Finance presenter proposes sale of Whiteville—s ABC store to shore up fund balance

A city finance presenter told the Whiteville City Council that selling the city-owned ABC store to the ABC board could generate a one-time cash infusion to strengthen the city—s fund balance and address audit concerns.

The presenter described a hypothetical scenario in which an appraised value and loan balances would leave the city with roughly $716,000 in equity to add to reserves. "On page 2, the proposal, on the table regarding asset degradation is the sale of the ABC store from the city of Whiteville to the ABC board," the presenter said, framing the move as an asset-liability swap that would move the building off the city—s books. He said the city currently records $78,000 annually in intergovernmental revenue from ABC distributions and pays the mortgage debt service on the building, which yields little net effect on fund balance under current arrangements.

Council members asked whether the sale could be short-sighted if the building appreciates in value. One council member said the idea felt "a little knee jerk," warning the city could be giving up future upside if property values rise. The presenter acknowledged the long-term trade-offs but said an immediate cash infusion could be used to meet the Local Government Commission (LGC) fund-balance threshold and to address near-term capital needs.

The presenter requested an appraisal and asked staff to bring firm numbers back to council; he said no sale would occur tonight and that further vetting was required.