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Residents and businesses press Rocky Mount council on $30 million shortfall and proposed utility rate hikes

October 14, 2025 | Rocky Mount, Nash County, North Carolina


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Residents and businesses press Rocky Mount council on $30 million shortfall and proposed utility rate hikes
A stream of residents, city employees and business owners at the Rocky Mount City Council meeting said the city’s recent budget shortfall and proposed utility rate increases are already harming households and local employers.

The comments, delivered during the public-comment portion of the Oct. meeting, centered on a roughly $30 million loss that speakers said left the city with a structural shortfall and prompted staff proposals to cut employee pay increases and longevity pay. Speakers urged transparency, faster audit publication and a halt to retroactive utility rate increases until the city’s finances are fully accounted for.

The comments matter because council decisions on personnel pay, utility rates and budget fixes will affect city workers, low-income residents and commercially significant employers that contribute major tax and utility revenue.

Natalie O'Ree, a resident who identified concerns about the budget, told the council: "Employees are facing the loss of their annual raises this year, the suspension of longevity pay, and the disappointment of having their cost of living adjustments eliminated." She also named specific pay increases for former staff members and questioned whether those compensation decisions contributed to the shortfall.

James Kenneth Reichman, who said he is a combat veteran and works in the financial sector as a security engineer, criticized the city’s fiscal stewardship and said his bills have risen sharply: "I'm literally being charged for mother nature," he said, referring to line items on his utility bill that he contended charged customers for rainfall-related costs.

Matt Rausch, co-owner of Title Data Systems, warned the council that proposed electric-rate changes threaten local jobs and city revenue. "If this rate increase moves ahead as planned, our company will be forced to shut down and relocate our operations," Rausch said, adding that his company paid roughly $4.9 million in 2024 and projects higher payments in future years.

Dr. Ku told the council the financial situation imperils the city’s autonomy and urged council members to acknowledge any role they had in the city’s condition. "You put the city in very real danger of losing its autonomy from state receivership," Dr. Ku said.

Several commenters described direct service problems and daily impacts tied to the budget and infrastructure. Sally Battle, a Ward 3 resident, said she has an unresolved sewer backup that a private plumber could not fix because the problem lies on the city side of the service line. Rita Coggan described a six-week period in June when she said her tap water quality was poor and she could not drink or wash with city water.

Multiple speakers called for the council to publish the city’s audit and to explain how the gap occurred and who is accountable. In response, City Manager Elton Daniels said the audit for the year is due Dec. 31 and the administration’s goal is to complete it before then; he also said recent audits have been posted online.

Speakers urged specific interim steps: stop retroactive rate increases, allow public input from businesses and residents before major rate changes, and publish full financial reports so residents understand how the shortfall arose. Several speakers also urged the council to avoid cutting frontline employees’ pay and benefits.

The council did not take formal action on these public requests at the meeting; several agenda votes that night addressed other items such as rezoning, a personnel ordinance and a reduction in the city’s annual contribution to the Rocky Mount Chamber of Commerce.

The council meeting record shows the public-comment period included lengthy statements and multiple requests for transparency; the city manager committed to publishing audits when completed.

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Scribe from Workplace AI
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