the contractor, and they have submitted three change orders, so we are really on the schedule now. As you can see int this picture that was taken two daysa ago, they are working on the roof, the siding, and the concrete. The future lobby is already there, and you  can see financially we have available $3,360,097.46 available. Any questions? Garriss: Council, any questions? Good job, Liliana, thank you.  Hines: Before forget, Ido want to go back toi the pier for the record. Iwant to read the proper motion because not trying to be Casey, but it wasn'ta proper motion. Imove to approve text amendment to Section 42-30. Town Council has found this proposal to be consistent with the Town's adopted land use  plan for 300 feet on the pier. Garriss: Alright, second? Walker, Charlotte: Second.  Garriss: Second by Charlotte. Any further discussion? All in favor?  Hines, Tillett, Garriss, Walker: Aye. Garriss: All opposed? Pruitt: Aye.  The motion carries with (4) votes in favor to (1) nay.  Garriss: Sidewalk project, Ithink this is going to shock us all as it did me when Ifirst heard it, but we  need to discuss it and decide. 10 Old Business:  b) NCDOT Sidewalk Project  Clopton, Melody: Good evening, Mayor and Council and good evening, audience. We have been talking about this NCDOT sidewalk program for quite some time and we were sO excited when it came up,! think it's been on NCDOT's list for 10 years. This sidewalk will connect Cypress Knee Trail right there by Walmart to Kill Devil Hills sidewalk at Cameron Street. The original estimate we received was $1.6 million dollars. In May, the Town Council authorized a payment of $320,000 to NCDOT which was 20% of the project which isi the Town's share. In. July, the Town Manager and NCDOT met with engineers, and we reviewed the project, then in August we received a new estimate of $7.2 million dollars, a 70% increase. At$7.2 million dollars, the Town's new contribution would be $1,440,000. With the funds 22Page Town Council Meeting Minutes October 7, 2024  already paid, the Town would owe an additional $1.12 million.    TOWN OF KITTY HAWK  Hines: That does not include the Tourism Board'scontribution, correct?  Clopton, Melody: Correct, I'm getting there now. NCDOT has apologized profusely and has used the words gross underestimation of their costs. Keepi in mind that they are on the hook for 80% of the project and we're still not sure ift they can come up with that money. They want us to commit, and they will seek funding in December at their budget meeting. So, in addition to the $320,000 we've already sent they're asking for $1.12 million dollars. As Councilman Hines said, when the project is totally completed, we will receive a reimbursement from the Tourism Board of $400,000 so that does decrease Hines: Sorry to interrupt, but the initial request from the Town of Kitty Hawk was $500,000 and there wasn't adequate invoicing at the time, sO we were only allocating $400,000 back then which sounds weird. We gave $400,000 back to us but there was conversation about the extra $100,000 once that invoicing was complete. I know that doesn'treally move the needle ini the number, but al hundred grand Clopton, Melody: Some of the reasons that the price was higher, they were using old numbers since this has been on1 the list for 10 years, increased cost ini mobilization and surveying, increased cost in excavation and borrow, erosion control, traffic control, contingency and construction oversight. We have inquired about delaying the project, if we do get off the list and will have to start all over again. We've talked about doing iti in phases but that's not something we'd want to do because if we do one phase then it may take al long time to get back on the list for phase two. We'v ve talked to the tourism board about giving additional funding but that's not a possibility, maybe in the end. We've also been exploring state and federal grants but there's nothing that's a sure thing. We think that is an invaluable community asset and it's important for our citizens' and visitors' safety. The staff does recommend moving forward with thisi ify you all feel that you want to. With no other solutions, Ihave been getting to wait for the final numbers for our fiscal year, last year in. June 2023 we ended the year with an unassigned fund balance of $3.7 million. This year, in June 2024, we ended the year with $4.7 million in the unassigned fund balance. There has been a substantial increase due mostly to interest earnings and good stewardship from our department heads, spending money wisely. We have already spent $212,000 this fiscal year from the unassigned fund balance on the contingency fund for the police department. That leaves us with $4.5 million in the unassigned fund balance, that is not what's in the capital reserve, that's not what's in the emergency fund, that is unassigned money. If we move forward with the $1.12 million, from our unassigned fund balance and proceed with the project funding ourselves we will end up with $3,389, 818 in the general fund left over sO not too much lower than last Hines: So, Ithink people's safety is paramount. I have walked those roads al long time and once you get past Kitty Hawk Estates there's nothing safe about that at all the rest of the way to the bypass. Me, personally, lam in favor of continuing to move forward. Who was the DOT contact you're working with?  our liability.  isal hundred grand.  year.  Clopton, Melody: John Able and Ican't recall the other man's name.  Hines: When you remember it, will you email me please?. John Able is one of the engineers. 23Page Town Council Meeting Minutes October 7. 2024    TOWN OF  KITTY HAWK  Garriss: I'mi in full support too, and. Jeff, as you know we' ve been telling people a long time about this sidewalk, and it isal lot of money. When Melody told me Isaid oh no. She does need to knowi if we want to proceed before they tell us what they are going to do, as Melody said. With everything going on in Western North Carolina Ican see DOT coming back and saying we don't have the money fori it and Hines: Then Ithink we at least give them an answer and if they say they don't have iti in the budget they  rightly SO, but they really need an answer from us.  don'thave iti in the budget.  Walker, Charlotte: There'snothing more we can do after that. Clopton, Melody: lagree, it's better than coming up with $7 million dollars.  Garriss: We've been promising this to our citizens for a long time. They said in surveys that they wanted itand that's just the right thing to do, if we've got the money. It's a big decision to make. Jeff, Iseey you Noble, Liliana: Another very important point that is if we abandon this project and we go back to the waiting list, most likely as Mr. Hines said they probably won't have the budget but at least still are stilla priority. We don'twant to lose our spot since we waited for this for 10 years to be allocated. If we abandon it, then we say we're not committed then they will go to the next one. Garriss: If we stop now and pick up later the price is going to be higher than it is just like the mid Noble, Liliana: It's committing that million and if they have the funding we move forward, if not then  shaking your head.  Currituck bridge.  we're still on the list at least.  Pruitt: Do we, get our money back if they abandon the project? Pruitt: Right. We don't have to put this money up front.  Garriss: Correct.  Noble, Liliana: No. Pruitt: They. just want an answer.  Clopton, Melody: Correct, we did already put up the $312,000. Iwould sayi if their funding went Pruitt: But at that point in time, now my question is, after we do this then our unassigned fund is about  through, we would need to give them the money quickly. what it was last year, is that what you're telling me?  24Page Town Council Meeting Minutes October 7, 2024    TOWN OF  KITTY HAWK  Noble, Liliana: Yes.  Pruitt: It'sal little different, but okay. So, we' re not dipping down.  Noble, Liliana: Right, we'lls still have that.  Pruitt: Okay, this is nothing to do with the importance ofi it that's the weighing part of this. Youl know, anybody can agree, it's the $1.6 million to $7.2 million feels like l've been bamboozled a little bit sol Clopton, Melody: Iwant you all to know that we still have unfinished business with the police department. We have furniture and fixtures that we' re bidding out and we must move that. Everything right now with the police department is on budget and we haven'thad any huge amounts of unforeseen  can't help but feel that way.  things and they're moving right along. Pruitt: When do you expect to hear from NCI DOT?  Clopton, Melody: December.  Pruitt: Okay, they will make up their mind in December ift they are going to go with this project? Hines: But we must give them a commitment before that, or they will move on. Then we can talk about Tillett: Ifthis project goes through and we allocate the money for that and that moneyi is what's left in our remaining fund balance, what pays for the fire truck when that needs to be paid?  that next time.  Clopton, Melody: That's paid with the capital reserve.  Tillett: Not that money? see a project line item.  Noble, Liliana: Right. .So, ifapproved, Iwill move that money to the capital reserve fund, and you will Tillett: In two years, with the interest allocation we talked about tonight we ought to have be able to pay for the truck by the time that comes around, correct and not touch that money?  Garris: Correct, that is the plan. Tillett: Okay, Ilike that. Public Works can do?  Walker, Charlotte: lapologize, Ishould have asked this question earlier but, is there anything that our  Hines: If he could get his shop built.  25Page Town Council Meeting Minutes October 7, 2024    TOWN OF  KITTY HAWK  Garriss: Alright Council, we need to give them an answer. Would anyone like to make a motion? Hines: Imove to support the NC DOT: sidewalk project by allocating the $1.2 million from the  unassigned fund balance to cover the Town's portion of the project.  Garriss: Motion made by David. Walker, Charlotte: Second.  Garriss: Second by Charlotte. Any further discussion? Alli in favor?  All Council: Aye.  Garriss: All opposed? None. Very good, thank you. Thank you, Melody, great job. Okay, Item 11 New Business Planning Subdivision 4324 Carrenda Lane. Rob, willy you come up? Chief Talley, at some pointl  have a question for you.  11. New Business: Planning Subdivision- 4324 Carrenda Lane  Testerman, Rob: As mentioned, this is a proposal that came in fora a subdivision of 4324 Carrenda Lane, the plan outlines a proposal to subdivide one existing parcel that 2.962 acres on the west side of Carrenda Lane there at the intersection of West Kitty Hawk Road into five lots. No new roads or road expansions or other infrastructure being proposed as part of the subdivision. Before Igo through some of the specifics in the proposal Iwant to highlight. At the Planning Board review, there were several concerns voiced and Iwant to try to address some oft that as they relate to the ordinance. As youl know this subdivision review is an administrative decision, sO we're basing decisions on standards in the subdivision and zone ordinates SO one of the common comments we' ve heard is this is too dense, too many parcels for the area. As you can see in the staff report, each lot proposed meets the 15,000 continuous, contiguous, and connected uplands as well as the two dwellings per parcel per acre. Flooding is a concern in that area, it's delineated on the subdivision plat. If you would like Ican pull that up the flood map. This parcel does contain areas within the special flood hazard areai in the AE zone as well as Xz zone. The AE flood zone states that there'sa one percent annual chance of flooding and a 26% chance of flooding over the 30-year mortgage. Neither the town zoning subdivision nor flood damage prevention ordinance prohibits building within a special flood hazard area. Septic concerns, which are valid concerns, have come up. That's all done through the county health department septic permitting, the zoning and subdivision ordinance do not require CTIC approval prior to approval of a subdivision there'sa line in the subdivision ordinance that requires a disclosure statement on final plats to state that approval of this subdivision does not guarantee septic approval on any individual lot, that's Section 38-63. One of the comments that came up at the planning board dealt with the National Historic Preservation Act. Section 106 review, Ihad to reach out the Army Corps of Engineers on this one, the feedback thatl I received from our regional representative is that when an Army Corps permit, or other Federal permit is required they would conduct a Section 106 review and coordinate with the state historic preservation office ifr needed. Section 106 of the NHPA applies to any project requiring Federal approval such as for Army Corps permit or that receives Federal funding there'sno filling or disturbance 26IPage Town Council Mceting Minutes October 7, 2024    TOWN OF KITTY HAWK  being proposed at this point SO there are no Federal permits required at this point. Ifas subdivision is approved and an applicant or owner does want to fill any of the wetlands, that would go to the Army Corps of Engineers and then that would initiate Section 106 review. Traffic has been brought up, the main concern that Ihave heard has been making that turn from Carrenda onto West Kitty Hawk. It can be difficult with the speed of people coming down Kitty Hawk Road. The proposal was sent to DOT, they did not have any concerns, and the concern would be not as much the subdivision because the traffic hazard is coming down Kitty Hawk Road, but it would be adding cars from those five lots onto Kitty Hawk Road making that turn. Again, there's nothing in our ordinance that deals with that, that would be something under DOTI review, and they did not highlight anything in their response. Water access was another comment that was heard, Idid send the plat over to William Nash at the Dare County Water Department and he indicated that lots A, B,C, and Ewould be allowed to tie into the water line that runs down Kitty Hawk Road. They are getting away from the practice of allowing what is called spaghetti line where it was a water line running through private property to access another property, so he indicated that lot D would have to be reliant on a well, they wouldn't let tying in from a connection in there 50 that was corrected that there is no water line that runs down for land. In your packet you received the revised plat, this is the plat that was presented to the Planning Board. One comment that was received by the fire department, was that the 15 feet access to lot E on Carrenda Lane be widened to 20 feet in the revised plat you can see the applicant has included a not change the actual property lines but included a5 51 feet wide access easement to allow the total of 20 feet come through there and that was to ensure that thei fire apparatus would have the width to get to the line. That highlights the concerns, you've got the specific standards there ini front ofy you, Itrust everyone's had the chance to go through them. Mll go over the Planning Board, their recommended conditions of approval with the wetland certification be added toi the plat, that has been handled, miscellaneous sheds and other structures that were indicated ont the initial plat be removed from setbacks prior to the preliminary final plat to Council, that has been reflected on the plat you have. Before anything could be recorded, that would be field verified, you would go out and ensure that those encroaching sheds are removed from the setbacks. Then the documentation didn't highlight that Carrenda Lane is a state maintained rightof way and in the section of this parcel, NCI DOT does not own the right of way and they have an easement for maintenance with the owner, retained ownership, but DOTi is permitted to go in there to maintain and repave the road when necessary, sO that documentation both from DOT and the attorney recommended or representing the applicant verifying that as well. Additional staff recommended condition of approval is that a disclaimer noting that approval of the subdivision does not guarantee septic approval on any individual lot be added to the plat as well before getting any kind of signatures of being recorded. With that, Iwillt turn it over toi the Council for any questions. The applicant is here on Garriss: Thank you, Rob. Council, if you don't mind, let me call Chief Talley. Chief1 Talley, willy you please come to the podium? Rob, you touched on fire protection and Chief Talley'sr recommendation. Deputy Chief Rogers recommended access to be widened to 20 feet. Mr. Richard brought up a concern earlier tonight in Public Comment, a very good concern about fire protection on Carrenda Lane in this Chief Talley: For this type of occupancy, our main concern is access to water supply. You can see we addressed the access portion of itj just to make sure that our fire apparatus can get in there. This was some time ago when we looked at it but int terms of water supply, we have an adequate water supply, 27/Page Town Council Meeting Minutes October 7, 2024  hand for any questions.  