The Local Government Commission (LGC) approved Resolutions of Notice and Warning for the towns of Ronda (Wilkes County) and Rowland (Robeson County) following persistent financial management and statutory compliance concerns.
Also at today’s meeting, the LGC received a financial update from officials with the town of Littleton (Halifax County). This is Littleton officials’ third appearance before the LGC this year.
Ronda has been on the LGC’s Unit Assistance List since 2015. Concerns include repeated late audits, budget violations, problems involving federal payroll tax payments, persistent deficits in the town’s Water and Sewer Fund and other financial management issues.
The approved Notice and Warning directs Ronda to take corrective action and warns that continued failure to comply could ultimately result in the LGC exercising its statutory authority to assume control of the town’s financial affairs. Ronda is required to provide a plan of action to the LGC within 30 days that addresses and remedies the enumerated deficiencies
Rowland has been continuously on the Unit Assistance List since 2020 after also appearing on the list in 2015 and 2016. The town has had repeated late audits and budget violations, used restricted grant funds for current operations, experienced persistent Water and Sewer Fund operating losses and demonstrated other financial management deficiencies.
The Notice and Warning approved for Rowland similarly directs the town to submit a plan of action to the LGC within 30 days with how it plans to correct the identified deficiencies.
“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. “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 LGC granted some unit appeals filed in response to “Notices of Noncompliance” that were issued in April to counties and municipalities that did not submit the FY 2025 audit by March 31, 2026. The FY 2025 audit was due Dec. 31, 2025. Some appeals filed by municipalities were denied by the LGC because the unit has not filed the FY 2025 audit and the unit did not meet criteria to have the appeal granted. Under state law, those local governments will have a portion of their sales tax distributions withheld as a result.
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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 examines whether proposed borrowing is adequate and reasonable for each project and determines whether local governments can reasonably afford to repay the debt.
The LGC also monitors the financial well-being of more than 1,100 local government units across North Carolina.
In other action, the LGC approved up to $1.25 billion in revenue bonds for the North Carolina Housing Finance Agency. The financing will support the agency’s homeownership program, including mortgage loans for low- and moderate-income individuals and families across the state.
The LGC also authorized up to $700 million in North Carolina Medical Care Commission conduit revenue bonds for ECU Health and its affiliates. This will be used to refinance existing debt and help pay for projects across the ECU Health system, including 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. The financing will support construction and equipping of an approximately 120,000-square-foot cancer center and an adjacent three-level parking deck at CaroMont Regional Medical Center in Gaston County, as well as the refinancing of existing debt.
The LGC also approved the following requests:
- Edgecombe County: $2.2 million to support county projects and vehicle purchases.
- Carolina Beach (New Hanover County): Up to $10 million toward the purchase of nine properties in the town’s downtown boardwalk area. The approximately $12 million acquisition will also use room occupancy tax proceeds and town funds.
- Dare County: Up to $67 million for public projects, including public works, emergency medical services and a field house.
- Forsyth County: Up to $26.85 million for government facilities.
- Craven County: Up to $25 million for multiple county projects.
- Granville County: Up to $15.6 million for school paving and roofing projects.
- Lee County: Up to $13.1 million for a school bus facility.
- Mecklenburg County Industrial Facilities and Pollution Control Financing Authority: Up to $20 million in conduit revenue bonds for the expansion and improvement of a solid waste facility.
- Housing Authority of Winston-Salem (Forsyth County): Up to $25.4 million in financing related to housing.
- Elizabeth City (Pasquotank County): Up to $19 million for water, sewer and electric system improvements.
- Lake Waccamaw (Columbus County): $175,000 to reimburse the purchase of a used rescue pumper truck.