(The Center Square) – Republican senators near the eastern North Carolina community of Rocky Mount, and one from the mountains, are trying to protect taxpayers from potential raised electric rates to cover an embattled City Council’s poor fiscal management.
All revenue from the city electric system, if a Senate proposal is signed into law, would be required to remain with the utility. The money would only be used for operating expenses, system maintenance and improvements, debt service or to reduce electric rates for customers.
Rocky Mount/Limit Electric Power Revenue Uses, as Senate Bill 1076 is known, was filed by Sens. Lisa Barnes, R-Nash, Buck Newton, R-Wilson, and Tim Moffitt, R-Henderson.
“The city of Rocky Mount has proven that it’s not a good steward of taxpayer funds,” Barnes said. “We need to ensure every penny our rural neighbors outside Rocky Mount send to the electric system can only be used for electric system purposes, not to bail out the city’s budget. This bill gives them some peace of mind.”
The Local Government Commission has threatened takeover of city finances following an audit by the office of first-term Republican state Auditor Dave Boliek. City leaders appeared before the commission last month.
“There are concerns about the city’s ability to pay staff, operate key services and make nearly $8.7 million in debt service expenses in fiscal year 2026-27,” first-term Republican state Treasurer Brad Briner said. “Rocky Mount leaders have made progress in their massive deficit but are still avoiding making some tough decisions about overspending. It is not sustainable to ask citizens to shoulder the burden of budget mismanagement.”
The audit from Boliek’s office said lack of diligence in hiring a city manager and cycling through five directors of its Finance Department showed no willingness to be serious on finances. The city’s woes are very much tied to the hiring of Keith Rogers Jr., formerly the town manager in Dumfries, Va., where the budget was overspent by $1 million.
Rocky Mount City Council unanimously hired Rogers with the help of POLIHIRE, a Washington, D.C., firm, on Dec. 12, 2022, with a March 6, 2023, starting date. His starting salary was $225,000. The Virginia Commonwealth University grad resigned 17 months later in August 2024, with a $169,875 settlement inclusive of a $112,500 lump sum payment.
The audit “uncovered serious financial failures, which culminate with an astonishing 78% decline in the city’s cash and investment balances in just two years,” Boliek’s office said.
“From the lack of due diligence in hiring the former city manager, to cycling through five Finance Department directors,” he said, “it’s clear that Rocky Mount has not been serious about resolving its financial issues.”
An Investigative Special Report was also released, showing a $795,500 consulting contract agreed to by Rogers without presentation to the City Council. The pact was eventually stopped, with $385,610 paid by the city.
Sandy Roberson is the mayor of the city of about 54,000 – just outside the top 20 largest in the state – that bridges Nash and Edgecombe counties at the intersection of Interstate 95 running from Maine to Florida and U.S. 64 running from Raleigh to the Outer Banks. Council members, elected as nonpartisan, are Andre Knight, Reuben Blackwell, Charles Roberson, T.J. Walker, Lige Daughtridge, Tom Harris and Jabaris Walker.
When Rogers was hired, Roberson was mayor and Knight, Blackwell, Walker, Daughtridge, Harris and Walker were on the council along with Richard Joyner.
The audit found employee compensation up 27% between fiscal years 2023 and 2025; capital purchases up 153% in fiscal year 2024; and a 2% decline in city revenue during those years.
The capital purchases included $17.2 million for land to be used for a casino and entertainment complex; those never materialized. There was also an $11.2 million expenditure for redevelopment of Fire Station No. 2, nearly triple the original estimate; $6.8 million for a lump-sum vehicle fleet lease; and $6.6 million for equipment such as fire trucks and heavy machinery.
Boliek’s audit said evidence is present of attempts to bypass City Council on financing equipment purchases; others did not have financial feasibility analysis. The audit says deadlines were missed, financial data was missing from budgets, and “a lack of transparency” was prevalent.
To address financial straits, 86 full-time positions were eliminated, property taxes were raised and utility rates went up, the audit says.
Boliek said, “This mess is unfortunately costing local residents, who have experienced an uptick in their utility bills. My office has heard the overwhelming public concern and interest in this investigation, and I want to thank all those who have provided us with tips and information on this audit.”
Boliek’s office remains in probes of utility bills and procurement-card purchases.
