Jackson Finance Committee Budget Study Session - August 10, 2026
Jackson Finance Committee Budget Study Session - August 10, 2026
On Monday, August 10, 2026, at 9:07 a.m., the Jackson City Council Finance Committee convened for a budget study session to review the proposed FY2027 budget. The meeting was chaired by Councilman Clay, with participation from the Mayor, CAO, CFO, Budget Director, and council members. The session focused on the administration's proposed $112.9 million general fund budget, which is 16.8% smaller than the FY26 adopted budget due to the elimination of one-time revenues and a commitment to sustainable spending. The meeting also covered the opioid settlement fund and the city's financial outlook.
Discussion Items
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Budget Overview and Five-Year Trend: CAO Peter Taverson provided a framing of the city's financial progress over the past year, noting that the city now has verifiable revenue numbers, has addressed deferred maintenance (e.g., reopening Daley Murray Hall and the Davis McNair Planetarium), and has improved Civil Service Commission operations. He emphasized that the proposed budget is built on realistic revenue rather than shifting sands. CFO Caldwell and Budget Director Jackson presented the budget at a glance: total proposed general fund revenue and expenditures both at $112.9 million. They explained that FY26 had relied on $11 million in one-time funds (fund balance draw and transfers) that are not repeated in FY27. The five-year trend showed revenue peaking at $118 million in FY23 and declining, while expenditures grew through FY25, producing deficits of $4.5 million in FY24 and $12.9 million in FY25, covered by fund balance. FY27 is the first year where revenues and spending are deliberately balanced without relying on reserves.
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Revenue Details: Property tax (60% of revenue) and state sales tax (28.8%) together account for 88.8% of general fund revenue. The proposed revenue mix removes $7.75 million in applied fund balance and $3.2 million in operating transfers. Councilman Clay raised concerns about specific revenue estimates, such as realty taxes (projected at $37.5 million vs. actuals below $36.5 million in recent years) and rail car taxes (projected at 218,000 after a 200% increase from $1,534 received this year, historically between $60-80,000). Council members advocated for conservative estimates, with Councilwoman Clay suggesting the budget should be closer to $105-106 million to avoid overprojections. The administration agreed to revisit numbers based on updated assessments.
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Expenditure Breakdown: Police and fire together are $58.4 million, or 51.7% of the budget. Personnel costs (salaries, wages, benefits) are 69.6% of the total budget, and adding other services/charges (contracts, utilities) brings that to nearly 86%. Capital outlay and debt service are each only about 1%, limiting flexibility. Department cuts were not across-the-board but targeted after individual department work with finance. Public works, IT, municipal clerk, administration, and general government saw reductions of 25-35%.
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Special Funds: The city's outstanding bonded debt is $142.5 million, with $20 million due in FY27. The employees' benefit fund (self-insured health plan) cost $19.1 million in FY25, and FY26 is on track for $20.3 million (6.6% increase). The city's share of health plan costs rose from 77% to 83%. The PERS (public employee retirement system) contributions continue to strain resources.
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Opioid Settlement Fund: Councilman Clay noted that while spending opioid settlement funds on furniture and shelving is legal, the spirit of the funds is to abate the opioid crisis. He recommended holding the funds in a separate account and developing a plan informed by those affected by the crisis. The administration agreed, stating they have avoided spending such funds on unrelated items (e.g., canceled $30,000 in furniture). The funds are currently held separately from the general fund. Council members discussed potential uses across departments (police, violence prevention, homeless services) but emphasized the need for input from crisis-affected individuals.
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Future Outlook and Personnel Costs: Mayor Horn discussed the need to "resize" Jackson, noting the city covers 113 square miles for 144,000 people (built for 205,000). He called for a conversation about which streets and services to maintain. The administration committed to salary adjustments for lower-paid employees in FY27 and higher-paid employees in FY28, funded through efficiency savings and attrition. Economic growth was identified as a long-term solution, with a need to consolidate economic development organizations under a unified strategy.
Key Outcomes
- No votes taken; this was a study session for information gathering. Council deliberation is scheduled for the following week, with a public hearing the week after, and final budget adoption by September 15, 2026.
- Directive to revise revenue estimates: Council members urged conservative projections, with Councilwoman Clay suggesting a target of $105-106 million. The administration will update revenue numbers based on late-August assessments.