subdivision. He had a concern; can you tell us about it?    TOWN OF KITTY HAWK  the hydrant that is there on Kitty Hawk Road basically at the intersection of Kitty Hawk Road is considered a green top which is greater than at thousand gallons per minute that we can get out of that hydrant which is adequate. That's what we look fori is at least the green top or higher. Now, with the additional construction that is going on, will it reduce the water supply? That's something that they're going to have to run their numbers through the water department to determine. will say that just with the few of the properties Idon't know if you'll be able to see a drop to where you'd notice it but that'sa  question for the water department. Garriss: Where is the nearest hydrant?  Chief Talley: It'sj just west of Carrenda Lane on Kitty Hawk Road, basically at the corner of Carrenda and Hines: Would putting a condition of adding another hydrant somewhere back there in between cand e, would that help, or would that not really matter having a green topl hydrant already in place? Would Chief Talley: We could, but it's within the thousand feet we usually require. We look at one thousand feet as that's within our capabilities. Ithink it'sal lot less than one thousand feet. We look at it from that  Kitty Hawk Road.  that be excessive?  and it's well within that.  Hines: Even with that protocol in place it's really kind of pointless. it but that is going to be an expense for the builder.  Chief Talley: Yes, Idon'tthink in terms of what the code says we have we can enforce it; we can ask for Garriss: Any more questions for Chief Talley? I have some questions for Robi if none for Chief. Thank you, Chief, very much. Rob, we' 've gota a text amendment in place, thisi isa recent text amendment that has been revised twice that talks about continuous, contiguous, and connected, correct? Is this Testerman, Rob: Yes, one of thei illustrations that I'had in the packet showed the minimum lot size was being measured and you can see the note on the plats where it says for example, lot D says the total area of 23,026 square feet and the total uplands area 18,509 feet and then below that it has the uplands less the right of way at 15,029 feet, so that's indicating that from the edge of Carrenda Lane right of way, the western edge, there beyond meets the 15,000 square feet so it's got al little over 18,000 square feet of uplands but that includes the road in the upland area on the other side oft the road but that is not  subdivision continuous, contiguous, and connected?  being counted towards the minimum lot size. Hines: It's still making it by 10 square feet.  Testerman, Rob: Correct, all of them meet the 15,000 square feet of continuous, contiguous, and  connected uplands.  28Page Town Council Meeting Minutes October 7, 2024    TOWN OF KITTY HAWK  Garriss: What we have before us subdivision reviews or administrative decisions if all ordinance requirements are met the applicant is entitled to approval. My question is, have all the ordinance  requirements been met?  Testerman, Rob: In my review, they have. Garriss: Okay, don'thave any questions.  Tillett: Rob, have a question about the right of way not being turned over to the state on this parent parcel, is now the appropriate time to encourage that get turned over to the state? Testerman, Rob: Ithink that would be a conversation between the owner and the DOT. The current maintenance easement Iguess was agreed upon with the previous owner andi it runs concurrently with the land. Idon't know that it would be our place to make that determination. Tillett: That'snot: a requirement from our ordinance? Because it isal DOT right of way, and the new  subdivision is fronting a DOT right of way. Testerman, Rob: Correct.  Tillett: My second question, Rob, and Italked with you about this before the meeting, is that Ihave Testerman, Rob: The way our ordinance defines a flag lot is a lot with a narrow strip of land that widens out to meet the curb. Iwill pull up the ordinance, 50 my reasoning for not considering lot e as a flag loti is because on the western edge of it even though it's gaining access through Carrenda Lane, through the 151 feet wide strip, the western side of the property has around 1501 feet of road frontage on' West Kitty Hawk Road. There'snothing in our ordinance that says youl know it must access the lot where it meets that road frontage requirement. In my mind, the road frontage requirement is met on Kitty Hawk Road and that 1501 feet wide section on Carrenda Lane was provided as a means to gain access to avoid having to either, as we talked about earlier, if that weren'tthere it could achieved with an access easement through lot D or even applying for a permit with the Army Corps of Engineers to fill wetlands to access Tillett: So, the flagpole portion of this flag lot could be removed, and this lot still could be proposed as it  concerns about lot Ebeing labeled as at flag lot which our Town code prohibits.  on' West Kitty Hawk Road.  is.  Testerman, Rob: Correct, because it still has road frontage on Kitty Hawk Road. Tillett: In your opinion, in that case, it could not be classified as a flag lot?  Testerman, Rob: Correct, I'm not classifying it as a flag lot as it is because if that 1501 feet wide section were the only road frontage we had then it were landlocked from the other side, then lwould agree 100% that it is ai flag lot and would not be permitted but since it has a pretty wide area of road frontage 29IPage Town Council Meeting Minutes October 7. 2024  along Kitty Hawk Road, think that takes care of the requirement.    TOWN OF  KITTY HAWK  Hines: It's also not part of the lot, that'saneasement. Testerman, Rob: That'swithout the easement.  Hines: lunderstand, but where you're adding the! 51 feet wide access.  Testerman, Rob: Yes, but there's 15 feet wide that's part ofl lot E and then a 5f feet wide easement on  lot Dthat covers the fire department comment. Hines: Which creates an easement to get to E, right.  Tillett: You think Casey, our Town attorney, would agree with that interpretation, as well? Testerman, Rob: Yes, before this went to the Planning Board, whenever you have some proposals like this where there may be some sort ofi interpretation question, lusually reach out to him and get his Garriss: It talks about lot E having frontage on Carrenda Lane to provide access to those 151 feet. Any  input on it as well and he concurred. more questions, Dylan? Tillett: That'salllhave right now. Garriss: David? Hines: No. Garriss: Jeff? Pruitt: Not for Rob.  Walker, Charlotte: Rob, sO we have three lots or four lots that are on public water, then we have one that'son a well. All the rest oft the houses that are on Carrenda Lane are they on a well? Testerman, Rob: Idon't have that information, Idon't know. Ithink some may have water lines that come from Kitty Hawk Road or what the county referred to as spaghetti lines, but Idon't have that Walker, Charlotte: It looks like if there was one there, this lot would have been run from the rest. Garriss: Any more questions for Rob? Thank you, Rob. All right, discussion Council, there'sal lot to say. Pruitt: Okay, once again I'm going back to the Land Use Plan, Ikeep doing it over and over. Ireally don't think, and I've said this over and over, that when we set these standards of total area, even though continuous, contiguous, and all that, applies here. This is different than if we were in the upper partof 30Page Town Council Meeting Minutes October 7. 2024  information.    TOWN OF KITTY HAWK  Kitty Hawk, up on' Veterans or somewhere we are, it'sa all uplands and flat fields or like a foreman's building. This is a fragile low area, the impacts of some of this could cause significant flooding to the neighbors on all sides. Ithink it'sal little bit much, Iknow it fits everything. It's been brought up, it might be time for us back in Kitty Hawk' Village to maybe go looking at these lot sizes or something because it makes it hard for the Council to vote something down that meets all the requirements other than the CAMA Land Use Plan, whichidon't feel this meets in any kind of way. don't think it'si in harmony with nature, Ibelieve it'sgoing to cause hardships on some of the neighbors but other than that, that'sit.  Garriss: Thank you, Jeff. Charlotte?  Walker, Charlotte: Jeff, know there'sa lot and listen, it did not fall on deaf ears with what you had to say about it, but our hands are tied if it meets the requirements. Wei tried our best to make it so that we  wouldn't have this problem, but now we have it.  Garriss: Dylan?  Tillett: lagree with what's been said.Ithink if we don't like this, then we the people of Kitty Hawk need to change the ordinance that we have sO we can stand by what we want to see asa community, but this Garriss: lagree 100% but at text amendment came before this Council and was adopted by this Council  ini front of us meets the current ordinance.  pertaining to this same piece of property and we adopted it.  Tillett: Understood.  Garriss: Now we're saying that it's not acceptable. Pruitt: But Ididn't vote fori it. Ivoted against that last motion.  Hines: The thing about it is though, I'm going to stand beside everyone else's comments. agree, I personally look at these a lot and Iknow you do too, Idon't see anything on here that gives us any grounds to say no. But maybe iti is time that we investigate making lot sizes back there bigger or doing something to prevent, clearly this works today but doesn't mean it is going to continue to work as things change. Maybe we need to go back in, and don't know ift that's staff directed or how we do that. How Testerman, Rob: It starts with a text amendment to identify what we feel is not what we want to see or what's wrong with what's being built back there. The main things I've been hearing both with this and the other west village subdivision, is that there are too many lots, too dense of development, so 11 think the two main things to look at would be the density requirements, right now it's two dwellings per acre, maybe we want it to be one dwelling per acre, one dwelling per two acres. That's up for discussion and then the minimum lot sizes, you know we've got the Kitty Hawk Woods district along Woods Road that's got a minimum lot size of 80,000 square feet of uplands. We could look at something like that for the village. But, if Council wants me to start working towards something like that, Iwill.  do we do that? I don't like it, but it works.  31Page Town Council Meeting Minutes October 7. 2024    TOWA  TOWN OF  KITTY HAWK  Hines: Ithink we: should, 80,000 as an example though, that's almost two acres. It'sg got to be  reasonable.  Garriss: That's something we can let Rob look at.  Pruitt: These numbers work in certain areas; they just don't work in environmentally fragile areas. In Testerman, Rob: Al lot of that is int the Village Residential district, so if you want me to look at different density requirements, M'lI apply them to the VR1 district and not necessarily between the highways.  flooding areas, they just don'tfit.  Hines: Ithink that's what we need to do. Pruitt: We need to do something.  Walker, Charlotte: I'd be happier ifi it were four lots.  Hines: I'd be happy ifi it was three, but thet fact of the matter is it works.  Garriss: It meets what we have currently. Walker, Charlotte: Our hands are tied. they are and not let this happen again.  Hines: Even though I don't like this, it fits everything that have so how do you telli it no?  Hines: So, the only thing Iknow to doi is to start digging in to environmentally fragile, we all know where Garriss: Agreed. Any further discussion? Good discussion. Anyone like to entertain a motion? Folks,! will do it, we don't have a choice. I'm sorry. Imove to approve the preliminary final plat for 4234  Carrenda Lane as shown on the submitted plat. Dol Ihave a second?  Walker, Charlotte: Second.  Garriss: Second by Charlotte. Any further discussion? All in favor, say aye.  Hines, Tillett, Garriss, Walker: Aye. Garriss: All opposed? Pruitt: Aye. Melody.  Garriss: Okay, we have four in favor and one opposed. Thank you all. Okay, Town Manager report,  32IPage Town Council Meeting Minutes October 7. 2024    TOWN OF KITTY HAWK  12. Reports/General Comments from Town Manager  Clopton, Melody: Progress continues at the police building, concrete slab for the new addition as well as the canopy overhang have been poured. The shingle replacement is nearly completed, and the team is in the process of framing the interior walls and drywall work in the will start in the next several weeks, the walls in the new construction will go up in addition to new: siding and windows. The project remains on schedule with no safety events at the: site. On Saturday, October 12th, which is this coming Saturday between 10 and noon, we're having our community clean up. We're still registering volunteers, and we' 'd love to see everyone out to help. We will conclude the event with an old-fashioned cook-out, with burgers and hot dogs. I'm told Willie is the grill master, if want to register or need more information, visit the Town's website. The police have started the Faith and Blue initiative this month. The Kitty Hawk Police Department is partnering with five local Kitty Hawk churches, Kitty Hawk Baptist, Lighthouse Church, Holy Redeemer by the Sea Catholic parish, Kitty Hawk United Methodist Church, and the Unitarian Universalist congregation in support of the national Faith and Blue initiative. Each church plus other locations including Town Hall, police department and fire rescue are collecting non-perishable food donations through October 20th. Food willl be distributed October 23rd at the Kitty Hawk Baptist Church Fall Festival. I'm hoping that you willj join me in congratulating one of our most famous officers, Corey Morris, as the latest Officer of the Quarter. Officer Morris has established an excellent reputation throughout our Town, and he exemplifies community policing. We are extremely excited to be hosting our first ever community movie night, here at Town Hall on October 24th at 6:30. This is an outdoor family friendly free event. Just bring your chairs and come watch Hocus Pocus with your family, friends, and neighbors. Fall chipping begins next Monday, October 14th. Please have your vegetative debris ini the right of way before next Monday, again visit the Town's website for guidelines. That'sa alllhave, thank 13. Reports/General Comments from Town Attorney- Not applicable as Casey' Varnell was absent  you.  from the October 7th Town Council Meeting due to illness. 