Jackson council reviews midyear finances after warning of $23 million gap
Jackson City Council members launched an in-depth review this week after city officials warned that first-half revenue trends could produce about a $23 million shortfall in the $135 million general fund, a consultant estimated.
City officials, including Chief Administrative Officer Pieter Teeuwissen and the chief financial officer, presented revenue figures through the end of March showing the shortfall would likely persist for the full fiscal year, the officials said. Ward 2 Councilwoman Tina Clay said the projected deficit, greater than 10%, would require the city to advertise a revised budget under state law.
City documents show Jackson’s overall budget exceeds $330 million, with much of that money tied to grants, lawsuit settlement funds and an internet sales tax earmarked for roads and bridges, city officials said. The general fund covers more flexible expenses and is funded by local sales tax, fees and permits, museum and event revenues, and other municipal receipts.
Council members were told the city is falling short in several areas: property taxes are on track to bring in about $250,000 less than the $68 million budgeted, fines and fees have produced roughly 25% of expected first-half collections, alcohol permit revenue is about one-third of projections amid statewide warehouse shortages, and parking meter receipts showed no collections so far, officials said. WLBT reported last year’s parking meter contract generated nearly $450,000 but the city did not receive those funds until after the second half of the fiscal year.
Ward 1 Councilman Ashby Foote and Clay criticized confusing accounting language in the city’s Munis system. Clay said she has been teaching colleagues how to read the reports, noting a column labeled “YTD EXPENDED” actually reflected revenue collected. Foote said the terminology must be corrected. Teeuwissen said there were some bright spots, including stronger revenue at the city golf course, and outlined ideas under consideration such as an amnesty day for municipal fines, efforts to attract tenants to city-owned properties and possibly hiring outside counsel to boost collections. “You’re doing what we really need you to do as council members,” Teeuwissen told the council.
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