North Carolina senators on Tuesday debated a bill that would prevent the city of Rocky Mount from using electric and natural gas revenues to cover any unrelated expenses.

It comes months after a state audit showed Rocky Mount's financial mismanagement. A review of city finances from 2025 shows the city spent millions more than it brought in each month for more than two years.

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Under the bill, all revenues from the city's electric system would be required to be used by the utility -- for operating expenses, system maintenance and improvements, debt service or to reduce electric rates for customers.

Senate Bill 1076 was filed by Senator Lisa Barnes (R-Nash), Buck Newton (R-Wilson), and Tim Moffitt (R-Henderson). 

"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. This is a commonsense bill to ensure that money paid for electricity goes toward just that," Moffit said.

On Tuesday, Sen. Lisa Barnes presented her motivating factor for proposing the legislation. 

"This bill is in response to hundreds of calls and emails my office has received," Barnes said. "We want to give citizens the confidence that money is going to the electric [and gas] fund and not to other funds."

Lawmakers said the city has previously shown it is not a good steward of taxpayer funds. Lawmakers want to make sure that power payments do not go to fix the city's budget issues.

In March, the Rocky Mount City Council passed a motion to raise electric, gas, sewer and water rates by about 15% as part of the city's plan to dig itself out of a financial crisis.  

On Monday, it announced a budget proposal that would include more increases for residents, including a proposed property tax rate of $0.69 per $100 of assessed valuation, representing a 7-cent increase.

Senate Bill 1076 did not come without pushback. Some lawmakers raised concerns that more information is needed before moving forward.  

Rocky Mount Mayor Sandy Roberson said he is disappointed that Barnes chose to sponsor the bill without discussing it with city leaders.

“Our electric system and its associated revenues are complex and critically important to the overall financial stability of our city," he said. "Decisions about how those resources are managed should be made with a full understanding of local conditions, challenges, and long-term obligations."

"This legislation directly impacts nearly half of Nash County’s residents, and that makes the lack of engagement especially concerning," Roberson said.

City Manager Elton Daniels added, "Based on my understanding of Senate Bill 1076, the proposed legislation would restrict the City of Rocky Mount’s financial resources in a manner that I believe is both detrimental and unfair to our community. After listening to today’s discussion at the General Assembly, I remain concerned that the bill’s lead sponsor did not present factual data or local operational analysis to fully support the claims being made."

Both Roberson and Daniels shared concerns about a lack of communication between the bill's sponsors and local leaders. 

Roberson added, "We remain committed to doing the hard work of addressing our challenges head-on, transparently and responsibly. I would strongly encourage Senator Barnes to join us in that effort by engaging directly with city leadership, understanding the full picture, and working alongside us to develop solutions that truly support the people of Rocky Mount.”

 The proposed bill was referred to the Senate's Rules and Operations Committee for more discussion.