14. Reports/General Comments from Town Council  Garriss: Thank you, Melody. Charlotte?  Walker, Charlotte: Please keep in mind that iti is Fire Prevention Week, I would like to remind everyone to check the batteries in your smoke detectors. Iwant to thank Chief Talley and the fire department for all they do for us. Iknow you were at Kitty Hawk school today as well as Home Depot. Everything you do in our community brings us closer together andIreally appreciate what you do. I'm still sick about the  vote we had to make tonight. Thank you. Garriss: Thank you, Charlotte.. Jeff?  Pruitt: I'd like to thank Lee Nettles and. Jeff for being here from the Outer Banks Visitors Bureau. They contribute al lot to our here and I'd like to thank them for coming tonight and shedding a light on the respect for our area. Iwould also like to congratulate Corey; he is a man of the Town.Isee him all over and again Iwant to go to Chief Talley. Ispent a lot oft time at the beach this summer and the lifeguard service did a fantastic job. They were polite, Iwatched them when they were getting were, getting ready 33Page Town Council Meeting Minutes October 7, 2024    TOWN OF KITTY HAWK  to leave to advise people they were leaving and to watch their kids better andi it was a first-class operation.lreally, appreciate the job that was done by all the lifeguards and you as in charge. Thank you  very much, that's alllhave. Garriss: Thank you, Jeff. Dylan?  Tillett: Iwant to say thanks again to thet fire department, police department, and ocean rescue. All the staff for doing ai fantastic job. Congratulations to Officer Morris and thanks to him for providing a service to the Town like he does. One last thing to echo what the Mayor said at the beginning of the meeting, sharing our thoughts and prayers with our neighbors out west, and thanking all of those who have put  forth efforts to help with that tragedy. That's alllhave, thank you.  Garriss: Thank you, Dylan. David?  Hines: Ido want to congratulate Officer Morris; - think he's an incredible asset to the police department. Also, as Councilwoman Walker said, I'm going to lose sleep tonight with the Carrenda Lane thing. Idon't like and know the applicant is here, but it is what iti is, and don't like it but when your hands are tied your hands are tied. It reminds me of the candy store. Same thing, different location andl know it's not apples to apples, but youl know when iti fitsi it fits. Ivery much want Rob to start as soon as possible to start with the environmental areas first, you know. Maybe he will get some help from the AEC, I don't know. Iwant to reiterate thati it reminds me of the subdivision we had to approve in Wanchese a couple of years ago. Every Board member said if they could turni it down, they would but they can't so what you have to do is change it, so it doesn't happen again. So, that's where I'm at with that. Other than that, I've talked way too much tonight so I'm good. One more thing, if you're going to change your smoke detector batteries, go ahead and switch to one that's also a carbon monoxide Garriss: Thank you, David. Thank you everyone and thanks to all staff. Liliana, great jobt tonight as usual. Next month, Chief, we're going to talk about a fire truck 5O we can go ahead and give you the okay on that. Get the ball rolling on that. Thanks to everyone who spoke tonight, thanks to everyone thati is here. Itv was a long night but well worth it. That's alll Igot. Anything else? Motion to adjourn?  detector. Thank you.  Hines: Motion to adjourn. Garriss: Second? Pruitt: Second. 15. Adjourn Garriss: We are adjourned. Adjourned at 8:11 pm.  34/Pagc Town Council Meeting Minutes October 7, 2024    TOWN OF  KITTY HAWK  The Minutes of the October 7, 2024, Kitty Hawk Town Council Meeting are approved at the  November 4, 2024, Kitty Hawk Town Council Meeting.  D. Craig Garriss, Mayor  Lauren Garrett, Town Clerk  35IPage Town Council Meeting Minutes October 7. 2024    1b  TOWN 94 1981 HP  Resolution in Support ofHonoring Veterans by Participating in Operation Green Light  November 4, 2024 through November 11, 2024  WHEREAS, the Town of Kitty Hawk recognizes the necessity and value ofa dedicated Veterans Services Officer whose role includes aiding and advocating for local veterans by helping them to navigate the complexities of veteran-specific benefits, resources and programs and ensuring they WHEREAS, the Dare County Board of Commissioners established the Dare County Veterans Advisory Council in respectful recognition ofthe service and sacrifice ofall Dare County veterans WHEREAS, members of the Dare County Veterans Advisory Council assist veterans by serving as a liaison with the community in coordinating services and activities that benefit local veterans and their families and also solicit information and provide updates about activities honoring WHEREAS, the residents of Kitty Hawk have the utmost respect, appreciation and gratitude for all ofthe men and women who have selflessly served our country and our community in the U.S. Armed Forces and believe these service members should be granted specific recognition, and; WHEREAS, the contributions and sacrifices made by those who have served in the U.S. Armed Forces have been vital in maintaining the freedoms and way oflife enjoyed by our citizens, and Kitty Hawk seeks to honor these individuals who have made countless sacrifices for freedom by WHEREAS, veterans continue to serve our community in various organizations such as the American Legion, Veterans of Foreign Wars, religious groups and community organizations, as well as through civil service and by volunteering at various communitybased events, and; WHEREAS, approximately? 2000servicemembers transition to civilian communities annually, and currently 42 percent of transitioning service members stationed on bases throughout North Carolina plan to stay in North Carolina upon their transition to civilian life, and;  receive thel benefits and assistance they deserve, and;  as represented in all five branches ofthe United States military, and;  veterans in our community, and;  placing themselves in harm's way for the good ofa all, and;    WHEREAS, studies indicate that 44-72 percent of service members experience high levels of stress during transition from military to civilian life and that active military service members transitioning from military service are at al high risk for suicide during their first year afterm military WHEREAS, more than 3,200 veterans who are currently residing within Dare County are receiving services provided by the U.S. Department of Veterans Affairs (VA) that range from WHEREAS, the National Association ofCounties encourages all counties, parishes and boroughs to participate in Operation Green Light for Veterans by shining green lights throughout their communities to let local veterans know they are seen, appreciated and supported, and; WHEREAS, the Town of Kitty Hawk participated in Operation Green Light for the first time in November 2023 and an array of government buildings were illuminated with green lighting to demonstrate the community'sa appreciation of and support for local veterans, and; THEREFORE, BE IT RESOLVED, that having officially been designated a "Green Light for Veterans County". Dare County announces its upcoming participation in Operation Green Light 2024 and hereby declares November 4, 2024 through November 11, 2024 a time to salute and THEREFORE, BE IT FURTHER RESOLVED, that in observance of Operation Green Light 2024, the Kitty Hawk Town Council encourages its citizens to recognize the importance of honoring all those who madeimmeasurable sacrifices toj preserve our freedom by displaying green lights in a window of their place of business or residence from November 4, 2024, through  service, and;  healthcare to assistance with filing claims, and;  honor the service and sacrifices of our men and women in uniform, and;  November11,2024.  This the 4th day ofNovember, 2024.  D.Craig Garriss, Mayor  Lauren Garrett, Town Clerk    7c  AGENDA ITEM # Consent  DATE: November 4, 2024  SUBMITTED BY: Rob Testerman, Director of Planning & Inspections  SUBJECT: Planning & Inspections Refund Policy  BACKGROUND:  As the Town will now be accepting credit cards, we need to have our refund policy Without an adopted refund policy then we are exposing ourselves to possible losses due to the ability of our homeowners and contractors to dispute transactions with their With a refund policy is adopted and posted online, should a customer dispute charges, when the credit card company call the Town to investigate, we can verify to them Staffhas prepared the attached proposed Refund Policy for review and adoption  adopted by Council and posted online.  credit card company.  whether or not it met requirements oft the refund policy.  DISCUSSION:  RECOMMENDED MOTION: Consent Agenda Item    TOWN  1981 Ty HA  Refund Policy  Effective November 4, 2024, if you have obtained a permit from the town of Kitty Hawk's Planning & Inspections Department, you can request a refund if certain conditions are met.  These conditions include:  All requests for cancellation and/or refund of permit and/or permit fees must be submitted All requests must include a copy of the original permit and the reason why the cancellation All requests must be made by the person, firm, or corporation who paid the original permit No refunds shall be made when requested more than 30 days after the date of original  in writing to the Town of Kitty Hawk Planning Department.  and/or refund is being requested.  fee(s). payment.  The permit shall not be expired. Noi inspections have been conducted. Work has not started on the project.  Cancellation of a project or a change in the contractor or the transfer of ownership of the property while the permit is in effect does not constitute an appropriate request fora An administrative fee shall be deducted from the refund to reimburse the town for the cost of processing the permit and the refund. The administrative processing fee will be Clerical errors are eligible for a refund of 100% of the overpayment amount. The written request must be submitted within one year from the date of the occurrence for those Refunds for planning requests such as text amendments, special use permits, commercial site plan reviews, subdivision applications, and variance requests will be refunded per the Please allow upi to 45 days from when the complete request is received to process a  refund.  deducted based on the approved Town Fee Schedule.  instances.  approved Town Fee Schedule.  refund.    Td  AGENDA ITEM # Consent  DATE: November 4, 2024  SUBMITTED BY: Finance Director  SUBJECT: PCI DSS - Payment Card Industry Security Standards REF: Adoption of2 policies required by the PCI standards  PCI Compliance PCI Incident Response Plan  BACKGROUND:  The PCI SSC council developed the PCIDSS to encourage and enhance payment account data security and facilitate the broad adoption of consistent data security measures globally. It provides a baseline of the technical and operational requirements The Town of Kitty Hawk will accept credit card payments online or in person for Implementation oft the two policies is required before a merchant accepts credit card  toj protect payment account data. building permits and other planning fees.  payments. DISCUSSION:  RECOMMENDED MOTION: Consent Agenda Item    1  TOWN  1981 Ty HAY  PCI Compliance Policy  The payment card industry and the major card brands have a set of data security requirements--PCI DSS- - -that are unregulated by the government. Yet every company worldwide that accepts processes, stores, or transmits credit card information must comply with and follow the card brand's rules. Failure to do sO can result in penalties imposed by the card brands or, for businesses, the inability to accept credit cards. The PCI DSS is a set of comprehensive requirements for enhancing payment account security developed by the founding brands of the PCI Security Standards Council (PCI SSC). The council is responsible for managing the security standards, while the founding members enforce compliance with the PCI set of standards: American Express, Discover Financial Services, JCB International, Mastercard Worldwide, and PCI DSS includes technical and operational requirements for security management, policies, procedures, network architecture, software design, and other critical protective measures to prevent credit card fraud, hacking, and other security vulnerabilities and The standards are designed to protect the cardholder information of customers and any individual or entity that utilizes a credit card to transact business with the Town of Kitty Hawk. This policy is intended to be used in conjunction with the complete PCI-DSS requirements as established and revised by the PCI Security Standards Council. All departments with access to credit card information must comply with the PCI Policy. The Town of Kitty Hawk currently has a relationship with Payroc. It processes the Planning Department fees, building fees, and other miscellaneous payments by credit card using the Town of Kitty Hawk merchant account. Payroc does not store any credit  Visa Inc.  threats.  Scope:  card information.  Who should read this policy: Adopted 11/04/2024    2  All people who have access to credit card information, including:  Every employee who accesses and handles credit card information. The Town of Kitty Hawk employees include full-time, part-time, salaried, and hourly Employees who contract with service providers (third-party vendors) who process credit card payments on behalf of the Town of Kitty Hawk. ITStaff responsible for scanning the Town systems to ensure no credit card  employees.  numbers are stored electronically.  Overview:  The Town of Kitty Hawk policy prohibits storing credit card information in electronic format on any computer, server, or database, including Excel spreadsheets. Ita also The Town of Kitty Hawk prohibits employees from receiving credit card payments over Customers must log on to our website, navigate the building and planning section for payments, and select the desired payment method. If the payment is made with a credit The credit card reader will use walk-in payments with credit cards; the customer will Based on this policy, compliance with several PCI requirements does not apply. The following list communicates the full scope of the compliance requirements. Still, some may not be relevant based on the Town policy prohibiting storing credit card information electronically, and utilizing third-party vendors for web-based credit card processing  prohibits e-mailing credit card information. the phone. The same applies to e-mail requests. card, it will be redirected to Payroc for processing. follow the card reader's instructions.  