Local Government Commission to provide financial oversight for Town of Black Mountain

State agency places municipality on Unit Assistance List

Fred McCormick
The Valley Echo
September 10, 2026

The Town of Black Mountain will be included on the LGC Unit Assistance List, based on audited financial statements from the 2025 fiscal year. Photo by Fred McCormick

A state agency will provide financial oversight and resources for the Town of Black Mountain, after the municipality received notice it would be included on the Unit Assistance List, based on audited financial statements from the 2025 fiscal year.

Compiled and managed by the Local Government Commission, a division of the Department of State Treasurer, the UAL identifies municipalities, counties and utility authorities experiencing financial, operational or reporting concerns. 

The State and Local Government Finance Division, on Sept. 2, informed the town of plans to establish monitoring requirements and offer resources and assistance related to fiscal management practices. A coaching team from the agency will work with municipal staff to identify specific challenges. 

Units included on the UAL are subject to statutory obligations. The Town of Black Mountain, which entered the current fiscal year facing a $2 million shortfall in the general fund and approximately $900,000 deficiency in the water fund, will be required to seek LGC approval of financing contracts exceeding the amount of $50,000, for the purchase, lease or lease with an option to purchase motor vehicles. Leases, acquisitions or construction of capital assets, with terms exceeding three years and $50,000, will also require authorization from the commission. Local officials must attend fiscal management training, according to interim Town Manager Richard Hicks. 

“I will be required to take six hours of educational courses,” said Hicks, who began the temporary role in December, following the resignation of the town manager. “I’m only here for about the next 90 days, so I’m not exactly clear on how that will work out.” 

Elected officials will also receive financial training, the interim manager added. 

An evaluation of the town’s 2025 comprehensive audit resulted in the decision, according to Hicks. 

“They have a point system for specific issues, and municipalities under 15 points are not included in the list,” he said, following a Sept. 10 meeting with state officials. “Our fund balance dropped below the 25% level, recommended by the LGC. We were around 19% that year, which accounted for 8 points in their system. As of now, we’re closer to 10%, so that puts us behind a little more.”

The town was assessed 13 points, due to a trending decline in the fund balance, he added. 

“It has decreased for the past three or four years,” Hicks said. “Those two specific issues resulted in our town being put the list.”

The town’s inclusion on the UAL will provide resources to “help right the ship,” according to the manager. 

“The main goal is to get the town’s fund balance back above 25%,” he said. “The town will be required to do additional reporting to the LGC on our finances.”

Controlling future expenditures will be a key factor in rebuilding the town’s fund balance, according to Hicks, who will remain in his interim position through the end of the year.

“We’ll have to look for ways to save money,” he said. “Just because we have budgeted something does not mean we have to necessarily spend what was budgeted. Hopefully, at the end of the year, our revenues will come in more than we expected while our expenditures come in less than we anticipated.”