(Raleigh, N.C.) – State Treasurer Dale R. Folwell, CPA, voiced his support for the City Council of Elizabeth City’s decision to resume collections of utility payments in opposition to Executive Order 142. On June 8, the city voted to request Attorney General Josh Stein and Gov. Roy Cooper grant the city a waiver from the order. City Manager Rich Olson noted during the meeting that if relief is not forthcoming then the city’s utilities will likely be insolvent by the first of August, forcing a takeover by the Local Government Commission (LGC).
After receiving no response to their request, the city issued a press release stating: “The Elizabeth City Council can no longer wait on Governor Cooper or AG Stein to grant the waiver. Beginning Wednesday, the City will start sending out bills and expect our residential customers to begin paying them …”
In the same release, the city emphasizes that it will work with customers setting up a COVID hardship agreement if they can show that they are not employed or receiving unemployment, or an immediate family member has contracted the coronavirus.
“I’m disappointed that the unintended economic consequences of Executive Order 142 are not being considered,” said Treasurer Folwell. “I believe that elected city councils and county commissions know their customers better than people in Raleigh and for decades they have come up with fair and equitable solutions that will not bankrupt the utilities, cities or its citizens. All hearts pump blood, but theirs also pump compassion.”
Earlier this month, Treasurer Folwell asked the governor to issue waivers for all citizen-owned utilities in the state. In the release, he noted that without the waivers some of the citizen-owned utilities could face potential bankruptcy. He plans to renew that call at the next Council of State meeting on July 7.
“I’m calling for there to be a vote to grant waivers to all citizen-owned utilities impacted by Executive Order 142 at the next Council of State meeting,” said Treasurer Folwell. “For local governments, there’s real potential for financial peril because of this order. This is not political, it’s mathematical.”
The LGC supports the State of North Carolina and over 1,300 units of local government through the sale and delivery of all state and local debt, monitoring of debt repayment, counseling and assisting local governments issuing debt, and monitoring and analyzing the fiscal health and accounting practices of all local governments.