By Jordan Meadows
Staff Writer
A state audit has found that years of mismanagement, weak oversight, and aggressive spending pushed the City of Rocky Mount to the brink of financial collapse, with officials warning that the city’s fiscal trajectory had become “unsustainable” before recent corrective actions were taken.
In a performance audit completed March 9, the North Carolina Office of the State Auditor detailed what it described as “serious financial failures,” including a staggering 78% drop in the city’s cash and investment balances—from roughly $100 million in August 2023 to just $21.8 million by August 2025.
State Auditor Dave Boliek said the findings point to systemic issues in leadership and decision-making:
“OSA’s audit of Rocky Mount has uncovered serious financial failures,” Boliek said. “From the lack of due diligence in hiring the former City Manager, to cycling through five Finance Department directors, it’s clear that Rocky Mount has not been serious about resolving its financial issues.”
The audit was launched after complaints from residents and public concerns raised during City Council meetings. According to Boliek, his office received more inquiries about Rocky Mount than any other government entity since he took office in 2025.
At the center of the report is the hiring of former City Manager Keith Rogers Jr., who auditors say was brought on in March 2023. The audit found no evidence that the City Council conducted independent reference checks before unanimously approving his appointment. Rogers had previously overseen a budget overspend in Dumfries, Virginia.
Auditors concluded that under Rogers’ tenure, city spending surged dramatically while revenues declined. Between fiscal years 2023 and 2025, employee compensation increased by 27%, including a 47% jump in police salaries and a 22% increase for firefighters. At the same time, capital spending ballooned, with a 153% increase in fiscal year 2024 alone. Major expenditures included $17.2 million for land tied to a proposed casino and entertainment complex that has yet to materialize, $11.2 million for the redevelopment of a fire station that far exceeded initial estimates, and millions more for fleet leasing and the purchase of heavy equipment.
The audit found that many of these expenditures were made without adequate financial analysis and, in some cases, without proper City Council approval. Investigators cited evidence that Rogers attempted to bypass council oversight by structuring contracts to fall below approval thresholds. In a separate investigative report, auditors also found that Rogers authorized a $795,500 consulting contract without a formal request for proposals or council involvement; more than $385,000 had already been paid before the contract was terminated.
Auditors found that council members approved budgets without sufficient financial data, missed statutory audit deadlines, and did not hold city management accountable for a lack of transparency. Meanwhile, the city’s finance department experienced significant instability, cycling through five directors in recent years, some of whom lacked local government finance experience. At one point, the city failed to reconcile its checking account for 13 months.
Warnings from the state’s Local Government Commission had gone unheeded: the commission repeatedly designated Rocky Mount a “municipality in financial distress” for three consecutive years.
In response to the crisis, city leaders have taken a series of corrective steps, including cutting positions, scaling back spending, and raising revenues. The city eliminated dozens of full-time jobs—roughly 10% of its workforce—reduced part-time staffing, and implemented utility rate increases of about 15% across services such as electricity, water, and trash collection. For residents, that has translated into higher monthly costs.
“This mess is unfortunately costing local residents,” Boliek said, noting widespread public concern.
At the same time, state leaders have sharply criticized the city’s governance. State Treasurer Brad Briner called the situation “nothing short of financial malpractice,” while Secretary of State Elaine Marshall, speaking as a member of the Local Government Commission, said, “I find the culture to be unworthy of the citizens of Rocky Mount.”
Mayor Sandy Roberson acknowledged the severity of the situation, telling state officials, “We have certainly gotten the memo. We certainly understand the seriousness of this.”
Newly appointed City Manager Elton Daniels and Finance Director Cheryl Spivey have emphasized a shift toward more disciplined financial practices, including conservative revenue projections and outside expertise from state and municipal partners.
The Local Government Commission has stopped short of taking over the city’s finances but has imposed heightened oversight, requiring twice-monthly financial reports. A full state takeover remains a possibility if conditions do not improve—an outcome that would make Rocky Mount the largest municipality in North Carolina history to lose control of its finances.
