GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H 3
HOUSE BILL 882
Senate Finance Committee Substitute Adopted 6/20/01
Senate Finance Committee Substitute #2 Adopted 8/22/01
Short Title: Duck Incorporated/Local Distributions. (Local)
Sponsors:
Referred to:
March 29, 2001
A BILL TO BE ENTITLED
AN ACT TO INCORPORATE THE TOWN OF DUCK, AND TO MODIFY THE
FORMULA FOR DISTRIBUTING THE PROCEEDS OF THE LOCAL OCCUPANCY
TAX AND LOCAL LAND TRANSFER TAX.
The General Assembly of North Carolina enacts:
SECTION 1. A Charter for the Town of Duck is
enacted to read:
"CHARTER OF THE TOWN OF DUCK.
"ARTICLE I. INCORPORATION AND CORPORATE POWERS.
"Section 1.1. Incorporation and Corporate Powers. The
inhabitants of the Town are a body corporate and politic under
the name 'Town of Duck'. The Town of Duck has all the powers,
duties, rights, privileges, and immunities conferred and imposed
on cities by the general law of North Carolina.
"ARTICLE II. CORPORATE BOUNDARIES.
"Section 2.1. Town Boundaries. Until modified in
accordance with law, the boundaries of the Town of Duck are as
follows:
BEGINNING at the point of intersection of the northeast
corner of the corporate limits of the Town of Southern Shores in
Dare County, North Carolina, with the mean high watermark of the
Atlantic Ocean; thence along a line in a general easterly
direction for a distance of 1,000 feet to a point along an
eastern projection of the northern Town of Southern Shores limit
line to a point in the Atlantic Ocean; thence, in a
northwesterly direction along a line 1,000 feet parallel to the
mean high watermark of the Atlantic Ocean until such line forms
a point of intersection with another line, such line being the
projection of the Dare County boundary line 1,000 feet easterly
from the mean high watermark of the Atlantic Ocean; thence, in a
westerly direction along the projected line to the intersection
of Dare County boundary line with the mean high watermark of the
Atlantic Ocean; thence, in a westerly direction along the Dare
County boundary line to a point of intersection of the Dare
County boundary line with the mean high watermark of the
Currituck Sound; thence, along a line in a general westerly
direction for a distance of 1,000 feet to a point along a
western projection of the Dare County boundary line to a point
in the Currituck Sound; thence, in a southeasterly direction
along a line 1,000 feet parallel to the mean high watermark of
the Currituck Sound until such line forms a point of
intersection with another line, such line being the projection
of the northern line of the Town of Southern Shores corporate
limits 1,000 feet westerly from the mean high watermark of the
Currituck Sound; thence, in an easterly direction along the
projected line to the intersection of the northwest corner of
the Town of Southern Shores corporate limits with the mean high
watermark of the Currituck Sound; thence, in an easterly
direction along the northern line of the Town of Southern Shores
corporate limits to the place of beginning.
"ARTICLE III. GOVERNING BODY.
"Section 3.1. Structure of Governing Body; Number of
Members. The governing body of the Town of Duck shall be the
Town Council, which shall have five members.
"Section 3.2. Temporary Officers. Until the
organizational meeting after the initial election of 2002
provided for by Article IV of this Charter, Allan W. Beres,
Nancy R. Caviness, Paul F. Keller, Manfred E. Schwarz, and
Judith L. Wessel are appointed to the Town Council of the Town
of Duck. The temporary officers shall elect persons to serve as
Interim Mayor and Interim Mayor Pro Tempore. If any person named
in this section is unable to serve, the remaining temporary
officers shall, by majority vote, appoint a person to serve
until the initial election is held.
"Section 3.3. Manner of Electing Council; Term of Office.
The qualified voters of the entire Town shall elect members
of the Town Council from the Town at large, and the members
shall each serve a term of two years, except that the members
elected in 2002 shall serve until the organizational meeting
after the 2003 municipal election. To be eligible for election
to the Town Council, an individual must reside in the Town of
Duck. Vacancies on the Town Council shall be filled in
accordance with G.S. 160A-63.
