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It's 505 and welcome in to a Thursday edition of the Carolina Journal News Hour on Charlotte's FM News Talk 107.9 FM. WBT, I'm Nick Craig. Good morning to you. We are tracking a couple of different moving pieces in the North Carolina legislature this morning. We'll start off in the North Carolina Senate, where they have given final approval to legislation that would delay the implementation of new property tax values, advancing a key piece of Senate's Republicans' response to rising local tax burdens.
Yesterday in Raleigh, senators voted 35 to 8 to approve Senate Bill 889, which freezes property value increases tied to 2026 reappraisals and delays them until next year in 2027. Under the bill, only county that conducted property reevaluations this year would be required to ignore the newly updated property values for the 26-27 fiscal year and instead continue using the values from the previous appraisal, which could be as long as seven years ago. Beginning in the 2027-2028 fiscal year, counties would then adopt the 2026 reappraisal values and continue using them until their next scheduled reappraisal cycle. The legislation is sponsored by Senate Leader Phil Berger, the Republican from Rockingham County, alongs with Senator Brent Jackson from Sampson County, Steve Jarvis, Senator Steve Jarvis from Davidson County as well. Bull Jackson and Jarvis are members of the Senate Property Tax Working Group that Senate Leader Phil Berger convened earlier this year, back a few months ago when this conversation really began.
Berger framed this bill as an initial step in addressing rising tax burdens ties to increased property values, with the Senate leader saying in part, this is a good first step for residents across North Carolina who are feeling the tax impacts of increasing property values. This will not be the last thing that the General Assembly does on property taxes. We need to take a thoughtful, comprehensive approach to address the growing strain of property tax increases on our citizens. Over to Senator Jackson, emphasizing the temporary nature of this measure, saying this is just a temporary pause to give residents some breathing room. Senate Republicans will continue working to bring forward common sense approaches to ensure that your tax dollars are being spent wisely.
Senator Jarvis said that the measure strikes a balance between local government budget needs and taxpayer concerns, saying now is the right time for us to get this moratorium into law. This approach balances the need for local governments to set their budgets while also giving North Carolinians who are facing higher than expected property values a reprieve. The Senate's approach contrasts with the proposals that we've heard about and are seemingly emerging from the North Carolina House, where lawmakers are pursuing a long-term structural change to property taxes, with House Republicans having filed legislation to place a constitutional amendment on the ballot that would limit how much governments can grow property tax revenues through what is called a levy limit. We've talked to experts like Joe Harris from the John Locke Foundation about that recently. The levy limit would essentially cap how much these local governments can raise property taxes year over year.
House Speaker Destin Hall, the Republican from Caldwell County, signaled support for the approach following the release of the committee's recommendation, saying in heart. Property tax hikes are overburdening North Carolina families who are footing the bill, while some local governments take far more than inflation and population growth can justify. I applaud the House Select Committee on Property Tax Reduction and reform for pursuing real reforms like the constitutional amendment on levy limits, which would ease this burden so that North Carolinians can keep more of their hard-earned money. Unlike the Senate's temporary reprisal, reappraisal delay, the House proposal would restrict overall revenue growth even as property values rise and would require voter approval if it advanced to the ballot. It is important to note, however, that the two approaches are not mutually exclusive and both could ultimately be enacted as lawmakers explore multiple avenues for property relief.
And we are seeing the Senate deal with short-term stuff just in the immediate budget year that we're in right now. And then this levy limit proposal out of the North Carolina. Carolina House that would have a longer-term impact and implication on North Carolina. The next step for Senate Bill 889 is consideration and approval by the North Carolina House, and not immediately clear how quickly that will happen.
However, we'll keep you up to date with the details right here on the Carolina Journal News Hour. In some other news out of Raleigh this morning, North Carolina lawmakers are advancing a proposal that would incentivize large electricity users to generate their own power, a change that could shift the costs of the state's rising electrical demand. The legislation, House Bill 1192, sponsored by Representatives Mike Scheetzel, the Republican from Wake County, Representative Ben Moss Jr. from Richmond County, and Aaron Perre, another Republican from Wake County, aims to shift some fuel cost risks away from ratepayers, limit how much utilities can pass through in their price increases, and encourage large energy users to develop their own electrical generation. Representative Moss said the bill is aimed at easing pressures on households facing rising energy bills, saying families across North Carolina are feeling the squeeze from rising energy costs.
