City adopts new budget and sets tax levy
A delicate projection of the Fiscal Year 2025-2026 budget for the City of Holly Springs eked closer to the finish line last week as some funding sources were identified and some personnel adjustments were made Wednesday following the September 2 meeting of the mayor and board of alderman.
City clerk Jerrica Jones said the budget was within $140,000 of balancing at a projected $6,706,940 budget.
The daylight was due to the increase in assessed value by the State of Mississippi increases mandated up to 20 percent to 30 percent.
And two loans covering about $1.5 million will help bring the budget into balance with addition of other measures, she said.
Personnel changes by moving some full-time employees to part-time and deleting some unfilled positions until revenue influx can be seen, were also measures taken to close the budget shortfall, Jones said.
A Government Consultants loan originally anticipated at $600,000 or a fund tax administration note of $700,000 is anticipated. Government Consultants hosts training of municipal financing and makes loans and options available to increase borrowing power, Jones said. A loan from the Northeast Mississippi
Planning and Development District of $750,000 will be sought The new tax levy for the combined city and school district is 99.52 mills. Last year’s combined millage was 103.52 mills. The new general city levy is 39.02 mills and school levy is 60.5 mills.
The new Fiscal Year budget of $6,846,940 was adopted.
As of the September 2 meeting, the budget shortfall of about $2 million was reduced by reaching out to lenders.
The board of aldermen passed a motion to obtain a five-year note from Government Consultants of $600,000 and to NEPDD for $750,000, at the Tuesday meeting with Ward 3 alderman Jim Moore making the motion and Ward 4 alderman Patricia Merriweather seconding.
Mayor Charles Terry thanked the city clerk for “crunching the numbers all day and alderman Moore for working all weekend on the spreadsheet.
Jones said the documents to apply for the notes will be processed so the money will come in in September.
A public hearing was held Monday, September 8 on the proposed FY 2025-2026 budget.
The board approved a city claims docket for $690,596 and a City Utility Claims docket of $365,150.
HSUD projected budget
Senior accountant Chawanna Harris and general manager Wayne Jones took up the HSUD projected budget for FY 2025-2026.
“Have you all created a balanced budget?” asked Terry.
“Yes, Sir, if we are able to collect all the bills,” Harris said.
“Correction,” said Terry. “When we collect all the bills.”
Jones explained cuts in the capital budget as some items had been taken out.
Terry asked why there was an item for cameras in the capital budget for $3,000.
Jones said placing cameras in the substations would allow a view of what is going on at the substations around the clock.
Merriweather noted that close to $1 million had been cut from the HSUD capital budget.
Terry asked why reworking on a sewer substation was removed from the capital budget.
Jones said because Eddie Jefferson had informed them that the repair has already been completed.
Merriweather asked about the payroll budget.
Harris said salaries have not been changed and the budget is for positions that are open. There is a cap of $450,000 placed on overtime in the new budget, she said.
She said the figures for payroll are for W-2 wages and base salaries will remain the same.
“Does this account for payment in the arrears to TVA (Tennessee Valley Authority)?” Moore asked.
Jones said the arrears to TVA are extravagant, and he was cautioned by the board attorney to not discuss the figures in open session.
Jones said there is a plan to pay on the arrears.
Next up on the agenda was a motion to authorize an RFP for a utility engineering consultant.
Moore made a motion to advertise for an RFP, but later withdrew his motion after Ward 2 alderman Andre Jones and Merriweather asked for clarity on the purpose of a consulting engineering firm.
Attorneys recommended the matter be taken up in executive session.
After executive session, it was announced that a motion was made to hire Atwell and Gent as a utility engineering consulting firm.
The general manager has been requesting the city hire Atwell and Gent as engineers to help with right-of-way clearing recommendations and methods and for advice in selecting an AMI system to replace the failed General Electric AMI system at HSUD in order to get the billing back on track.