"Section 3.4. Manner of Electing Mayor; Term of Office;
Duties. The Mayor shall be elected from among the members of
the Town Council at the organizational meeting after the initial
election in November 2002 and shall serve for a term of one
year. In 2003 and biennially thereafter, a Mayor shall be chosen
by the same process for a term of two years. The Mayor shall
attend and preside over meetings of the Town Council, shall
advise the Town Council from time to time as to matters
involving the Town of Duck, and shall have the right to vote as
a member of the Town Council on all matters before the Council,
but shall have no right to break a tie vote in which the Mayor
has participated.
"Section 3.5. Manner of Electing Mayor Pro Tempore; Term
of Office; Duties. The Mayor Pro Tempore shall be elected
from among the members of the Town Council at the organizational
meeting after the initial election in November 2002 and shall
serve for a term of one year. In 2003 and biennially thereafter,
a Mayor Pro Tempore shall be chosen by the same process for a
term of two years. The Mayor Pro Tempore shall act in the
absence or disability of the Mayor. If the Mayor and Mayor Pro
Tempore are both absent from a meeting of the Town Council, the
members of the Town Council present may elect a temporary
chairman to preside in the absence. The Mayor Pro Tempore shall
have the right to vote on all matters before the Town Council
and shall be considered a member of the Town Council for all
purposes.
"Section 3.6. Compensation of Mayor and Town Council.
The Mayor and members of the Town Council shall be
reimbursed for ordinary and necessary expenses and may receive
salary and honoraria only upon a majority vote of the qualified
voters of the Town who vote on the question in a special
referendum.
"ARTICLE IV. ELECTIONS.
"Section 4.1. Conduct of Town Elections. Elections
shall be conducted on a nonpartisan basis and results determined
by a plurality as provided in G.S. 163-292.
"Section 4.2. Date of Election. Elections shall be
conducted in accordance with Chapter 163 of the General
Statutes, except that the first election shall be held on
November 5, 2002.
"Section 4.3. Special Elections and Referenda. Special
elections and referenda may be held only as provided by general
law or applicable local acts of the General Assembly.
"ARTICLE V. ORGANIZATION AND ADMINISTRATION.
"Section 5.1. Form of Government. The Town shall
operate under the Council-Manager plan as provided in Part 2 of
Article 7 of Chapter 160A of the General Statutes.
"Section 5.2. Town Manager; Appointment; Powers and
Duties. The Town Council shall appoint a Town Manager who
shall be responsible for the administration of all departments
of the Town government, except as otherwise directed by the Town
Council. The Town Manager shall have all the powers and duties
conferred by general law, except as expressly limited by the
provisions of this Charter, and the additional powers and duties
conferred by the Town Council, so far as authorized by general
law.
"Section 5.3. Town Manager's Authority Over Personnel;
Role of Elected Officials. As chief administrator of the
Town, the Town Manager shall have the power to appoint, suspend,
and remove all Town officers, department heads, and employees,
except the Town Attorney, Town Clerk, and any other official
whose appointment or removal is vested in the Town Council by
this Charter or by general law. Neither the Town Council nor any
of its members shall take part in the appointment or removal of
officers or employees in the administrative service of the Town
of Duck, except as provided by this Charter. Except for purposes
of inquiry, or for consultation with the Town Attorney, the Town
Council and its members shall deal with Town employees solely
through the Town Manager or Acting Town Manager, and neither the
Town Council nor any of its members shall give any specific
orders to any subordinates of the Town Manager or Acting Town
Manager, either publicly or privately.
"Section 5.4. Town Attorney. The Town Council shall
appoint a Town Attorney licensed to practice law in North
Carolina. It shall be the duty of the Town Attorney to represent
the Town, advise Town officials, and perform other duties
required by law or as the Town Council may direct.
"Section 5.5. Town Clerk. The Town Council shall
appoint a Town Clerk to keep a journal of the proceedings of the
Town Council, to maintain official records and documents, to
give notice of meetings, and to perform such other duties
required by law or as the Town Council may direct.
"Section 5.6. Other Administrative Officers and Employees.
The Town Council may authorize other offices and positions
and appoint persons to fill the offices and positions, or the
Council may authorize the offices and positions to be filled by
appointment by the Town Manager. The Town Council may organize
the Town government as deemed appropriate, subject to the
requirements of general law.