I am proud to sponsor House Bill 1192, which sets out to bring more accountability to utility costs, strengthen our grid, and invest in workforce housing. People are hurting, and this bill is a big step in the right direction to bring relief to North Carolina families. A major component of the bill would allow electrical users, such as data centers, to generate their own power or contract for it directly through a new voluntary Bring Your Own Generation program. Under this model, utilities would connect customer-owned generation to the grid primarily for the customer's use while allowing excess capacity to support the broader electrical system. Unlike traditional utility-built projects, this generation would not be funded by other ratepayers.
Instead, it would shift the cost of that new electrical generation capacity away from households and small businesses and towards the Those large users that are driving demands like data centers. The concept is often described as build, bring, or buy. A recent report published by the John Locke Foundation highlights the benefits of this approach and advocates that larger electrical users should have greater flexibility to secure their own power supplies outside of the traditional utility model. The report authored by John Sanders, who is the director of the Center for Food, Power and Life at the John Locke Foundation, argues that the state's current regulatory structure can slow the development of new generation, which ultimately increases costs on the consumers. Sanders contends that allowing large users to build, bring, or buy their own energy could reduce strain on the grid, avoid costly utility infrastructure expansion, and shield residential customers from the cost of rapid load growth.
The report also frames such reforms as a way to support economic development while all maintaining reliability of the grid. Public opinion seems to align with this discussion in Raleigh. A March Carolina Journal poll found that nearly four-fifths of voters, 78.2%, agreed that new data center facilities should be required to provide their own energy or electrical generation with 59%. 9.8% of voters strongly supporting this measure. Less than 10% of voters opposed requiring data centers to provide for their own electricity.
Another major component of this bill would change how utilities recover fuel costs by requiring Duke Energy and Dominion Energy shareholders to bear part of the risk when projections are off. If a utility company, in this case, Duke or Dominion, underestimates fuel costs and later raises rates to make up for those differences, shareholders would observe, would absorb. 20% of that gap rather than passing the full increase onto the customer or the consumer. If utilities overestimate costs and must lower rates to refund customers, shareholders would be allowed to retain 20% of that excess. The bill would also require utilities to update fuel charges more frequently and file quarterly reports on over or under recovery with adjustments if balances exceed certain thresholds.
In a statement provided to Carolina Journal when asked about the proposal, Bill Norton, a spokesperson for Duke Energy, said, quote, Duke Energy is committed to its customers and communities and will continue working with policymakers and regulators to deliver reliable and increasingly clean energy while keeping rates as low as possible. End quote. Supporters say that the change would improve accountability and create stronger incentives for accurate forecasting within utility companies, while critics warn that it could encourage utilities to overestimate costs depending on how rigorously the utilities commission review for those projections will be.
So a couple of interesting proposals that we are keeping an eye on. This legislation was referred to the House Committee on Rules, Calendar, and Operations on May the 5th.
So we'll see how it moves throughout the General Assembly short session, talking about a couple of different things here this morning. Property taxes on one side and electrical generation on the other. We've got details on both of these stories over on our website, CarolinaJournal.com. The headlines. There, NC Senate passes a bill delaying property tax reappraisals and proposal would shift energy costs to large users and promote self-generation.
Again, those details over at CarolinaJournal.com.
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It's 22 minutes past the hour. Welcome back to the Carolina Journal News Hour, Charlotte's FM News Talk 107.9 FM. WBT, we're tracking a pretty cool story that we brought you last year as it relates to the 2027 Military World Games. The local organizing committee for that event recently hosted a delegation from the International Military Sports Council, known as the CISM, for the first site visit to Charlotte, the Queen City, where the games are set to take place from June the 24th to July the 4th of 2027. This is historic for a number of reasons, as Charlotte will be the first U.S.
city to host the Military World Games ever. According to some details that we are tracking on this, David Corner, who is the co-chair of the 2027 Military World Games local organizing committee, told me that he was a very good person. The Carolina Journal, first and foremost, it is absolutely historic that the 2027 military games will be held in the United States for the first time and that North Carolina is being selected to host them reflects our state's ability to deliver at the highest level of operation from a hospitality standpoint. With some of the finest venues in the country, an incredible international airport, and a region that is excited to showcase the best for our guests, we're excited to welcome competitors and visitors from around the world. This selection also reflects our state's unique role as a bridge between civilian and military communities and our capacity to host an international event grounded in shared values of discipline, excellence, and service.
