City budget committee hopes to reduce Jackson’s debt

JACKSON, Tenn. — The city budget committee focused on their long term plans to reduce the city’s debt service fund Thursday.

The committee looked at the fiscal plan over the next eight years, and there is some good news.

“The way the debt is structured, those payments drop off significantly in FY-25, so in July of 2024, we’ll see a drastically reduced debt payment,” Jackson Mayor Scott Conger said.

The city hopes that by fiscal year 2025, they will not have to borrow any money to fill out their budgets.

But they are currently borrowing $6 million.

“We’re looking at 1-2 million dollars of reduction in our borrowing. 1 million every year,” Conger said.

All of these projections rely on a 1% annual growth rate in revenue. However, recent events could alter that significantly.

According to the committee, the impacts of the coronavirus on the national economy could impact revenue growth. In fact, instead of 1% growth, they could see a decline of up to 5%.

All city departments will be submitting their operating budget for the upcoming year on Friday.

The city will look over them and try to pinpoint where they can be more efficient.

“How do we reduce what we’re borrowing, so that when we get to that FY-25, that we’re not back in the same situation we are now,” Conger said.

The city also says if the governor’s budget is approved, part of their project rebuilding Airways will be funded by a grant.