NATCHEZ, Miss. — The mayor and Board of Aldermen are preparing Natchez’ budget projecting a revenue shortfall as COVID-19 continues to stifle the economy.
While the financial picture remains uncertain, preliminary estimates provided to city officials shows revenue slumps ranging from nearly $1 million to over $2 million for running Natchez.
“Tough decisions” must be made in the next few weeks to “tighten up the belt” and cut spending to ensure the budget is balanced, said Mayor Dan Gibson. He and aldermen face a deadline next month to adopt the budget before the fiscal year begins Oct. 1.
As work continues on the city budget, the Board of Aldermen and mayor will hold a public hearing next Tuesday on the expenditures and tax levies they’re planning. The meeting begins 5:15 p.m. at the Natchez Convention Center.
While there’s a total of $16.1 million in projected spending needs for the upcoming year, estimated revenues are falling $975,000 short for Natchez’ general fund, said Wallace Collins, the accountant hired to help city officials do the budget.
Collins noted there’s still “a lot of work to be done” in hammering out a new budget. The city faces an “unknown future” about tax collections as the COVID-induced economic crisis continues to grip the nation. In meeting Tuesday with Gibson and the Board of Aldermen, Collins pointed to sales taxes and the revenues the city gets from Magnolia Bluffs Casino. Property taxes are also a large source of revenues to fund municipal operations.
With other funds counted – such as federal grants and various special allocations – the city has been operating this past year with a total of $37.3 million in projected revenues. However, for the next fiscal year, $34.8 million is expected, according to preliminary estimates presented by city officials. That’s a drop of about $2.5 million.
As revenues lag, city officials must be aggressive in seeking more outside funds, Gibson said. With that in mind, the Board of Aldermen on Tuesday agreed to hire former U.S. congressman Gregg Harper to be the city’s lobbyist at the Mississippi and U.S. capitals. Gibson said Harper’s experience and contacts in Jackson and Washington should ensure Natchez gets a better share of state and federal funds for various city needs.
Conditioned on the Adams County Board of Supervisors funding a share, aldermen approved paying Harper and an associate $120,000 a year. This is “a critical investment at a time when we need it the most,” said Gibson, who was a Jackson lobbyist prior to being elected mayor in July.
Harper served in the U.S. House of Representatives for 10 years representing the district that includes Natchez-Adams County. After leaving Congress in 2019, he joined the Watkins & Eager law firm in Jackson.
“Natchez is a city I believe in,” said Harper while meeting Tuesday with Gibson and city aldermen. In addition to lobbying for state and federal funds, he’ll be helping lure industries. “It’s not hard to sell Natchez or Adams County for potential business opportunities,” Harper said.
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