might not be relevant. Standards:  The PCID DSS has 12 high-level requirements, which fall under six goals:  Build and maintain a secure network Protect cardholder data  Maintaining a vulnerability management program Implement strong access control measures Regularly monitor and test networks Maintain an information security policy  Ina addition, ensure third-party compliance and personnel training.  Adopted 11/04/2024    3  Recommendations: Service providers  Complete an annual sell-assessment  Perform a quarterly network scan by an approved ASV (approved scanning Without adherence to the PCI DSS standards, the Town of Kitty Hawk would be in a position of unnecessary reputational risk and financial liability. Merchant account  vendor)  holders who fail to comply are subject to:  Any fines imposed by the payment card industry Suspension of the merchant account  Any additional monetary costs associated with remediation, assessment, forensic  analysis, or legal fees  Procedures:  The Town of Kitty Hawk requires compliance with PCI standards. To achieve compliance, the following requirements must be met by departments accepting credit  cards to process payments on behalf of the Town.  The Finance Director must approve credit card merchant accounts Management and employees must be familiar with and adhere to the PCI-DSS requirements of the PCI Security Standards Council Third-party vendors (processors, software providers, payment gateways, or other  service providers)  The Finance Director must approve each merchant bank or processing contact of any third-party vendor that is engaged in or proposes to engage in the processing of transaction data on behalf of the Town of Kitty Hawk, regardless of the manner Ensure that all third-party vendors adhere to all rules and regulations governing Contractually require that all third parties involved in credit card transactions meet  or duration of such activities cardholder information security all PCI security standards  Self-Assessment:  The merchant account owner must complete the PCI-DSS self-assessment questionnaire annually and whenever a credit card-related system or process changes. The IT  department should do this assessment.  Training: payments. Adopted 11/04/2024  Training and awareness will be offered to staff involved in the process of credit card    4  The Finance Director shall serve as the policy coordinator, which includes notifying the IT department, department heads, and other managers of policy changes. The Finance  Director will be assisted by other Finance staff as needed.  Enforcement:  Ifp policy violations are found, the IT department will investigate and report violations of this policy, lead investigations about credit card security breaches, and terminate access  to protect information from any users who fail to comply with the policy.  Adopted 11/04/2024    1  TOWN  1981 y HA  PCI Incident Response Plan  To address credit cardholder security, the major card brands (Visa, Mastercard, Discover, American Express, and JCB)jointly established the PCI Security Standards Council to administer the payment card industry data security standards (PCI DSS) that provide specific guidelines for safeguarding cardholder information. One of these guidelines requires that merchants create a security incident response team and document an incident response plan. The Town of Kitty Hawk security incident response  team is composed of the following: ITD Department Finance Director Town Manager Police Chief  Incident Response Plan Requirements  PCI DSS says that an organization should implement an incident response plan. The incident response plan must contain procedures to verify that the town is prepared to respond to any confirmed or suspected breach and mitigate missed steps to limit Itis critical to remember that any confirmed or suspected breach be reported immediately to the response team. Do not allow access to the system or make any attempts to change the system until further notice has been given. PCI DSS has very strict rules governing who will investigate confirmed or suspected PCI data breaches and will decide ifi it is to be done by a PCI Forensic Investigator (PCIF FI). Any attempts by the town to investigate before being notified can result in substantial fines, as  exposure to a system breach.  forensic data (i.e., what is stored in memory) can be lost.  Adopted 11/04/2024    2  Departments  When a breach occurs or is suspected, it is critical to preserve the evidence. It may be tempting to reboot devices, clear up log files, update security patches, remove suspect software, and generally try to cover as quickly as possible. However, careful preservation of evidence is vital both in isolating the root cause of the breach and identifying the perpetrators. Because digital evidence is easily contaminated, maintaining a strict chain of custody is crucial to achieving proper investigation results. Incase of any confirmed or suspected data breach or compromise, contact the Do not access or alter confirmed or suspected compromised system (s) Do not turn off the confirmed or suspected compromised system (s) Isolate the confirmed or suspected compromised system(s) from the network by unplugging the network cable or the phone cable if the POS appears to have  response team immediately.  been tampered with (IT)  ITD Department  Itis on high alert and monitors all system(s) with cardholder data environment  Finance and Administrative Department  Maintains the PCI DSS Incident response plan  Determine what the Town's reporting obligations are and will make a reporting decision regarding notice to the merchant provider, card brands, and lor Coordinates incident response and notification efforts, including evidence gathering, forensics, evaluating the scope, and ensuring communication between Documents all actions taken, including dates and individuals involved Initiates and maintains contact with the acquiring bank Determines the official line of notification Acquiring Bank is also known as the merchant bank Assesses the information supplied by the Town Payment Card Industry Forensic Investigator (PFI)  cardholders  all the appropriate parties.  Can require the PFI (payment card industry forensic invesigatoinvestgation  Will determine if the facility needs to be visited or reviewed Does the investigation report in a secure and timely manner  Provided the Town with feedback  Adopted 11/04/2024    3  Procedure  The Town of Kitty Hawk PCI security incident response team must be contacted by a department in case of a system compromise or a suspected system compromise. After being notified of a compromise, the response team will implement their incident 1. Ensure the compromised system is isolated from all other systems 2. Gather, review, and analyze all centrally maintained system logs 3. Assist the department in the analysis of the locally maintained system and other 4. Conduct appropriate forensic analysis of the compromised system 5. The PCI governance group will determine what the Town's reporting obligations are and will make a reporting decision regarding notice to the merchant provider, 7. Make forensic and log analysis available to appropriate law enforcement or card 8. Assist law enforcement and card industry security personnel in the investigative 9. Conduct a post-incident meeting to review the incident and determine what corrective adjustments to the PCI compliance policy and related policies and procedures are needed to help prevent a similar event and whether any Ina addition, credit card companies have specific requirements that the response team must address when reporting suspected or confirmed breaches of cardholder data. See  response plan as follows:  logs, as needed  card brands, and/or cardholders industry security personnel  6. Contact other law enforcement agencies as appropriate  process  adjustment to the incident response plan is needed.  Appendix A for these requirements.  APPENDIXA  Mastercard- responding to a breach. Follow the steps outlined in the resource: https/www.mastercard.com/contenldam/pblcmastercardcom/gobalnisk/pd/ADC- Visa-r responding to a breach Follow the steps outlined in the resource:  Best-Pracice-Manual. pdf.  https/usa.Visa.com/contenldamACoMIdobalsupport-legaldocuments/responding.to-  a-data-breach.pdt  American Express-responding to a breach Follow the steps outlined in the resource:  https/www.americanexress.com/conten/camlemexlus/merchant/merchant-  channel/Data Incident What do do Final US.pdf  Adopted11/04/2024    9q  TOWN 1981 HA  Post Office Box 549 101 Veterans Memorial Drive Kitty Hawk, NC 27949  Phone (252)261-3552 Fax (252)261-7900 WADMTONIMTOMKO9  MEMORANDUM  TO:  Mayor Garriss and Members of the Town Council  FROM: Rob Testerman, AICP, CFM, CZO, Director of] Planning & Inspections  DATE: November 4, 2024  RE:  Text Amendment: 42-360.- Sound waters district  Due to procedural issues during the October 7, 2024 public hearing, staff has been advised to rehear the proposal in a new public hearing. As such, staffis recommending scheduling a new Note: A zoning text amendment decision is a legislative decision. The purpose oft thel hearing is to solicit public comment and opinion on the matter. Council may use public opinion to weigh options  public hearing for the December 2 meeting.  and use judgement to determine what is in the best interest ofthe Town.  Proposal  42-360.- Sound Waters district with the following requirements: the facility and use;  (b). Permitted uses. The following uses shall be permitted by right:  (3) Private, community or commercial piers and boat slips, subject to continuing compliance  a.That all appropriate governmental and regulatory agency permits have been issued for b.The land activities of the marine use must be an authorized use within the zoning district where the land activities associated with the: marine use will be conducted; C.A site plan of the land and water areas to be utilized for the use or uses depicting the location ofall proposed and existing improvements must bei reviewed and approved by the town. The site plan must conform with the general site plan standards of this chapter d.The maximum length ofall marine improvements, including the pier or docking facility in its entirety, shall be measured from the furthest waterward point oft the normal high water mark oft the bay or sound adjoining the property. Thei marine improvements can be placed in any location within the property and extend out to the established distance.  together with the additional standards ofthis section.  Type of] Pier/Docking Facility Private residential pier/docking facility Community pier/docking facility Commercial pier/docking facility  Maximum Length 400 feet 400 feet 400 feet    Text. Amendment: 42-360.- Sound waters district  November 4, 2024 Page 2  Iti is the intent of this subsection to encourage all marine improvements to be located in e. Light fixtures and lighting. Private and community piers, and commercial piers on Kitty Hawk Bay as well as boat slips used with the piers shall have and maintain lights or reflectors to warn watercraft operators ofthel length and location of the pier and boat slips. A minimum length of15 feet shall bei maintained between lights or reflectors along the sides ofthe pier and not more than two lights shall be located at either end oft the pier. Except as provided in this subsection, lights shall not be attached to or on the pier or boat f.I Devices used to create noise or amplified sound shall not be attached to or used on the g. Group social or party activities shall be prohibited on the pier between the hours of i. Community piers shall be used by the property owners ini the multifamily project or subdivision, their guests, or vacation tenants during the rental period oft their lease, and j.No transit boats shall be left at a community pier for more than 48 consecutive hours. k. A boat dock locker may bel located at each boat slip, provided the locker does not  areas that minimize their impact on the coastal marshes.  slips. pier.  8:00 p.m. in the evening through and including 8:00 a.m.  h. Covered boat slips are prohibited.  community and private piers shall not be open to the general public. exceed two feet in height measured from the pier deck. 1N No fuel dispensing facility shall be located on a pier. m. Hunting and igniting fireworks shall bej prohibited from the pier.  n. The owner of the pier shall place into effect and maintain casualty insurance in an amount equal to 80 percent ofthe replacement cost oft the pier with evidence thereof o.The pier and boat slips must bei maintained in a good and safe condition at all times. p. Damage from storms or other casualties must be repaired within six months ofthe occurrence oft the damage. Abandoned piers or piers damaged to the extent of50 percent or more ofits fair market value and which have been unrepaired for a period ofnine consecutive months, may be removed by the town and the cost ofremoval charged to and  furnished to the town upon request.  assessed against thej property owners or their association. q. There shall be only one pier per parcel or lot.  (c). Special uses.  (2)F PFVate,cePiuniyercemmerea-pe-pesaebeaE4P-sabetocenineng-cemp-anee -hatalapprepmategevemmenalantregwaleyegeneypemis-havekeeissued-erthe -PhelandastivleseefhemaReusemNsemustbeanauhevadusewihaheremingdistietwhere A-Sie-plan-efthefthelamd-ané-waterareastebetlHzed-ertheuseerases-depietingthe-leeation ofal-preposed-andensingimprevements-muSEberewewet-and-appreved-bythertewn-The-sie PlaP-RHS-eeMOFR-Hthegenera-sHepansanereseftisehapleriegeherVi#he -The-maimum-eng#eFal-marimeimprevemenig,1mehdngthepierordeeking-faeHity-n-its entirely,shal-bemesured-fom-the-furthestwaterwardpeintefthememma-high-watermarket  With-the-eHewngrequirements: aellity-and-use;  the-landaetvities-asoetiaiedwathta-marinesewlbeeendueted;  déitiemal-standards-efthisseetien:    Text Amendment: 42-360.- Sound waters district  November 4,2024 Page3  hebay-erseundadgeimingthepreprepery-The-marneimprevementisam-beplaeid--any-leeation  Within-thepropertyandextendewHetheeslab-sshed-distanee:  bpeafPaiighals, Privaiereidenialpierdeckingaeility Communitypierdeekingfaelity Cemmereial-pierdeking-faellty  Masimum-Length 100feet 200-feet 200feet  tistheintentettofthisswbsechenteneeurageal-mal-marimeimprevementste-beleeted--areas-that -Ligt-Aures-ansanegHtIng-PFVle-ane-cemmuntypresyantreemmereia-pres>ersen-i#ty-Haws Bay-as-wel-as-beatshps-sedwAthteplersshal-haveandmaintain-ghiserrellters-te-war WatereraiteperateraterseFthelengthandeaHoRefthepierame-beatsHps-A-MHRNumlengthet S-feet-shal-be-mintainedbeiweelween-ghtserrelleeerselengthesidesefthepierand-met-mere han-twe-lights-shal-beleeated-atitherendefthefthepier-Exeeptas-previded-m-hhis-subseetion, Devicesusedeerelemeseeramp-igiseuméshanebeatachsdieerusedonthepie: -Greup-seeia-erpartyaetivlesshal-beprehbiedontmepierberbetweenthe-heurt8:00p-: CeReRypiershalbeusetbythepmepertyownetbinthe-multfamily-prejeeter sebdivisien,thergwess,ervacaientemansdwmngtherema-penedeFtheirlease,and -Netransitbeats-sal-belelatecemmuntyperforermerethan-4scensecutive-heuEs. k-A-beatdeekleekermeybe-oeatedateachbeatshP-prewided-thelekerdeesmes-metexeeed-twe  mmimietherimpastonthecsia-mahe:  Nisshal-motbeaHeatachateerenthepiererbeathPs. ntheevemingthroug*and-ReldHading8:00-a-m: -Coyered-beatsipsareprehbied:  ORRRURNY-aRePrersshe-m-seepem-e-hegeneral-pHbe.  thehmre-omteperdek: Ne-fue-tispensinglselnyshalseleeaiederepier. m-Huntingandigntingfireweksshalbeprehbieel-rem-thepier.  -The-ewmerofthepiershaltpiaceime-electand-maimtaineasualtyimsuranee-im-an-ameunt aesepesmoflhereferphsmiefa-pethdseiwehsoffamahaiotie .Thepieramdbeatspsmubemaintainetinegeadanésaie-cemitien-atal-times. P-Pamage-from-stemstemmsorethereasualtesmus-berepatredwihIRSk-ReRthseFthe-eceurrenee fthe-damage-Abandemeépieserpitesdamegadietaeeseswemsefsepesenkeentermereefits-air market-vakue-and-whch-havebeen-umrepairederaperiedefnine-conseutive-mnths,may-be emovelbytaelowmamndfmwaepley  ewp-upen-request:  MRRFeFaSNNeN Background & Analysis  -There-sha-be-elyomepierperpareel-erlet:  The proposed amendments to 42-360 would has two components. First, it reclassifies piers and docking facilities from a special use to a permitted use. A special use permit requires an evidentiary based hearing, and is a quasi-judicial decision tol be made by Town Council. In practice, staff is unaware ofany piers that have gone through the process ofas special use permit hearing. As such, staffrecommends making this a permitted use, with the same conditions of approval to be applied. Similar to a single-family residence is a permitted use in residential    Text Amendment: 42-360.- Sound waters district  November 4,2024 Page4  districts, but it is conditioned on the site plan meeting setback, lot coverage and height requirements. This reclassification would make this an administrative decision, where as long as The second part of thej proposal changes the maximum pier/docking facility length. In recent months, the Board of Adjustment has approved one variance fora a 300' pier, had a second application for a pier exceeding 100', and staff has had discussions with at least 3 other property owners who are considering such an application. The reason being, it appears that ini many cases on our sound front properties, a 100' long pier does not get you into deep enough water to launch aboat. A variance is intended to grant reliefto a unique scenario that certain regulations may create for a property owner. Iti is staff's opinion that ift the Town is routinely hearing requests and granting variances for the same issue, then that issue/scenario is no longer "unique", and that the ordinance should be brought in line with the patterns oft the repeated variance request. The proposed length of400' was selected based on CAMA regulations. For private piers and community piers CAMA can issue a general permit for piers up to 400' in length. However, to receive a general permit for aj pier longer than 200' the applicant must demonstrate that for every additional 100' in length, 1' of water depth is gained. CAMA does allow piers longer than 400' ifal Major permit is obtained. Commercial piers also require a Major permit, regardless of As proposed, should a property owner require a pier longer than 400' they would have to go All other requirements for piers/docking facilities are proposed to remain as they are currently The goals and policies listed in the CAMA Land Use Plan are silent on this matter.  the conditions above are met, the owner is entitled to approval.  length.  through the variance application procedure.  written.  Attachments 15A NCAC 07h. 0208 15A NCAC 07h. 1205  Both sets ofCAMA rules include CAMA regulations for issuance ofa CAMA permit for piers/docking facilities. Please note that regardless of what length the Town allows, aj pier is not  guaranteed to obtain CAMA approval for that length. Planning Board Recommendation proposed amendment.  Ati its August 15, 2024 meeting, the Planning Board unanimously recommended approval of the  Town Council Recommended Motion  "I move to set a public hearing at the Town Council meeting on December 2, 2024 to  consider the proposed text amendment to Sec 42-360."    Text. Amendment: 42-360.- Sound waters district  November 4, 2024 Page 5  Measurement da a Feet(US)"  Measurement Result 236.9 Feet (US) Clear  PresCIRLIC  Measurement a : a Feet(US)- MeasurmentRassk 200.6 Feet (US)    Text Amendment: 42-360.- Sound waters district  November 4, 2024 Page 6  Measurement B : E Feet(US)  MoasummentRsut 399.6 Feet (US) Clear  Measurement 8 E Feet(US)  Measuremenk Resuk 399.6 Feet (US) Clear    5A, - NCAC 07h.0208  (F) Marina basins shall be designed to promote flushing through the following design () the basin and channel depths shall gradually increase toward open water and shall never be deeper than the waters to which they connect; and (i) when possible, an opening shall be provided at opposite ends of the basin to (G) Marinas shall be designed so that the capability of the waters to be used for navigation or for other public trust rights in estuarine or public trust waters are not jeopardized while (H) Marinas shall be located and constructed so as to avoid impacts on navigation throughout all federally maintained channels and their boundaries as designated by the US Army Corps ofl Engineers. This includes permanent or temporary mooring sites; speed or traffic reductions; or any other device, either physical or regulatory, that may cause a federally (I) Open water marinas shall not be enclosed within breakwaters that preclude circulation sufficient to maintain water quality as determined by the Division of Water Resources. () Marina design shall comply with all applicable EMC requirements 15A NCAC 02B .0200 for management of stormwater runoff. Stormwater management systems shall not be located within the 30-foot buffer area outlined in 15A NCAC07H. .0209(d); (K) Marinas shall post a notice prohibiting the discharge of any waste from boat toilets and (L) Boat maintenance areas shall be designed so that all scraping, sandblasting, and painting will be done over dry land with collection and containment devices that prevent entry of (M) All applications for marinas shall be reviewed by the Division of Coasta! Management to consider the cumulative impacts of marina development in accordance with G.S. 113A- (N) Replacement of existing marinas to maintain previous service levels shall be allowed provided that the development complies with the standards for marina development (A) Piers shall not exceed six feet in width. Piers greater than six feet in width shall be permitted only if the greater width is necessary for safe use, to improve public açcess or (B) The total square footage of docks, platforms, and mooring facilities (excluding the pier) allowed shall be eight square feet per linear foot of shoreline with a maximum of 2,000 square feet to limit shading impacts to the substrate. In calculating the total square footage, uncovered open water slips shall not be counted in the total. Projects requiring dimensions greater than those stated in this Rule shall be permitted only if the greater dimensions are necessary for safe use, to improve public access, or to support a water dependent use that cannot otherwise occur. Size restrictions shall not apply to1 marinas; (C) Piers and docking facilities over coastal wetlands shall be: no wider than six feet and shall be clevated at least three feet above any coastal wetland substrate as measured from the (D) A boathouse shall not exceed 400 square feet except to accommodate a documented need, provided to the Division of Coastal Management by the applicant for a larger boathouse and shall have sides extending no farther than one-half the height of the walls as measured from the Normal Water Level or Normal High Water to the bottom edge ofthe roofline, and covering only the top half of the walls. Measurements of square footage shall be taken of the greatest exterior dimensions. Boathouses shall not be allowed on lots with less than 75 linear feet of shoreline, except that structural boat covers utilizing a frame-supported fabric covering may be permitted on properties with less than 75 linear feet of shoreline when using screened fabric for side walls. Size restrictions do not apply (E) The total area enclosed by an individual boat lift shall not exceed 400 square feet except  criteria:  establish flow-through circulation; allowing the applicant access to deep waters;  maintained channel to be: restricted;  listing the availability of local pump-out services; waste materials into adjacent waters;  120(a)(10); and within this Section.  (6) Piersand Docking Facilities.  to support a water dependent use that cannot otherwise occur;  bottom of the decking;  to marinas;  toa accommodate a documented need for a larger boat lift;    (F) Piers and docking facilities shall be single story. They may be roofed but shall not be  designed to allow second story use; (G) Pier and docking facility length shall be limited by:  (i)  not extending into the channel portion oft the water body; and  (i) not extending more than one-fourth the width ofa natural water body, or human- made canal or basin. Measurements to determine widths of the water body, canals, or basins shall be made from the waterward edge of any coastal wetland vegetation that borders the water body. The one-fourth length limitation does not apply in areas where the U.S. Army Corps of Engineers, or a local government in consultation with the Corps of Engineers, has established an official pier-head line. The one-fourth length limitation shall not apply when the proposed pier is located between longer piers or docking facilities within 200 feet of the (ii). Notwithstanding Subparts (i) and (i) of this Part, the proposed pier or docking facility shall not be longer than the pier head line established by the piers or docking facilities along the same contiguous shoreline having the same land use, nor longer than one-third the width of the water body. This restriction does not apply to piers 100 feet or less in length unless necessary to avoid unreasonable interference with navigation or other uses of the waters by the public. (H) Piers or docking facilities longer than 400 feet shall be permitted only if the proposed length gives access to deeper water at a rate ofa at least 1 foot for each 100 foot increment of length longer than 400 feet, or, if the additional length is necessary to span some obstruction to navigation. Measurements to determine lengths shall be made from the waterward edge of any coastal wetland vegetation that borders the water body; Piers and docking facilities shall not interfere with the access to any riparian property and shall have a minimum setback of 15 feet between any part of the pier or docking facility and the adjacent property owner's areas ofr riparian access. The line of division of areas of riparian access shall be established by drawing a line along the channel or deep water in front oft the properties, then drawing a line perpendicular to the line of the channel so that iti intersects with the shore at the point the upland property line meets the water's edge. The minimum setback provided in the rule may be waived by the written agreement of the adjacent riparian owner(s) or when two adjoining riparian owners are co-applicants. If the adjacent property is sold before construction of the pier or docking facility commences, the applicant shall obtain a written agreement with the new owner waiving the minimum setback and submit it to the permitting agency. prior to initiating any development of the pier. Application of this Rule may be aided by reference to the approved diagram in 15A NCAC 07H .1205(t) illustrating the rule as applied to various shoreline configurations. When shoreline configuration is such that a perpendicular alignment cannot be achieved, the pier shall be aligned to meet the intent of this Rule to the maximum extent practicable as determined by the Director of the Division of Coastal (J) Applicants for authorization to construct a pier or docking façility shall provide notice of the permit application tot the owner of any part ofa shellfish franchise or lease over which the proposed dock or pier would extend. The applicant shall allow the lease holder the opportunity to mark ai navigation route from the pier to the edge of the lease. (A) Bulkhead alignment, for the purpose of shoreline stabilization, shall approximate the (B) Bulkheads shall be constructed landward of coastal wetlands in order to avoid significant (C) Bulkhead backfill material shall be obtained from an upland source approved by the Division of Coastal Management pursuant to this Section, or ifthe bulkhead is aj part ofa permitted project involving excavation from a non-upland source, the material so (D) Bulkheads shall be permitted below normal high water or normal water level only when  applicant's property.  (I)  Management; and  (7) Bulkheads  location of normal high water or normal water level; adverse impacts to coastal resources;  obtained may be contained behind the bulkhead; the following standards are met:    15A NCAC07H.1205 SPECIFIC CONDITIONS high water line or the normal water level, whichever is applicable.  (a) Piers and docking facilities may extend or be located up to a maximum of 400 feet waterward from the normal (b) Piers and docking facilities shall not extend beyond the established pier length along the same shoreline for similar use. This restriction shall not apply to piers and docking facilities 100 feet or lessi in length unless necessary to avoid interference with navigation or other uses of the waters by the public such as blocking established navigation routes or interfering with access to adjoining properties as determined by the Division of Coastal Management. The length ofpiers and docking facilities shall be measured from the waterward edge of any wetlands (C) Piers and docking facilities longer than 200 feet shall be permitted only if the proposed length gives access to deeper water at a rate ofat least one foot at each 100 foot increment of pier length longer than 200 feet, or if the additional length is neçessary to span some obstruction to navigation. Measurements to determine pier and docking facility lengths shall be made from the waterward edge of any coastal wetland vegetation that borders the water (d) Piers shall be no wider than six feet and shall be elevated at least three feet above any coastal wetland substrate (e) The total square footage of shaded impact for docks and mooring facilities (excluding the pier) allowed shall be 8s square feet per linear foot of shoreline with a maximum of 800 square feet. In calculating the shaded impact, (f) The maximum size of any individual component of the docking facility authorized by this general permit shall (g) Docking facilities shall not be constructed in a designated Primary Nursery. Area with less than two feet of water at normal low water level or normal water level under the general permit set forth in this Section without prior (h) Piers and docking facilities located over shellfish beds or submerged aquatic vegetation as defined by the Marine Fisheries Commission may be constructed without prior consultation from the Division of Marine Fisheries (1) Water depth at the docking facility location is equal to or greater than two feet of water at normal (2) -The pier and docking facility is located to minimize the area of submerged aquatic vegetation or shellfish beds under the structure as determined by the Division of Coastal Management. () Floating piers and floating docking façilities located in Primary Nursery Areas, over shellfish beds, or over submerged aquatic vegetation shall be allowed if the water depth between the bottom of the proposed structure and G) Docking façilities shall have no more than six feet of any horizontal dimension extending over coastal wetlands and shall be elevated at least three feet above any coastal wetland substrate as measured from the bottom of the (k) The width requirements established in Paragraph (d) of this Rule shall not apply to pier structures in existence on or before July 1, 2001 when structural modifications are needed to prevent or minimize storm damage. In these cases, pilings and cross bracing may be used to provide structural support as long as they do not extend more than two feet on either side of the principal structure. These modifications shall not be used to expand the floor decking (I) Boathouses shall not exceed a combined total of 400 square feet and shall have sides extending no further than one-halft the height of the walls as measured in a downward direction from the top wallj plate or header to thel Normal Water Level or Normal High Water and only covering the top half of the walls. Measurements of square footage shall be taken of the greatest exterior dimensions. Boathouses shall not be allowed on lots with less than 75 linear feet of shoreline. Structural boat covers, utilizing frame-supported fabric covering, can be permitted on properties (n) Piers and docking facilities shalll be single story. They may be roofed but shall not allow second story use. (0) Pier and docking facility alignments along federally maintained channels shall also meet Corps of Engineers regulations for construction pursuant to Section 10 of the Rivers and Harbors Act of1899(33 U.S.C. 403). (p) Piers and docking facilities shall in no case extend more than 1/4 the width of a natural water body, human- made canal, or basin. Measurements to determine widths of the water body, human-made canals, or basins shall be made from the waterward edge of any coastal wetland vegetation which borders the water body. The 1/4 length limitation shall not apply when the proposed pier and docking facility is located between longer structures within  that border the water body.  body.  as measured from the bottom of the decking.  