"Section 5.7. Consolidation of Functions. Where
positions are not incompatible, the Town Council may combine in
one person the powers and duties of two or more officers created
or authorized by this Charter.
"ARTICLE VI. TAXES AND BUDGET ORDINANCE.
"Section 6.1. Powers of the Town Council. The Town
Council may levy those taxes and fees authorized by general law.
An affirmative vote equal to a majority of all the members of
the Town Council shall be required to change the ad valorem tax
rate from the rate established during the prior fiscal year.
"Section 6.2. Budget. From and after July 1, 2002, the
citizens and property in the Town of Duck shall be subject to
municipal taxes levied for the fiscal year beginning July 1,
2002, and, for that purpose, the Town shall obtain from Dare
County a record of property in the area herein incorporated that
was listed for taxes as of January 1, 2002. The Town may adopt a
budget ordinance for fiscal year 2002-2003 without following the
timetable in the Local Government Budget and Fiscal Control Act
but shall follow the sequence of actions in the spirit of the
Act insofar as is practical. For fiscal year 2002-2003, ad
valorem taxes may be paid at par or face amount within 90 days
of adoption of the budget ordinance and thereafter in accordance
with the schedule in G.S. 105-360 as if the taxes had been due
and payable on September 1, 2002. The Town may adopt a budget
ordinance for fiscal year 2001-2002 without following the
timetable in the Local Government Budget and Fiscal Control Act
but shall follow the sequence of actions in the spirit of the
Act insofar as is practical, but no ad valorem taxes shall be
levied for that year.
"ARTICLE VII. ORDINANCES.
"Section 7.1. Ordinances. Except as otherwise provided
in this Charter, the Town of Duck is authorized to adopt such
ordinances as the Town Council deems necessary for the
governance of the Town.
"ARTICLE VIII. MISCELLANEOUS.
"Section 8.1. Conflicts of Interest. No person, or
member of the person's immediate family, who is employed by or
is an official of the Town of Duck, shall do business with the
Town unless such activity is approved by the Town Council. All
appointed officials of the Town shall inform the Town Council of
any conflicts of interest, and the failure to so inform shall
constitute grounds for immediate dismissal for cause. No
official of the Town may accept any gratuity from any business,
person, or other official if the gratuity is related to his or
her official duties.
"Section 8.2. Enlargement of Town Council. The
qualified voters of the Town of Duck may seek to enlarge the
number of members of the Town Council by submitting a petition
to that effect signed by twenty percent (20%) of the qualified
voters. Upon passage of a resolution as provided in G.S.
160A-102 or upon receipt of a valid petition, the Town Council
shall immediately take steps as provided in Part 4 of Article 5
of Chapter 160A of the General Statutes to determine by
referendum whether the number of members of the Town Council
should be increased. If a majority of the votes cast in the
referendum are in the affirmative, a special election shall be
held at the earliest possible date to elect the additional
members required to enlarge the Town Council to the number set
forth in the referendum.
"Section 8.3. Amendments to Charter. The Town
Council may propose and enact amendments to this Charter
in accordance with Part 4 of Article 5 of Chapter 160A of the
General Statutes. No amendment to this Charter shall become
effective until public notice is given and a public hearing is
held to receive comments on the proposed Charter amendment.
Notwithstanding G.S. 160A-103, upon receipt of a referendum
petition bearing the signatures and residence addresses of
twenty percent (20%) of the qualified voters of the Town, the
Town Council shall submit ordinances adopted under G.S. 160A-102
to a vote of the people.
"Section 8.4. Provision of Services and Administration of
Functions. The Town Council may enter into agreements with
other governmental bodies and private enterprises for the
provision of services and the administration of corporate
functions in order to provide the services and administer the
functions in the most efficient and cost-effective manner.
"ARTICLE IX. SPECIAL PROVISIONS.
"Section 9.1. Ad Valorem Taxes. The Town Council shall
not increase the ad valorem tax rate more than ten cents (10¢)
per one hundred dollars ($100.00) valuation above the ad valorem
tax rate initially established after incorporation of the Town
of Duck without the vote or consent of a majority of the
qualified voters of the Town of Duck. The procedures of G.S.
