Local Government Commission Warns Rocky Mount No Further Missteps Will be Tolerated

The Local Government Commission (LGC) today issued a warning to the city of Rocky Mount to keep its books balanced or else the Commission may be forced to assume control of the town's finances. This comes after months of LGC communications with the city and after stern warnings to elected city officials about their inadequate oversight of budget and fiscal control practices, which have contributed to unchecked overspending and unreasonably optimistic revenue projections. Actions taken in the past two weeks by the City Council are now expected to keep the city solvent until the end of the 2026 calendar year, but by the slimmest of margins.

Should the budget numbers slip again, the LGC could move to take control of the city's finances. It has exercised its statutory authority to assume control of a local government unit's finances only 12 times previously. Rocky Mount, with a population of 54,541 people in Nash and Edgecombe counties, would be by far the largest municipality ever to potentially be subject to the enforcement.

Last month, the city's cash flow estimates showed it would accumulate a $3.4 million budget shortfall by the end of July. In late March, the city made budget cuts to save $1.8 million by June 30 and voted to approve utility rate increases for its residents. The city also revised its prior projections slightly upward based on updated financial information.

"The actions and inactions of the Rocky Mount City Council are nothing short of financial malpractice," said 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."

He went to say, "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 Local Government Commission has a long and distinguished history of serving and guiding the state's 1,100 plus local government units," said LGC Secretary Denise Canada, who also serves as deputy treasurer of the State and Local Government Finance Division at the Department of State Treasurer. "Our staff assists municipalities large and small, regardless of geography, demography, immediate or long-term needs. The goal always is to achieve the highest degree of effective public service for the benefit of all residents and taxpayers and to ensure fiscal stability, proper financial stewardship and best practices to meet the needs and obligations of a healthy community for everyone."

City leaders have been warned numerous times by the LCG about late submission of the statutorily required financial audit report to the LGC. The city's 2024 audit, due Oct. 31, 2024, was submitted May 6, 2025; its 2025 audit report, due Dec. 31, 2025, has only been received in draft format. These FY 2025 draft financial statements show the General Fund balance in the negative.

In another matter, LGC members voted to issue an official warning to the town of Littleton in Halifax County. Town officials were summoned to Wednesday's meeting to discuss the town's financial management and a corrective plan to submit missing audits. The town, with a population of about 550, has failed to submit required annual audit reports to the LGC for the past five years.

Under the resolution, Littleton has until the close of business on May 4 to submit its fiscal year 2021 audit, which was due Oct. 31, 2021, to the LGC. If the town fails to do, LGC members will consider taking over financial control of the town.

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