Jackson City Council addresses property tax revenue shortfall, funds street resurfacing

·2 min read

On Tuesday morning, the Jackson City Council addressed a shortfall in the budget for the fiscal year.

The council approved moving $3,028,608 from the general fund to the capitol outlay fund, as well as the moving of $824,172 back to the general fund to make up for the budget shortfall created by the newly-certified property tax rate.

Following last week’s city council meeting, the city was left pondering a $824,172 shortfall created after the newly-certified property tax rate of $1.6114 was found to create less revenue than originally planned for in the fiscal year's 2023 budget.

The error was made due to the fact that the tax rate was not sent to the city prior to the budget deadline, forcing the city to estimate their property tax revenue.

City Finance Director Bobby Arnold speaks about the property tax reappraisal during a city council meeting on August 2, 2022, in Jackson, TN.
City Finance Director Bobby Arnold speaks about the property tax reappraisal during a city council meeting on August 2, 2022, in Jackson, TN.

“We normally get it in April or May, so we had to pass the budget at last year’s tax rate,” said City Finance Director Bobby Arnold, in a previous interview. “So what’s happened now: by adopting the certified tax rate (of $1.6114), it generates about $825,000 less in property tax than what we have in our budget right now.”

Property tax: Late property tax reappraisal leads to lower taxes, big shortfall in paving project

Following the certification of the new tax rate last week, the city debated adopting a higher rate of $1.7554, which would see $1.1362 to go into the general fund, .4738 to go into debt service, and .1454 to go towards the capital outlay fund to fund the street resurfacing project.

This motion was ultimately shot down in favor of keeping the tax rate at the suggested rate of $1.6114.

Tuesday’s vote has fixed the problem on—at least on first reading—and has allowed for the moving of $824,172 to the general fund, with $217,221 of that going into the debt service fund.

On second reading, the city passed the movement of $3,028,608 from the general fund to the capital outlay fund to cover the street resurfacing project—therefore funding the street resurfacing from reserves and not by raised taxes.

The movement of $824,172 will go to second reading at the next council meeting.

Have a story to tell? Reach Angele Latham by email at alatham@gannett.com, by phone at 731-343-5212, or follow her on Twitter at @angele_latham. 

This article originally appeared on Jackson Sun: Jackson City Council addresses property tax revenue shortfall, funds