During a weeks-long visit that happened in mid-April, 27 representatives of the International Military Sports Council from 15 countries. Took visited, Charlotte visited portions of North and South Carolina and led a delegation of international sports authorities to evaluate operational capabilities and potential venues across the region, according to a recent press release. The visit symbolized a significant transition from early planning and press releases to on-the-ground coordination to ensure that the games will meet the international standards. According to Corner, he said North Carolina has one of the largest military populations in the country, with roughly 135,000 active duty service members and over 1 million veterans across North and South Carolina. This state has long been a place where communities and leadership intersect, and the world will have a front-row seat to witness that at the 2027 Military World Games.
The president of the sports committees, the international authorities that oversees each sports, I should say, composed the delegation that met with key stakeholders and local leaders as the delegation toured potential venue locations and attended a welcome reception at Charlotte Pipe and Foundry, which was announced earlier this year as the first official corporate sponsor of the 2027 World Games, along with businesses, other community, and civic leaders. With many folks highlighting the economic impact, with Corner saying in part, the economic impact is expected to be significant. Hosting over 10,000 athletes, coaches, and international visitors will drive demand across hospitality, transportation, and dining throughout the state. Over 1 million ticketed seats will be available across all venues, projecting billions in regional economic impact for tourism, hospitality, and small business. The long-term impact of this event is also significant, activating infrastructure investments, strengthening public-private partnerships, and elevating the future profile of North Carolina for business relocation, tourism, and, of course, global events.
With many of the event organizers arguing it is a strategic investment in the state's continued growth and competitiveness, not just a short-term one-time boost. Back to Corner. Said safety and security are fundamental to planning an event of this size and scale, and robust planning is already in place. He told the Carolina Journal in part: We are working in close coordination with local, state, and federal partners as well as international stakeholders, including the International Military Sports Council, to ensure a comprehensive and proactive approach. We recently announced that Jeremiah Shirk as the president and COO, who brings extensive experience managing complex large-scale scale global events, including Super Bowls and U.S.
presidential inaugurations. He has a strong track record of coordinating across government, military, and public safety partners to deliver seamless operations at scale. There is a proven track record of hosting large-scale events safely and successfully across not only the city of Charlotte, but the Carolinas. With Corner saying in part, our approach will reflect global best practices with layered security, coordinated response protocols, and a clear focus on providing. A safe and welcoming experience not only for athletes but for visitors and residents.
The Military World Games stands apart by uniting military athletes from across the globe who compete not only for sporting excellence but also as representatives of service, national pride, and the CISM's guiding principles: friendship through sports. While the FISU World University Games highlights student athletes, Coroner says that the military world games are grounded in the core values of discipline, resilience, and camaraderie along armed forces. They provide a meaningful platform for fostering connection and mutual respect between nations, embodying the spirit of peace through sports, which is the motto for the 2027 Games. Final quote here: as it relates to this event, saying what's most important is this: this is bigger than a sporting event. It's an opportunity for North and South Carolina to tell its story by demonstrating leadership, strengthening relationships, and leaving a lasting legacy for our communities, according to Corner.
He says, We want residents across the Carolinas to feel a sense of ownership and pride in what's being built. From volunteers to sponsors, spectators, local businesses, and civic leaders, this effort will reflect the best of our state and position us as a model for how global events can create meaningful and lasting impacts. Again, the 2027 World Military Games are heading to Charlotte, June 24th through July the 4th of next year, 2027. We've got a lot more detail on this. You can head on over to our website this morning, CarolinaJournal.com.
