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Commissioners direct Catawba IGA revenues to Capital Reserve Fund
Summary
Cleveland County commissioners unanimously adopted a resolution to deposit all revenues from the Catawba Indian Nation intergovernmental agreement into the county’s Capital Reserve Fund and restrict their use to one-time capital purposes, citing the IGA’s 20‑year term and fiscal prudence.
Cleveland County commissioners on Jan. 20 unanimously approved a resolution directing that all revenues the county receives under its intergovernmental agreement (IGA) with the Catawba Indian Nation be deposited into the county’s Capital Reserve Fund and used only for capital purposes, including debt service and major maintenance.
County Manager David Cotton told the board the IGA revenue streams — described in the staff presentation as payments in lieu of taxes (PILOT), local infrastructure fees, development fees and sales taxes — are finite and will continue for 20 years from the start of gaming activity. Cotton said the casino is expected to be fully operational by the end of 2027 and revenue is expected to peak in early 2027. The resolution therefore directs that the funds be treated as one-time capital resources rather than recurring operating revenue to avoid future budget shortfalls when the IGA term ends.
Board discussion emphasized preserving fiscal stability. Commissioners referenced potential uses such as emergency services facilities, large infrastructure projects, equipment acquisition and debt service, and supported restricting the IGA receipts to long-lived investments. The resolution authorizes the Finance Director to implement the policy and to incorporate anticipated IGA revenues into FY 2026–2027 financial planning models.
The board approved the resolution on a motion by Commissioner Johnny Hutchins, seconded by Commissioner Doug Bridges, by a unanimous vote. The resolution does not amend the existing IGA; it establishes internal policy for how the county will manage and allocate the revenues when received.
