The Finance Department oversees the security and management of the City’s financial and property interests and the collection of most revenues, including property and business taxes. The Department helps the Mayor to prepare, implement and monitor the City’s annual capital and operating budgets. The department also plans and executes the issuance of bonds and other financing mechanisms available to municipalities.
In addition to supervising the collection of taxes and other revenue, the Finance Department handles the treasury functions of the City. This includes investment of idle funds that the City may have and payment of all debt service.
Periodically, the City issues bonds and/or loans, both fixed rates and variable rates to fund long-term capital projects. Recent bond issues have funded major projects such as Police and Fire Vehicle Replacements, tennis and soccer facilities upgrades and Street Paving Funds for the next two fiscal years.
As of June 2016, the general obligation debt of the City was $84.1 million, excluding Sportsplex Capital Outlay Notes, CRA (Community Redevelopment Agency) Note Payables and a HL/D Section #108 Loan Guarantee. Current debt levels, on a per capita basis, are about average for Tennessee cities with a population ranging from 25,000 to 75,000. The City’s annual debt service is approximately $8.3 million and is paid by a combination of property tax, tax equivalents and PILOTS.
The City of Jackson has an investment-grade bond rating of AA from Standard & Poors. This is an improvement from our previous AA-.
The City has an investment policy that is patterned after the Government Finance Officers Association model policy. An investment committee oversees the policy.
Most investments are extremely short-term due to the tax collection cycle. Short-term investments are normally kept in the Tennessee Local Government Investment Pool, which pays relatively low rates but provides for overnight availability.
Approximately $6.5 million is invested in 3 year CD’s and/or U.S. Government investments with an average return of 1.7%.
101 East Main Street
Jackson, TN 38301