We've got a full link to the event and all of the additional details on that. Look for the story with the headline, 2027 Military World Games, Charlotte to make history as first U.S. host city.
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Prices will be higher for delivery. It's 5:37. You're listening to the Carolina Journal News Hour, Charlotte's FM News Talk, 107.9 FM, WBT, I'm Nick Craig. Good Thursday morning to you. A couple of months ago here on the Carolina Journal News Hour, we talked about a very concerning 257-page audit released around the city of Rocky Mount in North Carolina, highlighting some very concerning economic issues facing the municipality.
Now we are getting some additional detail from the local government commission at a meeting this week, the LGC discussing some of these financial issues and how to move forward with that. It walks through some of those details this morning. Teresa Opeka, CarolinaJournal.com, joins us on the news hour. Teresa, it is a dire situation in Rocky Mount with the members of the LGC and others talking about potentially taking over the city's finances. What's the latest that you're tracking?
Sure. Good morning, Nick. Thanks for having me. Yeah.
So, you know, in light of the audit and the Rocky Mount officials appeared at last month's LGC meeting, they asked them to come back this month to go over what they're working on as far as making progress, getting control of their finances. And so we did hear from Elton Daniels, the city manager of Rocky Mount. He told the commission earlier this week they had closed out the month of April, reconciled their accounts, and they are projecting about $1.7 million for the summer months. They also are taking a look at, actually they did, council also voted to increase the rates across the board for the city's utilities. And they were able to negotiate other items with the help of the LGC, which is going to help with the city's cash flow by postponing payments for about two years.
That's working with NCDEQ.
So, you know, they were trying to, they gave a report. There's much more to go over it, but there's That they are working toward that progress, and considering the mess that the city is in at the moment regarding their finances.
Well, when we talk about a big mess to maybe kind of lay out exactly how bad the situation is, again, going back to our story from just a couple of months ago, they hired a city manager who was in the position for about two years, August of 23 to August of 2025. And during that period of time, Teresa, he drained the city's cash and investment balances by 78%, spending approximately $80 million and leaving less than $22 million in the savings account, for lack of a better term, for Rocky Mount. This was a major unchecked problem. And we had some very harsh words from elected officials, including state auditor Dave Bullock, saying, hey, you guys elected officials in Rocky Mount, they were not keeping an eye on their finances at all and were not doing their job in any way, shape, or form. Oh, yeah, yeah, exactly.
I mean, that was just, you know, a horrible mess that everything was left unchecked. And, you know, As a result, we found out through the audit, and here we are.
So, yeah, it was definitely something that wasn't gonna be fixed overnight. And that's what they basically Daniels alluded to when they said during this meeting earlier this week, when do you think all this is gonna be fixed? When are you going to be out of crisis management? And Daniel said, based on the current levels of their cash flow and fund balance, it could be another 24 months, maybe sooner, depending on where things go. But he said he feels it will be years before they can rebuild the fund balance to the level they had previously, which was over 80 million.
So yeah, you're looking at quite a feat ahead for the city of Rocky Mountain. Yeah, and that discussion over the cash flow, which is essentially how the city is able to operate, Teresa. I mean, they've got employees and bills that they've got every month, just like you and I, and these concerns over not having enough cash literally available to pay some of these employees, pay some of these bills is a major issue, not only in Rocky Mount, but would be the same discussion and issue in any municipality, county, or even the state of North Carolina as a whole. Yes, yes, that's right. I mean, like that goes for any city, any municipality, township, whatever you're looking at.
And it goes all the way up to the state, you know, right? You've got a budget and you got to keep an eye on where your money's going. And if you don't have that money, unfortunately, you got to start making some cuts or figuring other ways to maybe get more money to come in. And including that is looking at some surplus items, I believe, some maybe possibly land. I know Treasurer Brad Briner asked them that question at the meeting.
He says, you know, do you have anything that you're working on, like surplus assets? They said they are looking taking a look at vacant land. They'll have an answer on that by June or July as far as what they're going to do with that, either, you know, sell it or as far as maybe making it more of into a development, whatever the case may be. But yeah, this goes for any municipality or any government, state government, city government, all the way up, you know, just to state. For even when we say the federal government, right?
