State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_122C > GS_122C-115_3

§ 122C‑115.3. Dissolution of area authority.

(a)        Whenever the boardof commissioners of each county constituting an area authority determines thatthe area authority is not operating in the best interests of consumers, it maydirect that the area authority be dissolved. In addition, whenever a board ofcommissioners of a county that is a member of an area authority determines thatthe area authority is not operating in the best interests of consumers of thatcounty, it may withdraw from the area authority. Dissolution of an areaauthority or withdrawal from the area authority by a county shall be effectiveonly at the end of the fiscal year in which the action of dissolution orwithdrawal transpired.

(b)        Notwithstanding theprovisions of subsection (a) of this section, no county shall withdraw from anarea authority nor shall an area authority be dissolved without firstdemonstrating that continuity of services will be assured and without priorapproval of the Secretary.

(c)        Prior to withdrawalof a county from an area authority, the county board of commissioners shallhold a public hearing with notice published at least 10 days before thehearing.

(d)        Prior todissolution of an area authority, the area authority shall hold a publichearing with notice published in every participating county at least 10 daysbefore the hearing.

(e)        Any budgetarysurplus available to an area authority at the time of its dissolution shall bedistributed to those counties comprising the area authority on the same prorata basis that the counties appropriated and contributed funds to the areaauthority's budget during the current fiscal year. Distribution to the countiesshall be determined on the basis of an audit of the financial record of thearea authority. The area authority board shall select a certified publicaccountant or an accountant who is subsequently certified by the LocalGovernment Commission to conduct the audit. The audit shall be performed inaccordance with G.S. 159‑34. The same method of distribution of funds describedin this subsection shall apply when one or more counties of an area authoritywithdraw from the area authority.

(f)         Funds distributedto counties pursuant to subsection (e) of this section shall be placed in thefund balance of the county program or area authority subsequently establishedor joined pursuant to G.S. 122C‑115.

(g)        Any liabilities atthe time of its dissolution shall be paid from unobligated surplus fundsavailable to the area authority. If unobligated surplus funds are notsufficient to satisfy the total indebtedness of the area authority, then theremaining unsatisfied indebtedness shall be apportioned on the same pro ratabasis that the counties appropriated and contributed funds to the areaauthority's budget during the current fiscal year. (2001‑437, s. 1.9.)