Rowland, N.C. – The North Carolina Local Government Commission (LGC) voted this week to assume direct control of the Town of Rowland’s finances. The decision follows a pattern of late audit filings, missed debt‑service payments and questionable use of a state redevelopment grant.
Background on the financial concerns
Rowland, a small community of roughly 946 residents located about 20 miles west of Lumberton, has been on the LGC’s Unit Assistance List since 2015. Although the town’s most recent audits are technically up to date, the prior four were submitted late, according to an LGC memorandum from August.
The commission also flagged the town’s failure to anticipate three USDA loan payments totaling more than $55,000 that were withdrawn on June 1, despite a notice sent on April 30. LGC Secretary Denise Canada said the town’s “failure to anticipate known debt service payments raises concern about whether it is adequately maintaining its debt records, planning for upcoming obligations, and ensuring that sufficient funds will be available to make future payments when due.”
Operating losses and grant misuse
Rowland’s water and sewer system has posted operating losses for each of the last four fiscal years. The general fund ended fiscal year 2025 with a deficit of just over $167,000, and the State Treasurer’s fact sheet shows roughly $153,000 in past‑due bills as of August.
In addition, the town has drawn more than $200,000 from a downtown redevelopment grant that the Office of State Budget and Management earmarks for approved project items. The LGC memo notes that the funds have been used for unapproved purposes since fiscal year 2024.
Town’s response and corrective measures
Mayor Robert McDougald and Finance Officer Teressa Williams told the commission that the town is taking concrete steps to reverse the trend. Water and sewer rates have already risen 5 % this year, and the mayor proposes increasing them up to 10 % annually for the next five years to reach “the going rate.”
Personnel reductions are also under way. The police force has been trimmed from six officers to two officers plus a chief, with the town planning to rely on the Robeson County Sheriff’s Department for additional backup.
To address the grant shortfall, the town has committed to repaying $4,000 per month, aiming to clear the remaining $68,000 balance by the end of the fiscal year. Williams said she monitors every dollar in and out of the checking account to avoid an overdraft.
Economic development hopes
Town officials remain optimistic about future growth. They cite the recent federal recognition of the Lumbee Tribe—whose members make up a significant portion of the local population—as a potential catalyst for new housing, industry and jobs. McDougald said the tribe’s recognition could bring a “windfall of industry” to the area.
Efforts are also under way to revitalize Main Street, which is currently lined with vacant, deteriorating buildings. The mayor urged owners who have abandoned their properties to either repair them or sell them to investors willing to redevelop the sites.
LGC’s stance
While the commission acknowledges the town’s recent actions, Canada expressed doubt that the proposed “hope of future revenue” will resolve the immediate cash‑flow crisis. “There are too many bills to be paid given the amount of revenue you have,” she said, reinforcing the decision to place the town’s finances under state oversight.
The LGC’s takeover does not automatically signal dissolution of the municipality, but it does give the commission authority to oversee budgeting, debt service and grant compliance until Rowland can demonstrate sustainable fiscal management.
What’s next for Rowland?
The town will continue to work with the LGC to develop a detailed recovery plan, including further rate adjustments, continued staff consolidation and a clear timeline for repaying the grant. Community members are encouraged to attend upcoming public meetings to stay informed about the town’s financial roadmap.
Original reporting: Carolina Public Press — read the source article.
