City leaders discuss Jackson’s more than $76 million debt

JACKSON, Tenn. — Records the city gave WBBJ 7 Eyewitness News show the City of Jackson spent about $14 million in 2017 and will spend about $16 million in 2018 paying off debt.

“We can’t pay out more than 25 percent of our property tax revenues for debt service, so we’re right at the limit right there on how much we can pay,”Jackson City councilman Randy Wallace said.

Jackson Mayor Jerry Gist said the city will be about $78 million in debt when he leaves office in May 2019, about the same as when he came in. “The city of Jackson is still in good financial condition as far as our debt and our ability to pay that debt,” Gist said.

Records show Jackson plans to pay about $16 million in 2018, which would still leave the city about $80 million in debt.

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Records indicate other cities across the state about the same size as Jackson will spend less in 2018 paying off debt. Records show Hendersonville will spend around $2 million, Bartlett around $6 million, Franklin around $14 million, and Johnson City about $12 million, which includes the school system.

“Some of the cities you may be mentioning probably are a little more affluent than we are currently,” Wallace said. “That has a lot to do with it.”

WBBJ 7 Eyewitness News asked Mayor Gist how Jackson’s debt compares with other cities around the same size. “Way lower as far as the debt,” Gist said. “You can go to Cookeville. You can go to Clarksville. You can go to Nashville, Memphis or Chattanooga. You’ll see their debt has escalated to a point to where it’s taking a lot of their tax money to make those payments.”

Ross Priddy joined the Jackson City Council in December. WBBJ 7 Eyewitness News asked him if the city of Jackson is in over its head debt-wise. “I don’t know,” Priddy responded.

Priddy said he is still new and still learning but does have concerns about the city’s financial situation. “I think I do have concerns about the long term of where we are because people our age are going to inherit the decisions being made and the financial situation,” Priddy said.

The Jackson-Madison County School System recently asked the city to pay for a new Madison Academic building at the University of Memphis Lambuth campus. In light of that request and the debt, WBBJ 7 Eyewitness News asked city leaders if they plan to increase property taxes.

“It’s always an option,” Gist said. “I’m not saying we’ll do it. I’m not saying we won’t do it. That’ll be a council decision.”

“That’s never off the table, but pretty much I think the City Council would not approve an increase in property taxes,” Wallace said.

Wallace said the city is not broke. “I think we can continue to go along with where we are currently,” he said. “We’re just going to have to be cognizant of that and not pick up new projects or new items that we can’t afford.”

Gist’s office said the City Council will take up next year’s budget several times in June.