ROCKY MOUNT, N.C. (NCN News) – State lawmakers are stepping into the controversy over the financial crisis in the city of Rocky Mount.
Meanwhile, the Mayor says that lawmakers are not looking at the big picture.
Sens. Lisa Barnes (R-Nash), Buck Newton (R-Wilson), and Tim Moffitt (R-Henderson) filed a bill to prohibit the City of Rocky Mount from shifting revenue from its electrical system to other municipal funding streams.
The move comes the city is navigating a severe financial crisis stemming from years of unchecked overspending, which saw cash balances plummet 78% between August 2023 and August 2025.
A March 2026 state audit revealed millions in misused funds, leading to a $30 million budget reduction plan. Measures include eliminating 86 positions and raising utility rates to make up for the difference.
“The City of Rocky Mount has proven that it’s not a good steward of taxpayer funds,” Sen. Barnes said. “We need to ensure every penny our rural neighbors outside Rocky Mount send to the electric system can only be used for electric system purposes, not to bail out the city’s budget. This bill gives them some peace of mind.”
Under Senate Bill 1076, all revenues from the city’s electric system will be required to remain within the utility. These funds will only be used for operating expenses, system maintenance and improvements, debt service, or to reduce electric rates for customers.
“The City of Rocky Mount is trying to fill its financial hole on the backs of people who do not live in the city. My constituents in Wilson County should not be overcharged on their electric bill to balance Rocky Mount’s budget shortfall,” Sen. Newton said.
Sen. Moffitt said, “At a time when many North Carolinians are worried about the cost of their utility bills, they shouldn’t have to guess where their money is going. This is a commonsense bill to ensure that money paid for electricity goes toward just that.”
In light of the bill filing, Rocky Mount Mayor Sandy Barnes issued a statement:
“I am deeply disappointed that Senator Lisa Barnes has chosen to sponsor SB 1076 without any prior discussion with the City of Rocky Mount’s elected leadership or staff. This legislation directly impacts nearly half of Nash County’s residents, and that makes the lack of engagement especially concerning.”
“Our electric system and its associated revenues are complex and critically important to the overall financial stability of our city. Decisions about how those resources are managed should be made with a full understanding of local conditions, challenges, and long-term obligations. At a time when we are actively working, together as a City Council and management team, to strengthen our financial position and move Rocky Mount forward, unilateral action like this risks undermining that progress.”
“Let me be clear: we welcome partnership, collaboration, and thoughtful dialogue with our legislative delegation. That is how good policy is made. However, this bill was introduced without that collaboration, and I do not believe it reflects the best interests of Rocky Mount at this moment.”
“We remain committed to doing the hard work of addressing our challenges head-on, transparently and responsibly. I would strongly encourage Senator Barnes to join us in that effort by engaging directly with city leadership, understanding the full picture, and working alongside us to develop solutions that truly support the people of Rocky Mount.”