Carolina Beach warned on declining fund balance
CAROLINA BEACH, NC (StarNews) — The town government has been chided by the N.C. Local Government Commission (LGC) for allowing its fund balance, or savings account, to dip to about 31 percent of general fund expenses.
Three years ago, the town’s fund balance was about 68 percent of its expenses — the highest of any town, city or county government in New Hanover, Brunswick or Pender counties at the time. As of June 30, its fund balance had dropped to 31 percent, according to the LGC.
“We are concerned that the fund balance available for appropriation relative to expenditures in the General Fund is substantially less than comparable units and may be too low to provide the necessary resources you need,” the LGC said in a letter to town officials.
The LGC is overseen by the N.C. Treasurer’s Office. Deputy Treasurer Frank Lester said the town was sent the letter because it appeared to be using its fund balance to avoid raising taxes.
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