Residents and businesses press Rocky Mount council for answers as budget shortfall, rate hikes sting

ROCKY MOUNT, N.C. — Residents and business leaders packed the public-comment period at the Rocky Mount City Council meeting to press elected officials for clarity after what speakers described as long-running financial mismanagement and sudden cost increases that they say are hitting households and employers alike.

Several speakers urged the council to produce a full accounting of what they repeatedly called a $30 million shortfall. Dr. Ku accused past city management of ‘‘financial mismanagement’’ and said the city’s finances had fallen ‘‘from about a $100,000,000 to 20,000,000,’’ a figure she presented as evidence of a crisis. Her statement was not substantiated at the meeting and no audit results were presented there.

The concern extended beyond resident testimony. Matt Rausch, co‑owner of Title Data Systems, told the council his company paid roughly $4.9 million to the city in 2024 and was projected to pay $5.8 million in 2025 and more in 2026. He said the company received notice on June 26 of a rate increase effective July 1 that raised its costs by about $360,000 annually and later learned of a proposed retroactive increase that would add about $900,000 a year. ‘‘If this rate increase moves ahead as planned, our company will be forced to shut down and relocate our operations,’’ Rausch said, asking the council to pause any retroactive increases and allow businesses and residents to comment.

Several speakers who identified themselves as longtime residents and public‑service workers described the human effects of budget adjustments. Tasha Aldridge said cuts to longevity pay and performance raises were already producing household hardship: "I'm having to sew holes in shirts because of financial decisions that everybody is sitting up here making," she said. James Kenneth Reichman, who identified himself as a veteran and local businessperson, criticized the city’s stewardship and said his property taxes "have raised a 193%" since 2023.

City Manager Elton Daniels told the council the city’s annual audit is due Dec. 31 and staff are aiming to complete it beforehand; he said recent audits have been posted online and offered printed copies on request. Daniels also highlighted ongoing development, including a 55.5‑acre industrial village at Thomas A. Betts Parkway and Peel Road with a first building "on track for completion in early 2026" and projected to create nearly 300 jobs and more than $43 million in economic output.

Council members and long‑time meeting attendees urged patience for the forthcoming audit and said past efforts to flag problems are recorded in meeting minutes. Multiple speakers urged the council to pursue outside oversight — several referenced the Local Government Commission (LGC) — and to prioritize transparency before implementing measures such as cuts to employee pay or retroactive utility rate changes.

What happens next: City staff said the audit is due by the end of the calendar year and pledged to post results online and make printed copies available; council did not vote on any specific budget actions at the meeting. Public commenters asked that the council hold off on retroactive utility rate increases and produce a detailed accounting of the alleged $30 million shortfall.

(Reporting note: quotes and figures in this story are taken directly from public comments at the Rocky Mount City Council meeting. Several monetary figures were presented by speakers and are reported here as stated; those claims were not verified during the meeting.)