The Local Government Commission (LGC) has issued a warning to Rocky Mount leadership to deal with its financial shortfalls swiftly or the commission could take control of the town’s finances.
The LGC has assumed control of a local government unit’s finances only 12 times in its history. That’s a possibility with Rocky Mount, months after the city was found to have spent millions more than it brought in on a monthly basis for more than two years.
Estimates had the town accumulating a $3.4 million budget shortfall by the end of July. The city has voted to approve utility rate increases for residents.
“The actions and inactions of the Rocky Mount City Council are nothing short of financial malpractice,” said North Carolina Treasurer Brad Briner. “It’s been over 80 years since a city, county or special district has defaulted on a bond obligation in North Carolina. That long-standing record is going to remain intact while I am at the helm of the Local Government Commission.”
Should the state intervene, Rocky Mount would be the largest municipality ever placed under LGC financial control.
The LGC says that Rocky Mount has been warned numerous times about the late submission of the required financial audit report to the commission. A report drafted by the LGC says the city’s 2024 audit was due on Oct. 31, 2024, but was not submitted until May 6, 2025. The 2025 audit report has only been sent as a draft and not a finalized report.
“Rocky Mount leaders have made progress in their massive deficit, but are still avoiding making some tough decisions about overspending,” Briner said. “It is not sustainable to ask citizens to shoulder the burden of budget mismanagement.”