Yeah, but yeah, you have to keep a better eye on all the things, your expenditures, and what money you have on hand. Yeah, those surplus properties, as you mentioned, their land, not only could the city make some money back selling the land Teresa, but then of course you put it back on the tax roll and you're able to collect property taxes on it.
So that could be pretty lucrative. But in the meantime, they are looking at potentially reducing some of the things that Rocky Mount does offer again as they try and dig out of this hole that was created by their former city manager looking at the possibility of suggesting some changes to their public transportation system. Yes, that's right.
So what they were saying in the short term, they have federal funds tied with that.
So they couldn't make a decision yet, but something they are going to evaluate moving forward. And they're looking possibly at adjusting what they offer to the public as far as public transit routes. That was definitely mentioned. Yeah, one of the other things, interesting, kind of keeping on the same thread in Rocky Mount, there's also been some concerns in that area. Rocky Mount is one of the municipalities that has complete control over their electric, water, and sewer systems.
And those rates have been going up consistently now for the last couple of years. And it looks like those are going to continue going up as the municipality, again, tries to deal with this financial crisis. Yep.
So they said right across the board, they're increased to rates about 14% for electric water and sewer based on they're going back to 2025 numbers.
So they're making sure that they don't overstate the estimated amounts. That's something that they relied on previously. But that is what they're taking a look at. Also, too, just awfully briefly going to mention we have another story up on CarolinaJournal.com that there is a Senate bill currently now in the North Carolina General Assembly that would limit Rocky Mount's use of utility revenue.
So that's important to check out as well to see what's going on. This story came out right after my story on the meeting.
So yeah, might be a little more of a surprise for. City officials and their plans and what they want to do with that. with that increase.
Well, and Teresa, you know, let's bring this down to the human angle here for a second. I mean, this is really unfortunate for the city of Rocky Mountain. I mean, their residents, you know, they pay their taxes, they're going through their day, they're going to their job, and they're consistently seeing these rates going up. And now, this audit comes out a couple of months ago from state auditor Dave Bollock's office showing complete and total financial mismanagement, which is probably understating the situation. And now, unfortunately, looking at some of these details, a lot of that burden is once again going to fall on the same residents that were hurt by this whole thing from the start.
Yeah, and you're already seeing that. I mean, like they said, they obviously didn't want to cut core services like fire and police, but they've had to reduce other services now, like trash pickup, to every other week to save money.
So, trash isn't being picked up on a weekly basis for people who are paying their bills, right? Paying the city on time and giving the money that they're owing on these services that the city is expected to provide. And, you know, now with the warmer months coming up, I'm not sure that's could be a pleasant thing if they can hopefully come back to weekly trash pickup. But that's just one of the things. And, you know, right, everything else is going up.
We see gas is going up. That's going to cost more for people, you know, trying to make a living every day. And you're paying for services where you live. It all falls back to the taxpayer, doesn't it? It does.
And, you know, one of the things I mentioned this a few minutes ago in the initial report from state auditor Dave Bullock and his office, he was very critical, Teresa, of the elected officials there, including Mayor Sandy Robertson, and saying, you know, what were you guys doing when this was going on? Your manager that you hired spent $40,000 going out in the process of finding this individual, bringing them into town to control your city as the city manager, essentially operating kind of like the CEO or the president of the town there, handling the day-to-day operations. You guys were asleep at the wheel while all of this was going on.
Okay. Yeah.
And, you know, the mayor spoke publicly at the meeting. He was there along with, you know, the other two officials. And he said he, and this is his words, he hasn't heard anyone scream that services are awful since they've gone through the process. But he has seen things become more efficient. And that's his wording.
He said, you know, personally, he says in his own business, he sees the fewer people you have, the more effective they are. And the more efficient they are, the more happier they tend to be. He said, I think we've gone through that process, and it's really just more of a morale issue. And that They're doing a really good job right now and think the services have been maintained very well, and that he is proud to walk around the streets of Rocky Mount. A very interesting comment there from the mayor.
