Statement from Treasurer Folwell:
During the May meeting of the Local Government Commission (LGC), State Auditor Holmes requested that officials from City of Rocky Mount have an opportunity to address the LGC regarding its pending application for approval of debt for a refurbished fire station. That item has now been included on the agenda for discussion purposes during the June 4 LGC meeting.
However, I am quite concerned about the lack of communication from city officials to LGC staff regarding recent choices made by the city to incur $15.2 million in additional debt to purchase land for speculative economic development purposes believed to be land for a casino. Staff had to discover this information through news reports and only received confirmation from city staff the day of the December Rocky Mount City Council meeting where the issue was discussed. We are disappointed that city staff did not inform us of the then pending borrowing for the land deal, which could materially impact the financing of improvements for the fire station.
LGC staff has expressed concerns to me that the city’s actions are analogous to applying for a mortgage loan to purchase a home, and then financing, for example, an expensive car prior to receiving the mortgage loan approval—an unwise financial decision by the loan applicant that adversely affects the applicant’s credit. Further, it is obvious to us that the debt incurred for the casino land could have been brought to the LGC for approval instead of evading oversight by using a 59-month instrument.
Per the request of Auditor Holmes, we invited the Rocky Mount city staff to present at tomorrow’s LGC meeting. Since city staff has not confirmed that they will attend the meeting, I question their commitment to provide fire protection to the citizens of Rocky Mount.
Transparency has been the hallmark of my tenure as treasurer. I would hope that Rocky Mount’s staff and elected officials would do the same by being responsive and forthcoming with information as we strive to help them accomplish their goals in a fiscally prudent, responsible, and statutorily compliant manner. Citizens are welcome to join us in Raleigh for the 1:30 p.m. meeting or remotely using GoTo Webinar. https://register.gotowebinar.com/register/3083385086598272348