Town Board debates bond spending and lobbyist funding amid budget challenges

The Board of Commissioners in Matthews, Union County, held a crucial budget workshop on June 2, 2025, where discussions centered on the implications of bond proceeds and the necessity of hiring professional lobbyists.

A key point raised during the meeting was the strict requirement that bond proceeds must be fully spent within two years, including any investment earnings. Failure to comply could result in significant financial penalties from the IRS. One commissioner cautioned that using interest earnings for debt service could lead to arbitrage issues, potentially leaving the town without funds to cover IRS obligations. The project timeline, expected to exceed 24 months, adds urgency to this financial strategy.

In addition, the board debated the value of hiring a lobbyist in Raleigh, with one commissioner arguing that the $59,250 expense is a sound investment. He noted that many similarly sized towns employ lobbyists, and not having one could place Matthews at a disadvantage. Another commissioner echoed this sentiment, emphasizing the need for a connection to state government, while also suggesting that the board should evaluate the effectiveness of the lobbyist's services in the future.

The meeting also touched on broader budgetary concerns, including the need for revenue increases to support essential services like police and fire departments. One commissioner expressed frustration over the tendency to defer financial decisions, warning that future boards could inherit unresolved issues if current leaders do not act decisively.

As the budget process continues, the board is tasked with balancing immediate financial needs against long-term fiscal responsibility, with the potential for a tax increase on the table to address pressing community needs. The discussions reflect a critical moment for Matthews as it navigates its financial future amidst growing demands for services and infrastructure.