We'll just leave it there. But Teresa, also some of the county staff being affected by this as well, including some of the city's contributions to the 401ks for their employees. And that's, you know, of course, incredibly unfortunate. You're expecting if your employer offers that, it's probably part of the benefits package and something that you're expecting as a salaried employee, and that's cut back again because of this financial mismanagement. Yeah, that's right.
You know, the city's contribution to the 401ks has been cut. That has saved the city about $1.3 million a year. They've also changed to their longevity program. Not sure exactly what that is. It sounds like maybe the longer you're there, the more you're rewarded for being a long-time employee.
But they did stress that the staff salaries have been maintained. They have not cut them. But of course, again, you're cutting the benefits, such as the 401k, which is something that a lot of people rely on if they don't have a pension to fall back onto. Yeah, and at the same time, maybe raising the rates for some of those same employees that are using the town's electricity, sewer, and water system as well. Teresa, you've got a couple of pretty lengthy stories kind of walking through this entire process, going all the way back to the original story with the audit from state auditor Dave Bollock's office, all the way up to this most recent LGC meeting this week.
Where can folks go and get all the details? Sure, they can head on over to CarolinaJournal.com. We appreciate the information this morning. Teresa Opeka joins us on the Carolina Journal News Hour.
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It's 5:53. Welcome back to the Carolina Journal News Hour, Charlotte's FM News Talk 107.9 FM, WBT. We were just chatting with Teresa Opeca about some of the major issues ongoing in the city of Rocky Mountain. She referenced some new legislation that has been introduced in the North Carolina General Assembly. We're keeping an eye on that as some Republican senators have introduced a bill to block the city of Rocky Mount from using revenues generated from its electric utility to support other parts of its municipal budget.
With those lawmakers citing concerns about financial mismanagement and unfair costs imposed to out-of-town customers, the legislation, Senate Bill 1076, was filed by Senators Lisa Barnes from Nash County, Buck Newton from Wilson County, and Tim Boffett from Henderson County. It would require all revenue from Rocky Mount's electric system to be used. Strictly for utility-related purposes, which would include operations, maintenance, capital improvements, and debt services. Any sort of excess funds would have to be used to lower electrical rates or pay down system debt. Senator Barnes said in a statement: The city of Rocky Mount has proven that it is not a good steward of taxpayer funds.
We need to ensure every penny of our rural neighbors outside of Rocky Mount send to the electrical system can only be used for electric system purposes, not to bail out the city's budget. This bill would eliminate the city's ability to transfer electric utility revenues into its general fund, a practice used by municipalities to supplement other services. Under their 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 that the change is unfortunately needed to protect consumers, particularly those outside of the city's limits, who receive electrical service but do not have a vote in Rocky Mount city elections. Senator Buck Newton said the city of Rocky Mount is trying to fill its financial hole on the backs of people who do not live in the city.
My constituents in Wilson County should not be overcharged on their electricity bill to balance Rocky Mount's budget shortfall. And as we just talked about, Rocky Mount's financial struggles are very significant, including a recent state audit finding the city's cash reserves fell by roughly $80 million in just the span of two years amid what auditors describe as weak oversight and excessive spending by its most recent town man or city manager. The audit linked to the decline of rising personnel costs, major capital expenditures, and some of which were undertaken without sufficient financial analysis, leaving the city in the miserable position that it is now. Lawmakers backing this new bill argue that the city's improvements are not enough and that the measure would ensure greater transparency and prevent utility customers from stabilizing unrelated government spending. With Senator Tim Moffat saying, at a time when many North Carolinians are worried about the cost of their utility bill, they shouldn't have to guess where the money is going.
This is a common sense bill to ensure that money paid for electricity goes towards just that. Rocky Mount officials have not publicly responded to the legislation as it was filed yesterday in Raleigh. And if enacted, those restrictions, well, they'd start pretty quickly. They'd take effect July the 1st of this year.
However, important to note, it would only apply to the city. Of Rocky Mount. You can read more on the Rocky Mount sagas. We keep an eye on it over on our website, CarolinaJournal.com. That's going to do it for a Thursday edition.
WBT News is next, followed by Good Morning BT. We're back with you tomorrow morning, 5 to 6, right here on Charlotte's FM News Talk, 107.9 WBT.
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