(The Center Square) – Financial control of two small North Carolina communities, an extraordinary step in a process of meetings, notices and warnings beforehand, has been taken by the Local Government Commission.
Decisions were made Tuesday for Ronda, a foothills community of the Blue Ridge Mountains in Wilkes County, and Rowland, a Coastal Plains community in the southeastern part of the state near South Carolina. The commission, chaired by first-term Republican state Treasurer Brad Briner and inclusive of first-term Republican state Auditor Dave Boliek, is statutorily required to approve most debt issued by more than 1,100 local government units.
“Our priority is making sure every citizen in our state is getting the services they need,” Briner said. “If local governments don’t fulfill their duty to their constituents, we will not hesitate to act. 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.”
Ronda leaders said the town board voted to begin a voluntary dissolution process. Rowland leaders say they are moving toward financial solvency, even while still managing fiscal difficulties.
Rowland’s population is just under 1,000, according to the U.S. Census Bureau. Ronda is under 500.
"This vote came after warnings, testimony, and a report from the State Auditor’s Office on the Town of Ronda’s cash flow crisis," Boliek said. "Over the past 22 months, the State Auditor’s Office has detailed financial governance issues at the municipal level across North Carolina. A takeover is a last resort measure that is rarely taken, but in these instances, it was the responsible thing to do for taxpayers in North Carolina."
Rocky Mount, a Coastal Plains community along the Interstate 95 corridor, has been giving quarterly updates on its distressed financial outlook. Tuesday, leaders said the cash position was improved. The city will continue to provide updates.