NATCHEZ, Miss. — The budget being prepared for Natchez aldermen doesn’t include a property tax increase as they continue to worry how much COVID will weaken tax revenues.
Revenues are falling below what the city had been receiving before the global coronavirus outbreak began crippling the economy early this year. Mayor Dan Gibson said Natchez will get by without raising taxes or laying off city employees, but “there are so many needs in this city we aren’t going to be able to do at this time.”
For the new fiscal year beginning Oct. 1, the mayor and Board of Aldermen have a tentative budget with a total of about $33 million in revenues. That’s down significantly from the $37 million the city has annually budgeted in the two previous years.
However, the reduction in the city’s new general fund — where sales and property tax revenues are directed for the city’s basic operations — does not appear as deep compared to fiscal 2019 and 2020, when they each totaled about $15.6 million. A preliminary budget for the upcoming year puts that amount at $5.2 million, but more work is needed in finalizing the amount before the board adopts the budget by Sept. 15.
Gibson and the Board of Aldermen held a public hearing Tuesday for Natchez residents via teleconference to discuss the budget. As COVID continues to plague the country, they didn’t hold the meeting as originally planned at the Natchez Convention Center. Alderman Valencia Hall and Gibson are quarantined at home. Hall has COVID and Gibson has been exposed to someone else who’s been infected.
The hearing didn’t detail the $4 million reduction in total revenues as it relates to city services and projects of the two previous years’ $37 million budgets. While the board Tuesday adopted next year’s tax levies — which will remain unchanged – it’ll wait until later this month to adopt the new budget detailing how the money will be spent.
Gibson, who took office as mayor in July, did say he expects “major savings” in health insurance costs for city employees. A new city health insurance plan will be finalized later this month, he said.
While the city general fund’s $15 million comes from tax revenues, federal, state and special funds fuel the rest of the budget to total $33 million. Gibson did say the city will be working harder to get grants from the state and federal governments with the help of newly hired lobbyist Gregg Harper, the former U.S. congressman.
Special taxes the city gets from the Magnolia Bluffs Casino, hotels and restaurants are expected to fall short about $200,000 because of COVID. With these funds being a source of money to pay bonds that financed the construction of the Natchez Convention Center, the board is having to dip into the city’s general fund to help cover the debts.
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