North Carolina is taking over Rowland’s troubled finances “to make sure bills get paid and citizens continue to get services they need,” the state treasurer’s office said this week.
The Local Government Commission, an arm of the treasurer’s office that oversees finances for the state’s cities, towns and municipalities, voted Tuesday to assume control of Rowland’s money. The Robeson County town has repeatedly missed financial audits, used restricted grants for daily expenses, kept water and sewer funds at a deficit, and spent over its budget, according to an August report.
The commission also voted to take over finances in the Wilkes County town of Ronda.
“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,” State Auditor Dave Boliek said in a news release Wednesday.
The Border Belt Independent emailed Rowland Mayor Robert McDougald and Town Clerk John Lewis IV on Wednesday but did not immediately get a response.
Last month, the Local Government Commission issued a 30-day notice to Rowland, which has been on the commission’s Unit Assistance List since 2020 after previous appearances in 2015 and 2016. The commission said the town could avoid state interference if it presented a strong financial recovery plan. But the commission said Tuesday the plan wasn’t yet strong enough.
During an emergency meeting Monday, the Rowland Board of Commissioners announced plans to adopt a voluntary dissolution agreement to cease being a town. But the plan can be halted if the town meets the commission’s financial goals.
The town must release a public impact statement within 90 days, hold various public hearings, and present an approved plan of action to the commission.
The Local Government Commission has taken a strong-arm approach in recent years to curb spending and slow borrowing. Greensboro and Cary are also on the Unit Assistance List.
Rowland has submitted its financial audits late since at least 2022. Over the years, the Local Government Commission has said the audits show funding violations, failed attempts to balance budgets, and late debt payments that raise doubts about the town’s long-term ability to manage its finances.
The town’s 2025 audit, submitted almost seven months late, showed that Rowland overspent for transportation, public safety, and other services.