RALEIGH — The state’s Local Government Commission delivered a warning to the city of Rocky Mount during its monthly meeting last week, putting its elected leaders on notice that any further budget missteps could trigger a rare state takeover of the city’s finances.
The Local Government Commission (LGC), which oversees fiscal health for more than 1,100 local governments across the state, has grown increasingly frustrated with Rocky Mount’s pattern of overly optimistic revenue forecasts, overspending and weak oversight.
After months of letters and closed-door meetings, the LGC noted that recent actions by the Rocky Mount City Council have narrowly averted an immediate crisis. Budget cuts expected to save $1.8 million by June 30, utility rate hikes for residents, and slightly improved revenue projections should keep the city solvent through the end of 2026, but only by a thin margin.
Should those numbers slip again, the LGC said it will exercise its statutory power to seize control of Rocky Mount’s books. With a population of 54,541, the Edgecombe-Nash county city would dwarf all previous municipalities the LGC has ever taken control of, which has occurred only 12 times in state history.
Treasurer Brad Briner, who leads the LGC, was direct about the situation.
“The actions and inactions of the Rocky Mount City Council are nothing short of financial malpractice,” Briner said in a press release. “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 added that while city leaders have made some progress on the deficit, they continue to avoid tough decisions about overspending.
“It is not sustainable to ask citizens to shoulder the burden of budget mismanagement,” he said.
The warning arrives just weeks after State Auditor Dave Boliek released a performance audit characterizing the town as being on the brink of collapse. Boliek is also a member of the LGC.
The audit report documented a 78% drop in the city’s cash and investment balances — from roughly $100 million in August 2023 to $21.8 million in August 2025 — driven by unchecked spending.
Employee compensation had jumped 27% and capital purchases soared 153% in fiscal 2024, even as revenues fell 2%. The audit blamed poor personnel decisions, including the hiring and oversight of a former city manager, and a revolving door in the finance department that saw five directors in quick succession.
Compounding the city’s problems are chronic delays in required financial reporting. The fiscal 2024 audit, due Oct. 31, 2024, was not submitted until May 6, 2025. The fiscal 2025 audit, due Dec. 31, 2025, has arrived only in draft form, and those preliminary statements show the General Fund is already in the negative.
In a separate action, the LGC issued an official warning to Littleton in Halifax County. The town of around 550 residents has failed to submit required annual audit reports for the past five years.
Under the LGC’s resolution, Littleton must deliver its fiscal-year 2021 audit that was originally due Oct. 31, 2021, by the close of business May 4 or face the same potential takeover threat as Rocky Mount.
Elsewhere on the agenda, the commission approved dozens of financing requests with little debate.
Among the larger items, the City of Charlotte received approval for $650 million in special obligation bonds to upgrade Bank of America Stadium to NFL standards, plus $109 million in certificates of participation for general government projects and $6.2 million in refunding certificates.
The North Carolina Medical Care Commission sought $619.1 million in conduit revenue bonds for Wake Forest Baptist Health’s new tower in Winston-Salem and $61.2 million for Plantation Village’s Porter’s Neck project in Wilmington.
The City of Durham secured $218 million in revenue bonds to refund prior debt at a savings and $136 million in limited obligation bonds for solid-waste projects.
Buncombe County obtained $68 million for county facility improvements, $58 million for school renovations and $15.2 million in refunding bonds.
Other approvals included $73.5 million for Wilmington, $43.1 million in state revolving fund loans for Lexington’s sewer upgrades, $21 million for Wake County buildings, and smaller loans and bonds for Franklin County, Ashe County, Surf City, Brunswick County, Marshville, Washington, Troutman and Mebane.
The commission also green-lit more than $58 million in grants from the state’s Viable Utility Reserve for water, wastewater, asset assessment and merger studies benefiting more than two dozen towns and counties.
