County approves new financial policy citing transparency

KENANSVILLE — With a unanimous vote, Duplin County officially put its financial playbook in writing — establishing guidelines for how it budgets, borrows and saves for the future. The new policy, adopted last week, aims to enhance transparency, protect reserves and ensure that taxpayers understand how their money is managed.

Presented by Ty Wellford from Davenport and Company, the policy outlines long-term fiscal guidelines, including best practices for budgeting, cash management, reserve levels, and debt limits.

“I think the timing is great for you all because you’re in a tremendous financial position right now, and that’s something that we did look at in greater detail,” said Wellford. He emphasized that the policy formalizes existing management practices, providing stability during transitions or economic changes.

“It just ensures the county is operating on sound financial footing. And the decisions that are made are made with, at first, our residents in mind, but the financial position of the county as well,” Miller told Duplin Journal.

Key elements of the financial policy include prohibiting one-time revenues from funding ongoing expenses, requiring board approval for budget amendments, and mandating quarterly financial reporting.

“Budget amendments have to come in front of the board for consideration, right? You can’t just amend your budget. The county manager and finance director can’t just amend the budget when they want to. The governing body will receive financial reports at least quarterly, showing year-to-date revenues and expenditures compared to the budget, right? That’s something you’ve got a nice report on this evening,” Wellford explained.

The policy sets a minimum reserve level of 25% of annual expenditures and outlines a balanced debt management approach, with metrics ensuring debt does not exceed 2.5% of the tax base and annual debt service remains below 15% of the operating budget. It also addresses compliance with state laws and liquidity for cash and investments.

“This is just cementing some of the things that you’re already doing very well,” said Wellford.

The commissioners asked questions to clarify the flexibility of the new policies, particularly concerning fund balance thresholds and the process for making amendments. Wellford explained that while there is no rigid recovery roadmap, the policy requires that a plan be developed, ideally within a three-year window or within a time frame deemed reasonable.

He also emphasized that the policy’s flexibility allows future boards to amend it if needed.

In other business

• Commissioners addressed flooding and drainage complaints from residents, particularly in Cedar Fork Church Road and Tram Road. County Manager Bryan Miller will follow up about those issues with the North Carolina Department of Transportation.

• After a public hearing, the board approved a request from Louis Costello to name a private lane DC Heights Drive in Warsaw.

• The board appointed Commissioner Jesse Dowe as Duplin County’s voting delegate for the upcoming North Carolina Association of County Commissioners conference, with Commissioner Wayne Branch serving as the alternate voting delegate.

• Miller provided an update on the Community Development Block Grant (CDBG) Neighborhood Revitalization program, which is entering a new cycle. He encouraged the commissioners to contact Chris Hatcher in the planning department if they knew someone who was in need of their services. The CDBG program awards funds to local governments for projects that enhance housing, infrastructure and economic development, with a focus on benefiting low- and moderate-income individuals and families. The program often assists homeowners in addressing health and safety hazards.