<p>Harris</p>

Harris

<p>Ashburn</p>

Ashburn

<p>Townsend</p>

Townsend

<p>Henegan</p>

Henegan

LUMBERTON — Leaders in six of Robeson County’s municipalities say their towns won’t be adversely affected by Gov. Roy Cooper extension of his Phase II virus-related restrictions.

The almost universal agreement among the leaders is the towns took a bigger financial hit from the governor’s mandate to halt collection of overdue utility payments.

“We’re probably losing about $10,000 a month in late fees in water,” said Ricky Harris, interim Fairmont town manager

Fairmont doesn’t have electrical utilities like Red Springs or Lumberton, but does charge for water and sewer, he said. The town is losing money in late fees.

Helping keep the town functioning well are conservative revenue projections regarding sales tax and water/sewer, he said.

Town leaders don’t yet have a good feeling for how Fairmont will be affected by the loss of sales tax revenue normally collected from the businesses that have been forced to close or reduce operations because of the restrictions imposed in order to slow the spread of COVID-19, Harris said. But, if things continue, the town may have to make changes.

“If it continues like this, we may look at freezing some things, such as spending or hiring,” he said.

But, that decision would have to be made by the town’s Board of Commissioners, Harris said.

St. Pauls hasn’t seen a huge financial impact from Phase II restrictions like the town did from the prohibition on shutting off utilities service from March 31 through July 29, said Rodney Johnson, town administrator.

Some residents are taking advantage of payment plans, but the town hasn’t seen a huge financial impact from lost collections, Johnson said. And nothing will change financially because of Cooper’s latest extension.

“We budgeted for it for the whole year, and nothing’s changed due to the extension,” Johnson said.

Cooper’s latest extension is different than any extension of the governor’s executive orders affecting municipal-owned water and sewer utilities, said Scott Mooneyham, director of Political Communications and Coordination for the North Carolina League of Municipalities. The provisions in previous executive orders affecting those utilities expired July 31, and the governor didn’t renew those no-cutoff orders.

“In terms of the extension of the Phase II restrictions, there is no direct effect on municipal bottom lines, as there was with the utility-related orders,” Mooneyham said. “Relative to any effects on business activity, it is very difficult to separate within those declines what is just basic consumer behavior during a pandemic verses what may be caused by any mandates.”

Cooper announced Wednesday he was extending until at least Sept. 11 restrictions that keep some businesses with higher risks for spreading the virus closed. His order also keeps in place limitations on mass gatherings and the statewide mandate that face coverings be worn in public.

After being allowed to collect utility payments and late payments from customers St. Pauls is beginning to see some relief, Town Manager David Ashburn said.

“With that coming in, we’re OK,” Ashburn said.

The town will be able use that money to build up its cash reserves and break even on the money lost in utilities, he said. Recent funds from a $1,024,608 no interest loan and a $500,000 grant from the N.C. Office of Recovery and Resiliency for Hurricane Florence relief also will help the town’s cash flow and reserves.

“We went through a lot of cash reserve in the water and electric departments,” Ashburn said.

The town had applied for a waiver from state Attorney General Josh Stein’s office because of the financial impact it had suffered from utility customers not paying their bills, he said. But, the town put the waiver on hold after Cooper lifted the no-collections restriction and the town could begin collecting.

But looming financial clouds of uncertainty are property taxes, which are generally due in January, and low sales tax collections, Ashburn said. If people don’t pay property taxes, the town could take a big hit. If that happens, there could be consequences for the town government and for residents

“Ultimately, you have to reduce services and personnel and things like that,” Ashburn said.

But, until then the town will have multiple plans in place to respond to what comes, he said.

“All we can do is pray for the best and respond to what happens,” the town manager said.

Rowland Town Clerk David Townsend said he doesn’t project anything different from how the town has been operating so far under the Phase II restrictions.

“We’re going through everything just like normal,” Townsend said. “From the town’s perspective, we’ve been operating pretty OK.”

As far as utility payments, the town is working each case individually on establishing payment plans, but there is no major cause for concern financially for the town, he said.

But, restrictions put a damper on new businesses that have opened up in Rowland.

“It’s (Cooper’s extension) not going to have a big impact, but it will affect a few of our restaurants that just came in,” Townsend said. “They are doing takeout orders, and the residents have been calling a lot.”

Pembroke Town Manager Tyler Thomas had projected a 5% drop in sales tax revenue when creating the fiscal year 2020-21 budget. Although not “ideal” an extension is doable.

“Obviously, we can endure another five (weeks),” Thomas said.

A lot of local businesses have able to reopen, but there are certain businesses that are “certainly hurting by the extension,” he said. Among these are the gyms and social clubs in town.

“We’re concerned about the viability of businesses like that,” Thomas said.

The town is open to being a resource in any way it can to assist businesses negatively affected by the governor’s Phase II restrictions, he said.

Town Manager Roosevelt Henegan Jr. also said Maxton is in a stable place financially.

One initial cause for concern was the loss in utility revenue, but only a “few” customers had outstanding balances, he said.

“Folks are paying their utility bills,” Henegan said.