Rocky Mount announces financial recovery plan amid budget crisis

ROCKY MOUNT, N.C. (WTVD) -- City officials in Rocky Mount announced a sweeping financial recovery plan this week after uncovering what they called a "serious financial crisis," - revealing that for more than two years, the city has spent millions more each month than it was bringing in.

City Manager Elton Daniels, who entered the position in April, said the city is taking aggressive action to stop the bleeding. That includes working to slash city spending by at least $30 million over the next 10 months, laying off staff, pausing non-essential projects, and raising utility rates for residents and businesses.

"These findings are troubling, and the city is hiring an independent forensic accounting firm to further investigate," Daniels said.

Staff Cuts and Project Freezes Begin

To reduce expenses, the city will lay off 10% of its full-time workforce and half of its part-time staff.

"I really feel bad and have empathy for those folks as well," Daniels said of the layoffs. "However, the city is going to do everything we can to help them during this transition period."

City officials did not release a department-by-department breakdown but wanted to emphasize that services deemed essential will remain in operation.

"We're still going to have police services, you're still going to be able to turn on your lights or water, still going to be running, still going to have clean water. The roads are still going to be paved," Daniels said.

The city is also halting several capital and infrastructure projects, although officials are still working to finalize a list of which ones will be affected.

Utility Rates Going Up

As part of the recovery plan, residents and businesses will also see higher utility bills. For a typical household, that includes about $20 more per month for natural gas and $8 more for electricity, totaling just under $30 in monthly increases.

"It's not just residences - business, the entire community. We're all going to have to endure this change," Daniels said.

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The city says these "modest rate adjustments" are needed to stabilize operations and continue delivering core services.

How Did This Happen?

Daniels said he entered his new role back in the spring with several key staffing vacancies to fill, including in the finance department.

"The city hasn't had a qualified finance director for quite some time, since probably about 2021 or '22," he said. "Not having adequate staffing in our finance department is a large part of where we are right now."

Though city council members, including Andre Knight and Reuben Blackwell, voiced early concerns about financial management in 2023, no corrective actions were taken until Daniels and his team began uncovering hard numbers in 2025. In August 2024, the city council voted to place the previous city manager on administrative leave before he ultimately resigned. An interim city manager held the role for months before Daniels took over in April of this year.

To fully understand how the crisis occurred, the city will launch two separate audits, including a forensic accounting investigation. City officials promised to share the results publicly once they are available.

"Just like the citizens, we're upset," Daniels said. "We don't have all the answers, but, you know, we're going to stop the bleeding at this point and hopefully have a resolution that'll get us through the year."

Despite the current crisis, the city says it remains open for business and is committed to supporting both existing and prospective companies.

Rocky Mount leaders plan to host a series of community listening sessions in the coming weeks and say updates will be posted to the city's website.

City Council Responds

ABC11 reached out to every member of the Rocky Mount City Council, asking for comment. Mayor Sandy Roberson posted this video message addressing the budget shortfall.

"I know this is tough. My heart's heavy too, but I believe in this community," Roberson said. "We'll get through this together and come out stronger."

The only other council member who responded was Tom Harris. He authorized ABC11 to publish the following statement:

"Like many of you, I am appalled to have only recently been informed of these numbers. City Council should have received timely, accurate information to make responsible decisions on budgets, contracts, and asset purchases. That did not happen.

In Fall 2023, I began asking tough questions about excessive compensation and benefit costs, as well as other budgetary concerns I had, but those requests for explanations were ignored. By late Summer 2024, I voted to place the former city manager on administrative leave due to these growing concerns and his inability to provide critical information.

During the most recent budget discussions, I opposed the 4-cent property tax increase. Instead, I urged a 1% reduction in spending to balance the impact of rising costs. My proposal did not pass.

I fully support the forensic audit that will be underway and the City's plan to rebuild financial stability. These steps are essential to uncover the truth, ensure accountability, and give us the information we need to make responsible decisions moving forward.

While this is not good news, we are moving in the right direction, together, to ensure the financial stability of Rocky Mount. I pledge to you to continue to get budget clarity and complete transparency."