City bites bullet on budgets
The Holly Springs Mayor and Board of Aldermen continued culling items from its old budget of Fiscal Year 20242025 of $8 million in order to meet a projected revenue shortfall of about $3 million for Fiscal Year 2025-2026.
The loss of PILOT (Payment In Lieu of Taxes) revenue from the utility department and the withholding of close to a half million dollars by the State Auditors office has created the shortfall for the first budget year of the Mayor Charles Terry administration.
Deeper budget cuts were considered by the mayor and board at the August 26 budget planning session. The new fiscal year budget must be completed by the September 8 public hearing and adopted by September 15.
October 1 is the new fiscal year for municipalities and county governments.
Line item cuts and salary cuts were discussed, with salary adjustments and possible layoffs taken up in executive session.
Both the new fiscal year City budget and the Holly Springs Utility Department budget were on the table.
The HSUD budget was up for discussion first but was set aside as it was found some pages in the proposed HSUD budget had to be copied and passed out to the mayor and board.
City clerk Jerrica Jones went first for the city in reading out proposed amounts in line items in the proposed general city budget after noting that the Mississippi Large Group Renewal Insurance premiums are expected to go up by 40 percent to 50 percent.
The current insurance coverage rates monthly are:
•Employee only - $479.50
•Employee plus spouse - $1,012.50
•Employee plus one child - $884.92
•Employee family rate - $1,477.30
The figures are what the city and employee premiums will be.
The proposed general city budget and salary sheet was next. Salaries were discussed in executive session.
Details in changes in the general city budget read in open session included:
•City youth workers - zero
•Overtime - zero
•Chamber of Commerce, miscellaneous - zero
•Square revitalization - decreases from $5,000 to $3,000
•Auditing - zero (State Auditor is paying for auditing by withholding sales tax up to $450,000)
•Repair and maintenance - decreased from $30,000 to $20,000
•Health Department - decreased from $10,000 to $5,000
•Historical Museum - zero
•Ida B. Wells Museum - decreases from $10,000 to $5,000
•Homeless - decreased from $3,000 to $2,000
Police Department
•Office supplies - dropped to $5,000
•Gas/oil - decreased from $30,000 to $25,000
•Auto repairs - decreased from $12,000 to $10,000
•Drug related expenses - zeroed out
•Contractural services - decreased from $7,500 to $7,000
Fire Department
•Travel/training - decreased from $17,000 to $15,000
•Leasing equipment - decreased from $300,000 to $150,000
•Fire truck payment of $950,000 not due until November 2026
Sanitation/animal control
No changes
Street and buildings and grounds
•Gas and oil decreased to $10,000
•Supplies and expenses decreased to $20,000
•Repair and maintenance decreased to $20,000
Parks and Rec
•Utilities - $50,000
•Repair and maintenance - $10,000
•Equipment - $10,000
•Utilization of tourism sales tax fund dollars for operating costs
Libraries
•Decreased from $17,000 to $12,000
Garage
•No change
Budget shortfall in General City came to $2,101,600.
“We’re been crunching the numbers all afternoon,” said Mayor Charles Terry. “We’re still in a shortfall of just over $2 million. The one other option is going to be more layoffs.”
The budget for the Holly Springs Utility Department was discussed.
Senior accountant Chawanna Harris said the consolidated budget total in revenue was expected to be $34,214,067.
The expected revenue, minus expenses in the electric department was $30 million, she said.
Ward 4 alderman Patricia Merriweather asked if there is a proposed rate increase.
“Yes, Mam,” said general manager Wayne Jones.
Merriweather asked if there were salary increases.
“Yes, we’ve considered cuts,” Jones said.
Terry said the HSUD budget needs to be finalized before the next board meeting where the board agenda will be discussed as well as budgets.
“So, the reconsideration is to not give the rate increase,” Harris said. “Then you want that completely eliminated off the payroll budget, correct?”
Merriweather answered, “Whatever cuts that have to be made, you heard very clearly. You know the situation. You know in terms of the revenue that’s coming in at this particular time. Surely, you know it.”
“Yeah,” said Jones.
“So, any cost, just like the City is doing. We are trying to find ways within the ways. So, you have to do the same thing.,” Merriweather said. “And, when I say ways, I mean making the cuts necessary without affecting the services all together. The mayor will explain it to you later.”