City of Washington Financial Data Shows Rising Debt, Rapid Payroll Growth, and Declining Resident Income and Population | Eastern NC Now

Press Release:

    Washington, NC     Newly released financial data from the City of Washington's Finance Department reveals a concerning fiscal trajectory marked by rising debt, rapid payroll growth, increasing staff levels, and declining resident income and population-trends city leadership says must be addressed with urgency, transparency, and accountability.

    City Debt Has More Than Quadrupled

    Official financial records show the City of Washington's outstanding debt increased from approximately $5.4 million in 2019 to $21.4 million by 2025. In addition, more than $3 million in new debt was approved by the outgoing City Council and City Manager Jonathan Russell (2018-2025)-a recent Municipal Manager of the Year award recipient-prior to the new council taking office. This additional borrowing brings the City's current total debt to more than $24.5 million.

    The former city manager also departed with a $140,000 severance package, raising serious concerns about oversight and fiscal judgment during that period. The City Manager's Office cost $349,575.29 in the 2019 budget cycle, while the 2025 budget cycle increased to $637,835.00-an increase of more than 82%, representing an additional $288,259.71 annual burden on taxpayers.

    By contrast, under the current leadership structure, the City Manager's Office payroll is on track to save approximately $380,000 if the current structure remains in place for the remainder of the year.

    This level of accumulated debt significantly limits future financial flexibility and increases long-term obligations for taxpayers. The Office of the State Auditor has begun a review related to alleged city improprieties and financial malfeasance, underscoring the seriousness of the City's current financial condition.

    Payroll Growth Far Outpaces the Community

    City payroll expenses increased from approximately $9.8 million in FY 2019-2020 to just under $17 million today-an increase of more than 70%.

    During that same period:

• City population declined from 9,875 to approximately 9,701
• Full-time city employees increased from 236 to 261
• Average resident income declined from $43,784 in 2020 to $41,723 in 2023 (latest available ACS data)

    As a result, average payroll expense per city employee now exceeds the average Washington resident's annual income by more than 55%, raising serious questions about sustainability and fairness-particularly as residents face rising taxes and cost-of-living pressures while city employees received substantial pay increases during the prior city manager's tenure.

    A Serious Moment - and a Reset Opportunity

    "These numbers didn't appear overnight, and they were not created by the current council," said City Councilman Joe Davis. "But they are now our responsibility and we're excited to fix it."

    City leadership emphasized that a course correction is underway. Under the leadership of Interim City Manager Bobby Roberson, the city has begun a comprehensive review of payroll classifications, staffing levels, contracts, and debt obligations.

    "While the situation is serious, it is fixable," Davis added. "We now have experienced leadership, improved financial visibility, and a council committed to restoring fiscal discipline, protecting taxpayers, and putting Washington back on a sustainable path. It may take time-but the work has begun and we have an extremely promising future."

    Supporting Documentation

    The City has distributed and discussed in recent work sessions a financial overview summarizing:

• Outstanding debt growth (2018-2025)
• Payroll and staffing trends
• Population decline

    These materials are available for public review and media distribution.


   Contact: Joe Davis
   Washington City Council
   Email: jdavis@washingtonnc.gov

 

 

poll#224

Has the City of Washington, NC been managed by their elected local government, and their bureaucrats, in a fiscally responsible manner to better serve the people who pay their ever advancing property taxes?

  Yes, rising property taxes are a necessity to maintain a progressive city.

  No, excessive funding of a poorly managed government can become a shell game of corruption.

  I am afraid to say.

96 total vote(s)     What's your Opinion?