The Local Government Commission approved resolutions of notice and warning for the towns of Ronda in Wilkes County and Rowland in Robeson County during its September meeting.
The resolutions followed financial mismanagement and statutory compliance concerns in the two towns.
“There is not a lot of time. We are tasked with making sure that no municipalities in North Carolina go bankrupt, and we are perilously close here,” said Treasurer Brad Briner in the press release. “If we don’t have good answers by the time we meet in 30 days … I would be willing to have this conversation again next month, but to my mind, the discussion next month will be around dissolution — unless something really changes for the positive.”
The resolutions issued to the two towns serve as official administrative and legal notices, acting as a final warning that the state is prepared to step in and assume control of a municipality if financial operations are not corrected.
Concerns for Ronda include repeated late audits, budget violations, problems with federal payroll tax payments, deficits in the town’s water and sewer fund, and other financial management issues.
Ronda has additionally been on the Unit Assistance List (UAL) of the Local Government Commission (LGC) since 2015. The UAL tracks and identifies local governments experiencing financial, operational or reporting difficulties that need further monitoring and support.
The resolution orders Ronda to remedy the issues and warns that failure to comply could result in the LGC taking authority over the town’s finances. Ronda must provide the LGC with a plan of action within 30 days to address the issues.
The town of Rowland has been on the UAL since 2020, and it appeared earlier in 2015 and 2016 as well. Concerns for Rowland include repeated late audits, budget violations, the use of restricted grant funds for current operations, persistent water and sewer fund operating losses, and financial mismanagement.
Rowland must also submit a plan of action to the LGC within 30 days, detailing how the issues will be addressed.
A financial update was also given by officials from the town of Littleton in Halifax County. The town has appeared before the LGC three times this year. Among other towns, Littleton’s unit appeal filed in response to notices of noncompliance was denied.
Several different appeals filed in response to notices of noncompliance for failing to submit Fiscal Year (FY) 2025 audits by March 31, 2026, were granted or denied by the LGC. The audit itself had been due Dec. 31, 2025.
Some municipality appeals were denied if they did not file their FY 2025 audit and did not meet the criteria to have the appeal granted. Local governments that were denied will have a portion of their sales tax distributions withheld.
The LGC also approved up to $1.25 billion in revenue bonds for the North Carolina Housing Finance Agency, which will support the agency’s homeownership program.
Up to $700 million in North Carolina Medical Care Commission conduit revenue bonds were authorized for ECU Health and its affiliates. Funds will help refinance existing debt and pay for projects such as additional inpatient facilities at ECU Health Medical Center and additional operating rooms near the East Carolina Heart Institute.
CaroMont Health Inc. received approval for up to $350 million in North Carolina Medical Care Commission conduit revenue bonds, which will support construction of a cancer center and parking facilities as well as refinance existing debt.
Other approved requests of more than $10 million include:
- $10 million, Carolina Beach — Funds for the purchase of nine properties in the town’s downtown boardwalk area.
- $67 million, Dare County — Funds for public works, emergency medical services and a field house.
- $26.85 million, Forsyth County — Funds for government facilities.
- $25 million, Craven County — Funds for multiple county projects.
- $15.6 million, Granville County — Funds for school paving and roofing projects.
- $13.1 million, Lee County — Funds for a school bus facility.
- $20 million, Mecklenburg County Industrial Facilities and Pollution Control Financing Authority — Conduit revenue bonds for expanding and improving a solid waste facility.
- $25.4 million, Housing Authority of Winston-Salem — Funds for housing financing.
- $19 million, Elizabeth City — Funds for water, sewer and electric system improvements.
The LGC approves debt issued by local governments and public authorities in North Carolina by examining the reasonableness of borrowing for each project and whether the debt can be repaid. The LGC also monitors the financial well-being of more than 1,100 local governments in the state. It is chaired by Briner and staffed by the Department of State Treasurer.
At its last meeting, the LGC approved more than $814 million in funds for various infrastructure projects across North Carolina.
