State Warns Two NC Towns Over Serious Financial Problems

RALEIGH, N.C. – Two North Carolina towns have been given 30 days to explain how they will correct serious financial problems after the Local Government Commission approved formal notices and warnings against both municipalities.

The action taken September 1 involves Ronda in Wilkes County and Rowland in Robeson County, which have remained on the state’s Unit Assistance List for years because of repeated financial and accounting problems.

Ronda has been on the list since 2015. State officials cited late audits, budget violations, problems with federal payroll tax payments, persistent deficits in the town’s Water and Sewer Fund and other financial management concerns.

Rowland has been continuously on the list since 2020 after also appearing in 2015 and 2016. Its problems include late audits, budget violations, use of restricted grant money for current operations and continuing losses in its Water and Sewer Fund.

Both towns must submit corrective action plans to the LGC within 30 days.

State Treasurer Brad Briner, who chairs the commission, warned that the situation is becoming critical.

“There is not a lot of time,” Briner said. “We are tasked with making sure that no municipalities in North Carolina go bankrupt, and we are perilously close here.”

Briner said if the towns fail to provide satisfactory answers within the next month, the discussion could become considerably more serious.

“To my mind, the discussion next month will be around dissolution — unless something really changes for the positive,” he said.

The LGC has statutory authority to intervene in the finances of troubled local governments and, in extreme cases, assume control of their financial affairs.

Other Communities Face Audit Penalties

The commission also considered appeals from counties and municipalities that failed to submit their fiscal year 2025 audits by a March 31, 2026 deadline.

Appeals were granted for Colerain, Columbus, East Arcadia, East Spencer, Ellenboro, Gaston, Louisburg, Madison County, Pilot Mountain, Rich Square and Star.

Appeals were denied for Aurora, Autryville, Candor, Dover, Linden, Littleton, Macclesfield, Morven, Robbins, Robersonville and Sims.

Under state law, local governments whose appeals were denied will have a portion of their sales tax distributions withheld.

Littleton officials also appeared before the LGC to provide a financial update, marking the town’s third appearance before the commission this year.

The Local Government Commission monitors the financial condition of more than 1,100 local government units across North Carolina and must approve most debt issued by municipalities, counties and public authorities.

In other business, the commission approved several large financing requests, including up to $1.25 billion for the N.C. Housing Finance Agency, up to $700 million for ECU Health and its affiliates, and up to $350 million for CaroMont Health.