ROCKY MOUNT, N.C. (NCN News) — The former City Manager of Rocky Mount operated “unchecked” and went “unaccountable for years” resulting in millions of dollars overspent for the city creating significant financial distress, according to a state audit released Monday (March 9).
State Auditor Dave Boliek released details of the audit saying that former manager Keith Rogers Jr. had many “red flags” before being hired by the city council.
The auditor found that the city’s financial distress from 2023 to 2025 involved increased spending “with limited oversight from City Council, and with instability in financial leadership.”
The audit was initiated in response to reports and concerns about the City’s financial mismanagement and significant financial distress experienced in recent years. OSA found that between August 2023 and August 2025, the City’s cash and investment balances decreased 78%, falling from about $100 million to $21.8 million. Between fiscal year 2023 and fiscal year 2025, City spending surged while revenues declined.
“OSA’s audit of Rocky Mount has uncovered serious financial failures, which culminate with an astonishing 78% decline in the city’s cash and investment balances in just two years,” Boliek said. “From the lack of due diligence in hiring the former City Manager, to cycling through five Finance Department directors, it’s clear that Rocky Mount has not been serious about resolving its financial issues.”
A key driver of the City’s financial distress was the hiring of the former City Manager. OSA found the former City Manager was previously the Town Manager in Dumfries, Virginia, where he oversaw a $1 million budget overspend. Even though the former City Manager was described as a “stretch candidate,” the City Council still voted unanimously to hire him.
Purchases were made without thorough financial feasibility analysis, and auditors found evidence of attempts by the former City Manager to bypass City Council approval for financing equipment purchases. The City Council also had notable oversight shortcomings, including approving budgets without detailed financial data, missing statutory audit deadlines, and failing to hold City management accountable for a lack of transparency.
To address the financial crisis, the City paused projects, eliminated 86 full-time positions, decreased the budget for part-time staffing, and raised property taxes and utility rates for residents, resulting in an average increase of $20 per month for natural gas and $8 per month for electricity for a typical household.
“This mess is unfortunately costing local residents, who have experienced an uptick in their utility bills. My office has heard the overwhelming public concern and interest in this investigation, and I want to thank all those who have provided us with tips and information on this audit,” added Boliek.
In addition to the performance audit, OSA released an Investigative Special Report which found similar issues with the former City Manager and City Council. OSA found that in 2024, the same former City Manager entered a $795,500 consulting contract without a presentation to the City Council, a formal Request for Proposals for the consulting services, the City Council’s approval, or the City Council’s involvement in selecting stakeholders to serve on the project’s Steering Committee. The contract was eventually terminated. OSA determined that $385,610 was paid at the time the contract was terminated.
OSA is currently conducting additional reviews of utility bills and procurement-card purchases related to the City of Rocky Mount. Boliek stopped short of saying whether any criminal activity occurred. He said only that he has been in contact with state officials at all levels.
In a video posted on social media, Rocky Mount mayor Sandy Roberson said “Eventually the city council was resigned to just trusting that city management, budget and finance were doing their jobs. To me that trust was broken. ”