Holly Springs' budget "a major challenge"

The Holly Springs Mayor and Board of Aldermen held their second budget meeting August 12 to discuss budget cuts and other concerns.

City Clerk Jerrica Jones presented a proposed general city Fiscal Year 2025-2026 budget where she made 20 percent cuts in all departments except in Police and Fire. The Holly Springs Utility Department budget, prepared by senior accountant Chawanna Harris, was also discussed.

Harris said she listed “projected balances where they are now and a projected $16 million budget.” “We are still billing,” she said.

Harris said there are 25 open positions in the electric department. She said she had built in a 3.5 percent cost of living increase in the projected budget.

Ward 4 alderman Patricia Merriweather asked about the payroll sheet and if there were vacancies on the sheet.

Harris said her numbers were based on what was budgeted the previous year an actuals.

HSUD general manager Wayne Jones said the budget reports the actual overtime each employee received.

“I knew that’s what it was,” Merriweather said.

Mayor Charles Terry asked about open positions and if they are filled, will there be less over-time.

“Yes, that is one reason, to help cut out over-time,” Jones said. “I’m going to count my blessings. I have much more faith in what we presented this year than what we presented last year.”

The city clerk then said the general city budget as projected now still has a hole (revenue shortfall) of $2,969,432.

The shortfall is the consequence of the loss in projected revenue from the Holly Springs Utility Department that would come in from Payment In Lieu of Taxes.

She reported account balances as of Aug. 12, 2025, of $829,979 in the tourism account, $88,272 from lease of the Sims Campus to ICS Head Start and $203,751 on hand in the Hill Crest Cemetery fund that is restricted to cleaning and repairing head stones.

“Any questions from department heads?” Terry asked.

Jerrica Jones said she cut 20 percent from all departments after adjusting the budgets line-by-line.

“We’re still $3 million short,” Terry said.

Jones said she was working off the 2024-2025 budget approved from last year.

“That’s what you are working off of,” Terry said. “Any ideas to put on the table at this time.” The next budget meeting is set for Tuesday, August 26.

“So, in two weeks, maybe we will have some additional information at that time,” Terry said.

The city clerk said the school district requests were expected to come in by Thursday.

Merriweather asked to see a copy of the budget prepared for year 2020-2021 and sales taxes received from the state of Mississippi.

“You still anticipate we will get something from the state?” Terry asked.

Some specific line items were discussed including budgets for fireworks and entertainment, a monthly allocation to the Marshall County Library and Ida B. Wells Museum and for the homeless.

Ward 3 alderman Jim Moore asked about any capital budgets for street repairs.

The city clerk said there is revenue from the Modernization Use Tax allotment from the state for water, sewer and street of $299,000. That money is restricted for specific uses.

“So, we need to make about $3 million in cuts?” Merriweather asked.

“I hope we can find some way to increase revenue,” Terry said.

Merriweather said the utility department budget is a major concern.

“So if we keep police and fire expense the same, the remainder is what we have for other departments?” Moore asked.

“That is correct,” the city clerk said.

She said the city is paying $175,000 a year on the purchase of the new fire truck. And incremental increases include other increases. The insurance is likely to go up.

“You see we have a major challenge ahead of us,” Terry said. “I hope we have some additional income. Now what we need to do is balance the budget on one-half it was last year. I do not want to cut services or raise taxes. So, Clerk, you have given us our homework.”

In other business, the board:

· authorized Wayne Jones to obtain quotes for a new automated metering (AMI) system and for Elliott and Britt Engineering to help facilitate the RFP (Request for Proposals) and bid process.

· went into executive session to discuss litigation and personnel in the utility department.

Upon exiting the executive session, the city clerk announced that the board had approved dropping Blackmon and Blackmon as attorney’s to represent the city in the September Show Cause hearing by the Public Service Commission. The board authorized board attorney John Keith Perry Jr. to represent the city at the PSC meeting in the New Albany Municipal Court building.