Jackson City officials outline plan to close $23 million general‑fund shortfall

Jackson City leaders laid out a multi‑stage plan to close a roughly $23 million shortfall in the general fund and promised detailed line‑by‑line numbers to the council.

At a finance committee meeting, CAO Peter Tawelson warned the shortfall — combined with about $7 million in disputed water bills — amounts to a broader fiscal challenge approaching $30 million. CFO Jillian Caldwell said the budget the council adopted for FY26 totaled $135 million, while verifiable revenues are about $112 million, producing a gap of roughly $23 million.

The administration proposed a two‑step start: first, return department budgets to FY25 actual spending (which staff say yields about $10.7 million in immediate reductions); second, pursue additional “modules” of potential savings and revenue options to identify the remaining roughly $13 million. Caldwell described a three‑phase modernization plan she estimated would take 12–18 months to realize: triage and audits, restructuring and efficiencies, and longer‑term asset management and market‑aligned capital planning.

Council members repeatedly pressed staff for clearer documentation. The council chair and other members said they had requested running balances and actuals multiple times and received materials that did not align; they asked for a prioritized list showing where each dollar of the $10.7 million comes from and the specific programmatic impacts. “We want to sit down and look at numbers ourselves and see what you really present us,” the chair said, urging staff to provide the needed detail before any formal amendment.

Caldwell and Tawelson described the $10.7 million as reductions achieved by reverting departmental line items to FY25 actual spending and by identifying vacancies and redundant positions; they said the list includes a mix of salaries, supplies, professional services and capital outlays. Staff emphasized that the reductions identified so far "did not require any layoffs" but are focused on vacancies and unused line items.

The administration also described revenue‑growth tactics and one‑time collection efforts, including a proposed twice‑annual “amnesty week” to encourage payment of municipal fines and to quash certain contempt warrants. Tawelson noted that internet sales tax collections — limited by statute in their uses — have provided flexibility in recent years and that property tax timing and other non‑sales revenue sources will be part of the council’s revenue review.

Council members raised concerns about property held by the Jackson Redevelopment Authority (JRA), arguing the authority holds downtown properties that could be returned to the development cycle and generate tax revenue; Tawelson said he has requested JRA appear at upcoming April meetings to answer those concerns. The administration said it will also supply a breakdown of the general fund revenue composition that produces the $112 million verifiable figure.

On a related matter, the CAO separated the city’s general‑fund shortfall from disputed bills with Jackson Water, saying staff expect the $7 million water‑billing issue may lead to litigation and should be handled apart from the general‑fund balancing work.

Next steps: staff promised to provide the council with the FY25 actuals breakdown that creates the $10.7 million figure, a prioritized set of proposals to reach the remaining $13 million, and a full listing of revenue sources that comprise the $112 million. No formal votes or budget amendments occurred at the meeting; members agreed to continue the deliberations at follow‑up sessions.