Halfway in to the fiscal year, Jackson’s collections are slightly lower than projected revenues, according to a recent report to the Jackson City Council.
The council’s finance committee met recently, where it was given an update on the city’s finances through the second quarter of the 2018 fiscal year.
Through the second quarter, the city has collected $48.9 million in property taxes and $13.8 million in sales taxes.
The amounts account for 80.2 percent and 40.6 percent of projected collections, respectively.
As for other categories, the city has collected $717,000 (44.5 percent) of expected licensure and permitting fees, and $2,621,000 (59.1 percent) of admissions and rental fees.
The municipal budget year runs from October 1, 2017 to September 30, 2018.
Ward Two Councilman Melvin Priester said there’s no reason to worry. “Tax monies don’t come in until after taxes are due in the spring. We get no property tax money in December. We get a whole bunch in January and February, and get another bump late in the summer, because people try to pay it before the properties go to the tax sale,” he said. “We’ll get pretty much the balance of it in late summer.”
While collections are down, he said through some belt-tightening, the city has been able to restore its reserve fund to 7.5 percent.
Under city ordinance, Jackson must maintain a reserve fund of 7.5 percent of its general fund balance.
The reserves serve as a sort of “rainy day” fund. Having the fund not only allows the city to make up for any budgetary shortfalls, but also helps the city maintain its bond rating.
The account dwindled in 2016, when the previous administration took funds out of the account without the council’s knowledge or approval.
Revenues were down in othe areas as well. Jackson brought in just $837,000, or 14.6 percent, of fines and forfeitures.
Fines and forfeitures include moving and parking violations and other fines handed down by Jackson Municipal Court.
“It’s a pretty small revenue source, but it’s gone down by a lot,” said Director of Administration Charles Hatcher.
Jackson brought in around $6,662,000 (44.4 percent) of revenues classified as “other.”
On the expenditure side, most departments were still under budget.
However, police and fire had nearly exhausted their allocations for overtime.
Through the second quarter, non-overtime expenses for the Jackson Police Department (JPD) total $14,685,000, or 43.4 percent of its 2018 budget, while total non-overtime expenses for the Jackson Fire Department (JFD) were $8,672,000, or 45.5 percent of the budget.
Overtime expenses for both departments, though, are well beyond budget. Through the first six months, JFD had used up 60.7 percent of its overtime budget, while JPD had gone through 88.5 percent of its overtime funds.
“Vacancies are driving things. There are people who have to work longer hours and that translates in to more overtime,” Hatcher told the council.. “I hope we don’t have to go into the fund balance to (pay for) this, but stay tuned.”
Total overtime budgets for JFD and JPD are $1,257,000 and $1,550,000 respectively.
Non-public safety services, including planning and development, public works and parks and recreation had spent 35.5, 37.9 and 42 percent of their budgets respectively, while human and cultural services has gone through 57.4 percent of its annual budget.
Expenses were also in check on the administrative and general government sides.
Finance and administration spending just 40.7 percent of its budget, while information and technology (IT) and the personnel departments had spent 46.75 percent and 42.4 percent respectively.
The city’s legal department had used just 45.9 percent of its annual allocations, while the mayor’s office and city council had used 47.91 and 36.47 of their budgets.
