Council adopts $29.6M budget amendment and approves state grant for downtown Memorial Hospital redevelopment

The Rocky Mount City Council adopted an amendment to its FY25–26 operating budgets that reduces appropriations across multiple funds by a total of $29,630,052, and approved a $375,000 state grant for the Memorial Hospital downtown redevelopment project.

City Manager Elton Daniels told the council the revised budget reconciles savings and cost reductions already implemented under an operational-efficiency plan (including reductions in force, contract adjustments and projected purchase-power adjustments in electric and natural-gas sales). He cited the North Carolina Local Government Budget and Fiscal Control Act when explaining why the city must amend budgets to reflect changed financial conditions.

Council discussion: Council members sought additional detail and clarity about the amendment booklet and asked for further review in individual meetings; Councilman Robertson initially moved to table for more information but withdrew the motion after staff explained the ordinance reconciles already implemented reductions. Councilmember Blackwell emphasized that councilmembers do not personally benefit from budget changes and defended prior votes to raise starting pay for public safety recruitment.

Grant and project ordinance: The council adopted a project ordinance to appropriate $375,000 in North Carolina Department of Commerce funds to the city’s Economic Development Fund for the Memorial Hospital downtown redevelopment project. The grant is state funding to be accounted for in a segregated project fund and then conveyed to the beneficiary (Opportunities Industrial Center, OIC). Councilmembers Knight and Blackwell noted recusals on file due to their service on the OIC board; the ordinance was adopted by voice vote.

What changed: The ordinance lists reductions across the general fund and enterprise funds (electric, gas, water, sewer, stormwater, and communications) and is intended to align the budget with realized and projected financial adjustments. Officials said the revised budget was recommended by staff at the Local Government Commission.

Votes: All items were adopted by voice vote; where individual roll-call tallies were not recorded in the meeting transcript, the minutes reflect voice approval and motions carried.