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According to a 2022 letter sent by the state and signed by the mayor of Rocky Mount, seven city councilmembers, the city manager and the city's finance director, the city was made aware of financial issues facing the city.


Documents reveal Rocky Mount leaders knew about financial crisis for years

GOOD OLD-FASHIONED SAVINGS WILL GO IN DEATHS. THANKS FOR JOINING US HERE AT 7 O'CLOCK. I'M ASHLEY ROLE AND I'M DAN HAGGERTY. SO RIGHT NOW, ROCKY MOUNT, THEY ARE TRYING TO FIGURE OUT HOW TO MAKE UP FOR OVERSPENDING BY MILLIONS OF DOLLARS. THEY NEED TO FIND 30 MILLION DOLLARS IN THE NEXT 10 MONTHS. >> CITY COUNCIL IS MEETING ABOUT THIS RIGHT NOW IS SOME OF THE OPTIONS ON THE TABLE TO DEAL WITH THIS BUDGET CRISIS OR IDEAS THAT ESSENTIALLY PUNISH THE RESIDENTS BY CUTTING POLICE AND FIREFIGHTER JOBS AND RAISING EVERYONE'S ELECTRIC AND GAS BILLS. NOW, WRAL HAS SPENT THE LAST COUPLE OF WEEK AT WEEKS ASKING THE CITY HOW IS THIS POSSIBLE? HOW DID THIS HAPPEN? THAT BRINGS IN SOME OF ASHLEY'S REPORTING. YOU'VE GOT A BUNCH OF DOCUMENTS FROM THE STATE TONIGHT SHOWING TO THE CITY COUNCIL KNEW ABOUT THESE PROBLEMS FOR YEARS, WHICH IS KIND OF INTERESTING CONSIDERING THAT AT LEAST ONE COUNCIL MEMBER TOLD US LAST WEEK THAT THIS FINANCIAL CRISIS WAS NEW TO HIM. YEAH, DAN DOCUMENTS AND THAT I HAVE SHOW THAT THAT NOT ONLY DID THEY KNOW ABOUT THE DWINDLING RESERVE FUND AND OTHER ISSUES, THEY ACKNOWLEDGED THOSE ISSUES TO THE STATE. WANT TO GET MORE ON THAT IN JUST A MINUTE. BUT FIRST, LET'S TALK ABOUT WHAT IS IN THE STATE DOCUMENTS SINCE 2022, THE STATE TREASURER'S OFFICE HAS SENT ROCKY MOUNT OFFICIALS. WHAT'S CALLED FINANCIAL PERFORMANCE INDICATORS OF CONCERN. HERE'S ONE OF THE FINDINGS FROM THE 2022. WHAT'S CALLED AN F PICK DOCUMENT. BUT THE OPERATING NET INCOME WAS IN THE RED BY $283,000. >> THEY GOT DEEPER AND DEEPER IN THE RED YEAR AFTER YEAR, JUST SO THAT YOU CAN SEE THIS AS A NEGATIVE BALANCE INDICATES THAT YOUR RATES ARE NOT COVERING. YOU'RE OPERATING EXPENSES, MAKES IT PRETTY CLEAR THERE. AND ONCE AGAIN, YEAR AFTER YEAR, IT GOES DEEPER AND DEEPER IN THE RED. ALSO, THE GENERAL FUND, THEY ACKNOWLEDGE IN THESE ETHICS. THIS IS FROM 2023. IT SAYS THE GENERAL FUND HAS A FUND DEFICIT WHICH MEANS THAT THE UNIT UNIT BEING MUNICIPALITY, ROCKY MOUNT REVENUES AND OTHER RECEIPTS ARE INADEQUATE TO SUPPORT ITS OPERATIONS. LASTLY, HERE'S FROM 2024. THE UNIT HAS EXPENDITURES THAT EXCEED LEGAL BUDGET ORDINANCE. THIS ONE REALLY STOOD OUT TO ME, DAN, BECAUSE THAT ONE IS INDICATING THAT THAT THEY HAVE OVERSPENT BEYOND THE LEGAL LIMIT. HERE'S THE 2024 OPERATING NET INCOME. REMEMBER WHAT I SHOWED YOU BEFORE AND IT'S A LOT TO FOLLOW HERE. WE SHOWED YOU THAT IN 2022, IT WAS ABOUT THEY WERE IN THE RED BY ABOUT $200,000. IT WENT ALL THE WAY UP TO 2.9 MILLION. THE SHORT EXPLANATION IS THEY'RE SEEING THE NUMBERS. THEY'RE SEEING THE NEGATIVE NEXT TO A REALLY BIG NUMBER OVER 2 MILLION DOLLARS. SO, BUT NONE OF THIS APPARENTLY WAS A SURPRISE TO THEM. THE STATE SENT THESE FINDINGS TO THE CITY. WHAT? >> WHAT DID THEY DO WITH THAT INFORMATION? SO THESE DOCUMENTS WHEN THERE ARE AREAS OF CONCERN, THEY THE CITY HAS 60 DAYS TO RESPOND WITH AREAS FOR IMPROVEMENT. SO THEY HAVE TO OUTLINE EXACTLY HOW THEY ARE GOING TO IMPROVE ON THIS. NOT ONLY DID THEY SEND THOSE BACK TO THE STATE, THEY ALL SIGNED OFF ON IT. I'M TALKING ABOUT THE MAYOR, THE MAYOR, PRO TEM AND ALL OF THE CITY COUNCIL MEMBERS YEAR AFTER YEAR AFTER YEAR. SO TO CLAIM THEY I DIDN'T KNOW ABOUT IT. THAT THINGS WERE RED FLAGS THAT THEY JUST MISSED. THEY SIGNED OFF ON THESE DOCUMENTS. SO AGAIN, THIS MEETING IS UNDERWAY RIGHT NOW. HAS THE CITY COUNCIL AND THE MAYOR ACKNOWLEDGED THESE DOCUMENTS WERE GOING TO BE ASKING THOSE QUESTIONS TONIGHT. MAYBE SOME PEOPLE. >> AT THE COUNCIL MEETING, YOU'RE GETTING THE ALERTS ON THEIR PHONES. YEAH. RIGHT NOW SEEING SOME OF THIS REPORTING AND WILL SEE WHAT OUT WHAT COMES OF IT. BUT I'LL TELL YOU WHAT DOWN, HEIDI KIRK IS AT THAT MEETING SHE HAS ALREADY SPOKEN WITH AT LEAST ONE COUNCIL MEMBER WHO HAS RESPONDED TO THIS. >> YOU'RE GOING TO HEAR MORE AT 10 11 O'CLOCK HERE ON WRAL WITH

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