160A-209 shall be followed for any such election.
"Section 9.2. Fire Protection. The Town of Duck shall
contract with the Duck Volunteer Fire Department, Inc., to
provide fire protection for the Town. The contract terms and
amount paid by the Town of Duck to the Duck Volunteer Fire
Department, Inc., shall be mutually agreed upon and annually
renewed by the Board of Directors of the Duck Volunteer Fire
Department, Inc., and the Town Council."
SECTION 2. The Dare County Board of Elections
shall conduct an election on November 6, 2001, for the purpose
of submitting to the qualified voters of the area described in
Section 2.1 of the Charter of the Town of Duck the question of
whether or not the area shall be incorporated as the Town of
Duck. Registration for the election shall be conducted in
accordance with G.S. 163-288.2.
SECTION 3. In the election, the question on the
ballot shall be:
"[ ]FOR [ ]AGAINST
Incorporation of the Town of Duck."
SECTION 4. In the election, if a majority of the
votes on the question are cast "For Incorporation of the Town of
Duck", Section 1 of this act becomes effective May 1, 2002, and
Sections 5 and 6 of this act become effective with respect to
distributions made on or after July 1, 2003. Otherwise, those
sections do not become effective.
SECTION 5. Section 1(e) of Chapter 449 of the
1985 Session Laws, as amended by Chapter 826 of the 1985 Session
Laws and Chapters 177 and 906 of the 1991 Session Laws, reads as
rewritten:
"(e)Use and Distribution of Tax Revenue. Each fiscal year,
Dare County shall distribute two-thirds
sixty-eight percent (68%) of the net proceeds of the tax, on
a monthly basis, to the Towns of Kill Devil Hills, Kitty
Hawk, Manteo, Nags Head, and Southern Shores among
the towns of the county that had been incorporated for at least
one year as of the beginning of the fiscal year. This amount
shall be divided among the towns in proportion to the amount
of ad valorem taxes levied by each town for the preceding fiscal
year. The county shall retain the remaining one-
third remainder of the net proceeds. Revenue
distributed to a town or retained by the county under this
subsection may be used only for tourist-related purposes,
including construction and maintenance of public facilities and
buildings, garbage, refuse, and solid waste collection and
disposal, police protection, and emergency services."
SECTION 6. Section 2(e) of Chapter 525 of the
1985 Session Laws reads as rewritten:
"(e) Use and Distribution of Tax Revenue. For the
first 12 fiscal years in which a tax levied under this section
is in effect, all proceeds of the tax shall be retained by the
county and shall be placed in a special Capital Reserve Fund in
the general fund of the county. Revenue in this Fund may be used
by the county only for capital expenditures for the following:
courts, jails and detention facilities, emergency medical
services, libraries, recreation, education, administration,
water, sewage, health, and social services.
Beginning with the 13th fiscal year in which a tax
levied under this section is in effect, the county shall
distribute one-third (1/3) Each fiscal year, Dare
County shall distribute thirty-five percent (35%) of the net
proceeds of the tax on a quarterly basis among the towns of
the county that had been incorporated for at least one year as
of the beginning of the fiscal year. This amount shall be
divided among the towns to the Towns of Nags Head,
Kill Devil Hills, Kitty Hawk, Southern Shores, and Manteo in
Dare County in proportion to the amount of ad valorem
taxes levied by each town for the preceding fiscal year. Revenue
distributed to a town may be used only for capital expenditures.
The remaining two-thirds (2/3) of the net proceeds shall
be retained by the county and placed in the special Capital
Reserve Fund established under this subsection, to be used only
for the purposes listed above. The county shall
retain the remainder of the net proceeds of the tax and place
them in a special Capital Reserve Fund in the general fund of
the county. Revenue in this Fund may be used by the county only
for capital expenditures for the following: courts, jails and
detention facilities, emergency medical services, libraries,
recreation, education, administration, water, sewage, health,
and social services. As used in this subsection, 'net
proceeds' means gross proceeds less the cost to the county of
administering and collecting the tax."
SECTION 7. This act is effective when it becomes
law.