City council votes on how much debt it will pay off this year

JACKSON, Tenn. — The big budget item at Tuesday’s City Council meeting was approving a $750,000 transfer from the debt service fund balance to the debt service expense.

The vote was largely technical.

“That just allows us to expend that money that was in the fund balance presently,” said budget committee chairman Paul Taylor.

However, the move is essential for the city’s plans, and it’s part of the state comptroller’s recommendations to reorganize before they begin their bigger investigation.

“It’s been a requirement of the state to clear that up so that we can make way for a clean audit when we get audited for the FY20 year,” Taylor said.

For now, the debt service payment is 26% of their revenues.

“Our debt service requirements continue to rise year to year and are projected to do so for the next number of years,” Taylor said.

The city council will later consider a higher annual payment.

“What was proposed was to raise that by 26% to 28%,” Taylor said. “And we tabled that until we can have more clarity on what that number may be.”

Next week is crunch time, as Mayor Scott Conger presents the proposed budget.

“Where we discuss goals and objectives of departments and how that funding aligns with those goals and objectives,” Taylor said.

The City Council also elected to apply for a grant that would help in the construction by the proposed Great Wolf Lodge.