Question 1

Where does municipal finance data come from?

Accepted Answer

Municipal finance data comes from the NC Department of State Treasurer's Local Government Commission (LGC), which oversees the finances of every unit of local government in the state. Every NC municipality is required to file an annual audit with the LGC.

Question 2

What are the main revenue sources for a municipality?

Accepted Answer

Most NC municipalities rely on property taxes (ad valorem), local sales tax distributions (Article 39/40/42/43/46), utility franchise taxes, Powell Bill street aid from the state, charges for services, and permits and fees. NC counties levy their own sales tax separately; municipalities receive a portion via distribution formulas.

Question 3

What is a General Fund and why does it matter?

Accepted Answer

The General Fund is the municipality's primary operating fund. It covers core services like police, fire, public works, and administration. A healthy General Fund balance (typically 25-50% of annual expenditures) indicates the town can handle unexpected expenses without raising taxes or cutting services.

Question 4

How current is this financial data?

Accepted Answer

NC LGC audit data typically lags 12-18 months behind the current fiscal year (which ends June 30 for most NC local governments). The most recent year with complete audited data is usually one to two fiscal years prior.

Foxfire, NC

Foxfire Municipal Budget

Finances — FY 2022