RALEIGH, N.C. (NCN News) — Members of the Local Government Commission are assuming financial control of two small North Carolina towns in the face of perilous financial conditions.
The LGC voted Tuesday (Oct. 6) to assume control of Ronda in Wilkes County and Rowland in Robeson County to make sure bills get paid and citizens continue to get services they need.
Ronda officials reported that the town board voted to begin the voluntary dissolution process. However, to date there is no agreement from town leaders on how to move forward from that. Last month, the LGC issued a Notice and Warning, directing the Town to take immediate action to deal with its financial distress. Through testimony from Town officials and reports from the LGC staff, one month later, there were no improvements in the situation. LGC staff recommended the members vote to assume control of the town’s finances. By unanimous vote the LGC approved that recommendation and has now begun the process of assuming control of Ronda.
Town of Rowland leaders told the LGC that it believes it is moving in the right direction towards financial solvency. The LGC had also given this town a Notice and Warning in September. Rowland officials reported the town remains in fiscal trouble but believe it is moving in the right direction. LGC staff, however, also recommended the members vote to assume financial control of the Town since it did not outline a clear financial path forward. The LGC members voted to assume control of the Town’s finances.
“Our priority is making sure every citizen in our state is getting the services they need. If local governments don’t fulfill their duty to their constituents, we will not hesitate to act,” said Treasurer Brad Briner, who chairs the commission in a press release. “We know that it is not easy to conclude that your local government is no longer viable, but it would be even more difficult to tell taxpayers that you are bankrupt. This needs to be fixed before that happens.”
The Commission also received an update on Rocky Mount’s (Nash County) budget position. The city’s overall cash position has improved significantly since it faced the risk of running out of funding earlier this year. Rocky Mount now projects approximately $50 million in total cash by Dec. 31. General Fund cash remains low, however, and the Commission requested that it continue to receive quarterly updates from LGC staff about the City’s financial condition.
Following similar action last month, the Commission voted to grant an appeal from Elm City (Nash County) related to potential sales tax withholding. Local governments that do not submit their required annual financial audit on time may have a portion of their sales tax distribution withheld for up to two years. Staff recommended granting the appeal based on “other good cause with evidence.”
State Treasurer Brad Briner chairs the LGC. The Commission is staffed by the Department of State Treasurer and has a statutory duty to approve most debt issued by local governments and public authorities in North Carolina. It also monitors the financial well-being of more than 1,100 local government units.