- Opioid settlement funds to be held in a separate fund: The council and administration agreed to keep these funds separate and develop a spending plan that aligns with the settlement's purpose, with input from affected individuals and departments.
- Commitment to salary adjustments: The administration indicated a path to salary increases for lower-paid employees in FY27 and higher-paid employees in FY28, contingent on savings from attrition and efficiency.
- Continued focus on resizing the city: Mayor Horn's call for a strategic discussion about reducing the city's footprint was acknowledged as a topic for future planning.
Meeting Transcript
All right, good morning, colleagues. We are calling together the Finance Committee meeting. Today is Monday, August 10th. It is 9.07 a.m. And we are officially in budget season. So by law, we have uh a little over a month to pass a budget that begins October 1st. And uh the way that we're gonna do that is this week is our crash course. This is our study session. We'll hear from the administration, and they'll present their overview, and we'll hear from department heads, and uh our goal this week is to learn as much as we possibly can. Next week is dedicated to council deliberation, so we'll take everything that we've learned and begin discussing amongst ourselves the best path forward. The week after that, we will have the required uh public hearing on the budget, and if all goes according to plan, the week after that, we will pass the uh FY27 budget. So, today to get things started, we'll have an introduction, we'll do a highlight over our revenues and expenditures at a very high level. We'll have the opportunity to speak with department heads throughout the week if we have specific questions about their department. But today we'll get that overview uh presentation to us. And uh I also have on our agenda to um talk about the opioid settlement. Initially, we were going to hear from uh individuals who um have experienced issues with the uh opioid crisis. Unfortunately, for variety of reasons, they weren't able to be here today, but I'll just speak briefly uh about that when it comes time for that. But uh the majority of our meeting will be dedicated to the FY27 proposed budget overview. And with that, I turn it over, Mr. Mayor, uh, Mr. CAO, uh, our chief financial officer and our budget uh manager. I'll defer to our CAO. Mr. Chairman. Awesome. Good morning, Mr. Chairman. Uh I will start and then loop over to the CFO and budget director. Uh good morning, President Hartley, Vice President Parkinson, other council members uh by video and members of the public. On behalf of Mayor John Horn and the City of Jackson administration, it is my privilege to participate in a proposed FY 2027 Jackson budget budget. As CFO Caldwell and Budget Director Jackson will detail in a few minutes, the proposed overall budget centers around anticipated general fund revenue of 112 million dollars. But before we begin delving into details, please allow me to remind everyone who is watching where we were a year ago. A year ago, we did not have current verifiable general fund revenue numbers. Today, we now have verifiable numbers and numbers that reflect a downward general fund trend from a 2021-2022 COVID high when the federal government pumped money into the economy. A year ago, the administration was urging a flat budget due to many unknowns. Today, we know that a combination of 12 million dollars in police, fire, and planning budget additions in FY23 were covered with limited rather than recurring funds. A year ago, some folks around the city thought it was a good idea to purchase $30,000 in new furniture. That got canceled. And this fiscal year, your fiscal staff has held purchases to necessities. A year ago, Day Amor Hall was still closed and in need of additional chillers, mold remediation, bathroom renovations, escalator repairs, etc. Today, Dalia Murray Hall is open, and in FY27, the city will reopen the Davis McNair Planetarium. A year ago, the Civil Service Commission had not met in months, and the docket was several years old. Today, through the incredible efforts of Onetta Whitley, Reverend Moore, Peyton Prosper, and Devra Ellis, the Civil Service Commission is functioning as the law intends and as employees expect. A year ago, the good folks in neighborhoods in Georgetown, the sub number two, West Jackson, and North Jackson were wondering about bridges. Today, I'll have replacement bridges underway. And perhaps most importantly, since last year, really since March of this year, when then Finance Committee Chair Clay began scheduling regular meetings. And perhaps most importantly, since last year, really since March of this year, when then Finance Committee Chair Clay began scheduling regular meetings, the council and administration have repeatedly sat down in public to examine revenues and expenditures, general and special funds, costs of everything from sanitation to health insurance to fuel. And if for no other reason, the city of Jackson is much healthier today because of our collective efforts since last year's budget cycle. Hopefully, the public has a greater understanding of our challenges in meeting the city's needs. A year ago, the city's finances were built upon shifting sands.
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