Republican senators have introduced legislation to block the City of Rocky Mount from using revenue generated from its electric utility to support other parts of its municipal budget, citing concerns about financial mismanagement and unfair costs imposed on out-of-town customers.
Senate Bill 1076, filed by Sens. Lisa Barnes, R-Nash; Buck Newton, R-Wilson; and Tim Moffitt, R-Henderson, would require all revenue from Rocky Mount’s electric system to be used strictly for utility-related purposes, including operations, maintenance, capital improvements and debt service. Any excess funds would have to be used to lower electric rates or pay down system debt.
“The City of Rocky Mount has proven that it’s not a good steward of taxpayer funds,” Barnes said in a statement. “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.”
The bill would limit the city’s ability to transfer electric utility revenue into its general fund — a practice used by municipalities to supplement other services. Under the proposal, Rocky Mount could only make a capped transfer based on a formula tied to the utility’s assets or revenues, and no other transfers would be allowed unless explicitly authorized by law.
Supporters say the change is needed to protect customers, particularly those outside the city limits who receive electric service but do not vote in Rocky Mount elections.
“The City of Rocky Mount is trying to fill its financial hole on the backs of people who do not live in the city,” Newton said. “My constituents in Wilson County should not be overcharged on their electric bill to balance Rocky Mount’s budget shortfall.”
Carolina Journal has previously reported on Rocky Mount’s financial struggles, including a state audit finding the city’s cash reserves fell by roughly $80 million in two years amid what auditors described as weak oversight and excessive spending. The audit linked the decline to rising personnel costs and major capital expenditures, some of which were undertaken without sufficient financial analysis.
Earlier this week, Rocky Mount officials reported signs of progress in stabilizing the city’s finances, highlighting efforts to cut costs, strengthen oversight, and rebuild reserves following a steep decline in available cash. City leaders said reforms under new management are beginning to take hold, though state officials have continued to monitor the situation closely and cautioned that the city still faces ongoing fiscal challenges.
Lawmakers backing the bill argue the city’s improvements are not enough and the measure would ensure greater transparency and prevent utility customers from subsidizing unrelated government spending.
“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,” Moffitt said. “This is a commonsense bill to ensure that money paid for electricity goes toward just that.”
Rocky Mount officials had not publicly responded to the legislation as of May 6.
If enacted, the restrictions would take effect July 1, 2026, and apply only to Rocky Mount.
