Jackson proposes 8 percent property tax increase

Jackson Mayor Tony Yarber presented his budget proposal to council members Monday calling for an 8 percent tax increase, once a month furloughs of many city workers, a hiring freeze, moratorium on new vehicle purchases and some higher city fees.

Yarber proposal is for a $119 million general fund budget for the upcoming fiscal year, down form the current $122 million general budget.

"We knew we would have some issues," Yarber said.

One of those issues was how to maintain the same level of staff without having to result to mass layoffs, Yarber said.

Yarber said Jackson is projected to have a 1 percent decrease in property tax revenue coming to the city for the next fiscal year, which begins Oct. 1.

Also, the city is trying to make up an estimated gap of $15 million in what department heads say they need to operate and the estimated revenue from property taxes that the city will receive for the upcoming fiscal year, which begins Oct. 1.

The proposed 8 percent  tax increase would add about $51 a year in taxes on a $100,000 house in the city. It would also increase business taxes and the cost of auto tags.

Yarber's proposal on furloughs is to close most city offices and operations for the day on Oct. 16 and every fourth Friday for two budget years. The proposed furloughs wouldn’t impact essential police and fire personnel as well as part-time employees.

Yarber said personnel is the biggest item in the city's budget. The estimated annual savings through furloughs would be $4.9 million.

“We have to make some tough decisions,” Yarber said last week about the budget. “Department heads are already mad with me.”

City Council President Melvin Priester Jr. said a key thing to remember is that the Jackson City Council  has not taken any actions or made any decisions yet about the best way forward. "We have not approved or disapproved any of the mayor's proposals regarding furloughs or taxes or anything else,” he said.

Priester said the council will spend the next month having budget hearings.

“ We'll go over expenses with a fine toothed comb,” Priester said. “We'll analyze whether it's better to furlough across the board or whether other labor plans make more sense. We'll look at whether it is even permissible to have a hiring freeze in certain areas given our obligations under the consent decree. We'll probe a number of issues related to revenue, staffing, equipment uses, etc. and how to make the city more efficient.”

Priester said Yarber has made an initial proposal, but whether it is the route the city goes or whether the council modify this proposal will be determined by the hearings over the next month.

In addition to the mayor's tax increase and furlough proposal, certain city fees  would increase. They include:

• Rental fees of Smith-Robertson Museum and Cultural Center would increase from $93 for four hours to $750.

• Fire inspection permits would increase from $10 to $25.

• Fireworks displays would increase from $50 to $150.

• Vehicle storage fees at the city's impound lot would increase from $25 to $50 per day, but not for stolen vehicles.

• Jackson Police Department accident reports fee would increase from $25 to $35.

• Increase in the city's Planetarium fee by $2 for students and $1.50 for the general public.

Contact Jimmie E. Gates at (601) 961-7212 or jgates@jackson.gannett.com. Follow @jgatesnews on Twitter