North Carolina town may regain its fiscal autonomy, commission hears

Robersonville, North Carolina, has fixed its financial and operational shortcomings and could regain control of its finances in the near future, members of the state Local Government Commission were told at their monthly meeting on Tuesday.

However, Eureka is still struggling with sewer issues that further threaten the town’s already-strained viability.

The LGC took control of the finances and assets of Robersonville in 2020 and Eureka in 2019 under the commission’s statutory authority.

Robersonville is now compiling monthly financial reports for its town board, conducting bank reconciliations and using new software for utility and property tax billing. Its property tax collections have increased, staff has been trained, it is catching up on audits and an experienced, professional manager is in place, the LGC staff said.

Meanwhile, Eureka continues to face problems with its infrastructure, which is contributing to its financial woes.

Its sewer flow meter needs replacement so that the town can determine how much wastewater it sends under contract to Fremont for treatment.

The Eureka system also has significant inflow and infiltration issues, which drive up the amount and the cost of treatment, which exceeds what customers are being billed, creating an imbalance in cost and revenues.

Since the town is running out of other sources to pay the shortfall, Fremont plans to raise its rates in 2024, which could make the situation worse, because it would make it difficult if not impossible for many of its customers to pay their bills. LGC staff said they are exploring short- and long-term solutions.

Also Tuesday, the LGC also designated 14 local governments as distressed under the “Viable Utility Reserve” legislation.

This designation requires the municipalities to conduct an asset assessment and rate study, participate in a training and educational program and develop a plan of action. It also is a necessary step toward potential funding to improve the viability of water and wastewater systems.

Those municipalities designated are: McDowell and Northampton counties, and the towns of Benson, Denton, Elizabethtown, Grover, Harmony, Hobgood, Magnolia, Parkton, Polkton, Princeton, Stantonsburg and Stoneville.

Several bond requests were on the agenda Tuesday,

Most bond sales in the state must be approved by the commission, chaired by State Treasurer Dale Folwell, which reviews if the amount that municipalities want to borrow is reasonable for the projects proposed and whether they can pay it back.

The LGC approved requests from Durham County to permanently finance $50 million in general obligation refunding bonds for construction that had been financed in the short-term market.

Edenton was cleared to obtain about $6 million in U.S. Department of Agriculture revenue bonds for water and sewer projects. The current wastewater treatment plant is not able to meet system needs, and the projects are expected to address the situation.

Separately, Folwell and the state Health Plan Board of Trustees approved no premium rate increase for members for the benefit year which begins Jan. 1, 2024. This was the sixth year in a row there were no rate increases.

“I’m delighted that we’re able to maintain active member premiums, especially family premiums, with no increase for the next benefit year,” Folwell said. “Our members continue to work tirelessly as teachers, state employees and public servants and they deserve stability in what they pay for this valuable benefit.”