State Takes Financial Control Of Two North Carolina Towns

RALEIGH — The state has taken control of the finances of two North Carolina towns after officials determined neither had made enough progress addressing serious financial problems.

The Local Government Commission voted unanimously Tuesday to assume financial control of Ronda in Wilkes County and also voted to take control of Rowland in Robeson County.

The action allows the commission to oversee the towns’ finances in an effort to make sure bills are paid and basic services continue.

Ronda Considering Dissolution
Ronda officials told the commission the town board has voted to begin the voluntary dissolution process.

However, town leaders have not reached an agreement on how to move forward.

The LGC issued Ronda a Notice and Warning in September directing the town to take immediate action to address its financial distress.

One month later, testimony from town officials and reports from LGC staff indicated there had been no improvement.

Staff recommended the commission assume financial control.

The LGC unanimously approved the recommendation and has begun the takeover process.

Rowland Also Taken Over
Rowland received its own Notice and Warning from the LGC in September.

Town officials told the commission they believe Rowland is moving toward financial solvency, while acknowledging the town remains in fiscal trouble.

LGC staff said the town had not presented a clear financial path forward and recommended the commission take control.

Members approved the recommendation.

“Our priority is making sure every citizen in our state is getting the services they need,” State Treasurer Brad Briner, who chairs the LGC, said. “If local governments don’t fulfill their duty to their constituents, we will not hesitate to act.”

Briner said local officials sometimes face difficult decisions about whether a municipality remains financially viable.

“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,” Briner said. “This needs to be fixed before that happens.”

Rocky Mount Finances Improving
The commission also received an update on Rocky Mount’s finances.

The Nash County city’s overall cash position has improved significantly since earlier this year, when it faced the possibility of running out of money.

Rocky Mount now projects approximately $50 million in total cash by Dec. 31.
Its General Fund cash balance remains low, however.

The commission asked LGC staff to continue providing quarterly updates on Rocky Mount’s financial condition.

Elm City Appeal Granted
The commission also granted an appeal from Elm City involving the possible withholding of sales tax revenue.

Local governments that fail to submit required annual financial audits on time can have a portion of their sales tax distributions withheld for as long as two years.

LGC staff recommended granting Elm City’s appeal based on what it described as “other good cause with evidence.”

The action follows a similar decision by the commission last month.

Other Financing Requests Approved
The Local Government Commission also approved numerous financing requests from governments and public entities around the state.

Mebane in Alamance County received approval for $1.58 million to construct an equipment storage building.

The Coastal Affordable Senior Housing Foundation received approval for a portion of a $37.77 million financing package to acquire two senior living communities in Alleghany and Northampton counties, including The Landings of Chestnut Grove and Hampton Manor.

The Metropolitan Sewerage District in Buncombe County received approval for up to $150 million for sewer system improvements and refinancing existing debt. The district projects annual sewer rate increases of 7 percent from fiscal year 2027 through fiscal year 2036.

Givens Estates in Buncombe County received approval for up to $90 million for senior living improvements in Asheville and Black Mountain, including new health services and independent living facilities.

Concord received approval for $10.2 million for construction, equipment and furnishings for a new communications and emergency management facility.

Catawba Valley Medical Center received approval for $7.45 million in lease obligations for three medical office locations in Newton, Hickory and Morganton.
The medical center, rather than Catawba County, is responsible for the payments.

Columbus County received approval for a $2.57 million State Revolving Fund loan for water improvements in the Riegelwood Sanitary District.

Liberty in Columbus County received approval for a $200,000 State Revolving Fund loan for a lead service line inventory project.

Winston-Salem received approval for a $42.70 payment to the Mineral Springs Volunteer Fire Department related to a completed annexation.

Mount Holly in Gaston County received approval for up to $6 million for Phase II of the South Gateway Project, including infrastructure and accessibility improvements along the city’s southern entry corridor.

Iredell County received a three-year extension of authorization for $10.5 million in voter-approved but unissued community college general obligation bonds.

Nashville in Nash County received approval for a $236,402 State Revolving Fund repayable loan for the Essex Road sewer extension, in addition to $500,000 in principal forgiveness.

Holly Ridge in Onslow County received financing approval to purchase the former J&J Snack Foods property for future governmental, recreational, emergency preparedness, commercial and community purposes.

Greenville received approval for up to $22 million for replacement of a bulkhead, expansion of the city’s sports complex and improvements to City Hall.

Albemarle in Stanly County received approval for $46.207 million in State Revolving Fund financing to rehabilitate the Long Creek Wastewater Treatment Plant.

Apex in Wake County received approval for up to $16 million for Town Hall and Tunstall House improvements, street and sidewalk projects, and property for a future public safety station.

Knightdale received approval for $9.495 million to help purchase the Lofts Building and acquire two fire trucks and related equipment.

The Raleigh Housing Authority received approval for up to $20.3 million for Fisher Grove, a 166-unit affordable housing development in Raleigh.

The Local Government Commission is chaired by the State Treasurer and staffed by the Department of State Treasurer.

The commission approves most debt issued by local governments and public authorities in North Carolina and monitors the financial condition of more than 1,100 local government units.