uncovered open water slips shall not be counted in the total.  not exceed 400 square feet.  approval from the Division of Marine Fisheries or the Wildlife Resources Commission. ort the Wildlife Resources Commission ift the following two conditions are met:  low water level or normal water level; and  the substrate is atl least 18 inches at normal low water level or normal water level.  decking.  ofplatforms and piers.  withl less than 75 linear feet of shoreline when using screened fabric for side walls. (m) The area enclosed by al boat lift shall not exceed 400 square feet.    200 feet oft the applicant's property. However, the proposed pier and docking facility shall not be longer than the pier head line established' by the adjacent piers and docking facilities or longer than 1/3 the width of the water body. (q) Piers and docking facilities shall not interfere with the access to any riparian property, and shall have a minimum setback of 15 feet between any part of the pier and docking facility and the adjacent property lines extended into the water at the points that they intersect the shoreline. The minimum setbacks provided in this Paragraph may be waived by the written agreement of the adjacent riparian owner(s), or when two adjoining riparian owners are co-applicants. Should the adjacent property be sold before construction of the pier commences, the applicant shall obtain a written agreement with the new owner waiving the minimum setback and submit it to the Division of Coastal Management prior to initiating any development of the pier or docking facility. The line of division of areas of riparian access shall be established by drawing a line along the channel or deep water in front of the property, then drawing a line perpendicular to the line of the channel so that it intersects with the shore at the point the upland property line meets the water's edge. Application of this Rule may be aided by reference to the diagram in Paragraph (t) of this Rule illustrating the Rule as applied to various shoreline configurations. Copies of the diagram may be obtained from the Division of Coastal Management website at htp.rww.nccoasalmanagememtnetWhen shoreline configuration is such that a perpendicular alignment cannot be achieved, the pier or docking facility shall be aligned to meet the intent of this Rule to the maximum extent (r) Piers and docking facilities shall provide docking space for no more than two boats, as defined in 15A NCAC 07M .0602(a), except when stored on a platform that has already been accounted for within the shading impacts condition ofthis general permit. Boats stored on floating or fixed platforms shall not count as docking spaces. (s) Applicants for authorization to construct a pier or docking facility shall provide notice of the permit application to the owner of any part of: a shellfish franchise or lease over which the proposed pier or docking facility would extend. The appliçant shall allow the lease holder the opportunity to mark a navigation route from the pier to the  practicable.  edge of thel lease.  () The diagram shown below illustrates various shoreline configurations:    loa  TOWN 1981 YHP MEMORANDUM  Post Office Box 549 101 Veterans Memorial Drive Kitty Hawk, NC 27949  Phone (252)261-3552 Fax (252)261-7900 WMAOMTONIMTNKOE  TO:  Mayor Garriss and Members of the' Town Council  FROM: Rob Testerman, AICP, CFM, CZO, Director ofPlanning & Inspections  DATE: November 4, 2024  RE:  Text Amendment: 42-504.- Yards generally  Note: A zoning text amendment decision is a legislative decision. Thej purpose oft the hearing is to solicit public comment and opinion on the matter. Council may use public opinion to weigh options and use, judgement to determine what is in the best interest oft the Town. Council should also consider  consistency with the adopted Land Use Plan for legislative decisions.  Sec. 42-1.- Definitions  Accessory. structure means a non-habitable building on the same lot, but detached from the principal building, for which the use is incidental and subordinate to the principal use. In residential districts, accessory buildings may be detached garages, workshops, storage sheds, hobby-type greenhouses or similar minor buildings (roofed structures). Shipping containers shall  not be used as accessory structures. Sec. 42-504.- Yards generally.  (k) For residential uses, accessory structures as defined in Sec. 42-1, not exceeding 144 sq. ft. in area and not exceeding 15 feet inl height, must meet front yard building setbacks, but can encroach as close as five feet to side and rearj property lines. On corner lots or double-frontage lots, accessory structures must meet the principal structure setback on the street side/rear yard. Accessory structures exceeding 144 sq. ft. in area and not exceeding 15 feet in height must meet  the principal structure setback requirements.  Background & Analysis  The proposed amendment to 42-1 defines accessory structures. Note that this definition is separate from and does not include accessory dwelling unit. An accessory structure refers to The proposed amendment to Sec. 42-504 adds subsection (k) that would create an exception to the side and rear setback requirements for accessory structures ofa certain size. As proposed, accessory structures not exceeding 144 sq. ft. and 15' in height would be permitted to encroach Currently, any structure taller than 30 inches from grade must meet the same setbacks that are in place for the primary structure (minimum of 10' side setbacks, 25' front and rear). The requirement to place a storage shed, or a greenhouse, etc. 25' away from the rear property line  structures not intended for habitation on a parcel.  as close as 5' to the rear and side property lines.    Text Amendment: Accessory structures; setbacks  November 4, 2024 Page2  can create a disjointed backyard for the property owner, whereas allowing these small, uninhabitable structures to encroach as close as 5' to the side and rear property lines will allow thej property owner greater freedom in their yard design, as well as allow for al larger  minteruptealcontiguous yard.  Accessory structures that are larger than 144 sq. ft. and/or 15' in height would continue to be permitted, however accessory structures exceeding these size thresholds would still be required to maintain the primary structure setback standards. The language also indicates that accessory structures on çorner lots or double-frontage lots would be required to meet the primary structure setback line from the street (10' side setback on corner lots, 25' rear setback on double-frontage Its should be noted, in a scenario where someone constructed a size compliant accessory structure (no larger than 12'x12', and no taller than 15' in height) and the owner wanted to use the accessory structure as a workshop, or other noise-generating use, Sec. 18-2.-1 Noise Control Alternatively, ifthere is concern that noise-generating uses could become a nuisance to neighboring properties, Council could opt to add additional restrictions to accessory structures located 5' feet from the side and rear property lines. Specifically, the use ofs such structures can be limited to non-noise generating uses. Ifadopted with the additional requirement, should an owner begin using such a structure as a workshop it would constitute a zoning violation, and the enforcement process would begin upon receipt ofa complaint. Possible language to add to the  lots).  would apply.  end of42-504(k) to address this concern could be worded as follows:  Accessory structures located within the setback exemption area created by this subsection are limited to non-noise generating uses, including but not limited to storage sheds or  greenhouses.  The goals and policies listed in the CAMA Land Use Plan are silent on this specific matter. Staff has attached sections of several surveys around town with al hypothetical 12'x12' accessory structure sketched into a far corner ofe each lot to show how current requirements impact placement and yards VS. where a 12'x12' accessory structure could be located under the  Attachment  proposed language  Planning Board Recommendation the proposed text amendment. Town Council Recommended Action tabling of the proposed text amendment.  At its September 19, 2024 meeting, the Planning Board unanimously recommended approval of  Action by the Town Council may include approval, denial, approval with modifications or Ifapproval of the proposed text amendment is sought, then the: following motion can be used:    Text Amendment: Accessory structures; setbacks  November 4,2024 Page3 3  "Imove to approve the proposed text amendments to Sec. 42-504. Town Council has found Should Council wish to deny the proposed text amendment to Sec 42-504, the following motion "I move to deny the proposed text amendment to Sec 42-504. Town Council finds that this proposal is inconsistent with the Town's adopted land use plan, [insert any additional  this proposal to be consistent with the Town's adopted land use plan."  could be used:  justification for denial)."    PED)  108.05  PELD)  3U410'51W-  108.05  U410'51W  2  524)  PROPOSED DECKS & STEPS  PROPOSED NEW SEPTIC AREA  PROPOSED DECKS & SVEPS  PROPOSED NEW SEPTC AREA S  BLOCK. WALK 23:6' 11.5 17S-F-D EXISTING OAPILINGS 302x3.8 CARTIALLY CHIMNEY ENCLOSED CANT. 51.7 DECK 18.0 15.0 11.5 &  BLOCK WALK 23:6" 11.5 EXISTING VAS-F-D gPILINGS 302x3.8 ENCLOSED PARTIALLY CHIMNEY CANT. 251.7 DECK 18.0 15.0. 11.5 d8  40,7 25' MBL TYPICAL PARKING SPACE 9.5'x18' 107.56'  S  2  25' MBL TYPICAL PARKING SPACE 9.5'X18' 107.56'  N11'08'00"E  -wonnt  N11'08'00"E  wonnt  PROPOSED  CURRENT  N 19 J5'UU"W IUU.0U Lot 464  N.19'15'00" W 100.00' Lot_464  m Deck Decke Deck 31.5 Two Story Frame House  T Deck Decks Deck 31.5 Two Story Frome House L3.1"  Porch  Poreh  sand/clay driveway  sand/clay drivewoy    103.95 LOT-10.  LOT 1G  17 765 aa  NN9 WALL assintoar w'aos 95" PROPOSED N59-33'05  706 B0  CURRENT N593 33' 05" E S'MESL  80.00'  80.00  LOT 6 10,000.00 Sq.Ft 0.23 AG.  LOT 6 q,o0000 0.23 AG. Sq.FL 12.3  OP,  CONCRETE POOL  CONORETE POOL  L20MESL OIE 80.00'  120 MRSL  $59" 33" 05" W  80.00'  S59'3305    N4YZ9 1Z"W  119.94'  EX* FLUSH REBAR  WOOD FENCE OVER PA BY 0.6' 25'_MBL  "SEPTIC AREA"  WOOD FENCE  CURRENT  KCI  10 UTIUTY EASEMENT  119.93'  (FIELD)- $3015'10'E  N29'26'12"w  119.94'  EX REBAR FLUSH  wOOD FENCE OVER P/ BY 0.6' 25_MBL  "SEPTC AREA"  HVAC UNDER DECK 10.0  PROPOSED  WOOD FENCE  GS ART. ENCL.  25'MBL 10 UTUTY EASEMENT  119.93'  (FIELD)- $3015'10"E    N29'26'12"w  125.73'  2) 26.0 1-SF-D ON PILINGS  48.9 MREE  CURRENT  2 CANT  22.C NEW 2_STORY ADDITION 22.0' 25Mal CONCRET DRIVE  34.6  ONCRETE  125/71  $3019'59"E  125.73  N29'26'12"w  20' @) 26.0' t-S-F-D ONPILINGS  48.9 ARE  CANT  22,0 NEW 2_STORY i ADDITION - 22.0' PORCH CONCRETE DRIVE  PROPOSED  139 PORCH CONCRETE DRIVE  34.6'  59  $30'19'59'EPy  125    laa  TOWN 981  Post Office Box 549 101 Veterans Memorial Drive Kitty Hawk, NC27949  Phone (252)261-3552 Fax (252)261-7900 WPAIOMTORKIEVDANSO9  MEMORANDUM  TO:  Mayor Garriss and Members oft the Town Council  FROM: Rob Testerman, AICP, CFM, CZO, Director of Planning & Inspections  DATE: November 4, 2024  RE: Attachments  Village Residential Development Patterns  1. Aerial image oft the Fire Station parcel for visual reference 3. Spreadsheets and maps ofs study areas used for data  2. Future Land Use Map, "Maintain and Enjoy" and "Accommodate and Adapt"  explanations  Background  During recent subdivision reviews for two different tracts ofland within the Village, the opinion that has appeared tol have been voiced by Council, as well as members of the public, is that current development regulations in the Village Residential district may currently allow for more As Council is aware, subdivision applications are an administrative decision, meaning that ifa proposal is compliant with Chapters 38 (Subdivision Ordinance), and 42 (Zoning Ordinance), the applicant is legally entitled to approval. Public opinion, Council opinion, Land Use Plan recommendations, etc. cannot be taken into consideration for administrative decisions. IfCouncil feels the current development regulations do not accurately portray the desired development levels in that area, ordinances may be changed vial legislative decisions (text amendments) to better align with the desires of the Town. For al legislative decision it is not only allowed, but it is encouraged to use public opinion, Council Opinion, Land Use Plan recommendations, etc. to guide the decision-making process. We use the legislative decisions in order to set policies and regulations to dictate administrative decisions. In the time since the five acre subdivision approval at the corner of Carrenda Ln and Kitty Hawk Rd, staff1 has analyzed to a) lot size; b) contiguous upland lot size; and c) density residentially developed areas in the Village. In reviewing this information staffbroke the area out into 13 different "study areas", each study area contains ai map oft the parcels referenced in the  development than what is desired in that area.  spreadsheetatached to this staff report).  While reviewing the information, for Council's reference, below are the current uses, minimum lot size and maximum density requirements for the Village Residential Districts. Please keep in    Village Residential Development Patterns  November 4, 2024 Page 2  mind that minimum lot size refers to contiguous, continuous, connected uplands. Also note that density is reviewed when subdividing lots and is generally looked at as lots per acre.  