Pembroke council hears latest audit report

Dec. 6—PEMBROKE — S. Preston Douglas and Associates' John Masters delivered to council members here the annual audit report for Pembroke's 2021-22 fiscal year Monday despite findings not being formally approved yet by the Local Government Commission.

"A few years ago I jumped the gun and presented some financial statements to the Town of Pembroke board specifically and there were some minor changes," Masters said. "I promised myself I would never do that again but here I am doing the same thing."

The unassigned portion of the general fund balance saw its first drop in more than a decade but still totals $1,844,792, or 48.86% of total general fund expenditures for the fiscal year.

"In 2017 the unassigned fund balance's percentage of general fund expenditures was 31%, in 2018 it went to 37%, in 2019 it went to 40%, in 2020 it went to 44%, 2021 it went to 52% and then it dropped back down to 49% this past year," Masters said.

The town again saw a drop in water and sewer revenue but the decrease was not as grand as the $400,000 shortfall of the previous year, which caught the attention of the LGC.

"Water and sewer fees are coming back from the COVID epidemic back in 2020 and 2021," Masters said.

Masters said the LGC this year is "fixated" on property tax revenues being budgeted higher than what was actually achieved.

"Ironically, your collection rate is 97%. I think it's the best it's been since we've been doing the audit back into the 80s," Masters said.

The cash flow also dropped for the second year in a row, this is because of multiple eternally funded projects and matching funds of grants awarded to the town, Masters said.

Councilman Channing Jones gave some perspective on the report, stating that all of the town's revenues, specifically in the past 10 years, have continuously tracked "in a positive direction."

"In many regards, 30, 40, 50% increases over that time period," Jones said. "Consequently, our structured debt, those liabilities that we have, have also been decreased."

"Our cash may be a little less but over the past 10 years, it is enormously higher than it was several years back. The reason cash is a little lower is because of those grants ... The town over the past two years has been a recipient of over $20 million in grant revenue. Those grant revenues typically have matches. Those matches have to come out of the cash ... These are pennies on the dollar to the citizen of Pembroke."

Town Manager Tyler Thomas reiterated that the decrease in cash is not from fund mismanagement or budget mismanagement but from where "money is being reinvested into the community" through projects like the construction of the splash pad, the lift station project and the Union Chapel Streetscape project.

"Some of those are just now to the point of getting expensed out," Thomas said. "Those are the reason you see a drop in cash and it's not a major drop in cash."

Highlights mentioned in the report were:

— The assets and deferred outflows of resources of the town exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $21,308,118 (net position).

— The government's total net position increased by $917,750 during the year. The increase is primarily attributed to grant income and positive operating results.

— As of the close of the current fiscal year, the Town's governmental funds reported a combined ending fund balance of $1,688,592.

Also Monday, the commissioners:

—Heard from Robeson County Public Library Director Katie Fountain who delivered an update on series of programs and grant opportunities the library system has received over the past year.

—Tabled a public hearing for a special-use permit to establish a private club in a C-2 Highway Business District. The matter will be considered at the Jan. 3 meeting.

—Appointed Lee Maynor to the Fireman's Relief Board, per the recommendation of Pembroke Fire Chief Ryan Locklear.

— Amended language in Article 18 of the Unified Development Ordinance, increasing the maximum height requirement for a freestanding sign in an individual parcel within a C-3 District from 8 feet to 20 feet when fronting a major highway, freeway or principal arterial roadway.

—Set a public hearing date for the Jan. 3 meeting, to consider a request for a special-use permit to operate a smoke shop/tobacco store.

— Set a public hearing date for the Jan. 3 meeting, to consider a request to rezone a parcel of land on N.C. 711 from an R-20 Residential District to an O&I Office & Institutional District.

— Approved a request for a road closure on Main Street from 5 to 9:30 p.m. on Dec. 22 for a Christmas event hosted by Calvery Way church.

Tomeka Sinclair can be reached at tsinclair@robesonian.com or 910-416-5865.