City increases taxes, money to go to police, fire raises

Published 1:07 am Saturday, September 16, 2017

NATCHEZ — Natchez aldermen voted Friday to approve a 4-mill tax increase to fund a raise for city police officers and firefighters.

With Ward 2 Alderman Billie Joe Frazier and Ward 3 Alderwoman Sarah Carter Smith absent, the board voted 4-0 to approve the fiscal year 2018 budget, highlighted by the tax millage increase and salary adjustments.

CPA Wallace Collins said the additional millage would generate approximately $472,000.

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The budget projects a $777,000 surplus to close the 2018 fiscal year, but Collins noted approximately $429,000 of that surplus is earmarked for the Natchez Senior Citizen Center and the Natchez Transit System, meaning those funds are restricted for use only in those departments.

Approximately $115,000 and $100,000 are expected to remain in the general fund and casino lease fund, respectively, leaving approximately $133,000 of surplus money across all other departments.

Reflecting on years past, Collins said the city had a deficit of approximately $760,000 in the 2016-2017 fiscal year, causing the city to take out an emergency loan.

This current fiscal year, the city is projected to end with an approximately $341,000 surplus, of that amount, approximately $170,000 is projected to be in the general fund. But Collins hinted that the city might need to take out another emergency loan by the end of this fiscal year.

“I’m just going to say it — it’s a good possibility you may have to borrow money before the end of the (month),” Collins said. “The reason I’m saying that is you had to borrow $167,000 last year, and you paid it back in the current year.”

Before approving the budget, the mayor and aldermen opened a public hearing — as state law requires — so members of the public could make comments or voice concerns.

Of the two commenters, resident John Peterman took to the podium first.

Peterman stressed he supported the raises for city police and firefighters, but he posed a question to the mayor and board.

“What I’d like to know is what is the city doing to keep expenses down?” he asked.

Peterman asked the mayor and aldermen how many vehicles the city owns and how much it costs to run them, which no one could answer.

“I don’t know how many vehicles y’all have — y’all don’t even know how many vehicles you have, but that’s one area where you can save taxpayers’ money,” he said.

Peterman also believed the city could cut down in areas of cell phone usage, and he asked whether the city properly monitored license tags on vehicles and roadside businesses, to ensure that everyone is “paying the city their fair share.”

Natchez Mayor Darryl Grennell said he knows police officers diligently check the roadside businesses, and he also agreed checking automobile tags is “something we certainly need to look into.”

Lastly, Peterman questioned why Natchez Water Works advertises in The Natchez Democrat when residents do not have a choice of who supplies their water. Grennell responded by saying he would have to check with Water Works Superintendent Tony Moon regarding that issue.

After Peterman thanked the board for its consideration, resident Kevin Wilson came forward.

Wilson said he appreciates the hard work the city has put into the budget over the weeks, but he said he wishes the police and fire departments could receive a 10-percent raise rather than just 7 percent.

“My concern is that I think even with the 7-percent (raise), they still aren’t going to make as much as certainly the (Adams County Sheriff’s Office) and/or the Vidalia Police Department, so you still have a problem with retention,” Wilson said.

The 7-percent raise brings a starting NPD wage just more than $13 an hour, while firefighters will still earn less than $9 an hour.

Wilson also asked where possible cuts could be made, specifically mentioning the addition of a department head salary for recreation, something the city had initially planned to include in its budget.

Grennell said he had decided to “scratch” the idea of a new department head, a position initially slated to earn upwards of $45,000 annually.

Wilson also voiced concern about the maintenance cost of the planned swimming pool after construction, asking exactly what those costs would be.

Ward 6 Alderman Dan Dillard noted that the city and county’s interlocal agreement dictates the two entities would contribute funds to the pool’s maintenance costs, with the city contributing 60 percent of the funds.

Dillard said Wilson’s question would be better suited for the recreation commission or the Adams County Board of Supervisors.

After the public comments, Grennell requested a motion to approve the budget. Before the vote, Grennell asked Deputy Clerk Pam Patterson to read a letter from Ward 3 Alderwoman Sarah Smith, who was out of town. Ward 1 Alderwoman Joyce Arceneaux-Mathis then asked city attorney Bob Latham about the legality of reading the letter since Smith was not present either in person or via telephone.

Latham said he had not really considered the issue because he was unaware it was going to occur, but Latham did not think reading the letter would present a legal concern.

Grennell asked the board for its preference, and Ward 5 Alderman Benjamin Davis proposed letting Smith read her own statement at Tuesday’s regularly scheduled meeting. Arceneaux-Mathis agreed.

After thinking for a moment and consulting briefly with Latham, Grennell said the statement would wait until Tuesday.

In Smith’s statement, which the Ward 3 alderwoman released to The Natchez Democrat, she said she would have voted “no” on the 4-mill increase and budget adoption, citing concerns for how the tax hike would affect residents.

“There is already a larger tax burden with the increased appraised property values, although the city’s proportion is way low compared to that of the county,” Smith said. “Higher taxes actually hit the poorest in our community the hardest because they have less disposable income. Businesses are also affected negatively, which can hinder local growth.”

Smith said the city has “major financial issues,” noting the funds being added to next year’s budget: $159,000 of additional revenue from reappraisal, $900,000 from the casino lease fund added to the general fund, approximately $436,000 of retired debt from two bonds that will be added to the general fund, and approximately $472,000 from the millage raise.

“That totals close to $2 million,” Smith continued. “When we require that much money to cover the budget increase and the deficit with which we are headed into this fiscal year, (I) believe it is my fiduciary responsibility to act with caution.”

Smith said she wanted to be cautious and approve a 5-percent raise for police and fire immediately, wanting to add another 5-percent raise at a time when the raises can be afforded. She also said the city must be willing to sacrifice more if they are going to ask taxpayers to do the same.

Smith said she is willing to take a 10-percent salary cut as she did her first three years in office.

“As a matter of principle, I believe it takes sacrifice on all our parts when you have a city that has shrunk in population, making our revenue streams lower. It should not fall strictly on the burden of the taxpayers.”