VR-1  Permitted by-right Minimum lot size Maximum density  Single-family dwellings 15,000 sq. ft. Two single-family dwellings per acre  VR-2  Permitted by-right Minimum lot size Maximum density Permitted by-right Minimum lot size  SFR, duplexes SFR-15,000 sq. ft. Duplex- 25,000 sq. ft. Four dwellings per acre manufactured homes SFR- 15,000 sq. ft. Duplex - 25,000 sq. ft. Multi-family dwelling - 15,000 sq. ft. for the first unit, 9,520 sq. ft. for each additional dwelling unit Four dwellings per acre  VR-3  SFR, duplexes, multi-family dwellings,  Maximum density  Definitions ofs single-family dwelling, duplex, and multi-family dwelling are provided below:  Dwelling, single-family, means a detached building designed for or occupied exclusively Dwelling, two-family (duplex), means a detached building, divided horizontally or vertically, and designed for or occupied by two single-family housekeeping units contained entirely under one: roof and having one dividing partition common to each unit, orl having the ceiling structure of the lower unit the floor structure oft the unit above. A single-family home with an attached ADU meeting the size restrictions of 42-528(b)is Dwelling, multifamily, means a building or portion thereof used or designed as a residence for three or more families living independently of each other and doing their  by one family.  not considered a two-family dwelling (duplex).  own cooking therein, including apartment houses.  Fori reference, there are limited areas that are. zoned VR-3, but a 5 acre parcel located in the VR-3 district, for zoning purposes would be permitted, by-right, to develop a 20 unit multi-family dwelling (apartment building, townhouses, etc.)Thati is to say, as long as lot-coverage, building height, etc. the property owner would be legally entitled to approval, regardless of the opinion of For a visual depiction, per Dare County Tax Mapping, the Fire Department sits on approximately two acres. In the VR-1 district, at two dwellings per acre, that would allow four lots/dwellings to  the development.    Village Residential Development Patterns  November 4, 2024 Page 3  be developed on that parcel. In both the VR-2 and VR-3 districts, allowing up to four dwellings  per acre, the maximum density permitted would be 8 dwelling units on site.  Study Area Analysis  While reviewing the data below, keep ini mind that since the minimum lot size refers to "continuous, contiguous, connected" uplands area, thei total lot size is not as relevant as the approximate non-wetland area. Total lot sizes were taken from parcel information detailed on the County mapping page. Non-wetland areas were mapped by staff using a shape-drawer and aerial imagery, these wetlands/non-wetland areas have not been delineated, and thus are  approximate.  Staff also calculated two averages, one is the overall average of all lots within the study area, and  the sécond removes the upper and lower outliers from the average.  Moor Shore Road area: Overall density - 1.16 lots per acre Average lot size Average lot size, minus outliers Kitty Hawk Rd/Edgerton Ct/Midgett Rd area: Overall density- 0.87 lots per acre Average lot size Average lot size, minus outliers Herbert Perry Rd area: Overall density- 0.4 lots per acre Average lot size Average lot size, minus outliers Elijah Baum Rd area: Overall density- 0.9 lots per acre Average lot size Average lot size, minus outliers Bob Perry Rd area: Overall density -0.5 lots per acre Average lot size Average lot size, minus outliers Poor Ridge Rd area:  Total Square footage 31,474 26,888  Non-wetland Square footage  27,214 23,506  Total square footage 41,497 37,021  Non-wetland Square footage  32,023 28,366  Total Square footage 105,782 95,227  Non-wetland Square footage  52,030 49,320  Total Square footage 40,921 36,991  Non-wetland Square footage  35,497 32,145  Total Square footage 78,696 62,987  Non-wetland Square footage  23,385 24,363    Village Residential Development Patterns Overall density - 0.9 lots per acre Average lot size Average lot size, minus outliers Kitty Hawk Rd/Twiford Rd area: Overall density- 0.37 lots per acre Average lot size Average lot size, minus outliers Ridge Rd area: Overall density - 0.94 lots per acre Average lot size Average lot size, minus outliers Ivy Ln area: Overall density - 0.66 lots per acre Average lot size Average lot size, minus outliers Hickory Ridge area: Overall density - 2.13 lots per acre Average lot size Average lot size, minus outliers Carrenda Ln area: ared, only that data is included Overall density /- 0.67 lots per acre Average lot size Average lot size, minus outliers Kitty Hawk Landing area: Overall density-2.31 dwellings per acre Average lot size Average lot size, minus outliers  November 4, 2024 Page 4  Total square footage 47,797 46,799  Non-wetland square footage  29,464 30,081  Total square footage 104,008 96,761  Non-wetland square footage  37,419 36,902  Total square footage 41,802 37,369  Non-wetland square footage  26,261 26,034  Total square footage 57,698 59,833  Non-wetland square footage  30,571 31,350  Total square footage 17,966 17,519  Non-wetland square footage  14,469 14,293  Note: Carrenda Ln excludes the recently divided parcel, and as most lots appear to be upland  Total square footage 64,552 51,683  Non-wetland square footage  56,114 49,800  Total square footage 18,842 18,161  Non-wetland square footage  18,842 18,161    Village Residential Development Patterns The Woods Rd & Pinehill area: The Woods Rd area density - 0.95 lots per acre Pine Hill area density - 1.6 lots per acre Average lot size Average lot size, minus outliers  November 4, 2024 Page: 5  Total square footage 34,754 34,286  Non-wetland square footage  29,596 29,036  *Section 42-1 defines "density" as the number ofdwelling units or hotel units which may be constructed upon a parcel of land, as allowed by the various zoning districts. Marsh and wetland areas, as determined by CAMA and/or CRC regulations, which are contiguous with estuarine waters, sounds and bays, and areas waterward of the oceanfront vegetation line, as determined by CAMA regulations, may not be used for density calculations. Staff does not have information regarding what areas are CAMA/CRC wetlands, sO overall density has been provided instead, as The goals and policies listed in the CAMA Land Use Plan are silent on this matter. The majority ofland within the developable areas of the village residential districts are designated either as "Accommodate and Adapt" or "Maintain and Enjoy". The future land use Policy 3.1 Manage land use and development to minimize primary and secondary impacts on  a matter ofreference.  map and these two designations are attached to this staffr report. resources and existing residents through standards for developments. Policy 3.41 Encourage residential that fits Kitty Hawk's character.  Maintain zoning regulations that protect the character of] Kitty Hawk's neighborhoods. Continue to maintain regulations that encourage mostly single-family residential homes to maintain the overall residential character of Kitty Hawk Consider simplifying residential districts. (There are currently 61 residential zoning districts and many have the same dimensional and density allowances)  Policy 4.1 Encourage the preservation ofi maritime forest, floodplains, marshes and wetlands  through development regulations and land protection initiatives.  Town Council Recommended Action  Staffi is requesting that Council provide guidance as to a) whether to pursue drafting changes to these residential districts' development regulations; and ifso, b) what kind of changes would Council like to see presented? Options include increasing minimum lot size, deceasing maximum density, restricting building in certain flood zones, consolidating zoning districts, encouraging cluster development (development oflarge tracts takes place on a small portion of thel lot, leaving much of the parcel in a natural state, ), etc, or any combination of potential When contemplating recommended changes that would reduce the potential for development, Council should recognize there are two sides to the argument. Reducing the ability to develop ones property may have an adverse impact on the property value of said property. It also could  tactics.    Village Residential Development Patterns  November 4, 2024 Page 6  possibly limit the potential for additional housing stock in Town. Requiring a larger minimum lot size restricts the supply ofland that is available for construction, which ini turn could reduce the potential housing stock, and increase real estate costs. Minimum lot sizes, prohibitions on multi-family dwellings, etc. are examples ofe exclusionary zoning, which can have damaging When determining which approach to take, it is important for Council to consider all angles.  effects as well.    Village Residential Development Patterns  November 4,2024 Page7  Aerial Image of Fire Department Site  VR-1-Two dwellings per acre - potential for up to four dwellings on this site (Single- VR-2-E Four dwellings per acre - potential for up to eight dwellings on this site (SFR and VR-3-1 Four dwellings per acre - potential for up to eight dwellings on this site (SFR,  family residences) duplexes)  duplexes, multi-family dwellings)    dal  na  V  a    MAINTAIN AND ENIOY  The majority of the Town is already built out and most parcels are unlikely to undergo significant change from their current use. This is In part due to the rellance on on-site septic systems for wastewater treatment. The current layout of uses adequately separates and buffers commercial, industrial, and residential uses and although some change may occur it will likely be on a limited basis. When vacant parcels are developed it should be expected to be similar to what surrounds the parcel. In this area there is potential for redevelopment and infill that could include village-scale commercial development, single- family homes and house-scale attached residential. Townhomes and/or workforce housing could be located on larger properties at strategic locations near commercial areas. Site and building design will be important to maintain community character. Resilient design of bulldings will be needed in the Village Center area due to potential for  flooding. TYPICAL USES  -  Single Famlly Residential House-scale attached residential (duplexes, triplexes and quads) Townhomes (up to 6 attached) Strategically located workforce housing Village-scale commercial Resort uses  Vtrs L-san 7AEr1 nn Ilen Dlan 1    ACCOMMODATE AND ADAPT  Living on a barrier island means understanding that flooding and natural hazards are a part of life. Hazards like flooding from stormwater, tides, or storm surge will continue to occur and are projected to get worse. The areas covered by this designation are important to the community, but will continue to be more impacted as time goes on. The existing uses in these areas should be aware of these projected changes and take Incremental steps to adapt and increase their relative safety. This might include elevating buildings, enhanced stormwater management, or floodproofing as structures are upfitted or sites are Improved. Accommodations will also likely be necessary to ensure proper functioning septic systems and avoid polluting nearby water bodies. Future uses should be primarlly single family homes and reuse of existing bulldings. Water- orlented commercial uses and isolated small- scale attached residential may be permitted with appropriate site and building design to fit character of area. Structures should be designed to be resllient against rising seas, flooding, storms and other hazards. TYPICAL USES Single family homes Reuse of existing buildings Water-oriented commercial businesses Limlted small-scale attached residential  -  I    FUTURE LAND USE CHARACTER AREA TABLE  The table below outlines residential and nonresidential bullding types to encourage or discourage in the Future Land Use Character  Areas  Residential Uses  Nonresidential Uses  Detached Medium Density Residential  Future Land Area  Use Character Attached Residential (Single-Family, Small- Detached Low Small-Scale Large-Scale Maritime  (Apartments, Condos, scale Townhomes, Density Residential Commercial Commercial Recreation and  Townhomes)  Duplex, Triplex, Quads)  (Single-Family)  Industry  Invest & Improve Maintain & Enjoy Accommodate & Adapt Acknowledge &C Conserve Legend:  1  M  M  M  E  M  5  M  M  =A Allowed/Encouraged  : Ifo Contextually Appropriate, Potential Limitations, Design Criteria  - Discouraged    Non- wetland ate) 31,500 25,000 35,000 24,000 25,000 18,000 43,000 19,500 37,300 33,900 20,500 17,000 38,000 37,000 25,000 25,000 22,500 18,000 24,000 19,500 17,000 17,000 82,500 70,000 73,000 60,000 204,296 170,000 47,500 47,500 15,000 15,000 15,000 15,000 18,000 18,000 32,000 30,000 23,000 20,000 10,000 6,800 38,000 29,000 19,000 19,000 24,000 24,000 21,000 21,000 12,000 11,000 11,500 10,000 24,000 22,000 12,000 11,000 12,000 11,300 21,500 20,500 21,000 21,000 16,500 16,500 15,000 15,000 15,000 15,000  Moor Shore Areal Lot Sizes- (approxim  sq.ft.  Total 31,474 26,888  Non-wetlands 27,214 23,506  Average Lot Size Average Lot Size, minus outliers  Lots 16 AeRE    SIL  30.78ac  This mapisprepared frome date usedforthe inventorye ofthen real proporty fortax purposes. Primary information sources such asn recorded doeds, plats, wils, ando other primary public records shouldbe consulledf for verification afthei information conlained Inthis map.    Non- wetland ate) 38,000 30,000 32,000 28,500 316,681 252,700 25,500 25,500 12,500 12,500 15,500 15,500 16,000 16,000 18,000 17,000 29,000 25,000 33,000 28,000 14,000 14,000 39,000 39,000 32,000 29,500 17,500 17,500 28,500 28,500 18,000 18,000 36,500 36,500 106,992 76,500 107,158 87,120 15,000 15,000 15,500 15,500 15,000 15,000 17,000 17,000 15,000 15,000 17,500 17,500 17,000 16,500 29,000 20,000 46,000 28,500 17,000 17,000 20,000 17,500 12,500 12,500 14,000 14,000 23,000 23,000 28,500 26,500 51,000 24,000 21,000 20,000 30,000 30,000 41,000 41,000 20,000 20,000  WAHRdFEAgeonMIaEe: (approxim  Area Lots Sizes-sq.ft.  Total 41,497 37,021  Non-wetlands 32,023 28,366  Average Lot Size Average Lot Size, minus outliers  0.87 Lors  Act    191,228 87,000 41,000 27,500 179,900 70,000 56,000 56,000 24,500 24,500 30,000 30,000 24,000 24,000 25,000 25,000 24,500 24,500 63,500 50,000 47,428 21,000 20,963 15,000 15,000 14,000 62,000 14,500 43,500 43,500 15,000 15,000 20,000 20,000 81,000 61,000 36,000 17,000 35,000 35,000    67.19ac  Thisn mapl laprepared frome data usedforthe Inventoryofthereal propertyf fortax purposes. Primary Information sources such asr recorded deeds, plats, wils. ande other primary publicr records shoud be consulted for vertfication ofthel Information contained ini this map.    Non- wetland (approxim 67,000 47,800 21,000 21,000 20,000 20,000 28,000 28,000 15,000 15,000 33,000 33,000 128,066 98,000 201,683 102,366 194,278 79,715 193,842 87,120 17,000 17,000 253,070 153,318 177,076 85,600 460,429 156,816 177,289 102,501 71,000 71,874 12,000 73,500 15,800 48,000 19,600 38,000 14,000 55,000 20,100 41,500 13,200 60,500 21,100 299,501 150,282 19,000 19,000 18,000 18,000 42,000 42,000  HerbertPerryLots Sizes-sq.ft. ate).  