NATCHEZ — After grappling with increased health insurance costs and facing a financial deficit, the city has apparently managed to dig up nearly $700,000 it did not have 10 days ago to move the 2015-2016 budget into the black.

“I want you to have a budget that you can adopt,” Brown said to the board of aldermen Tuesday during the city’s third budget work session. “We are doing everything that everyone of you that has requested — find the money, fix the problem and cut the budget.”

In order to get a balanced budget for the next fiscal year, the board decided to cut each department’s total budget by 5 percent — resulting in an approximate $678,500 gain to the city’s general fund.

“I’ve talked to all but one or two departments about those cuts,” Brown said.

Ward 6 Alderman Dan Dillard questioned whether the cuts would make an impact on the general fund.

“The traffic department, they proposed to increase their budget by 13 percent,” Dillard said. “Meaning they would still have an increase after the 5 percent cut.”

Brown said the traffic department budget has a $40,000 variable for an unfilled traffic director position.

Brown said Public Works Supervisor Justin Dollar allocated the potential salary in the budget in case the position was filled within the next year.

“They still have a vacancy in there,” Brown said.

Another large chunk of money for next year’s revenue comes from increased property value, Brown said.

“Property in Natchez has gone up $7,000 per mill,” Brown said. “That’s a big chunk of money.”

While searching for ways to increase the city’s projected revenue, Brown said the city consulted with the county tax assessor’s office to pinpoint the value of a mill for the city.

The value of a mill has been $113,000 since 2013, Brown said. Now that number is $120,000.

A mill is a unit governments use to determine the value of property tax. One mill is equal to one-tenth of a cent on every dollar of assessed property value.

“Those aren’t numbers we conjured up,” Brown said. “But property value, that’s something we should have known.”

With increased property value in the city, Brown said the board could expect approximately $300,000 more to be funneled into the general fund.

A factor that caused the city’s last-minute budget scramble was a miscalculation of projected health insurance expenses that resulted in the city falling below what the city should have been budgeting for employees’ health care this past year.

The city was budgeting $220 per month per employee for health care when it should have been budgeting $587.

With a rise in health care costs forecasted for the 2015-2016 year, the city is now projecting to budget approximately $600 per employee per month.

To make up for that unexpected cost, Brown said he looked for reimbursements from federally funded city departments such as the Natchez Transit System, which receives federal reimbursements for health insurance costs.

Using the correct $587 budget number, Brown said the Mississippi Department of Transportation — which funds the Natchez Transit System — agreed to provide a refund of approximately $200,000.

Because Natchez Transit submits its budget weeks before the city does, Brown said MDOT also allowed Natchez Transit to resubmit its budget using the adjusted number, which factors in the increased health care premium.

Other city entities funded from sources other than the city — such as Natchez Water Works, the Senior Citizens’ Multipurpose Center and the Convention Visitors Bureau — may also be able to get reimbursed, Brown said.

With reimbursements, higher property value and department budget cuts, Brown said the city is looking at approximately $700,000 in additional money it didn’t have 10 days ago.

Some aldermen expressed skepticism in Brown’s findings, and said they weren’t ready to say the city is in the clear financially.

“We’ve been trying to figure this out, and we’ve been working hard,” Ward 3 Alderwoman Sarah Carter Smith said. “We need to make sure we understand every item, though.”

Ward 5 Alderman Mark Fortenbery said some department budgets increased during the 2014-2015 fiscal year, so a 5 percent cut might not be enough.

“The 5 percent, in my mind, shouldn’t come after an increase,” he said.

Because state law requires the city to prepare a budget by Sept. 15 for public review and adopt once by Oct. 1 — a deadline that is quickly approaching — Ward 1 Alderwoman Joyce Arceneaux-Mathis said she would like for the board to approve a budget as soon as possible.

“I think we should get the budget adopted before Oct. 1,” Arceneaux-Mathis said. “I think it would look better, it would feel better and it would smell better.”

A public hearing for the 2015-2016 budget will be at 5:01 p.m., on Sept. 22, followed by the board of aldermen’s regular meeting at 6 p.m.

Both the hearing and the meeting will be at the city council chambers, 124 S. Pearl St.State law requires that the public meeting take place after 5 p.m. to accommodate residents who work a regular 9 a.m. to 5 p.m. schedule.