Episode•November 18, 2021•43 min

Local Government Finances with Derek Mobley | Ep. 78

About Our Guest Derek Mobley is a native of the Piedmont Triad. After graduating from Chapel Hill, he moved to Guilford County in 2009 for graduate school at the Bryan School at UNCG. He has been happy to call Guilford home for over a decade, where he met his wife Penwan. They now have two children: Gregory and Jacqueline. Derek works for Volvo Group North America supporting the iconic Mack and Volvo Heavy Duty Truck brands. Prior to joining the Volvo Group, Derek held senior roles in Analytics at BB&T (now Truist) and KPMG. Derek has been very active in the Guilford community. For example, he served as President of the North Carolina and Greensboro chapters of the Junior Chamber of Commerce. Further, he was elected President of the Bryan School of Business Alumni Association and served as an Assistant on the Executive Committee for the Wyndham Championship. Finally, the Triad Business Journal also featured him in their 2019 class of “40 under 40.” Derek is passionate about education and economic development. For example, he enjoys participating in local organizations such as the Jaycees, Future Fund, Wyndham Championship and Junior Achievement. Derek also believes in the personal review of historical and literary classics as part of lifelong learning. For instance, his favorite classic is Nostromo by Joseph Conrad, and his favorite economist is Joseph Schumpeter. Connect with Derek Website: https://electmobley.com Instagram: @mobleygso Facebook: https://www.facebook.com/mobleycampaign Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

Apple Podcasts Spotify YouTube Overcast Amazon Music

Key Takeaways

1
Local governments in North Carolina are created and constrained by state legislatures, which define their powers, borders, and taxation authority.
Cities and counties cannot independently decide what taxes or fees to impose; all authority comes from the state legislature.
This means state legislators have significant influence over local finances and policy.
2
Local governments primarily fund operations through property taxes, usage fees, sales taxes, grants, and voter-approved bonds.
Property taxes fund schools and social programs; usage fees cover services like water and trash.
Grants often come from state or federal sources, especially for targeted programs like senior transportation.
Bonds must typically be approved by voters via referendum and are repaid from future tax revenue.
3
Local budgets must be balanced annually, unlike the federal government, which can run deficits.
If revenue falls short, services must be cut rather than covered by borrowing.
This creates direct trade-offs: approving spending (like school bonds) without corresponding tax increases can lead to future service reductions.
4
Understanding the distinction between city and county responsibilities helps residents know whom to contact for issues.
City governments typically handle local services like police, trash, and roads within city limits.
Counties often manage broader services such as schools, Medicaid, and social programs.
Some services (e.g., roads) may cross jurisdictions, requiring coordination between city and county.
5
Macro and microeconomic forces directly affect personal finances and local government decisions.
Interest rate changes and inflation influence both household budgets and government revenue.
Government interventions (e.g., stimulus during COVID) can lead to inflation and future economic adjustments.
Being aware of economic cycles helps individuals prepare for downturns by managing debt and spending.

Intro

In this episode, Tiffany Grant explores how local government finances work and why they matter to everyday residents, featuring expert guest Derek Mobley.
Derek Mobley is a Guilford County resident and community leader with experience in analytics at Volvo Group, BB&T, and KPMG. He is active in local organizations including the Jaycees, Future Fund, and Junior Achievement, and is running for Guilford County Commissioner in District 3.

Website Instagram Facebook

– How Local Government Finances Work

Derek explains that in the U.S., states are the foundation of government. Cities and counties are created by state legislatures, which also grant them taxing authority.

Primary revenue sources include property taxes, usage fees (like water bills), sales taxes, and grants from state/federal levels.

The city and local governments, the way they're primarily financed is number one, you know, property taxes... They also charge you different fees for the services they provide... And then they can also do things like sales taxes.
– Derek Mobley

– Where to Seek Change: Local vs. State Government

For issues like property taxes, start at the local level by engaging elected officials or supporting candidates. For broader policy changes, state legislators can pass laws affecting taxation or services across jurisdictions.

I would definitely say you start at the local level.
– Derek Mobley

– Balanced Budgets and Transparency

Unlike the federal government, local governments must balance their budgets each year. If revenue is insufficient, services get cut. Local budgets are relatively transparent, often published in a few hundred pages.

Residents can review budgets and water bill inserts to understand upcoming changes and service impacts.

– Understanding Bonds and Voter Referendums

Bonds function like loans for large projects (e.g., school construction). They require voter approval via referendum and are repaid from future tax revenue.

If you vote for more spending and not higher taxes, you're kind of voting for cutting services somewhere else.
– Derek Mobley

Example: A school bond passed without a corresponding sales tax increase, potentially forcing future service cuts to repay the debt.

– Grants and Federal/State Funding

Grants from state and federal governments help fund local programs like senior transportation. These funds often flow through counties, which administer services like Medicaid and social programs.

City vs. county roles can overlap or require coordination, especially for shared infrastructure like roads.

– Macro vs. Micro Economics in Government

Macro: National policies like interest rates and deficits. Micro: Local program effectiveness and individual impacts (e.g., modeling WIC or food stamp outcomes).

Understanding both helps residents anticipate economic shifts and adjust personal finances accordingly.

– Historical Context of Economic Policy

From Adam Smith's Wealth of Nations (1776) challenging mercantilism, to the Great Depression prompting more government intervention, economic thought has evolved around the role of government in markets.

COVID stimulus is the latest example of intervention, with potential long-term effects like inflation still unfolding.

– Running for Local Office

Derek is running for Guilford County Commissioner in District 3, motivated by concerns over education funding, economic development, and stagnant median incomes.

He encourages involvement in local government and notes the importance of school boards in education policy.

Books Mentioned

The Wealth of Nations by Adam Smith
Nostromo by Joseph Conrad

Resources

Topics

Local GovernmentPublic FinanceProperty TaxesBonds and ReferendumsMacro vs Micro EconomicsEconomic HistoryCommunity EngagementNorth Carolina PoliticsEducation FundingPersonal Finance