North Carolina State Treasurer Dale Folwell is currently engaged in a significant dialogue regarding the state's long-standing involvement in addressing Pilot Mountain's ongoing financial challenges. The situation came to the forefront when Pilot Mountain's town manager and finance officer, Michael Boaz, was placed on administrative leave on October 18 due to concerns about the town's finances. Subsequently, on October 29, he was shifted to unpaid leave.

Mayor's Concerns and Allegations

Pilot Mountain Mayor Evan Cockerham made several crucial announcements at a Board of Commissioners meeting last Thursday. He revealed that Boaz had spent town funds without the knowledge or approval of the board. Moreover, Boaz had presented the board with "inaccurate" information, which had severely impacted the town leaders' ability to make informed decisions. Cockerham further stated that funds for the Pilot Mountain Rescue Squad, Tourism Board, and the "Love the Library Tea" fundraiser had been affected by the misappropriation of funds.

External Safeguards and Their Limitations

In his remarks to the board, Cockerham emphasized the reliance on external safeguards such as oversight from the Local Government Commission, the state auditor, and the annual third-party audit to ensure transparency. However, he pointed out that these institutions had failed to alert the town to financial discrepancies and had only offered limited guidance so far.

State Treasurer's Perspective

Wednesday night, Dale Folwell released a statement pushing back against the mayor's claims. He stated that the statement was factually inaccurate. In fact, LGC staff had been meeting with the town representatives for the last eight years, expressing concerns about Pilot Mountain's financial health and fiscal management. According to Folwell, state staff had met and communicated with Pilot Mountain leaders on several occasions since 2016 to assist the town in addressing its financial instability. He clarified that it is not the function of the LGC to investigate and solve the problems of governmental units but to identify issues from their audited financial statements and make them aware so that appropriate action can be taken.

Advice and Responsibility

In an interview with WXII 12 News, Folwell emphasized that the state will remain available to Pilot Mountain for advice. He stated that their door, mind, and heart have always been open, not only to Pilot Mountain but to any of the other 1,200 entities that report to the Local Government Commission. Folwell also mentioned that the advice they have been giving Pilot Mountain is almost a decade old and that at every turn, the town leaders have made their choices. He made it clear that it is up to Pilot Mountain leaders to heed the state's warnings and make the tough decisions necessary to put the town back on a good financial footing.

Impact on Public Services

Folwell expressed concern about the impact the town's finances could have on public works, roads, and safety. He emphasized that for low and fixed-income people, having their taxes not go toward the benefit and not being a part of a financially solvent town is a significant issue.

Mayor's Response and Further Actions

Cockerham declined WXII 12's request for an interview but responded to Folwell's statement with one of his own on Wednesday. He expressed regret that his comments were perceived as an attack on the LGC and the Treasurer's office. His first duty to the people of Pilot Mountain is transparency, and he wanted to let them know that they had pursued these avenues for assistance. Cockerham also stated that the board had taken "appropriate action" when they received notices from the LGC. He reiterated that it was Boaz who misused the town's funds and that the budget adopted was not adhered to, which led to the town manager being placed on leave. Cockerham further mentioned that to date, there has been no investigation or formal recommendation made by any of the aforementioned agencies. They reached out to these offices through their legal counsel on the first day and have been ready and willing to fully cooperate. As there was no direct assistance or recommendation, Cockerham brought in their own financial analyst, former auditor (and member of the LGC during many of the years in question) Beth Wood.Folwell's initial statement emphasizes that it is not the function of the LGC to investigate or step in on behalf of local government entities. The Board of Commissioners will meet again on December 2 at 7 p.m. in the Pilot Mountain Rescue & EMS building. Cockerham stated that during the meeting, Wood will present her findings to the board, and the report will also be made public following the meeting.NAVIGATE: Home | Weather | Watch NOWCAST TV | Local News | National | News We Love |Trending Stories