Hope Mills is receiving additional financial guidance and monitoring from the North Carolina Local Government Commission as town leaders address a projected $2.27 million cash-flow gap.
Town Finance Director Brittany McLaurin reported that Hope Mills has approximately $3.47 million in available operating cash but expects about $6.18 million in expenses before major property-tax revenues arrive in December.
State monitoring is not a takeover
The town has been placed on the Local Government Commission’s Unit Assistance List following a review of its audit. The program identifies local governments that may need additional resources, guidance and fiscal monitoring.
Town officials emphasized that placement on the list does not mean the state is taking control of Hope Mills’ finances. Local leaders have met with an LGC coach and expect periodic financial reporting, budget guidance and training for staff and commissioners.
Town delays spending and holds vacancies open
Hope Mills is attempting to reduce the projected gap by holding several vacant positions open, delaying purchases and pausing capital projects until December. Travel, nonessential training and uniform purchases are also being deferred.
Officials said the affected vacancies include three firefighter positions, a police captain, a police task-force officer and several parks and recreation positions. The town currently plans to fill only a parks maintenance position before January.
Cumberland County has agreed to distribute property-tax revenue to Hope Mills monthly as it is collected instead of waiting until December. Town officials are also developing longer-term measures intended to rebuild reserves and prevent similar cash-flow problems.
Sources: The Fayetteville Observer via AOL and the North Carolina Treasurer’s Office.