Total 105,782 95,227  Non-wetlands 52,030 49,320  Average Lot Size Average Lot Size, minus outliers  0.4  44,000  Lors/ACRE    62.28 ac  This mapisp prepared fromd datau usedf forthe invenloryo ofther real propertyfortax purposes. Pimary Information sources such asr recorded deeds, plats, wills, and otherp primary public records shoudbe consuited for verification ofthei information contained mep.  843 Herbert Perry RD Kitty Hawk NC, 27949 Parcel: 026130001 Pin: 987506287339T1  Owners: Unitarian Universalist Congregation- -Primary Owner Bullding' Value: $0 Land Value: $0 Misc $96,900 Value: Total Value: $96,900  Tax District: Kittyh Hawk Subdivision: Subdivision- None Property Use: Private School Building Type: Year Bullt:  OrThe Outer Banks -Primary Owner LotBLK-Sec: Lot: Tr1,Tr2Bk: Sec:    Non- wetland (approxim 24,500 24,500 35,000 35,000 19,500 19,500 19,500 19,500 35,000 35,000 15,000 15,000 20,500 20,500 35,500 31,600 33,500 25,800 48,000 38,300 51,000 35,500 36,500 25,700 36,000 25,200 51,000 31,000 39,000 25,500 11,000 11,000 19,000 8,700 54,000 33,000 54,000 31,000 40,000 21,000 217,242 185,000 26,000 26,000 42,000 42,000 179,672 179,672 14,000 14,000 15,000 15,000 15,000 15,000 73,000 68,600 55,500 52,000 44,000 42,000 62,000 57,800 21,000 21,000 17,000 17,000 14,500 14,500 33,500 33,500 28,500 28,500 24,000 24,000 10,000 10,000 26,500 26,500  Eujah Baum Lot Sizes-sq.ft. ate)  Total 40,921 36,991  Non-wetlands 35,497 32,145  Average Lot Size Average Lot Size, minus outliers  0.9 Lors /ACRE    42.95a ac  Thisn mapis propared fromd data used fort the iventoryoftheresi proportyf fortax purposes. Primary information souroos such asrecorded deeds, plets, Wils, ando other primary publcr records shouldbe consultedf for verification ofthel Information containedi inthis map.    Non- wetland (approxim 40,000 36,000 46,500 30,000 37,500 18,000 38,000 23,000 114,503 47,000 308,840 26,000 58,500 36,000 153,331 27,000 120,226 29,000 28,000 8,000 21,344 7,000 28,000 7,000 28,300 10,000  Bob Perry! Rdl Lots Sizes-sq.ft. ate)  Total 78,696 62,987  Non-wetlands 23,385 24,363  Average Lot Size Average Lot Size, minus outllers  .5 Lors Ace    25.03 ac  This fromd mapisp data used prepared forthe inventoryofthereal propertyfortax purposes. Pimary information souroes such asrecorded deeds, plats, wils, ando otherp primary publicr recordss shouldbe consultedfor verification ofthe Information  101 Veterans Memorial DR Owners: Town Of Kity Hawk. -Primary  Tax District Kitty Hawk Subdivision: Subdivision- None Lot BLK-Sec: Lot Hobbs Creek Bik: Sec: Property Use: Town Of Kitty Hawk Bullding Type: Office Bldg Ur 1-4s Year Built: 1988  Kitty! Hawk NC, 27949 Parcel: 017775021 Pin: 987618401226  Owner Bulding Value: $507,900 Land Value: $1,364,700 Misc Value: $41,000 Total Value: $1,913,600    Non- wetland (approxim 99,317 87,120 49,000 49,000 15,000 15,000 19,000 19,000 50,000 32,000 47,000 43,000 19,000 19,000 71,000 47,000 41,000 37,000 33,500 26,000 97,500 80,000 106,500 90,000 15,000 14,000 23,500 23,500 20,500 20,500 23,500 8,000 52,000 19,000 74,000 50,000 37,000 22,000 21,500 14,000 37,000 21,000 37,500 17,000 37,500 16,000 37,500 20,000 37,500 18,000 37,500 19,000 37,500 20,000 37,500 17,000 37,500 18,000 37,500 18,000 37,500 19,000 39,000 20,000 39,500 21,000 40,000 33,000 40,500 27,000 41,000 21,000 40,000 22,000 40,000 38,000 40,000 37,000  Poor Ridge RdL Lot Sizes-sq.f.ate)  Total 47,797 46,799  Non-wetlands 29,464 30,081  Average Lot Size Average Lot Size, minus outliers  0.9 Los/ACRE    39,000 38,000 38,500 33,000 38,000 32,000 31,000 31,000 58,503 43,000 64,500 56,000 50,000 36,500 78,000 52,000 57,000 45,000 57,000 24,000 57,500 26,000 5,000 5,000 141,134 33,050 20,000 12,000 75,000 33,500 28,000 94,000 17,000 145,500 20,000  5,300    62.99ac  This mapisp prepared from dateu usedlorthe invertoryeltherest propertyfortax purpases. Pimary Information sources such asn recorded doods. plats, wlla, andother primary public recordss shouldbe consultadf for verification ofthei information map.    Non- wetland ate) 15,000 15,000 15,000 15,000 69,500 58,000 424,710 28,000 43,500 25,000 27,000 12,000 32,000 11,000 52,500 22,000 27,500 19,000 28,500 14,000 27,500 19,000 26,500 21,000 27,500 23,000 18,500 14,000 47,000 16,000 53,000 13,000 426,017 93,000 98,010 68,000 135,472 105,000 107,158 53,000 419,143 53,000 141,074 43,500 15,000 10,000 49,500 24,000 55,000 35,000 64,000 43,000 45,500 30,000 38,000 27,000 76,500 43,000 57,500 31,000 59,500 26,000 118,161 55,000 287,060 130,680 98,010 66,000 475,675 80,000 158,558 70,000 72,000 29,000 73,500 18,000 108,029 13,000  WI Kitty! Hawk &Twiford RdLot (approxim  Sizes-sq.ft.  Total 104,008 96,761  Non-wetlands 37,419 36,902  Average Lot Size Average Lot Size, minus outliers  0.37 Lors/ACRE    68,000 37,000 82,764 26,000    108.48 ac  Thisr mapla prepared from deta used forthe inventoryo afther real propertyf fortax purposes. Primary Informations sources such asrecordedd deeds, plats, wile, ando otherp primery publicn records should be consultad fors vorification oftha information map.  101 Veterans Memorial DR Owners: Town OfKitty Hawk. -Primary  Tax District: Kitly Hawk Subdivision: Subdivision- None Lot BLK-Sec: Lot: Hobbs Creek Bik: Sec: Property Use: Town of Kitly! Hawk Building Type: Office Bldg Ur1 1-4s Year Bullt: 1988  Kitty Hawk NC, 27949 Parcel: 017775021 Pin: 987618401226  Owner Bullding Value: $507,900 Land Value: $1,364,700 Misc Value: $41,000 Total Value: $1,913,600    Non- wetland (approxim 21,000 15,000 74,500 38,000 135,036 75,000 45,000 29,000 30,000 21,000 77,000 53,000 77,000 42,000 74,000 33,000 33,000 25,000 33,000 18,000 33,000 12,000 33,000 27,000 33,000 33,000 33,000 24,000 33,000 26,000 15,500 15,500 17,000 17,000 20,000 16,500 16,500 14,500 18,000 16,000 16,500 14,500 17,000 14,500 18,000 16,000 23,000 21,000 36,500 28,000 36,500 28,000 37,000 28,000 37,000 28,500 48,500 36,000 25,000 25,000 27,000 27,000 21,000 21,000 20,000 20,000 20,000 20,000 22,000 22,000 28,500 28,500 33,500 33,500 24,000 24,000 15,055 13,500  Ridge Rd Areal Lot Sizes-sq.f.ate)  Total 41,802 37,369  Non-wetlands 26,261 26,034  Average Lot Size Average Lot Size, minus outliers  0.94 Los/AGRE    45,673 43,987 59,137 40,999 139,392 78,408 16,000 16,000 16,000 12,000 19,000 16,000 18,500 16,000 18,000 14,500 18,500 15,000 19,000 14,500 20,500 15,500 64,500 48,000 67,500 20,000 91,476 25,000 311,454 49,000 44,000 44,000 28,500 13,000 28,000 15,500 17,500 13,500 17,000 12,800 148,104 52,800    66a0  aa    Non- wetland (approxim 22,000 16,500 77,000 38,000 17,000 17,000 17,000 17,000 130,680 55,000 17,000 17,000 86,000 31,000 86,000 41,000 86,000 28,000 88,000 30,000 87,000 34,000 77,000 60,000 35,000 20,000 39,000 39,000 72,484 42,000 70,500 34,000 68,000 34,000 66,000 40,000 19,000 19,000 15,000 15,000 36,000 14,500  IvyLnAreal Lot Sizes-sq.ft. ate)  Total 57,698 59,833  Non-wetlands 30,571 31,350  Average Lot Size Average Lot Size, minus outliers  .66 Los/AGRE    33.21ac  LLER  6249  Thisr mapis.prepered fromd dateu usedf forthe invenioryoftbhereal propertyfortax purposes. Primary Information sources such asrecorded deeds, plats, wils, and primary public records shouldb be consulted for oftheinformation  OBob Perry! RD Kitty Hawk NC, 27949 Parcel: 011296000 Pin: 986508777604  Owners: North Carolina State- Primary Owner Bullding' Value: $0 Land Value: $683,200 Misc Value: $0 Total Value: $683,200  Tax District Kity! Hawk Subdivision: Subdivision- None Lot BLK-Sec: Lot: Parcel 31 Blk: Sec: Property Use: Vacant Land (State OrNc) Bullding Type: Year Built:    Non- wetland (approxim ate) 16,500 9,800 33,000 18,700 17,500 12,000 18,000 12,500 18,000 13,000 28,500 21,500 15,500 11,500 15,000 10,600 15,000 10,000 15,000 10,500 16,500 14,000 15,000 11,000 15,000 10,500 15,000 10,500 21,500 13,000 23,500 18,500 17,000 17,000 15,500 10,500 15,000 9,500 17,000 17,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,500 15,500 29,000 29,000 17,000 17,000 17,000 17,000 19,500 19,500  Hickory Ridge Lot Sizes  Total 17,966 17,519  Non-wetlands 14,469 14,293  Average Lot Size Average Lot Size, minus outllers  Las/ACRE  2,13    OTI  13.62ac  Ba9  AM  Thisr mapisp prepered from datat used fort the Inventoryo ofthereal property fort tax purposes. Primary information sourcee such asn recordedo deeds, plats, wlis, andother primary publier records shoutdbe consulted for verification ofthel Informetion this map.    Non- wetland (approxim ate) 55,600 44,300 43,000 43,000 46,000 46,000 35,000 32,500 66,000 66,000 62,000 62,000 171,317 117,612 37,500 37,500  Carrenda Ln area  Total 64,552 51,683  Non-wetlands 56,114 49,800  Average Lot Size Average Lot Size, minus outliers        11.85ac  TILLETAS  TN  frome This mapisp data used prepared forthe Inventory ofthereal property! for tax purposes. Primary Informationa Eaurces such asrecorded deeds, plats, Wila, endo lother primary publicr records shoudbe consuited! forv verification oftheh Information his map.  101 Veterans Memorial DR Owners: Town Of Kitty! Hawk Primary  Tax District: Kltty Hawk Subdivision: Subdivislon- None Lot BLK-Sec: Lot: Hobbs Creek Bik: Sec: Property Use: Town or Kitty Hawk Bullding" Type: Office Bldg Ur 1-4s Year Bullt: 1988  Kitty Hawk NC, 27949 Parce!: 017775021 Pin: 987618401226  Owner Building Value: $507,900 Land' Value: $1,364,700 Misc' Value: $41,000 Total Value: $1,913,600    Non- wetland (approxim 19,500 19,500 16,000 16,000 16,000 16,000 16,000 16,000 57,000 57,000 20,000 20,000 16,000 16,000 15,500 15,500 16,000 16,000 16,000 16,000 15,500 15,500 36,500 36,500 30,000 30,000 32,000 32,000 32,500 32,500 75,000 75,000 28,000 28,000 20,000 20,000 31,500 31,500 25,500 25,500 15,500 15,500 26,500 26,500 12,500 12,500 12,500 12,500 12,000 12,000 10,000 10,000 11,000 11,000 12,000 12,000 13,000 13,000 12,000 12,000 12,000 12,000 12,000 12,000 11,000 11,000 11,000 11,000 11,000 11,000 11,500 11,500 14,000 14,000 13,000 13,000 16,000 16,000  Kitty Hawk Landing LotSizes ate)  Total 18,842 18,161  Non-wetlands 18,842 18,161  Average Lot Size Average Lot Size, minus outliers  7H    16,000 16,000 20,000 20,000 21,000 21,000 17,500 17,500 18,000 18,000 15,000 15,000 13,000 13,000 14,000 14,000 17,000 17,000 35,500 35,500 12,000 12,000 10,000 10,000 10,500 10,500 11,000 11,000 10,500 10,500 18,000 18,000 11,000 11,000 21,000 21,000 10,000 10,000 10,500 10,500 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 20,000 20,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 11,000 11,000 11,000 11,000 10,500 10,500 10,000 10,000 10,500 10,500 10,500 10,500 10,000 10,000 16,500 16,500 18,500 18,500 11,500 11,500 11,500 11,500 13,000 13,000    13,500 13,500 11,500 11,500 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,500 10,500 11,000 11,000 11,000 11,000 11,500 11,500 11,500 11,500 11,500 11,500 12,000 12,000 12,000 12,000 11,000 11,000 11,000 11,000 11,000 11,000 10,500 10,500 10,500 10,500 10,000 10,000 11,500 11,500 12,000 12,000 13,500 13,500 15,000 15,000 16,000 16,000 13,500 13,500 12,000 12,000 12,000 12,000 13,000 13,000 13,000 13,000 13,000 13,000 12,500 12,500 12,000 12,000 12,000 12,000 12,500 12,500 12,000 12,000 11,000 11,000 12,000 12,000 11,000 11,000 12,500 12,500 12,500 12,500 12,000 12,000 12,000 12,000 11,000 11,000    10,000 10,000 9,000 9,000 8,000 8,000 8,500 8,500 8,000 8,000 8,000 8,000 8,500 8,500 13,500 13,500 21,500 21,500 16,000 16,000 16,000 16,000 17,000 17,000 18,000 18,000 19,000 19,000 20,000 20,000 22,000 22,000 19,000 19,000 47,000 47,000 14,000 14,000 11,500 11,500 12,500 12,500 12,000 12,000 10,500 10,500 11,000 11,000 11,000 11,000 12,000 12,000 14,000 14,000 15,500 15,500 15,500 15,500 14,500 14,500 12,500 12,500 11,500 11,500 11,000 11,000 10,500 10,500 10,500 10,500 10,000 10,000 9,500 9,500 10,500 10,500 7,000 12,000 12,000 9,500 9,500 10,000 10,000 10,000 10,000 9,500 9,500  7,000    9,500 9,500 9,000 9,500 9,500 10,000 10,000 10,500 10,500 10,500 10,500 10,500 10,500 11,000 11,000 10,500 10,500 13,000 13,000 13,000 13,000 12,500 12,500 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 11,000 11,000 11,000 11,000 27,000 27,000 26,500 26,500 17,000 10,500 13,000 7,100 13,000 6,700 13,000 9,200 13,000 13,000 9,600 13,000 11,000 13,000 10,500 13,000 11,000 13,000 10,800 13,000 12,000 13,000 13,000 15,500 15,500 12,000 12,500 9,300 13,000 10,000 13,500 13,000 10,400 13,000 12,000 14,000 14,000  9,000  7,600  9,600 9,300    13,500 13,500 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 16,000 16,000    104.17ac  Thisr mapis prepared fram data used forthe inventory ofther real property fort tax purposes. Pimary Information sources such asrecorded deeds, plats, wi, ando othar primary publicr records shouldbe consultedfor verification ofthei information map.  101 Veterans Memorial DR Owners: Town Of Kitty Hawk. -Primary  Taxt District: Kity Hawk Subdivision: Subdivision- Lot BLK-Sec: None Lot: Hobbs Creek Blk: Sec: Property Use: Town Of Kitty Hawk Bullding Type: Office Bldg! Ur 1-4s Year Built: 1988  Kitty Hawk! NC, 27949 Parcel: 017775021 Pin: 987618401226  Owner Bullding' Value: $507,900 Land Value: $1,364,700 Misc Value: $41,000 Total Value: $1,913,600    Non- wetland ate) 60,500 42,500 58,500 47,000 58,000 43,000 56,500 38,000 54,500 35,000 52,500 36,000 50,000 37,000 48,000 33,000 46,000 27,000 44,500 29,000 45,000 33,000 46,500 34,000 44,500 35,000 50,500 33,000 47,000 33,000 47,500 38,000 46,000 31,000 46,500 29,000 46,500 31,000 51,000 50,000 56,500 55,000 57,000 57,000 61,000 61,000 54,500 54,500 60,000 60,000 41,000 41,000 41,000 41,000 29,000 29,000 34,500 34,500 41,000 41,000 25,000 25,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000  The Woods Rd/Pine HILL Area (approxim  LotSizes-sq,ft.  Total 34,754 34,286  Non-wetlands 29,596 29,036  Average Lot Size Average Lot Size, minus outliers  Wopps RD 0.95 E Los/ACRE  THE  PNE lul BARLOW 16 Fao Lois/ACRE    15,500 15,500 16,000 16,000 15,000 15,000 19,500 19,500 19,500 19,500 17,500 17,500 17,500 17,500 23,000 22,000 30,000 26,000 24,000 22,000 21,500 21,500 22,500 22,500 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 19,000 19,000 15,000 15,000 15,000 15,000 32,500 32,500 26,500 26,500 33,500 33,500 20,500 20,500 19,500 19,500 20,000 20,000 20,000 20,000 24,000 24,000 20,000 20,000 22,000 22,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 27,500 20,000 25,000 25,000 22,000 20,000 28,500 26,000 23,500 23,500 20,500 20,500    20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,500 20,500 19,500 19,500 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 25,000 25,000 29,000 29,000 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500 23,000 23,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 24,500 24,500 35,000 35,000 35,000 35,000 23,000 23,000 20,000 20,000 20,000 20,000 20,000 20,000 19,000 19,000 22,000 22,000 14,000 14,000    20,500 9,000 28,500 15,000 28,000 13,000 22,000 12,000 21,000 11,000 38,000 11,000 35,000 15,000 38,000 19,500 20,500 15,000 24,000 16,500 25,000 16,000 37,000 25,000 43,000 26,000 27,000 15,000 30,000 17,500 30,000 19,000 29,000 16,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000    129.84ac  This mapi isprepered fromo datai used forthe Inventoryo ofthereal propartyfortax purposes. Primary Information souroes such asn recorded deeds, plats, wils, and otherp primary publion recordss shouidbe consufledf for varffication afthek Informalion contained! Inthis map.  07 The Woods RD Kitly Hawk NC, 27949 Parcel: 027566011 Pin: 986612777431  Owners: Town OfKitty Hawk -Primary Owner Building' Value: $0 Land Value: $6,222,800 Misc Value: $0 Total Value: $6,222,800  Tax District: Kitly Hawk Subdivision: Subdivision- None LotE BLK-Sec: Lot: Bik: Sec: Property Use: Vacant Land (Kitty Hawk) Building Type: Year Built: