FY2020

Comprehensive
Annual
Financial Report
For the year ended September 30, 2020
Department of Administration
Finance Division

Mayor Chokwe A. Lumumba

 CITY OF JACKSON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2020

TABLE OF CONTENTS

PAGE
INTRODUCTION SECTION i
Letter of Transmittal ii
GFOA Certificate of Achievement xiv
Organizational Chart xv
List of Elected and Appointed Officials xvi

FINANCIAL SECTION 1
Independent Auditor's Report on Financial Statements and Supplementary Information 2
Required Supplementary Information:
Management's Discussion and Analysis 5

Basic Financial Statements: 14

Government-wide Financial Statements
Statement of Net Position 15
Statement of Activities 16

Fund Financial Statements

Balance Sheet-Governmental Funds 18
Reconciliation of Balance Sheet - Governmental Funds to the Statement of Net Position 19
Statement of Revenues, Expenditures, and Changes in Fund Balances 20
Reconciliation of the Statement Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 21
Proprietary Funds:
Statement of Net Position 22
Statement of Revenues, Expenses, and Changes in Fund Net Position 24
Statement of Cash Flows 25
Fiduciary Funds:
Statement of Net Position 27
Statement of Changes in Net Position 28

Notes to the Financial Statements 29

Note 1- Summary of Significant Accounting Policies 30
Note 2- Reconciliation of Government-Wide and Fund Financial Statements 41
Note 3- Stewardship, Compliance and Accountability 43
Note 4- Detailed Notes on all Funds 45
Note 5- GASB 54 Fund Balance Presentation - Classification Total 66
Note 6- Other Information 67

Required Supplementary Information:

Schedule of Employer OPEB Liability - Other Post Employment Benefits (OPEB) Plan 86
Schedule of City's Proportionate Share of the Net Pension Liability and City's Contributions-PERS 88
Schedule of Employer Net Pension Liability and City's Contributions-MRS 91
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual-General Fund 94
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Federal Grants Special Revenue Fund 103
 CITY OF JACKSON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2020

TABLE OF CONTENTS

PAGE
Other Supplementary Information:
Major Governmental Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - 1% Infrastructure Tax Capital Project Fund 114
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Infrastructure Bond 2020 Capital Project Fund 115

Combining and Individual Fund Statements and Schedules:

Nonmajor Governmental Funds:
Combining Balance Sheet- Nonmajor Governmental Funds 119
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance-
Nonmajor Governmental Funds 121
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Parks and Recreation Special Revenue Fund 123
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Disability and Relief Special Revenue Fund 124
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - State Grants Special Revenue Fund 125
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Improvement Special Revenue Fund 126
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Library Special Revenue Fund 128
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Debt Service Fund 129
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - 1998 General Obligation Bond Capital Project Fund 130
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - 2003 General Obligation Bond Capital Project Fund 131
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - 2009 General Obligation Bond Capital Project Fund 132
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Capitol Street 2-Way Capital Project Fund 133
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - 2012 General Obligation Note Capital Project Fund 134
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Thalia Mara Hall Renovation Capital Project Fund 135
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Modernization Tax Fund 136
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - Museum To Market Capital Project Fund 137

Nonmajor Proprietary Funds: 138

Combining Statement of Net Position 140
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 142
Combining Statement of Cash Flows 143
 CITY OF JACKSON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2020

TABLE OF CONTENTS

PAGE
Fiduciary Funds: 144
Combining Statement of Changes in Assets and Liabilities - Trust Funds 146
Combining Statement of Changes in Net Position - Trust Funds 147
Combining Statement of Changes in Assets and Liabilities - Agency Funds 148

Capital Assets Used in the Operation of Governmental Funds: 149

Comparative Schedules by Source 150
Schedule by Function and Activity 151
Schedule of Changes by Function and Activity 152
Schedule of Bonds of City Officials 153

STATISTICAL SECTION (UNAUDITED) 155

Net Position by Component 157
Changes in Net Position 158
Governmental Activities Tax Revenues by Source 159
Fund Balances of Governmental Funds 160
Changes in Fund Balances of Governmental Funds 161
General Governmental Tax Revenues by Sources 162
Assessed Value and Estimated Actual Value of Taxable Property 163
Property Tax Rates - Direct and Overlapping Governments 164
Principal Property Taxpayers 165
Property Tax Levies and Collections 166
Ratios of Outstanding Debt by Type 167
Ratios of General Bonded Debt Outstanding 169
Direct and Overlapping Governmental Activities Debt 170
Legal Debt Margin Information 171
Pledged-Revenue Coverage 172
Demographic and Economic Statistics 173
Principal Employers 174
Full-time Equivalent City Government Employees by Function 175
Operating Indicators by Function 176
Capital Assets Statistics by Function 177

SINGLE AUDIT SECTION 178

Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance With
Government Auditing Standards 179
Independent Auditor's Report on Compliance for Each Major Program and on Internal Control
Over Compliance Required By the Uniform Guidance 181
Schedule of Expenditures of Federal Awards 184
Notes to the Schedule of Expenditures of Federal Awards 189
Schedule of Findings and Questioned Costs 190
Summary Schedule of Prior Audit Findings 204
Corrective Action Plan 209
Independent Auditor's Report on Compliance with State Laws and Regulations 217
INTRODUCTION SECTION

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February 14, 2022

To the Mayor, Members of the City Council, and

Citizens of the City of Jackson, Mississippi:

A requirement of Mississippi law is that local governments annually publish audited financial
statements. Accordingly, the Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended September 30, 2020 for the City of Jackson, MS is submitted herewith.

An unmodified opinion on the financial statements of the City of Jackson, MS has been issued
by Tann Brown and Russ for the year ended September 30, 2020. The Independent Auditor’s
Report is included in the front of the financial section of the CAFR. The City of Jackson is also
required to have an audit performed in compliance with the Single Audit Act of 1996 regarding
awards received from the federal government. The Single Audit report was issued by Tann,
Brown and Russ.

The dedicated and professional staff of the Finance Division, Department of Administration,
prepared this report in accordance with generally accepted accounting principles in the United
States of America (GAAP). We maintain that the data is accurate in all material aspects and is
presented in a manner designed to set forth fairly the financial activities of the various funds of
the local government. The responsibility for the accuracy of the data and the fairness and
completeness of the presentation, including any disclosures necessary to enable the reader to
gain an understanding of the fiscal affairs of the City, is entrusted to the administration of the
local government. We further assert that the internal controls implemented provide reasonable
assurance that the financial statements are free of any material misstatements.

All of the governmental activities and business-type activities of the City of Jackson, MS, as well
as the Jackson Redevelopment Authority (JRA) and the Capital City Convention Center
Commission (component units of the city) are included in the 2020 CAFR. JRA and the Capital
City Convention Center Commission are presented as discretely presented component units
within the CAFR because the City exercises significant oversight responsibility. The approval of
JRA’s administrative operating costs and appointments to its Board of Commissioners are
authorized by the City’s governing body. Additionally, JRA accounts for its separate funds and
maintains revenues sufficient to meet their operating costs, debt service and system
replacement and maintenance needs for their parking garages and other urban renewal

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projects. The Capital City Convention Center Commission is included as a component unit of
the City because of its fiscal dependency on the City of Jackson. Four Proprietary Funds, which
provide a variety of services on a fee-for-services basis, are among those funds whose financial
operations are included in the CAFR. These Proprietary Funds are the Water/Sewage Disposal
System, Madison Sewage Disposal System, Transportation, and Sanitation.

Organizationally, the 2020 CAFR provides information in three major sections: Introductory,
Financial, and Statistical. The Introductory Section encompasses the Letter of Transmittal, the
Organizational Chart of the Executive Branch of the City of Jackson, MS, and a list of principal
elected and appointed officials. The Financial Section consists of the Independent Accountants’
Report, the Basic Financial Statements, Notes to the Financial Statements and the various
individual fund and account group financial statements and schedules. The Statistical section
provides (unaudited) information on the City, various aspects of government, and the people
and businesses that reside therein. Additionally, a narrative introduction, overview, and analysis
are provided in the form of Management’s Discussion and Analysis (MD&A). We recommend
that the MD&A on pages 4-12 be carefully examined by the reader to provide a more concise
view of the financial position of the City.

CITY OF JACKSON PROFILE

The City of Jackson, MS was founded in 1821 at the site of a trading post that was situated on a
"high and handsome bluff" on the west bank of the Pearl River, which is located in the central
region of the state. It is said that the trading post was operated by a French-Canadian trader
named Louis LeFleur, who gave the town its original name of LeFleur's Bluff. The Mississippi
Legislature wanted the seat of government moved out of the Natchez area and into a more
central location. Thomas Hinds, James Patton and William Lattimore were then commissioned
to locate the ideal site for the state capital. Their report to the General Assembly was that
LeFleur's Bluff had "beautiful and healthful surroundings, good water, abundant timber,
navigable waters, and nearness to the Natchez trace." A legislative act dated November 28,
1821 authorized the location to be the permanent seat of government and that it would be
named Jackson in honor of Major General Andrew Jackson who later would become the
seventh president of the United States. A $3,500 contract was let to build Mississippi's first
capitol, a two-story brick structure 40 feet by 30 feet, where the opening session was held on
December 23, 1822. A second capitol building, popularly known as the "Old Capitol," was
completed in 1840 and remained in use until 1903. The building, restored in 1961, has become
Mississippi's Historical Museum. The New Capitol building, a magnificent structure patterned
after the National Capitol, was completed in 1903.

During the Civil War, the town was ravaged and burned three times by Union troops under the
command of General William Tecumseh Sherman. The destruction prompted the unwelcome
nickname of “Chimneyville.” Although less than 8,000 people lived in Jackson at the turn of the
century, its population began accelerating rapidly after 1900.

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JACKSON TODAY

According to the most recent Census Bureau estimates, Jackson has 153,701 residents within a
111 - square mile land area. Jackson is the center of a larger Jackson Metropolitan Statistical
Area of approximately 579,000 residents that encompasses five counties – Copiah, Hinds,
Madison, Rankin, and Simpson. Since 1985, the City of Jackson, MS operates under the
mayor-council form of government. Prior to 1985, the commission form of government, which
included a mayor and two commissioners elected at-large, was in place. Currently, the
municipal government is comprised of the mayor, who is elected at large, and seven council
members, who are elected by ward. The mayor and council members, who have policy-making
and legislative authority, serve four-year terms. The Mayor appoints, and the City Council
approves, the Chief Administrative Officer, City Attorney, and eight department heads. City
leaders are committed to ensuring that the municipality has a healthy financial outlook while
providing essential services.

A comprehensive range of municipal services including public safety, street maintenance, water,
sewer, and sanitation services, social programs, recreation activities, cultural events and
general administration are provided to Jackson’s citizens. These services are provided in the
context of the broad public policy initiatives as determined by the elected officials of Jackson,
Mississippi. A New Mayor, Chokwe Antar Lumumba, whose campaign slogan was “When I’m
Mayor, You’re Mayor ” was elected in 2017. Consequently, Mayor Lumumba’s primary initiative
was to improve processes that would lead to a more efficient and effective city government.

LOCAL ECONOMY

The City is the seat of government for the State of Mississippi and home to a diverse economy.
In addition to governmental services, major industries located within the city limits or in close
proximity include the Nissan auto plant and manufacturers of power, metal fabrication, airplane
parts, and machine parts and engines. Jackson continues to be the site of the largest financial
institutions in the state. The two largest industries in the city are Health Care (with two major
medical centers, including the only medical school in the state) and higher education (with
seven institutions, enrolling more than 40,000 students within the metropolitan area).

Jackson is the educational, cultural, medical, and governmental center of the state. Serving as
the largest municipality and the state capital, the COVID-19 pandemic has greatly affected the
economy and labor force. From March to April 2020 (the most recent numbers available from
the Bureau of Labor Statistics at the time of this printing), the Jackson metropolitan surrounding
area had an unemployment rate that jumped from 4.3 percent to 13.8 percent, creating a 10-
year high that surpassed the historic high of 9.8 percent in January of 2010. COVID-19 has
shown a bright spotlight, which has emphasized the inequalities of systemic racism. The City of
Jackson has built a strategic plan focused on decreasing inequality, and the economic effects of
the pandemic have demonstrated the wisdom of the focus.

The City is also facing major infrastructure problems, between $1.5 and $2 billion by some

iv
estimates, and including a 2013 consent decree order by the US Environmental Protection
Agency to make approximately $600 million of improvements to address sanitary sewer
overflows. In 2014 the city passed legislation levying a 1% sales tax to address the
infrastructure needs of the city. Those funds are set aside in a separate capital project fund,
and disbursement is guided by an independent commission. Perhaps the biggest decision
before city leaders is to determine how to finance these improvements which are necessary to a
thriving city.

MAJOR INITIATIVES

There are many projects currently underway to make Jackson a safer and more livable city,
infrastructure challenges notwithstanding:

Enterprise Resources Planning (ERP) System Launch. The City of Jackson implemented
the first phase of MUNIS, the ERP system, which represents the execution of a major
operational efficiency initiative. Phase one of the project implemented the financial module,
resulting in new capacities, efficiencies, and accountability. The City will move to implement
phases two and three over the next two years, which will encompass the entirety of City
departments.

Strategic Plan. Under the leadership of Mayor Chokwe Antar Lumumba, the City of Jackson
has undergone a thorough strategic planning process centered around the notion of a “dignity
economy”, aiming to increase the city’s growth through inclusive policies, programs and
investments. After assuming the office in July of 2017, Mayor Lumumba’s administration has
focused on five areas of growth for its residents: healthy citizens, affordable homes in safe
neighborhoods, a thriving educational system, occupational opportunities in a growing tax base
and a city that is open and welcoming to visitors. It is through this lens that the city has explored
what assets are available in the community, inclusive of non-profit partnerships, funding
opportunities and resident potential as well as undertaking bold initiatives to “invest in the
inherent dignity of every citizen in Jackson.”

Infrastructure Projects

Tiger Grant. Transportation Investment Generating Economic Recovery (TIGER) is a

supplementary discretionary grant program included in the American Recovery and
Reinvestment Act of 2009. The U.S. Department of Transportation allocated $500 million
towards infrastructure improvement projects across the United States. The City of Jackson
submitted an application for the reconstruction of two streets. The City of Jackson has been
awarded $19,500,000 for the construction and engineering design for the two roadway projects
which includes the reconstruction of State Street from Hartfield Street to Sheppard Road and
the West County Line Road Interchange at US Highway 51. The projects include an investment
from the city of approximately $15,000,000.

Capital Improvement Plan. Jackson’s Department of Public Works is currently developing a

revised Capital Improvement Plan (CIP) for the city’s roads and bridges, water, sewer, and

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storm water drainage systems. The plan will prioritize on a risk-based criterion, and it will be
integrated, in so far as the priority of each project within its respective system will be evaluated
relative to adjacent projects in other systems. This plan will improve the quality of services that
citizens and visitors will receive, but will also provide economic stimulus in the form of
construction and design jobs (in the short run) and a stock of public capital more suitable for
commercial activity (in the long run). Further, the CIP will emphasize complete streets ensuring
safe, ADA compliant throughways that offer a variety of modes of transportation including public
transportation, pedestrian and bike routes.

The CIP will come in two stages. The first stage is a two-year plan which will prioritize projects
based on the current liquidity condition of the water-sewer enterprise (i.e. it will be “pay-as-you-
go”). The second stage will be a ten-year plan that will be accompanied with a plan of finance.
The plan of finance will not necessarily be pay-as-you-go: Potentially, revenue streams such as
the 1% sales tax could be leveraged by pledging those future revenue streams for a more
current amount, depending upon the willingness of the City to debt-fund projects, and investor
demand for such revenue streams.

Sustainable Jobs. One of the challenges that Jackson and many other mid-sized, majority-
minority cities face is that low-wage and low-skilled service jobs constitute most occupational
opportunities for underinvested and historically marginalized communities. These positions
provide little opportunity for economic mobility and often calcify communities into
intergenerational cycles of poverty. The City has developed Pathways to Human Dignity, a
program that seeks to coalesce workforce and economic growth to create an environment of
future-proof jobs. These future-proof jobs are not threatened by automation and new
technologies, but rather, are sustainable, 21st century jobs that build a pathway of economic
mobility. The Pathways to Human Dignity Initiative brings focus to three areas: Building and
Investment-Ready Environment, Building a Work-Ready Population, and Building an Innovation-
Ready Culture.

Building an Investment-Ready Environment

This theme coalesces employers, industry, capital and various partnerships to incentivize
investment. Toward that end Pathways has engaged the following partners and initiatives:

Milken Institute. Cities across the south are investing in municipal broadband networks. Most
recently, the cities of Jackson, MS; Chattanooga, TN; and Huntsville, AL have invested in robust
municipal broadband networks. These networks can be leveraged to build rural broadband
rings, which extend municipal broadband resources into rural communities that are devoid of
broadband resources. In these situations, municipal broadband networks could best be
leveraged to provide critical communications resources for resilient infrastructure with the
additional benefit of building infrastructure for rural economic development. The City of Jackson,
MS proposes to leverage its 100G municipal broadband loop to connect surrounding rural
municipalities, creating a Central Mississippi Rural Broadband Network (CMRBN). The CMRBN
would be owned through an enterprise of the City of Jackson. This enterprise would consist of a
public private partnership (PPP) and profit-sharing agreement with communications venture

vi
capital (VC) groups and franchise agreements (similar to current telecommunications franchise
agreements) with surrounding municipalities. The City of Jackson would serve as the public
sector and project sponsor. As the project sponsor, the City would build PPP relationships and
partnerships (franchise agreements) with rural, ring-city municipalities. Engaged in
predevelopment, approvals that could affect the project timeline are Right of Way (ROW)
access, permitting requirements for all build outs, and pole attachment agreements. The City of
Jackson has retained the services of Baller, Stokes & Lide, a law firm with expertise in
communications issues, for the verification of home rule ability to enter broadband provisions as
a city and contract development for franchise agreements. The City of Jackson has constructed
the fundamental broadband backbone infrastructure through the installation of a 100G point-of-
presence (POP) and broadband ring. This infrastructure has been constructed through
partnerships with Cogent Communications and LiteCloud Transport Services.

Mosaic Genius. Tech Tools for Sustainability is a focused approach to helping 15-25 Jackson-
based entrepreneurs integrate technological (tech) tools into their existing business with the
hope that these tools will result in greater success for the entrepreneur. Small businesses and
businesses in underserved communities often lack tech tools that enable them to sustain and
scale business operations. COVID-19 shined a light on this reality and the need to be a tech-
enabled business. Tech-enabled businesses are no longer a luxury but a necessity for a stable
marketplace and economy. There are specific areas of tech every small business needs to
scale. The first is artificial intelligence. Data supports the fact that advancements in artificial
intelligence will boost the economy by up to 14% by 2030. While this is good news for some
companies, smaller companies are not equipped to make this transition. Significant focus will be
spent on this very important area. The next area of focus is digital marketing and
communications. Storytelling is at the core of communications for social entrepreneurs. The
utilization of digital forms of communication increase the number of people to be reached and
ultimately, the impact of the entrepreneur. The final area is security. While tech is a great tool, it
does not come without issues and challenges. It is important for entrepreneurs engaging in
increased tech capabilities to make certain that security is a top priority for their stakeholders,
clients, and benefactors.

Upon successful completion of Phase I, qualifying businesses will have the opportunity to
participate in a business accelerator. This unique opportunity will help prepare entrepreneurs for
investment including introductions to venture philanthropy and venture capital, to support the
continued growth of their company.

Small and Disadvantaged Business Program with Sheltered Market. Cognizant of the
economic merits of a thriving small business community and the historical challenges of
disadvantaged groups to complete in biased and discriminatory markets, the City of Jackson is
developing a Small Business Program with an imbedded disadvantaged business program.
The SBP will feature a sheltered market and a scalable capacity building structure for growth
and capacity building for small businesses in the City of Jackson.

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Imbedded into the Small and Disadvantaged Business Program are resources for management
and technical assistance. The focus on capacity building led the City to embed resources for
legal operations, accounting and technical assistance. Further, the City has partnered with
HOPE Credit Union and JP Morgan Chase to build a technical assistance program. This
program will build capital to compete and establish lines of credit, and the City will implement a
timely payment system to avoid periods of stretched capitol for the small business.

Kauffman Foundation. The City of Jackson has partnered with the Kauffman Foundation,
through the National League of Cities - City Innovation Ecosystems to create the right policies,
programs, and practices to ensure our community can thrive in the global, innovation-driven
economy. This funding allows Jackson to partner with national experts, and receive technical
assistance, seed funding, and peer learning. The first year of the partnership will focus on the
following topics:

1. Using data and evidence to adjust legacy procurement processes to be more inclusive of
young businesses, especially those owned by women and people of color.

2. Rethinking how your city solicits technology solutions for civic problems to be more attractive
to potential partnerships with startups and technology-based entrepreneurs.

3. Diversifying the leadership of your entrepreneurial ecosystem and economic development

organizations to include more woman entrepreneurs.

Historically, the City of Jackson has maintained an Equal Business Opportunity (EBO) program.
While these programs have increased the amount of minority business participation, the City’s
program has done little to build capacities in minority businesses. Many minority businesses in
Jackson serve as pass-through entities, in which a majority firm includes a minority firm in the
bidding process, however, rather than partnering with the minority firm, the majority firm inflates
the City’s project cost in order to give a fee to the minority firm that never actually participates in
the project. This situation does not build capacity in minority businesses and does not build
wealth in the community.

Jackson Major Corporations Action Table. The City of Jackson has brought together
CEOs of major corporations to create a forward-thinking business climate. The group seeks to
create action towards the growth of businesses in the Jackson region through design,
refinement and execution of growth strategies. Members are invited bring both a critical and
enthusiastic lens to the administration’s work as we co-create a more business friendly
environment in Jackson.



Building a Work-Ready Population

Aspen Institute. To create a network of workforce development partners, the City was
referred to the Aspen Institute, Economic Opportunity program. The Aspen Institute is

viii
partnering with the City to present the Workforce Leadership Academy, an eight- to ten-month
academy designed to develop a network of workforce development leaders who are not only
able to lead their own programs or organizations, but who can also work collaboratively to build
effective workforce systems.

The Workforce Leadership Academy creates and supports a peer-learning community of

workforce leaders from nonprofit organizations, business associations, community colleges and
universities, union-based training efforts, and public agencies. Participants in the Academy work
with leading practitioners from around the country, learn about practical planning tools, and have
the rare opportunity to reflect on and develop effective workforce strategies to strengthen their
local workforce system. Participants also engage in leadership development activities, including
a 360-degree leadership assessment. Fellows are selected in a competitive application process
and are typically senior-level managers with authority to implement program changes. The
cohort of leaders represents the following organizations and companies: Woodward Hines
Foundation, University of Mississippi Medical Center, Jackson Medical Mall Foundation,
Mississippi Department of Rehabilitation, Springboard to Opportunities, Mississippi Institutions
of Higher Learning, Building Healthy Military Families, Hinds Community College, Mississippi
Early Learning Alliance, Mississippi Economic Council, Refill Café, LLC, The Skills Foundation,
United Way of the Capital Area, Dependable Source Corps Center for Community and
Workforce Development, Jackson State University and Tougaloo College.

Social Progress Imperative. The W.K. Kellogg Foundation funding allowed the City to partner
with the Social Progress Imperative (SPI). SPI partnered with the City to build an idea of social
progress in Jackson (see below). The SPI index measures data in three categories: basic
human needs, foundations of wellbeing, and opportunity. This provides a means to measure
quality of life in real-time and allows the City to model interventions and measure their impacts.
For example, opportunity can be determined across the City through measures of personal
rights, personal freedom and choice, inclusiveness, and access to education. These measures
are mapped, and areas of high and low social progress can be measured through the lens of
opportunity.

The specific data under each subcategory can be used to measure the impact of interventions.
For example, personal freedom and choice can be measured by childcare deserts, walkability
index, disconnected youth and alternative transportation usage. Interventions such as permits
for new childcare facilities, building sidewalks, creating youth centers, and/or changing or
adding public transportation routes can be measured to observe their direct impact on social
progress. The interventions can be measured by zip code and community progress can be
measured and observed. The overall impact of the index can be viewed by census tract
(groups of 2,000 residents), which create scorecards by neighborhood.

Green Jobs and Climate Change. Climate change is the existential threat of the 21st century.
The City of Jackson has set a goal of climate neutrality and seeks to reach this goal through
climate mitigation and adaptation strategies. The climate mitigation efforts focus on the

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reduction of greenhouse gasses, while the climate adaptation strategies are based on reducing
vulnerability to the effects of climate change. Economic Pathways to Human Dignity uses both
mitigation and adaptation strategies to increase workforce and economic development to create
resiliencies to the effects of climate change.

The workforce and economic development ecosystem needed for climate mitigation and
adaptation strategies produces “green jobs,” which provide an excellent platform for a future-
proof workforce. Renewable energy, retrofitting for energy efficiency, and renovations for
energy efficiency are growing markets in need of a trained and skilled workforce. The City of
Jackson has aligned a set of partners to build a future-proof workforce through strategies of
climate mitigation and adaptation.

The National League of Cities brought resources for Jackson to build a heat preparedness plan
through the Cities Taking Action to Address Health, Equity & Climate Change Program. In
developing the heat preparedness plan, the City partnered with Mississippi 2C to focus on
addressing local vulnerabilities to build community resilience in Jackson. The strategy seeks to
properly identify and map vulnerable populations by collecting place specific information. To
address this need, the project will conduct a survey measuring: perceptions of heat-related
threats and vulnerability; availability of social support (family and friends); and knowledge of
effective cooling behaviors (proper use of fans and AC systems, as well as clothing, bathing and
hydrating).

The partnership with the NLC brought deeper engagement with heat preparedness through the
National Oceanographic and Atmospheric Administration’s (NOAA) 2020 Urban Heat Island
Mapping Support Project. Through this project, the City received funding support to perform a
community science urban heat island (UHI) mapping campaign in Jackson. The data from the
heat island effect mapping will be used to inform the heat preparedness plan and align needs-
based analysis of heat mitigation and adaptation strategies. The heat preparedness plan
presents an opportunity for measurable impact on social progress in the areas of greatest need
in Jackson. Further, the projects that result from the heat preparedness plan provide green
economy workforce and economic development opportunities for Jackson residents.

Another project-based approach to workforce and economic development was achieved through
a partnership with the New York based, BlocPower group. This project will create a four-
dimensional map of energy use in buildings throughout downtown Jackson. The energy
efficiency analysis will be used to create green economy workforce and economic development
opportunities for Jackson residents.

Makerspace. The City of Jackson has agreed to partner with The Bean Path and the
Mississippi Light Collaborative in creating a makerspace. The space will be filled with 3D
printers, shop/woodwork equipment, laser cutters, industrial sewing machines, t-shirt printing
presses, and circuit equipment for people to learn how to use and be able to make their own
products, furniture, clothing, etc. The idea is to help individuals of the community be self-

x
sustainable and provide a source of income for their businesses. This model is similar to the
Idea Shop in Starkville, MS, which is the first type of makerspace for the community (i.e. not
associated with a university or college). This involves field trips for K-12 students locally and
across the state to visit (for minimal cost) and charging memberships for others (individuals and
small businesses).

In addition, the makerspace will have collaborative Science, Technology, Engineering, Art and
Mathematics (S.T.E.A.M.) programming. S.T.E.A.M. activities include an intergenerational
learning and skills hub and the Creative S.T.E.A.M. Lab run by young people for young people
30 years and under. S.T.E.A.M. achieves equity by focusing identifying, supporting and
connecting talent from the local communities. Both Bean Path and the Mississippi Light
Collaborative will promote design thinking in the maker/S.T.E.A.M. space.

Building an Innovation-Ready Culture

TECH JXN - Technology, Education, Creativity and Healthcare in Jackson. TECH JXN
is a three-day conference and explosion of Jackson’s assets to promote a culture of innovation
and economic development.

Sesame Street in Communities (SSIC) will launch a series of strategic initiatives at TECH
JXN, beginning with an interactive day filled with the famous Sesame Street characters. SSIC
has three goals: 1) Brand: Raise public awareness of the most challenging issues impacting
families and children; 2) Content: Encouraging nurturing connections with key adults in
children’s lives to foster hope, resilience, and readiness for school; and, 3) Capacity Building:
Empower community influencers to form a circle of care to support child and family well-being.
SSIC will engage communities around childhood and family trauma, early literacy and other
areas through high impact events, professional learning, a web-based hub and coalition building
in a three-phase process of onboarding, implementation and sustainability.

The Fertile Ground Project uses public art as a medium to inspire dialogue about food access
in Jackson, Mississippi. The project is made up of physical installations deployed within food
insecure areas across the city, a documentary about food access, community engagement
sessions, a podcast series, performance art, a food policy roadmap, and a project Expo. The
project brings together an interdisciplinary network of people such as artists, designers,
architects, farmers, chefs, nutritionists, policymakers, and community members to discuss the
complexities of the city’s food system. TECH JXN attendees will be able to see images and clips
from the Fertile Ground Expo as well as learn more about the planning process that went into
the city-wide exhibition. This presentation will showcase the various installations and discuss
how public art can impact community and catalyze change.

FINANCIAL POLICIES AND PRACTICES

The City of Jackson is required to submit its municipal budget on an annual basis to the City

xi
Council for adoption on or before the fifteenth day of the last month in the fiscal year. A budget
process, linking policy initiatives, services, and available resources, is utilized to develop the
budget. As the primary financial planning and control document, the budget provides the
foundation for City operations.

The budget is crafted to include expenditures by Fund, Department and Category:

Fund Types: General, Special Revenue, Debt Service, Proprietary, Trust, and Capital Project

Departments: Administration, Human & Cultural Services, Fire, Police, Public Works, General
Government, Municipal Clerk, Planning and Development, Personnel and Parks and
Recreation.

Categories: Personal Services, Supplies and Material, Other Services and Charges, Capital
Outlay, Debt Service, Grants and Contributions and Contingencies and Transfers.

Taxes; Licenses and Permits; Fines and Forfeitures; Intergovernmental; Admissions, Fees, and
Rentals; Interest; Miscellaneous Revenues; and Operating Transfers are the categories that
comprise the revenue budget.

During the fiscal year, department heads may transfer resources within a department by
following established guidelines. These transfers, along with other budget adjustments, are
incorporated into Budget Revisions that must be approved by the City Council. The Executive
Branch is afforded the opportunity to submit a maximum of three Budget Revisions to the City
Council for approval within the fiscal year.

ACKNOWLEDGMENTS

I would like to express my heartfelt appreciation to the staff of the Department of Administration,
and specifically, the Finance Division for their diligence and dedication in the preparation of this
report.

The Finance Division would also like to acknowledge and extend our appreciation to other
departments and divisions across the city who have contributed, whether directly or indirectly, to
the preparation of this report.

I acknowledge with appreciation the thorough, professional manner in which our independent
auditors, Tann, Brown and Russ, conducted the audit.

The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Jackson for its comprehensive annual financial report for the fiscal year ended September 30,
2019. In order to be awarded a Certificate of Achievement, a government must publish an

xii
xiii
Government Finance Officers Association

Certificate of
Achievement
for Excellence
in Financial
Reporting

Presented to

City of Jackson
Mississippi

For its Comprehensive Annual

Financial Report
For the Fiscal Year Ended

September 30, 2019

Executive Director/CEO

xiv
 CITY OF JACKSON ORGANIZATIONAL CHART

Authorities, Boards & Commissions

CITY COUNCIL CITIZENS Airport Authority
Jackson Convention & Visitors Bureau
-Clerk of Council JRA- Jackson Redevelopment
Authority
Jackson Separate School District
Civil Service Commission
Jackson Housing Authority
Planning Board

MAYOR
EXECUTIVE OFFICE

-P.E.G- Public Education & Government

CITY ATTORNEY -Action Line
-Brownfields Initiative
-Public Information& Communications
-Risk Management -Policy & Intergovernmental Affairs
-Claims (Other than State Tort)
-Employee Benefits Chief Administrative Officer -Youth Initiative

-State Tort Fund

-Workers Compensation
-Internal Audit

MUNICIPAL CLERK

ADMINISTRATION FIRE HUMAN & CULTURAL SERVICES PARKS & RECREATION

-Finance -Administration & Finance -Administration -Parks & Grounds
-Information Systems -Fire Loss Management -Cultural -Maintenance
-Municipal Court -Arson/Internal Affairs -Art Center -Cemetery Division
-Purchasing -Community Relations & Fire Safety -Art Gallery -Downtown Landscaping
-Records Management Education Division -Auditorium -Right-of-Way Division
-Telecommunications -Training, Safety, R&D -Davis Planetarium -Recreation Services
-Publications -Emergency Services -Smith Robertson
-Operations & Resources -Human Services
-Office of the Fire Marshal -Early Childhood Program
-Family & Youth Services
-Senior Aids Programs
-Senior Citizens Services

PERSONNEL PUBLIC WORKS PLANNING & POLICE ADMINISTRATION

MANAGEMENT -Bridges and Drainage DEVELOPMENT -Office of the Chief -Assistant Chiefs -Administration
-Human -Engineering -Administration -Community Relations -Executive Support -Engineering
Resources -Facilities Management -City Planning -Internal Affairs -Crime Scene Unit -Facility Mgmt.
-Employee -Infrastructure -Land Development -Drug Enforcement -Special Investigations -Municipal Garage
Relations Management -Transit Services -Patrol Operations -Animal Control -Solid Waste
-Personnel -Maintenance Supply -Building Permit -Precincts -Special Operations -Infrastructure Mgmt.
Services -Municipal Garage -Housing & Community -Support Services -Evidence -Utility Management
-Administrative -Paved Streets Development -Standards & Training -Property -Water/Sewer Business
-Solid Waste -Signs & Licenses -Criminals Investigations Administration
-Traffic Maintenance -Equal Business -Administration Services
Operations Opportunity -Community Improvement
-Water/Sewer Utilities -Business Development -Investigative Operations
-Water/Sewer Business -Lab
Administration

xv
 CITY OF JACKSON
MAYOR, CITY COUNCIL AND CITY OFFICIALS
SEPTEMBER 30, 2020

EXECUTIVE

Chokwe Antar Lumumba

MAYOR

LEGISLATIVE
CITY COUNCIL

Ashby Foote Melvin Priester, Jr. Kenneth I. Stokes

Ward 1 Ward 2 Ward 3

De’Keither Stamps Charles Tillman Aaron Banks

Ward 4 Ward 5 Ward 6
Vice President of Council President of Council

Virgi Lindsay Shanekia Mosley

Ward 7 Clerk of Council
EXECUTIVE BRANCH

Dr. Robert Blaine Dr. Safiya Omari

Chief Administrative Officer Chief of Staff

Chief of Police James Davis

Fire Chief Willie Owens
Interim Director of Public Works Charles Williams
Director of Planning and Development Jordan Hillman
Director of Human and Cultural Services Adriane Dorsey-Kidd
Director of Parks and Recreation Ison Harris
Director of Personnel Management Wilma Scott
Director of Administration LaaWanda Horton
City Attorney Timothy Howard
Municipal Clerk Angela Harris

xvi
FINANCIAL SECTION

1
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
As financial management of the City of Jackson, we offer readers of the City of Jackson’s financial
statements this narrative overview and analysis of the financial activities of the City of Jackson for the
fiscal year ended September 30, 2020. We encourage readers to consider the information presented here
in conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages ii - xiii of this report.

Financial Highlights
• The assets and deferred outflows of resources of the City of Jackson exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $285 million (net position).
Of this amount, there is negative ($245) million in unrestricted net position, which may be used to
meet the government’s ongoing obligations to citizens and creditors.
• The government's total net position increased by $27.2 million.
• As of the close of the current fiscal year, the City of Jackson’s governmental funds reported combined
ending fund balances of $120.6 million, a increase of $40 million in comparison with the prior year.
Approximately 21% of this total amount is $25.5 million (unassigned) and is available for spending at
the government's discretion (unassigned fund balance).
• At the end of the current fiscal year unassigned fund balance for the general fund was $25.5 million,
or 24% of total general fund expenditures.
• The City of Jackson’s total long-term debt increased by $40 million (10 percent) during the current
fiscal year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City of Jackson’s basic
financial statements. The City of Jackson’s basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains supplementary information in addition to the basic financial
statements themselves.

Government-wide financial statements. The government-wide financial statements are designed to

provide readers with a broad overview of the City of Jackson’s finances, in a manner similar to a private-
sector business.

The statement of net position presents information on all of the City of Jackson’s assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference between these
reported as net position. Over time, increases or decreases in net position may serve as a useful indicator
of whether the financial position of the City of Jackson is improving or deteriorating.

The statement of activities presents information showing how the government's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Jackson that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of Jackson include general
government, public safety, public works, human & cultural services, and interest on long term debt. The
business-type activities of the City of Jackson include water/sewer, transportation and sanitation.

The government-wide financial statements include the City of Jackson itself (known as the primary
government), and a legally separate redevelopment authority and Capital City Convention Center
Commission for which the City of Jackson is financially accountable. Financial information for these
component units are reported separately from the financial information presented for the primary
government itself. Complete financial statements are also issued by and available from these component
units.

The government-wide financial statements can be found on pages 15-17 of this report.

5
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Jackson, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. All of the funds of the City of Jackson can be divided into two categories:
governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government's near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of Jackson maintains eighteen (18) individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General Fund, 1% Infrastructure Tax Capital Project
Fund, Federal Grants Special Revenue Fund, and Infrastructure Bond 2020 Capital Project Fund which
are considered to be major funds. Data from the other thirteen (14) governmental funds are combined into
a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of Jackson adopts an annual budget for all of its funds. Budgetary comparison statements have
been provided to demonstrate compliance with the budget for governmental funds.
The basic governmental fund financial statements can be found on pages 18-21 of this report.
Proprietary funds. The City of Jackson maintains two different types of proprietary funds. Enterprise
funds are used to report the same functions presented as business-type activities in the government-wide
financial statements. The City of Jackson uses enterprise funds to account for its Water/Sewage Disposal
System Fund, Madison-Ridgeland Sewage Disposal System Funds, Transportation Fund and Sanitation
Funds. Internal service funds are an accounting device used to accumulate and allocate costs internally
among the City of Jackson’s various functions. The City of Jackson uses an Internal Service Fund to
account for its Employee Group Health Benefit Fund. Because these services predominantly benefit
governmental rather than business-type functions, it has been included within the governmental activities
column in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the
Water/Sewage Disposal System Fund and Sanitation Fund, both of which are considered to be major
funds of the City of Jackson. Data from the other two (2) proprietary funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major proprietary funds is provided
in the form of combining statements elsewhere in this report. The Internal Service Fund is presented in
the Proprietary Fund financial statements as a separate column.
The basic proprietary fund financial statements can be found on pages 22-26 of this report.

Fiduciary funds. Fiduciary Funds are used to report assets held in a trustee or agency capacity for
others and therefore are not available to support City programs. The function of the City’s principal trust
fund is discussed in Note 6.A.2. The reporting focus is on net position and changes in net position and is
reported using accounting principles similar to proprietary funds. The purpose of the City’s Agency Funds
is to collect and remit to the related organizations the proceeds of a special sales tax received from the
State and school property tax collected by the county.

The basic fiduciary fund financial statements can be found on pages 27-28 of this report.

6
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.

The notes to the financial statements can be found on pages 30-84 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City of Jackson’s General Fund and
major special revenue fund budgets and progress in funding its obligation to provide pension and other
post-employment benefits to its employees. Required supplementary information can be found on page
86-111 of this report.

The combining statements referred to earlier in connection with non-major governmental funds and non-
major proprietary funds are presented immediately following the required supplementary information.
Combining and individual fund statements and schedules can be found on pages 119-137 of this report.

Government-wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City of Jackson, assets and deferred outflows of resources exceeded liabilities
and deferred inflows of resources by $285 million at the close of September 30, 2020.

By far the largest portion of the City of Jackson’s net position (159 percent) reflects its investment in
capital assets (e.g., land, buildings, infrastructure, machinery, and equipment) less any related debt used
to acquire those assets that is still outstanding. The City of Jackson uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City of
Jackson’s net investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.

City of Jackson's Net Position

(am ounts expressed in thousands)

Governm ental Business-type

Activities Activities Total
2020 2019 2020 2019 2020 2019
Current and other assets $ 223,170 $ 183,237 $ 112,172 $ 56,825 $ 335,342 $ 240,062
Capital assets 365,883 337,921 435,335 476,975 801,218 814,896
Total assets 589,053 521,158 547,507 533,800 1,136,560 1,054,958

Deferred Outflow s of Resources 21,271 5,780 2,938 1,279 24,209 7,059

Long-term liabilities outstanding 463,953 404,508 279,686 271,946 743,639 676,454

Other Liabilities 25,993 25,998 23,503 17,020 49,496 43,018
Total Liabilities 489,946 430,506 303,189 288,966 793,135 719,472

Deferred Inflow s of Resources 79,776 82,822 2,455 1,526 82,231 84,348

Net position:
Net investment in capital assets 256,952 259,506 197,266 235,404 454,218 494,910
Restricted 70,714 36,814 5,145 1,284 75,859 38,098
Unrestricted (287,064) (282,710) 42,390 7,899 (244,674) (274,811)
Total net position $ 40,602 $ 13,610 $ 244,801 $ 244,587 $ 285,403 $ 258,197

The City of Jackson’s total net position increased by $27.2 million during the current fiscal year primarily
as a result of capital grants received for infrastructure projects and contributed capital assets received by
the City when it took over the operations of the zoo.

7
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS

City of Jackson's Changes in Net Position

(amounts expressed in thousands)

Governmental Business-type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues
Charges for services $ 8,969 $ 9,429 $ 56,715 $ 58,750 $ 65,684 $ 68,179
Operating grants and
contributions 13,295 11,756 8,047 5,553 21,342 17,309
Capital grants and contributions 21,053 16,249 500 - 21,553 16,249
General revenues:
Property taxes 79,439 78,482 - - 79,439 78,482
Local sales taxes 14,515 14,548 - - 14,515 14,548
Franchise taxes 6,842 7,298 - - 6,842 7,298
Other 39,692 39,857 15,110 145 54,802 40,002
Total revenues 183,805 177,619 80,372 64,448 264,177 242,067

Expenses:
General government 37,769 38,798 - - 37,769 38,798
Public safety 65,372 62,601 - - 65,372 62,601
Public works 21,741 20,491 - - 21,741 20,491
Human and cultural services 16,884 16,710 - - 16,884 16,710
Interest on long-term debt 5,669 5,330 - - 5,669 5,330
Water/Sewer - - 68,277 77,587 68,277 77,587
Transportation - - 10,275 8,680 10,275 8,680
Madison-Ridgeland Sewage - - 223 113 223 113
Sanitation - - 10,761 11,084 10,761 11,084
Total expenses 147,435 143,930 89,536 97,464 236,971 241,394

Increase in net position before

transfers 36,370 33,689 (9,164) (33,016) 27,206 673
Transfers (9,378) (15,423) 9,378 15,423 - -
Increase in net position 26,992 18,266 214 (17,593) 27,206 673
Net position - October 1, 2018 13,610 (4,656) 244,587 262,180 258,197 257,524
Net position - September 30, 2019 $ 40,602 $ 13,610 $244,801 $244,587 $285,403 $258,197

Governmental activities. Governmental activities increased the City of Jackson’s net position by $27
million primarily as a result of capital grants received for infrastructure projects and contributed capital
assets received by the City when it took over the operations of the zoo.

In FY 2007, the City issued $65 million in General Obligation Bonds on behalf of the Capital City
Convention Center Commission to construct the Convention Center. A special sales tax levy was
established to pay the debt service for the bonds. The bonds couldn’t be issued as revenue bonds
because of the uncertainty of the sales tax collections; therefore, the bonds were issued as GO Bonds of
the City with full, faith and credit of the City. The asset (the Convention Center facility) is the property of
the Capital City Convention Center Commission and recorded on the books of the Commission, but the
liability (the bonds to construct the Convention Center) is on the books of the City.

Business-type activities. The increase in “other revenue” of the business-type activities results from a
$14.7 million litigation settlement gain related to the Water/Sewage Disposal System Fund’s water meters
and customer billing system.

8
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
Expenses and Program Revenues – Governmental Activities

Revenues by source – Governmental Activities

Financial Analysis of the Government's Funds

As noted earlier, the City of Jackson uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.

Governmental funds. The focus of the City of Jackson’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Jackson’s financing requirements. In particular, unassigned fund balance may serve
as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Business-type activities. Business-type activities increased the City of Jackson’s net position by $0.2
million. This increase is primarily in the Sanitation Fund and Transportation Fund and is the result of
transfers from other funds to subsidize operations.

9
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
Expenses and Program Revenues – Business-Type Activities
Millions

Revenues by Source – Business-Type Activities

10
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
As of the end of the current fiscal year, the City of Jackson’s governmental funds reported combined
ending fund balances of $120.6 million, and an increase of $40 million. 21% of this total fund balances
amount is $25.5 million which is available for spending at the government's discretion (unassigned). Of
the remaining fund balance, $877,163 is nonspendable and is not in spendable form, $82 million is
restricted and has limitations imposed on its use by external parties, $11 million is committed for specific
purposes imposed by the City Council, and $1.5 million is assigned for various purposes by the Director
of Administration. Additional information on governmental fund balance can be found in Note 5 of the
Notes to the Financial Statements including information on the specific purpose for amounts restricted,
committed, and assigned.

The general fund is the chief operating fund of the City of Jackson. At the end of the current fiscal year,
unassigned fund balance of the general fund was $26 million, while total fund balance reached $49
million. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund
balance and total fund balance to total fund expenditures.

During the current fiscal year, the fund balance of the City of Jackson’s general fund increased by $7.8
million; which is due primarily to cost savings measures implemented across city departments. The
Federal Grants Special Revenue Fund is a major governmental fund. Its fund balance decreased by $1.3
million; which is due primarily to an increase in COVID-19 related expenditures.

Proprietary funds. The City of Jackson’s proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail.

Unrestricted net position of the Water/Sewage Disposal System Fund at the end of the year amounted to
$38.5 million. The decrease in net position for the Water/Sewage Disposal System Fund was $6.7
million. The Water/Sewage Disposal System Fund had a $14.7 million gain on a litigation settlement
related to problems with water meters and the customer billing system, and $7.6 million of the settlement
proceeds was transferred to the Sanitation Fund to subsidize operations.

General Fund Budgetary Highlights

Differences between the original budget and the final amended budget expenditures were a $29 million
increase and can be briefly summarized as follows:

• $0.5 million decrease in personnel services

• $5.2 million increase in supplies and materials
• $13.3 million decrease in contract services and charges
• $3.2 million increase in capital outlay
• $3.4 million increase in debt service
• $14.8 million increase in grants and contributions
• $16.2 million increase in transfers to other funds

Significant budgetary expenditure variances between the final amended budget and actual results are as
follows:

• Actual personnel services for all city departments was $9.6 million less than the final budget.
• Actual supplies and materials for all city departments was $5 million less than the final
budget.
• Actual contractual services and charges throughout all city departments was $5.5 million less
than the final budget.
• Actual capital outlay for all city departments was $8.1 million less than the final budget.
• Actual debt service for all city departments was $807 thousand more than the final budget.
• Actual grants and contributions for all city departments was $11.2 million less than the final
budget.
• Actual transfers for all city departments was $4.1 million less than the final budget.

11
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
Capital Assets and Debt Administration

Capital assets. The City of Jackson’s capital assets for its governmental and business-type activities as
of September 30, 2020, amounts to $801 million (net of accumulated depreciation). These capital assets
include land, buildings, water/sewer systems, improvements, machinery and equipment, park facilities,
roads, and bridges. The total decrease in the City of Jackson’s capital assets for the current fiscal year
was 1.7% (an 8.3% increase for governmental activities and an 8.7% decrease in business-type
activities).

Major capital asset events during the current fiscal year included the following:
• The increase in capital assets of governmental activities was the result of continued
expenditures for expansion and replacement of infrastructure.
• The decrease in capital assets of business-type activities resulted from an impairment
reduction of water meters and the customer billing system related to the Water/Sewage
Disposal System Fund’s litigation settlement gain.

City of Jackson's Capital Assets

(net of depreciation)
(amounts expressed in thousands)

Governmental Business-type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Land $ 13,721 $ 13,721 $ 1,838 $ 1,838 $ 15,559 $ 15,559
Building & systems 68,849 69,832 10,014 10,302 78,863 80,134
Automotive and equipment 14,789 13,675 11,524 9,402 26,313 23,077
Infrastructure 232,315 208,249 392,539 453,325 624,854 661,574
Construction in progress 36,209 32,444 19,420 2,108 55,629 34,552

Total $ 365,883 $ 337,921 $ 435,335 $ 476,975 $ 801,218 $ 814,896

Additional information on the City of Jackson’s capital assets can be found in Note 4 on pages 49-51 of
this report.

Long-term debt. At the end of the current fiscal year, the City of Jackson had total bonded debt
outstanding of $306 million. Of this amount, $108 million comprises debt backed by the full faith and
credit of the City. The remainder of the City of Jackson’s bonded debt represents bonds secured solely
by specified revenue sources (i.e., revenue bonds and tax increment bonds).

City of Jackson's Outstanding Debt

General Obligation and Revenue Bonds and Other Long-Term Debt
(amounts expressed in thousands)

Governmental Business-type
Activities Activities Total
2020 2019 2020 2019 2020 2019

General obligation bonds $ 107,663 $ 116,621 $ - $ - $ 107,663 $ 116,621

Revenue bonds - - 189,480 198,185 189,480 198,185
Tax increment bonds 8,877 9,938 - - 8,877 9,938
Loans, notes and leases 58,604 21,480 51,735 35,658 110,339 57,138
Premium (discount) 11,666 5,474 10,798 11,527 22,464 17,001

Total $ 186,810 $ 153,513 $ 252,013 $ 245,370 $ 438,823 $ 398,883

The City of Jackson’s total debt increased by $39.9 million during the current fiscal year primarily as a
result of a Mississippi Development Bank note payable to be repaid from the 1% sales tax for
infrastructure improvements.

12
 CITY OF JACKSON, MISSISSIPPI
MANAGEMENT’S DISCUSSION AND ANALYSIS
The bond ratings services from Standard & Poor’s and Moody’s establish that bonds marketed by the City
have favorable investment qualities. Presently, the city has the following ratings:

Moody’s Standard & Poor’s

Revenue Ba2 BBB-
General Obligation Bonds Baa3 A+
Urban Renewal Revenue Bonds Ba1 A+

State statutes limit the amount of general obligation bond debt and total debt a governmental entity may
ssue to 15 percent and 20 percent, respectively, of its total assessed valuation. The current debt limitation
for the City of Jackson under the 15% rule is $78.9 million in excess of the City of Jackson’s outstanding
general obligation bond debt.

Additional information on the City of Jackson’s long-term debt can be found in Note 4 on pages 54-65 of
this report.

Economic Factors and Next Year's Budgets and Rates

• Major revenues sources are expected to remain basically at existing levels.

• Inflationary trends in the region compare favorably to national indices.

All of these factors were considered in preparing the City of Jackson’s budget for the 2021 fiscal year.

During the current fiscal year, unassigned fund balance in the general fund decreased $360 thousand.

Requests for Information

This financial report is designed to provide a general overview of the City of Jackson’s finances for all
those with an interest in the government's finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Department of
Administration, Office of the Director, P.O. Box 17, Jackson, MS, 39205-0017.

13
BASIC FINANCIAL
STATEMENTS

14
 City of Jackson
Statement of Net Position
As of September 30, 2020

Primary Government Component Units

Jackson Capital City
Governmental Business-Type Redevelopment Convention Center
Activities Activities Total Authority Commission
ASSETS
Cash and cash equivalent $ 110,355,445 $ 19,635,291 $ 129,990,736 $ 4,596,496 $ 314,551
Receivables 111,206,464 65,468,419 176,674,883 2,905,407 696,735
Inventories 877,163 1,646,955 2,524,118 - 16,882
Prepaid expenses 731,482 - 731,482 10,875 9,450
Restricted assets:
Cash and cash equivalents - 25,421,006 25,421,006 28,658 1,500,000
Capital assets:
Capital assets not being depreciated 49,929,432 21,258,107 71,187,539 11,267,388 5,828,280
Other capial assets, net of depreciation 315,953,458 414,076,722 730,030,180 20,334,161 56,618,356
Total assets 589,053,444 547,506,500 1,136,559,944 39,142,985 64,984,254
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pensions 13,480,269 1,804,784 15,285,053 - -
Deferred outflows - other post-employment benefits 7,790,524 1,132,928 8,923,452 - -
Total deferred outflows of resources 21,270,793 2,937,712 24,208,505 - -
LIABILITIES
Accounts payable 14,874,424 13,841,006 28,715,430 102,699 306,166
Accrued interest payable 1,373,289 2,319,783 3,693,072 108,377 -
Unearned revenue 3,966,100 565,843 4,531,943 - 122,625
Other liabilities 5,779,754 6,776,000 12,555,754 22,682 -
Compensated absenses:
Due within one year 654,835 118,854 773,689 - -
Due in more than one year 3,453,755 337,349 3,791,104 - -
Claims liabilities:
Due within one year 4,476,341 - 4,476,341 - -
Due in more than one year 3,934,747 - 3,934,747 - -
Long-term debt:
Due within one year 17,448,381 12,495,334 29,943,715 1,524,075 -
Due in more than one year 169,362,041 239,517,753 408,879,794 5,400,226 -
Other post-employment benefits:
Due within one year 1,112,345 150,337 1,262,682 - -
Due in more than one year 57,742,484 7,804,131 65,546,615 - -
Net pension liability:
Due in more than one year 205,767,575 19,262,152 225,029,727 - -
Total liabilities 489,946,071 303,188,542 793,134,613 7,158,059 428,791
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - property taxes levied for subsequent year 77,151,991 - 77,151,991 - -
Deferred inflows- pensions 1,961,238 1,558,429 3,519,667 - -
Deferred inflows - other post-employment benefits 663,361 896,296 1,559,657 - -
Total deferred inflows of resources 79,776,590 2,454,725 82,231,315 - -
NET POSITION
Net investment in capital assets 256,951,844 197,265,881 454,217,725 25,387,248 62,446,636
Restricted, expendable for:
Public Safety 3,801,734 - 3,801,734 - -
Human and Culture Services 1,572,027 - 1,572,027 - -
Debt Service 8,568,974 - 8,568,974 5,976 1,500,000
Capital Projects: restricted by enabling legislation 18,148,748 - 18,148,748 - -
Capital Projects: other 38,621,580 5,145,338 43,766,918 - -
Employee Benefits 636 - 636 - -
Unrestricted (287,063,967) 42,389,726 (244,674,241) 6,591,702 608,827
Total net position $ 40,601,576 $ 244,800,945 $ 285,402,521 $ 31,984,926 $ 64,555,463

The notes to the financial statements are an integral part of this statement.

15
 City of Jackson
Statement of Activities
For the Year Ended September 30, 2020

Program Revenues

Operating Grants Capital Grants and

Expenses Charges for Services and Contributions Contributions
Primary government:
Governmental activities:
General government $ 37,768,420 $ 6,428,117 $ 4,791,760 $ -
Public safety 65,372,233 1,895,197 6,175,188 -
Public works 21,741,075 74,552 71,277 17,660,536
Human and cultural services 16,884,157 571,211 2,256,715 3,392,767
Interest on long term debt 5,669,059 - - -
Total governmental activities 147,434,944 8,969,077 13,294,940 21,053,303

Business-type activities:
Water/Sewer 68,276,713 47,754,387 - 500,000
Transportation 10,275,470 228,976 8,011,489 -
Madison-Ridgeland Sewage 222,704 195,133 - -
Sanitation 10,761,372 8,536,878 35,188 -
Total business-type activities 89,536,259 56,715,374 8,046,677 500,000

Total primary government $ 236,971,203 $ 65,684,451 $ 21,341,617 $ 21,553,303

Component Units:
Jackson Redevelopment Authority $ 2,743,602 $ 1,039,473 $ 749,365 $ 1,500,598
Capital City Convention Center Commission 8,016,369 709,478 100,405 -
Total component units $ 10,759,971 $ 1,748,951 $ 849,770 $ 1,500,598

General revenues:
Property taxes
Local sales taxes
Franchise taxes based on gross receipts
Intergovernmental grants and shared revenues not restricted to specific programs
Unrestricted investments earnings
Gain on sale of capital assets
Litigation settlement gain on capital assets
Transfers
Total general revenues, special items, and transfers
Change in net position
Net position - beginning
Net position - ending

The notes to the financial statements are an integral part of this statement.

16
 Net (Expense) Revenue and Changes in Net Position
Primary Government Component Units
Capital City
Jackson Convention
Governmental Business-type Redevelopment Center
Activities Activities Total Authority Commission

$ (26,548,543) $ - $ (26,548,543) $ - $ -
(57,301,848) - (57,301,848) - -
(3,934,710) - (3,934,710) - -
(10,663,464) - (10,663,464) - -
(5,669,059) - (5,669,059) - -
(104,117,624) - (104,117,624) - -

- (20,022,326) (20,022,326) - -
- (2,035,005) (2,035,005) - -
- (27,571) (27,571) - -
- (2,189,306) (2,189,306) - -
- (24,274,208) (24,274,208) - -

(104,117,624) (24,274,208) (128,391,832) - -

$ - $ - $ - $ 545,834 $ -
- - - - (7,206,486)
$ - $ - $ - $ 545,834 $ (7,206,486)

79,438,857 - 79,438,857 - -
14,514,570 - 14,514,570 - 4,442,921
6,842,109 - 6,842,109 - -
37,271,267 - 37,271,267 - -
2,243,655 343,454 2,587,109 10,195 47,346
177,333 71,434 248,767 - -
- 14,695,137 14,695,137 - -
(9,378,408) 9,378,408 - - -
131,109,383 24,488,433 155,597,816 10,195 4,490,267
26,991,759 214,225 27,205,984 556,029 (2,716,219)
13,609,817 244,586,720 258,196,537 31,428,897 67,271,682
$ 40,601,576 $ 244,800,945 $ 285,402,521 $ 31,984,926 $ 64,555,463

The notes to the financial statements are an integral part of this statement.

17
 City of Jackson
Balance Sheet
Governmental Funds
As of September 30, 2020

1% Infrastructure
Infrastructure Federal Grants Bond 2020 Total Total
Tax Capital Special Capital Project Nonmajor Governmental
General Fund Project Fund Revenue Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 37,249,882 $ 17,843,795 $ 879,990 $ 35,001,482 $ 18,598,853 $ 109,574,002
Receivables, net of allowance for uncollectibles 71,386,174 2,541,198 9,482,185 - 26,621,916 110,031,473
Due from other funds 4,064,043 - - - - 4,064,043
Inventories 877,163 - - - - 877,163

Total assets $ 113,577,262 $ 20,384,993 $ 10,362,175 $ 35,001,482 $ 45,220,769 $ 224,546,681

LIABILITIES
Accounts payable $ 4,285,365 $ 2,236,245 $ 2,194,923 $ - $ 4,201,457 $ 12,917,990
Unearned grant revenue - - 2,467,220 - 1,498,880 3,966,100
Due to other funds - - 4,064,043 - - 4,064,043
Other liabilities 5,544,400 - 86,573 - 148,781 5,779,754

Total liabilities 9,829,765 2,236,245 8,812,759 - 5,849,118 26,727,887

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue-long-term receivables - - 34,649 - - 34,649

Unavailable revenue-property taxes levied for subsequent year 55,231,944 - - - 21,920,047 77,151,991
Total deferred inflows of resources 55,231,944 - 34,649 - 21,920,047 77,186,640

FUND BALANCES
Nonspendable 877,163 - - - - 877,163
Restricted 15,391,950 18,148,748 1,514,767 35,001,482 11,942,128 81,999,075
Committed 5,174,066 - - - 5,509,476 10,683,542
Assigned 1,548,664 - - - - 1,548,664
Unassigned 25,523,710 - - - - 25,523,710
Total fund balances 48,515,553 18,148,748 1,514,767 35,001,482 17,451,604 120,632,154

Total liabilities, deferred inflows of resources and fund balances $ 113,577,262 $ 20,384,993 $ 10,362,175 $ 35,001,482 $ 45,220,769 $ 224,546,681

The notes to the financial statements are an integral part of this statement.

18
 City of Jackson
Reconciliation of Balance Sheet - Governmental Funds
To the Statement of Net Position
September 30, 2020

Total fund balances - governmental funds $ 120,632,154

Amount reported for governmental activities in the statement
of net position are different because:
Capital assets used in governmental activities are not financial resources and, 365,882,890
therefore are not reported in the funds.
Prepaid expenses are not financial resources and are not reflected in the funds. 731,482
Long-term receivables are not available to pay for current period expenditures
and are recorded as deferred inflows in the fund statements. 34,649
Deferred outflows and inflows of resources related to pensions are applicable
to future periods and, therefore, are not reported in the funds:
Deferred outflows of resources related to other post-employment benefits 7,790,524
Deferred outflows of resources related to pensions 13,480,269
Deferred inflows of resources related to other post-employment benefits (663,361)
Deferred inflows of resources related to pensions (1,961,238)
Long-term liabilities, including bonds payable and interest, are not due and payable
in the current period and therefore are not reported in the funds:
Long-term debt, net of premium and discounts (186,810,422)
Accrued interest on long-term debt (1,373,289)
Compensated absences (4,108,590)
Claims payable (8,411,088)
Other post-employment benefits (58,854,829)
Net pension liability (205,767,575)
Net position of governmental activities $ 40,601,576

The notes to the financial statements are an integral part of this statement.

19
 City of Jackson
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020

1% Infrastructure
Infrastructure Federal Grants Bond 2020 Total Total
Tax Capital Special Capital Project Nonmajor Governmental
General Fund Project Fund Revenue Fund Fund Funds Funds
REVENUES
General property taxes $ 61,368,051 $ - $ - $ - $ 18,070,804 $ 79,438,855
Franchise taxes 6,842,109 - - - - 6,842,109
Licenses and permits 1,405,219 - - - - 1,405,219
Intergovernmental 34,429,419 14,514,570 18,038,600 - 13,635,704 80,618,293
Fines and forfeitures 1,704,377 - - - - 1,704,377
Admissions, fees, rentals and concessions 4,606,777 - 251,369 - 188,456 5,046,602
Interest 971,833 666,765 96,840 1,482 506,735 2,243,655
Other 3,770,580 20,873 33,313 - 600,680 4,425,446
Total revenues 115,098,365 15,202,208 18,420,122 1,482 33,002,379 181,724,556

EXPENDITURES
Current:
General government 32,277,079 - 4,417,412 - 201,312 36,895,803
Public safety 50,048,673 - 4,092,719 - 5,040,491 59,181,883
Public works 9,572,927 291,113 70,429 - 1,520,295 11,454,764
Human and cultural services 3,682,832 - 2,739,069 - 8,085,060 14,506,961
Debt service:
Principal retirement 3,716,352 - - - 10,253,068 13,969,420
Interest and service charges 456,072 - 671,732 4,947,056 6,074,860
Capital outlay:
General government 3,763,017 - 154,457 - - 3,917,474
Public works 153,821 14,462,469 8,892,137 - 9,155,501 32,663,928
Public safety 764,657 - 219,523 - 53,400 1,037,580
Human and cultural services 64,292 - - - 610,907 675,199
Total expenditures 104,499,722 14,753,582 20,585,746 671,732 39,867,090 180,377,872
Excess (deficiency) of revenues over expenditures 10,598,643 448,626 (2,165,624) (670,250) (6,864,711) 1,346,684

OTHER FINANCING SOURCES (USES)

Transfers In - - 890,935 - 11,138,979 12,029,914
Transfers Out (11,818,070) (4,474,443) - (3,215,600) (1,900,209) (21,408,322)
Issuance of long-term debt 8,746,830 - - 32,140,000 187,791 41,074,621
Premium on long-term debt issued - - - 6,747,332 - 6,747,332
Sale of capital assets 256,971 - - - - 256,971
Total other financing sources (uses) (2,814,269) (4,474,443) 890,935 35,671,732 9,426,561 38,700,516

Net change in fund balances 7,784,374 (4,025,817) (1,274,689) 35,001,482 2,561,850 40,047,200
Fund balances - beginning 40,731,179 22,174,565 2,789,456 - 14,889,754 80,584,954
Fund balances - ending $ 48,515,553 $ 18,148,748 $ 1,514,767 $ 35,001,482 $ 17,451,604 $ 120,632,154

The notes to the financial statements are an integral part of this statement.

20
 City of Jackson
Reconciliation of the Statement of Revenues
Expenditures, and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
For the Year Ended September 30, 2020

Net change in fund balances – total governmental funds $ 40,047,200

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement

of activities the cost of these assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlays exceeded
depreciation and the remaining undepreciated cost upon disposal in the current period. 23,667,041

Contributions of capital assets received are not reported in the governmental funds because they
do not involve current financial resources. 4,295,449

The issuance of long-term debt (e.g. bonds, capital leases) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the
current financial resources of the governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental funds report the effect of premiums and
discounts when debt is first issued, whereas, these amounts are deferred and amortized
in the statement of activities. This amount is the net effect of these differences in the treatment
of long-term debt and related items. (33,297,410)

The statement of activities reports pension expense and other activity related to net pension
liability and the related deferred inflows/outflows of resources. (2,493,316)

The statement of activities reports other postemployment benefits expense and other activity
related to other postemployment benefits liability and the related deferred inflows/outflows
of resources. (4,561,715)

Some expenses reported on the statement of activities do not require the use of current financial
resources and therefore are not reported as expenditures in the governmental funds. (498,212)

Prepaid expenses are reported as expenditures in the governmental funds when paid since they
require the use of current financial resources. (156,959)

Revenues are recognized on the full accrual basis for the government-wide statements but
long-term receivables are not recognized on the fund statements until payments are received. (10,319)

Change in the net position of governmental activities $ 26,991,759

The notes to the financial statements are an integral part of this statement.

21
 City of Jackson
Statement of Net Position
Proprietary Funds
As of September 30, 2020

Nonmajor
Water/ Sewage Enterprise Enterprise Funds Internal
Disposal System Sanitation Funds Totals Service Fund
ASSETS
Current assets:
Cash and cash equivalents $ 17,220,091 $ - $ 2,415,200 $ 19,635,291 $ 781,443
Accounts receivable, less allowances 46,439,660 7,234,906 - 53,674,566 1,174,991
Intergovernmental receivables 8,535,393 - 3,258,460 11,793,853 -
Inventories 1,646,955 - - 1,646,955 -
Restricted cash and cash equivalents 18,380,317 - - 18,380,317 -
Total Current Assets 92,222,416 7,234,906 5,673,660 105,130,982 1,956,434
Non-current Assets:
Restricted Assets:
Cash and cash equivalents 7,040,689 - - 7,040,689 -
Capital Assets:
Property, plant and equipment, at cost
Land 1,387,999 - 450,000 1,837,999 -
Buildings 3,256,474 57,301 8,664,594 11,978,369 -
Water plant, distribution system and equipment 734,404,641 - 1,243,591 735,648,232 -
Automotive and other equipment 15,902,088 3,243,442 16,074,372 35,219,902 -
754,951,202 3,300,743 26,432,557 784,684,502 -
Less: accumulated depreciation (356,287,141) (2,695,004) (9,787,636) (368,769,781) -
398,664,061 605,739 16,644,921 415,914,721 -
Construction in Progress 19,420,108 - - 19,420,108 -
Net property, plant and equipment 418,084,169 605,739 16,644,921 435,334,829 -
Total Non-current assets 425,124,858 605,739 16,644,921 442,375,518 -

Total Assets 517,347,274 7,840,645 22,318,581 547,506,500 1,956,434

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows of resources - other post-employment benefits 821,195 190,266 121,467 1,132,928 -
Deferred outflows of resources - pension 1,191,239 394,158 219,387 1,804,784 -
Total deferred outflows of resources $ 2,012,434 $ 584,424 $ 340,854 $ 2,937,712 $ -

The notes to the financial statements are an integral part of this statement.

22
 City of Jackson
Statement of Net Position
Proprietary Funds
As of September 30, 2020

Nonmajor
Water/ Sewage Enterprise Enterprise Funds Internal
Disposal System Sanitation Funds Totals Service Fund
LIABILITIES AND FUND EQUITY
Current Liabilities Payable from Unrestricted Assets:
Accounts payable and accrued expenses 9,003,296 874,917 4,407,263 14,285,476 1,956,434
Unearned grant revenue - - 565,843 565,843 -
Other Post Employment Benefits liability 127,747 15,579 7,011 150,337 -
Compensated absences 111,007 6,572 1,275 118,854 -
Current portion of Long-Term Debt:
Capital lease obligations 265,698 93,754 - 359,452 -
Notes payable 3,120,882 - - 3,120,882 -
Total Current Liabilities Payable from Unrestricted Assets 12,628,630 990,822 4,981,392 18,600,844 1,956,434
Current Liabilities Payable from Restricted Assets:
Customer deposits 6,331,530 - - 6,331,530 -
Revenue bonds 9,015,000 - - 9,015,000 -
Accrued interest payable 2,319,783 - - 2,319,783 -
Total Current Liabilities Payable from Restricted Assets 17,666,313 - - 17,666,313 -

Total Current Liabilities 30,294,943 990,822 4,981,392 36,267,157 1,956,434

Net pension liability 16,512,493 1,618,264 1,131,395 19,262,152 -
Other Post Employment Benefits liability 6,631,490 808,718 363,923 7,804,131 -
Compensated absences 266,909 38,821 31,619 337,349 -
Long-Term Debt
(less amounts classified as current liabilities):
Revenue bonds 191,264,062 - - 191,264,062 -
(net of unamortized discount/premium)
Capital lease obligations 1,728,909 141,822 - 1,870,731 -
Notes payable 46,382,960 - - 46,382,960 -
Total Long-Term Liabilities 262,786,823 2,607,625 1,526,937 266,921,385 -
Total Liabilities 293,081,766 3,598,447 6,508,329 303,188,542 1,956,434

DEFERRED INFLOWS OF RESOURCES

Deferred inflows of resources - other post-employment benefits 792,909 99,207 4,180 896,296 -
Deferred inflows of resources - pension 1,554,923 3,506 - 1,558,429 -
Total deferred inflows of resources 2,347,832 102,713 4,180 2,454,725 -

NET POSITION
Net investment in capital assets 180,250,797 370,163 16,644,921 197,265,881 -
Restricted, expendable for capital improvements 5,145,338 - - 5,145,338 -
Unrestricted 38,533,975 4,353,746 (497,995) 42,389,726 -
Total net position $ 223,930,110 $ 4,723,909 $ 16,146,926 $ 244,800,945 $ -

The notes to the financial statements are an integral part of this statement.

23
 City of Jackson
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2020

Water/ Sewage Nonmajor Enterprise Funds Internal Service

Disposal System Sanitation Enterprise Funds Totals Fund
OPERATING REVENUES
Sales to customers $ 47,702,468 $ 8,527,596 $ 424,109 $ 56,654,173 $ -
Contributions - Participants - - - - 3,982,868
Contributions - City - - - - 13,181,349
Other revenues 51,919 9,282 - 61,201 -
Total operating revenues 47,754,387 8,536,878 424,109 56,715,374 17,164,217

OPERATING EXPENSES
Personnel services 8,505,546 930,069 750,403 10,186,018 -
Supplies 4,929,015 137,300 761,335 5,827,650 -
Other services and charges 26,614,979 9,546,614 7,788,870 43,950,463 17,171,682
Depreciation 17,701,746 146,238 1,197,567 19,045,551 -
Total operating expenses 57,751,286 10,760,221 10,498,175 79,009,682 17,171,682
Operating loss (9,996,899) (2,223,343) (10,074,066) (22,294,308) (7,465)

NONOPERATING REVENUES (EXPENSES)

Noncapital grants - 35,188 8,011,489 8,046,677 -
Interest revenue 301,021 168 42,265 343,454 7,465
Interest and service charges on long-term debt (10,525,426) (1,151) - (10,526,577) -
Gain on sale of capital assets 70,050 - 1,384 71,434 -
Litigation settlement gain on capital assets 14,695,137 - - 14,695,137 -
Total nonoperating revenues (expenses) 4,540,782 34,205 8,055,138 12,630,125 7,465
Income (loss) before capital contributions and
transfers (5,456,117) (2,189,138) (2,018,928) (9,664,183) -
Capital contributions and grants 500,000 - - 500,000 -
Transfers Out (7,588,501) - - (7,588,501) -
Transfers In 5,893,997 7,709,686 3,363,226 16,966,909 -
Change in net position (6,650,621) 5,520,548 1,344,298 214,225 -
Total net position - beginning 230,580,731 (796,639) 14,802,628 244,586,720 -
Total net position - ending $ 223,930,110 $ 4,723,909 $ 16,146,926 $ 244,800,945 $ -

The notes to the financial statements are an integral part of this statement.

24
 City of Jackson
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020

Nonmajor
Water/ Sewage Enterprise Enterprise Funds Internal
Disposal System Sanitation Funds Totals Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 51,553,973 $ 8,989,328 $ 424,109 $ 60,967,410 $ 3,982,855
Receipts from interfund charges - - - - 13,181,349
Receipts from other revenue 51,919 9,282 - 61,201 -
Payments to suppliers (33,907,318) (10,749,442) (8,537,109) (53,193,869) (17,368,654)
Payments to employees (6,758,405) (628,302) (443,188) (7,829,895) -
Payments to internal service fund (1,660,251) (180,933) (112,292) (1,953,476) -
Net cash provided by (used for) operating activities 9,279,918 (2,560,067) (8,668,480) (1,948,629) (204,450)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Operating Grants - 35,188 6,554,718 6,589,906 -
Transfers and advances from other funds 1,032,108 7,709,686 3,363,226 12,105,020 -
Repayment to other funds for advances (7,677,553) (5,021,884) - (12,699,437) -
Transfers and advances to other funds (7,588,501) - - (7,588,501) -
Repayment from other funds for advances 2,166,292 - - 2,166,292 -
Net cash provided by (used for) noncapital financing activities (12,067,654) 2,722,990 9,917,944 573,280 -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Acquisition and construction of capital assets (13,445,204) (210,963) (944,629) (14,600,796) -
Transfers from other funds for capital purposes 4,861,889 - - 4,861,889 -
Capital grants 500,000 - - 500,000 -
Proceeds from capital debt 11,387,152 - - 11,387,152 -
Principal paid on capital debt (11,869,695) (23,961) - (11,893,656) -
Proceeds from capital asset sales 70,050 - 1,384 71,434 -
Proceeds from litigation settlement on capital assets 59,829,532 - - 59,829,532 -
Interest paid on capital debt (11,240,229) (1,151) - (11,241,380) -

Net cash provided by (used for) capital and related financing activities 40,093,495 (236,075) (943,245) 38,914,175 -

CASH FLOWS FROM INVESTING ACTIVITIES

Interest on investments 301,021 168 42,265 343,454 7,465
Net cash provided by (used for) investing activities 301,021 168 42,265 343,454 7,465
Net increase (decrease) in cash and cash equivalents 37,606,780 (72,984) 348,484 37,882,280 (196,985)

Cash and cash equivalents at beginning of year 5,034,317 72,984 2,066,716 7,174,017 978,428
Cash and cash equivalents at end of year $ 42,641,097 $ - $ 2,415,200 $ 45,056,297 $ 781,443

The notes to the financial statements are an integral part of this statement.

25
 City of Jackson
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020

Nonmajor
Water/ Sewage Enterprise Enterprise Funds Internal
Disposal System Sanitation Funds Totals Service Fund
Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used
for) Operating Activities:
Operating loss $ (9,996,899) $ (2,223,343) $ (10,074,066) $ (22,294,308) $ (7,465)
Depreciation expenses 17,701,746 146,238 1,197,567 19,045,551 -
(Increase) decrease in accounts receivable 2,453,632 461,732 - 2,915,364 (50,566)
(Increase) decrease in inventories 52,964 - - 52,964 -
Increase (decrease) in accounts payable and accrued expenses (2,395,170) (1,062,499) 15,997 (3,441,672) (146,419)
Increase (decrease) in compensated absences (47,916) 1,016 8,011 (38,889) -
Increase (decrease) in customer deposits 1,406,047 - - 1,406,047 -
Increase (decrease) in pension liability and deferred inflows
(outlflows) (336,404) 53,807 147,758 (134,839) -
Increase (decrease) in other post-employment liabilities and deferred
inflows (outflows) 441,918 62,982 36,253 541,153 -
Total adjustments 19,276,817 (336,724) 1,405,586 20,345,679 (196,985)
Net cash provided by (used for) operating activities $ 9,279,918 $ (2,560,067) $ (8,668,480) $ (1,948,629) $ (204,450)

NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Accounts payable for capital assets at year end $ 5,156,745 $ - $ 2,781,788 $ 7,938,533 $ -

Capital debt proceeds receivable at year end $ 8,535,393 $ 210,963 $ - $ 8,746,356 $ -

SUMMARY OF CASH AND CASH EQUIVALENTS:

Cash and cash equivalents $ 17,220,091 $ - $ 2,415,200 $ 19,635,291 $ 781,443
Restricted cash and cash equivalents:
Current 18,380,317 - - 18,380,317 -
Noncurrent 7,040,689 - - 7,040,689 -
$ 42,641,097 $ - $ 2,415,200 $ 45,056,297 $ 781,443

The notes to the financial statements are an integral part of this statement.

26
 CITY OF JACKSON
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
AS OF SEPTEMBER 30, 2020

Trust Funds Agency Funds

Assets

Cash and cash equivalents $ 216,392 $ 16,226

Investment at fair value:
Certificate of deposit 32,802 -
Taxes receivable - 1,171,955

Total assets $ 249,194 $ 1,188,181

Liabilities and Net Position

Liabilities:
Payables to others $ - $ 1,188,181

Total liabilities - 1,188,181

Net Position:
Held in trust for unemployment 249,194 -
benefits and other purposes

Total net position 249,194 -

Total liabilities and net position $ 249,194 $ 1,188,181

The notes to the financial statements are an integral part of this statement.

27
 CITY OF JACKSON
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020

Trust Funds

Additions:
Interest $ 70
Contributions from other funds 83,364

Total additions 83,434

Deductions:
General government:
Unemployment claims 93,152

Total deductions 93,152

Change in Net Position (9,718)

Net position - beginning of year 258,912

Net position - end of year $ 249,194

The notes to the financial statements are an integral part of this statement.

28
 NOTES TO THE
FINANCIAL STATEMENTS

29
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies

A. REPORTING ENTITY

The City of Jackson, Mississippi (the City) is incorporated under the Laws of the State of Mississippi. The
City operates under the Mayor-Council form of government with a full-time Mayor elected from the City at
large and seven part-time Council members (City Council) elected from wards. The City’s major operations
include police and fire protection, parks and recreation, public works, public transit system, urban
development and general administrative services. In addition, the City owns and operates a water and
sewer system.

The City’s financial statements are prepared in accordance with accounting principles generally accepted
in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its
pronouncements (Statements and Interpretations). The more significant accounting policies established in
GAAP and used by the City are discussed below.

In evaluating the City as a reporting entity, management has considered potential component units for
which the City may be financially accountable and as such, may be required to be included within the City’s
financial statements. The component units discussed below are included because of the significance of
their operational or financial relationships with the City.
Discretely Presented Component Units
Using the criteria above, management has determined that the Jackson Redevelopment Authority (JRA)
and the Capital City Convention Center Commission should be reported as discretely presented component
units of the City. The discretely presented component units are reported in separate columns in the
Government-Wide Statements to emphasize they are legally separate from the primary government. The
following is a summary of the City’s discretely presented component units.

The Jackson Redevelopment Authority (JRA) was established in 1968 under Section 43-35-1 through 235
of the Mississippi Code of 1942, as annotated. In 1970, JRA became the Parking Authority for the City
under the same statute. The Mayor of the City makes appointments to a seven-member Board of
Commissioners for staggered five-year terms to oversee the operations of JRA. Members may be removed
from office for inefficiency, neglect of duty or misconduct in office. The City Council appropriates the
administrative operating budget of JRA and must review and approve any amendments or budgetary
adjustments. The City Council is responsible for designation of those urban renewal projects undertaken
by JRA. The City makes annual contributions necessary to pay a portion of JRA's urban renewal bonds
and has agreed to make payment of substantially all of the outstanding bonds. JRA operates on a
September 30 fiscal year and its financial statement data is presented as a proprietary fund type in its
separately issued financial statements. Complete financial statements for JRA may be obtained at its
administrative office located at 218 South President Street, Jackson, Mississippi 39201.

The Capital City Convention Center Commission, a non-profit corporation, was authorized to be created by
House Bill 1832 during the 2004 Regular Session of the Mississippi State Legislature. The entity is
governed by nine commissioners, who serve for five-year terms. The Mayor of the City appoints two
hotel/motel members, two restaurant members, two members representing the business community, and
two members at large. One member is appointed by the Governor of Mississippi.

30
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Polices (Continued):

A. REPORTING ENTITY (Continued):

The City issued $65,000,000 of General Obligation Bonds for the development of the proposed Convention
Center. The Capital City Convention Center Commission has jurisdiction and authority over all matters
relating to the acquisition, construction, furnishing, equipping, erection, operation, maintenance, and
promotion of a convention center. The Commission submits its budget and certain other planned actions
to the City for comment prior to initiation. The Commission operates on a September 30 fiscal year and its
financial statement data is presented as a proprietary fund type in its separately issued financial statements.
Complete financial statements for the Capital City Convention Center Commission may be obtained at
P.O. Box 3563, Jackson, Mississippi 39207.

Related Organizations

The following four entities are legally separate governmental entities established within the City of Jackson
that do not meet the criteria for inclusion as component units. While the Mayor appoints the board members
of each respective agency as confirmed by the City Council, each agency is fiscally independent from the
City of Jackson. The primary government has no authority to remove board members, designate
management, or approve or modify rates. The City of Jackson is not obligated in any manner for the debt
issues of these agencies. Financial statements for these agencies can be obtained at the following
addresses:
Jackson Municipal Airport Authority Jackson Housing Authority
100 International Drive 2747 Livingston Road
Jackson, MS 39208 Jackson, MS 39213

Jackson Public School District Jackson Convention & Visitors Bureau

662 South President Street 111 East Capital St., Suite 102
Jackson, MS 39201 Jackson, MS 39201

Joint Ventures

The Jackson/Hinds Library System (the System) operates under a joint agreement between the City and
Hinds County and is funded equally by the City and the County. The joint agreement was effective October
1, 1986. All buildings used by the System within the City of Jackson are owned or leased and maintained
by the City and, as such, have been included in the capital assets of the City’s governmental activities.
However, the System itself is not included as a component unit or equity interest of the City. The
Jackson/Hinds Library System's financial statements may be obtained by writing to 300 North State Street,
Jackson, MS 39201.

B. BASIC FINANCIAL STATEMENTS - GOVERNMENT-WIDE AND FUND LEVEL STATEMENTS

The City’s basic financial statements include both government-wide (reporting the City as a whole) and
fund financial statements (reporting the City’s major funds). Both the government-wide and fund financial
statements categorize primary activities as either governmental or business-type enterprise funds.
However, the government-wide financial statements do not include fiduciary funds. The City’s police and
fire protection, public safety, parks and recreation, human and cultural services, public works, and general
government services are classified as governmental activities. The City’s water/sewer, sanitation, and
public transportation services are classified as business-type activities and enterprise funds.

In the Government-Wide Statement of Net Position, both the governmental and business-type activities
columns are (a) presented on the consolidated basis by column, and (b) reported on the full accrual,
economic resources basis, which recognizes all long-term assets and receivables as well as long-term debt
and obligations. The City’s net position is reported in three parts: net investment in capital assets, restricted
net position, and unrestricted net position. The City first utilizes restricted resources to finance qualifying
activities.

31
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

B. BASIC FINANCIAL STATEMENTS - GOVERNMENT-WIDE AND FUND LEVEL STATEMENTS
(Continued):

The Government-Wide Statement of Activities reports both the gross and net costs of each of the City’s
functions and business-type activities (public safety, public works, etc.). The statement of activities
demonstrates the degree to which the direct expenses of a given function or segment is offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to applicants who use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Operating grants include
operating-specific and discretionary (either operating or capital) grants while the capital grants column
reflects capital-specific grants.
The Statement of Activities reduces gross expenses (including depreciation) by related program revenues,
operating and capital grants. Program revenues must be directly associated with the function (public safety,
public works, etc.) or a business-type activity. Taxes and other items not properly included among program
revenues are reported instead as general revenues. The net costs (by function or business-type activities)
are normally covered by general revenue (property tax, sales tax, intergovernmental revenues, interest
income, etc.).
The City does not allocate indirect cost. An administrative service fee is charged by the General Fund to
the other operating funds and is eliminated as a reimbursement (reducing the revenue and expense in the
General Fund) to recover the direct costs of General Fund services provided (finance, personnel,
purchasing, legal, technology management, etc.).
The government-wide focus is more on the sustainability of the City as an entity and the changes in the
City’s net position resulting from the current year’s activities. Separate financial statements are provided
for governmental funds and proprietary funds. Each fund is accounted for by providing a separate set of
self-balancing accounts that comprises its assets, deferred outflows, liabilities, deferred inflows, fund equity,
revenues and expenditures/expenses.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though the latter are excluded from the Government-Wide Financial Statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
City’s Proprietary Funds and of the City’s Internal Service Funds are charges to customers for sales and
services. Operating expenses for Proprietary Funds and Internal Service Funds include the cost of sales
and services, direct administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The Government-Wide Financial Statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Agency funds are used to report resources in a purely custodial capacity (assets equal
liabilities). So, agency funds cannot be said to have a measurement focus, however, they do use the accrual
basis of accounting to recognize receivables and payables. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

32
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (Continued):

Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, interest income and similar items associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of
the current fiscal period.

The City reports the following major government funds:

General Fund - The General Fund is the City’s primary operating fund. It accounts for all financial
transactions of the City, except those required or elected to be accounted for in another fund.

1% Infrastructure Tax Capital Project Fund - This fund is used to account for proceeds received for
the improvement of infrastructure in the city. Financing is provided by special sales tax of 1%.

Federal Grants Special Revenue Fund - This fund is used to account for proceeds of various
federal grant programs.

Infrastructure Bond 2020 Capital Project Fund- This fund is used to account for proceeds of bonds
issued to finance infrastructure projects.

The City reports the following major proprietary funds:

Water/Sewage Disposal System Fund - This enterprise fund accounts for activities associated with
the provision of water, sewerage and water pollution control services to individuals, organizations
and other governmental units within and around the City.

Sanitation Fund – This enterprise fund accounts for activities associated with the City’s sanitation
and recycling services.

Additionally, the City reports the following fund types:

The Internal Service Fund is used to account for the financing of employee health insurance provided
to other departments of the governmental unit on a cost-reimbursement basis.
Fiduciary Funds:
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore
are not available to support City programs. The City has two trust funds, the Unemployment
Compensation Revolving Fund, and the Mausoleum Trust Fund. The function of the City’s principal
employee benefit trust fund, the Unemployment Compensation Revolving Fund, is discussed in
NOTE 6.A.2. The function of the Mausoleum Trust Fund is to maintain and upkeep the Henry
Mausoleum. The reporting focus is on net position and changes in net position and is reported using
accounting principles similar to proprietary funds.
The purpose of the City’s Agency Funds is to collect and remit to the related organizations the
property taxes collected and proceeds of a special sales taxes received from the State.

33
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (Continued):

The emphasis in fund financial statements is on the major funds in either the governmental or enterprise
fund categories. Non-major funds by category are summarized into a single column. GASBS No. 34 sets
forth minimum criteria (percentage of assets and deferred outflows, liabilities and deferred inflows,
revenues, or expenditures/expenses of either fund category or the governmental and enterprise combined)
for the determination of major funds. The non-major funds are combined in a column in the fund financial
statements.

The City’s internal service fund is presented in the proprietary funds financial statements. Because the
principal users of the internal services are the City’s governmental activities, the financial statements of the
internal service fund are consolidated into the governmental activities column when presented in the
Government-Wide Financial Statements. To the extent possible, the cost of these services is reported in
the appropriate functional activity (public safety, public works, etc.).

D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION

OR FUND BALANCE
1. Cash and Cash Equivalents
Cash and cash equivalents include demand deposit accounts, petty cash, money market mutual funds, and
certificates of deposit with a maturity date generally within 90 days of the date acquired by the City.
Collateral as further discussed in Note 4.A, is pledged by the various financial institutions to secure City
funds.
2. Receivables
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible.
3. Investments

Investments are recorded at fair value with all investment income, including changes in the fair value of
investments, reported as revenue in the financial statements. Income from short-term interest-bearing
securities is recognized as earned. Statutes authorize the City to invest in U.S. Government obligations,
U.S. Government agency obligations, State of Mississippi obligations, and obligations of a corporation of
the U.S. Government.

Securities traded in a national or international exchange are valued at the last reported sales price at current
exchange rates. Short-term investments are reported at fair value when published prices are available, or
at cost plus accrued interest, which approximates fair value. For individual investments where no readily
ascertainable fair value exists, the City of Jackson, in consultation with its investment advisors and custodial
bank, has determined the fair values.

4. Restricted Assets

Certain proceeds of the City’s Proprietary Fund revenue bonds, as well as certain resources set aside for
their payment, are classified as restricted assets on the balance sheet because they are maintained in
separate bank accounts and trust accounts and their use is limited by applicable bond covenants.

5. Inventories

Inventories are priced at cost using the weighted average method. Inventories are accounted for using
the consumption method and are not charged out until used. Inventories consist of major stores of materials
and supplies held at central locations. The user departments and other funds of the City are charged for
the cost value of the items, as they are withdrawn from inventory.

34
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS AND RESOURCES, AND NET
POSITION OR FUND BALANCE (Continued):

6. Capital Assets

Capital assets purchased or acquired are recorded at historical cost. Contributed assets are recorded at
the estimated acquisition value at the date received. The City’s classes of capital assets and their
capitalization levels are: land – cost or acquisition value, buildings - $50,000, land improvements - $25,000,
machinery and equipment - $1,000, infrastructure - $100,000, and construction in progress – based on the
project’s class. The cost of normal maintenance and repair that do not add to the value of capital assets or
materially extend their respective lives are not capitalized. Interest expenditures within governmental
activities are not capitalized.

Capital assets, excluding land and construction in progress, are depreciated using the straight-line method
over the following estimated useful lives:

Assets Years
Buildings 40
Land improvements 20
Heavy machinery and equipment 5-15
Computer equipment and software 3-15
Vehicles 3-10
Infrastructure 8-50

Prior to the implementation of GASB statement No. 89 in the year ended September 30, 2020, interest was
capitalized on proprietary fund capital assets constructed with the proceeds of tax-exempt debt. The amount
of interest capitalized was calculated by offsetting interest expense incurred from the date of the borrowing
until completion of the project with interest earned on invested proceeds over the same period. Interest is
not capitalized on governmental activities’ capital assets.

The City has a collection of artwork presented for public exhibition and education that is being preserved
for future generations. The proceeds from the sales of any pieces of the collection are used to purchase
other acquisitions. The collection is not capitalized or depreciated as part of capital assets.

Infrastructure assets include roads, bridges, underground pipe (other than related to utilities), traffic signals,
and similar types of capital assets.

7. Compensated Absences

The City accrues accumulated unpaid personal leave and associated employee-related costs when earned
(or estimated to be earned) by employees up to 240 hours, which is the maximum payable upon termination
of employment. For the Proprietary Funds and the Government-Wide Statements, the current portion is the
amount estimated to be used in the following year. In accordance with GAAP, for the governmental funds,
all of the compensated absences are considered long-term and therefore, are not a fund liability and
represent a reconciling item between the fund level and government-wide presentation. The compensated
absences liability is liquidated by the following funds: general fund, special revenue, transportation,
sanitation & water/sewer.

35
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS AND RESOURCES, AND NET
POSITION OR FUND BALANCE (Continued):

8. Bond Discounts, Bond Premiums and Issuance Costs

In the governmental funds, bond issuance costs are treated as period costs in the year of issue. Bond
premiums and discounts are shown as “Other Financing Sources/Uses”.

In the proprietary funds and Government-Wide Financial Statements, bond discounts and bond premiums
are amortized using the straight-line method over the terms of the bonds outstanding, which approximates
the effective interest method. Bond discounts and premiums are presented as a reduction and increase,
respectively, of the face amount of the revenue bond payable. Bond issuance costs, excluding any prepaid
bond insurance, are reported as expenses in the year of the debt issuance. Gains (losses) on refunding’s
are reported as deferred outflows/inflows of resources.

9. Interfund Activity

Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported
as interfund receivables and payables as appropriate and are subject to elimination upon consolidation.
Services provided, deemed to be at market or near fair market rates are treated as revenues and
expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate
benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated
as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation
to the Government-Wide Financial Statements.

10. Revenues

Substantially all governmental fund revenues are accrued. Property taxes receivable are recognized at the
levy date. All property taxes are billed, collected and recognized as revenue within the same period for
which they are levied. Subsidies and grants to proprietary funds, which finance either capital or current
operations are reported as non-operating revenues. Proprietary funds distinguish operating revenues and
expenses from non-operating items. Operating revenues and expenses result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the enterprise funds and of the government’s internal service fund are
charges to customers for sales and services. Operating expenses for enterprise funds and the internal
service fund include the cost of sales and services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses. In, applying GASBS No. 33 to grant revenues, the provider recognizes liabilities and expenses
and the recipient recognizes receivables and revenues when the applicable eligibility requirements,
including time requirements, are met. Resources transmitted before the eligibility requirements are met are
reported as advances by the provider and unearned revenue by the recipient.

11. Expenditures

Expenditures in governmental funds are recognized when the related fund liability is incurred. Inventory
costs are reported in the period when inventory items are used, rather than in the period purchased.

12. Restricted and Committed Fund Balances

Portions of fund balances are segregated for future use and therefore, are not available for future
appropriations or expenditure. The City has a municipal bond debt service reserve insurance policy for the
proprietary funds in lieu of cash. Amounts committed for state tort claims represent amounts required by
state law to be segregated for these purposes. The restricted and committed fund balances of the Capital
Projects Funds are appropriated for expenditures in future years.

36
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS AND RESOURCES, AND NET
POSITION OR FUND BALANCE (Continued):

13. Net Position

Net position represents the difference between assets plus deferred outflows of resources, less liabilities,
less deferred inflows of resources. Net investments in capital assets consist of capital assets, net of
accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction or improvement of those assets. Net position is reported as restricted when there are
limitations imposed on their use either through external restrictions imposed by creditors, grantors or laws
or regulations of other governments.

14. Fund Balance

In the fund financial statements, fund balance for governmental funds is reported in classifications that
comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the
specific purpose for which amounts in the funds can be spent. Fund balance is reported in five components
– nonspendable, restricted, committed, assigned and unassigned.

Nonspendable - This component includes amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.

Restricted - This component consists of amounts that have constraints placed on them either externally by
third-parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law
through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess,
levy, charge or otherwise mandate payment of resources (from external resource providers) and includes
a legally enforceable requirement (compelled by external parties) that those resources be used only for the
specific purposes stipulated in the legislation.

Committed – This component consists of amounts formally designated by City Council through equally
binding ordinances or resolutions for a specific purpose that cannot be used for another purpose unless the
City Council formally changes the use.

Assigned - This component consists of amounts that are constrained by the City's intent to be used for
specific purposes, but are neither restricted nor committed. The authority for assigning fund balance is
expressed by the City Council, Mayor or their designee as established in the City's Fund Balance Policy.

Unassigned - This classification represents amounts that have not been restricted, committed or assigned
to specific purposes within the general fund. The general fund is the only fund that reports a positive
unassigned fund balance amount. Other governmental funds besides the general fund can only report a
negative unassigned fund balance amount.

When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed.
When unrestricted resources (committed, assigned and unassigned) are available for use it is the City's
policy to use committed resources first, then assigned, and then unassigned as they are needed.

37
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS AND RESOURCES, AND NET
POSITION OR FUND BALANCE (Continued):

15. Fund Balance/Net Position Policy

The City has adopted a fund balance / net position policy that is tailored to the needs of the City to ensure
against unanticipated events that would adversely affect the financial condition of the City and would
jeopardize the continuation of necessary public services. This policy is intended to ensure the City maintains
adequate fund balance / net position in the City's various operating funds to provide the capacity to: (1)
provide sufficient cash flow for daily financial needs, (2) secure and maintain investment grade bond ratings,
(3) offset significant economic downturns and revenue shortfalls, and (4) provide funds for unforeseen
expenditures related to emergencies.

The City intends to maintain adequate Fund Balance / Net Position in the General Fund and Proprietary
funds of the City. The City shall retain the minimum requirement for each fund listed below.

General Fund – There shall be an unassigned fund balance equal to 7.5% of the adopted General Fund
operating revenues. For the purposes of the calculation, the current fiscal year budget shall be the budget
as originally adopted by resolution on or before September 15 th for the subsequent fiscal year. The
unassigned fund balance shall be in addition to all other categories of fund balance.

The total required General Fund unassigned fund balance for 2020 is $8,809,425, and the actual amount
is $25,523,710 at September 30, 2020.

Enterprise Funds – The City maintains a Sanitation Fund, Water/Sewage Disposal System Fund, and
Transportation Fund. Under the Water & Sewer Bond Ordinance, the following reserve funds are required:
1/12 of the Operation & Maintenance budget as an Operation & Maintenance Fund; 1/12 of the actual debt
service as a Debt Service Fund; and, 2/12 of the Operation & Maintenance budget as a Contingent Fund.

The total required reserve funds for the Water & Sewer Operation & Maintenance Fund, Debt Service Fund,
and Contingent Fund was $12,048,787and the actual total amount at September 30, 2020, exceeded the
required amount.

Replenishment of Fund Balance/Net Position Deficits - If, at the end of any fiscal year, the actual amount
of unassigned fund balance or reserve funds fall below the required fund levels set forth herein, the Mayor
shall prepare and submit a plan for expenditure or expense reductions and / or revenue increases to the
City Council. As a part of the annual budget review, the City Council shall review and, if necessary, amend
the plan submitted by the Mayor for restoring the amounts of unassigned fund balance or unassigned net
position to the required levels.

16. Pensions

The City funds pension expenses as required by applicable statute. Two plans, funded from both City and
employee contributions are described in NOTE 6.G. For the purposes of measuring the net pension liability,
deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense,
information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary
net position have been determined on the same basis as they are reported by the plans. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.

17. Postemployment Benefits Other Than Pensions (OPEB)

The City’s OPEB plan is described in Note 6.H. For purposes of measuring the net OPEB liability, deferred
outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense of the OPEB
plan have been determined on the same basis as they are reported by the OPEB plan. For this purpose,
benefit payments are recognized when due and payable in accordance with the benefit terms.
38
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS AND RESOURCES, AND NET
POSITION OR FUND BALANCE (Continued):

18. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets, liabilities, and disclosures. Actual results could differ from those estimates.

19. Deferred Outflows/Inflows of Resources

The statement of financial position and the balance sheet will often report a separate section for deferred
outflows and (or) deferred inflows of financial resources. Deferred outflows of resources represents a
consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then. Deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and so will not be recognized as an inflow of resources until that
time.

The City reflects deferred outflows of resources related to its pension plans. Deferred inflows of resources
reflected by the City relate to pension plans, property taxes levied for the subsequent year, and long-term
receivables that are not yet available.

20. New Accounting Pronouncements

In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of
a Construction Period. The objectives of this Statement are (1) to enhance the relevance and comparability
of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify
accounting for interest cost incurred before the end of a construction period. This Statement requires that
interest cost incurred before the end of a construction period be recognized as an expense in the period in
which the cost is incurred for financial statements prepared using the Economic resources measurement
focus. The requirements of this Statement were implemented by the City for the year ended September 30,
2020.

The City will adopt the following new accounting pronouncements in future years:

In June 2017, the GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet
the information needs of financial statement users by improving accounting and financial reporting for
leases by governments. This Statement increases the usefulness of governments’ financial statements by
requiring recognition of certain lease assets and liabilities for leases that previously were classified as
operating leases and recognized as inflows of resources or outflows of resources based on payment
provisions of the contract. It establishes a single model for lease accounting based on the foundational
principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee
is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the
relevance and consistency of information about governments’ leasing activities. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2021.

In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology
Arrangements. This statement provides guidance on the accounting and financial reporting for subscription-
based information technology arrangements (SBITAs) for government end users (governments). This
Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset –
an intangible asset – and a corresponding subscription liability; (3) provides the capitalization criteria for
outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note
disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the
standards established in Statement No. 87, Leases, as amended. The requirements of this Statement are
effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Assets and

39
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 1 – Summary of Significant Accounting Policies (Continued):

D. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS AND RESOURCES, AND NET
POSITION OR FUND BALANCE (Continued):

liabilities resulting from SBITAs should be recognized and measured using the facts and circumstances
that existed at the beginning of the fiscal year in which this Statement is implemented. Governments are
permitted, but are not required, to include in the measurement of the subscription asset capitalizable outlays
associated with the initial implementation stage and the operation and additional implementation stage
incurred prior to the implementation of this Statement.

In January 2017, GASB issued Statement No.84 “Fiduciary Activities”. GASB 84 improves guidance
regarding the identification of fiduciary activities for accounting and financial reporting purposes and how
those activities should be reported. GASB 84 establishes criteria for identifying fiduciary activities of all state
and local governments. The focus of the criteria generally is on (a) whether a government is controlling the
assets of the fiduciary activity and (b) the beneficiaries with whom a fiduciary relationship exists. Separate
criteria are included to identify fiduciary component units and postemployment benefit arrangements that
are fiduciary activities.

GASB 84 describes four fiduciary funds that should be reported, if applicable: (a) pension (and other
employee benefits) trusts funds, (b) investment trust funds, (c) private-purpose trust funds, and (d) custodial
funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent
arrangement that meets specific criteria. GASB 84 also provides for recognition of a liability to the
beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse
fiduciary resources. The requirements of this Statement are effective for reporting periods beginning after
December 15, 2019. The City is evaluating the impact, if any, upon its financial statements, results of
operations or crash flows upon adoption.

40
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 2 – Reconciliation of government-wide and fund financial statements

Explanation of certain differences between the governmental fund statement of revenues,
expenditures, and changes in fund balances and the government-wide statement of activities

The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
Reconciliation between net changes in fund balances – total governmental funds and changes in net
position of governmental activities as reported in the Government-Wide Statement of Activities. One
element of that reconciliation explains that “Governmental funds report capital outlays as expenditures.
However, in the statement of activities the cost of those assets is allocated over their estimated useful lives
and reported as depreciation expense.” The details of this difference are as follows:

Capital Outlay $ 38,294,181

Depreciation Expense (14,547,502)
Remaining undepreciated cost of capital asset disposals in the current year (79,638)
Net adjustment to increase net changes in fund balances – total governmental
Funds to arrive at changes in net position of government activities $ 23,667,041

Another element of that reconciliation states that “The issuance of long-term debt (e.g., bonds, capital
leases) provides current financial resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental funds. Neither transaction,
however, has any effect on net position. Also, governmental funds report the effect of premiums and
discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of
activities.” The details of this difference are as follows:

Principal repayments on long-term debt: $ 13,969,420

Long-term debt issued (41,074,621)
Premium on long-term debt issued (6,747,332)
Amortization of debt premiums and discounts 555,123
Net adjustment to decrease net changes in fund balances – total
governmental funds to arrive at changes in net position of
governmental activities $ (33,297,410)

Another element of that reconciliation states that “The statements of activities reports pension
expense and other activity related to the net pension liability and the related deferred inflows/outflows
of resources.” The details of this difference are as follows :

Net pension liability change $ (13,688,688)

Pension deferred inflows of resources change 3,191,699
Pension deferred outflows of resources change 8,003,673
Net adjustment to decrease net changes in fund balances – total governmental
funds to arrive at changes in net position of governmental activities $ (2,493,316)

41
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 2 – Reconciliation of government-wide and fund financial statements (Continued):

Explanation of certain differences between the governmental fund statement of revenues
expenditures, and changes in fund balances and the government-wide statement of activities
(Continued):

Another element of that reconciliation states that “The statement of activities reports other postemployment
benefits expense and other activity related to the other postemployment benefits liability and the related
deferred inflows/outflows of resources.” The details of this difference are as follows:

Other postemployment benefits liability change $ (12,109,972)

Other postemployment benefits deferred inflows of resources change 61,819
Other postemployment benefits deferred outflows of resources change 7,486,438
Net adjustment to decrease net changes in fund balances – total governmental
funds to arrive at changes in net position of governmental activities $ (4,561,715)

Another element of that reconciliation states that “Some expenses reported in the statement of activities do
not require the use of current financial resources and therefore are not reported as expenditures in
governmental funds.” The details of this difference are as follows (in thousands):

Compensated absences liability change $ (69,334)

Claims and judgments liability change (279,558)
Accrued interest payable change (149,320)
Net adjustment to decrease net changes in fund balances – total governmental
funds to arrive at changes in net position of governmental activities $ (498,212)

42
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 3 – Stewardship, Compliance and Accountability

A. BUDGETARY INFORMATION

The City follows these procedures in establishing budgetary data reflected in the financial statements.

1. The Finance Division of the Department of Administration prepares estimates of available revenue.

2. Department Directors submit proposed expenditure budgets to the Finance Division of the Department
of Administration by June 1 each year.

3. The Finance Division of the Department of Administration reviews the expenditure budgets, and the
necessary revisions are communicated to department directors.

4. Budgeted revenues and expenditures are balanced, and a summary budget is prepared by July 1, and
presented to the Mayor.

5. The Mayor submits the proposed budget to the City Council by August 1. The final budget is approved
by September 15 and must be published in a local newspaper on or before September 30.

6. The budget is formally amended in September each year or any time that budget revisions through
funds reallocation are necessary or a budget deficit is indicated.

7. The City prepares annual budgets for the General Fund, Special Revenue Funds, Debt Service Fund,
Capital Projects Funds, Enterprise Funds, Internal Service Fund and Trust Funds (with the exception
of the Charitable Trust Fire and Police Fund). The Mississippi law requires that municipalities budget
on modified-cash basis. Claims that have been incurred prior to the end of the year and are paid within
30 days after the end of the year are recorded in the year they are budgeted. Prior year claims that are
paid more than 30 days after the end of the year are reflected as expenditures of the year in which they
are paid. All revenue is accounted for under the cash basis. The required budgetary basis is therefore
not considered to be in accordance with U.S. generally accepted accounting principles.

Expenditures other than capital outlay, election, and other emergency expenditures may not legally
exceed budgeted appropriations at the purpose level (e.g., personal services, other services and
charges, and debt services). Budget and actual comparisons are presented in the accompanying
financial statements for all governmental type funds for which a budget is adopted.

The legal level of control for all budgets adopted is at the purpose level by funds with the exception of
the General Fund, which is appropriated at the purpose level by department. Administrative control
for all budgets is maintained through the establishment of more detailed line-item budgets.

During the fiscal year, several adjustments are normally required to the adopted budget. The approved
budget may be amended as required in accordance with the following protocol:

a. Revenues are reviewed at least quarterly, and the projections are adjusted if warranted. These
adjustments to expected revenues, if material, can precipitate adjustments to the expenditure
budget.
b. Adjustments to transfer approved expenditure budgets from one department to another or to
transfer from one purpose to another within a department must be approved by the City Council.
c. All new appropriations must be approved by the City Council and are normally submitted by the
Mayor’s Office.

43
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 3 – Stewardship, Compliance and Accountability (Continued):

A. BUDGETARY INFORMATION (Continued):

The Finance Division of the Department of Administration exercises budgetary monitoring throughout
the fiscal year. An adopted budget may not exceed its appropriated level without City Council approval.
The Finance Division of the Department of Administration advises the Mayor whenever a requested
expenditure will exceed budgeted amounts. Adjustments in expenditure rates, if necessary, are
implemented by the City Council as required, so that the total expenditures and resources will remain
in balance throughout the year.

8. Budgeted expenditure or expense amounts as originally adopted were amended by the City Council in
September 2020 as provided by law, as follows (in thousands):

Originally
Budget as Increase
Adopted
Amended (Decrease)
Budget
General Fund $ 134,213 $ 163,181 $ 28,968
Special Revenue Funds 39,857 59,408 19,551
Debt Service Fund 24,877 26,309 1,432
Capital Projects Funds 19,844 89,343 69,499
Enterprise Funds 217,548 264,866 47,318
Internal Service Fund 17,175 17,175 -
$ 453,514 $ 620,282 $ 166,768

9. Unexpended appropriations lapse at year-end in all funds.

44
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds

A. DEPOSITS AND INVESTMENTS

1. Policies and Practices

The collateral for public entities’ deposits in financial institutions is held in the name of the State Treasurer under a program
established by the Mississippi State Legislature and is governed by Section 27-105-5, Mississippi Code Ann. (1972). Under
this program, the entity’s funds are protected through a collateral pool administered by the State Treasurer. Financial
institutions holding deposits of public funds must pledge securities as collateral against those deposits. In the event of failure
of a financial institution, securities pledged by that institution would be liquidated by the State Treasurer to replace the public
deposits not covered by the Federal Deposit Insurance Corporation (FDIC).

2. Deposits – Primary government

Of the City’s cash deposit balances (including certificates of deposit) at September 30, 2020, up to $250,000 at each financial
institution was insured by federal deposit insurance and the remainder was covered by pooled and/or pledged collateral, as
allowed by the Mississippi Code.

Restricted cash and cash equivalents in the Water & Sewage Disposal System Fund consisted of the following at September
30, 2020:
Revenue bond reserve funds:
Debt service fund $ 1,596,376
Contingent fund 6,968,274
Operation & maintenance fund 3,484,137
12,048,787
Customer deposits 6,331,530
Unspent debt proceeds 1,895,352
Capital improvement fund under U.S. EPA consent decree 5,145,337
Total restricted cash and cash equivalents $ 25,421,006

3. Investments – Primary Government

Following is a summary of the City’s investments, which are reflected as cash equivalents in the financial statements, as of
September 30, 2020:

Investment Type Quality Ratings Maturities (in years) Total Fair Value Level 1 Fair Value
Money market mutual funds Aaa/AAA Less than 1 $20,833,230 $20,833,230

Fair Value – Fair value measurements are categorized within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3
inputs are significant unobservable inputs. The recurring fair value measurements as of September 30, 2020, are reflected
above.

Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The
Moody’s or Standard and Poor’s credit ratings for the investments are reflected above.

Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment.
As a means of limiting its exposure to losses from rising interest rates, the City’s investment policy limits investment maturities
in its portfolio to no more than 12 months for U.S. Treasury obligations for all investments except bond funds. With respect to
bond funds, the City can invest in obligations of U.S. federal agencies for no more than 18 months.

Custodial Credit Risk – Custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able
to recover the value of its investment or collateral securities that are in the possession of an outside party. Consistent with the
City’s investment policy, all investments above are held by counterparty and are not insured.

45
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

A. DEPOSITS AND INVESTMENTS (Continued):

Following is a list of the City's eligible investments, which in accordance with State statute are limited to the
investment of funds in excess of sums required for immediate expenditure or current obligations:
 Certificates of deposit with municipal depositories approved annually by the State Treasurer
 Money market mutual funds where portfolios consist entirely of U. S. governmental and/or federal
agency securities
 Bonds or direct obligations of:
- United States of America
- State of Mississippi
- Counties or Municipalities of Mississippi
- School Districts in Mississippi

State statute allows the investment of funds received from the sale of bonds, notes, or certificates of indebtedness,
which are not immediately required for disbursement for the purpose issued, in direct obligations issued by or
guaranteed in full by the United States of America, or in certificates of deposit with approved municipal
depositories.

4. Cash and Investments - Component Units

The component units’ policies are to invest available funds in the following types of investments: 1) direct
obligations of the United States of America, including such instruments as treasury bills, treasury notes and
treasury bonds; 2) obligations of U. S. Government agencies that are deliverable on the Federal Reserve System;
3) Repurchase agreements in U. S. Government securities made with dealers that report to and are regulated by
the Federal Reserve Bank; 4) deposits with financial institutions which are insured or are fully collateralized by
qualifying securities.

The collateral for public entities’ deposits in financial institutions is held in the name of the State Treasurer under
a program established by the Mississippi State Legislature and is governed by Section 27-105-5, Mississippi Code
Ann. (1972). Under this program, the entity’s funds are protected through a collateral pool administered by the
State Treasurer. Financial institutions holding deposits of public funds must pledge securities as collateral against
those deposits. In the event of failure of a financial institution, securities pledged by that institution would be
liquidated by the State Treasurer to replace the public deposits not covered by the Federal Deposit Insurance
Corporation (FDIC). As of September 30, 2020, all of the component units’ cash deposits in excess of the amounts
covered by the FDIC were covered under the collateral pool administered by the State Treasurer.

Restricted cash of the Capital City Convention Center Commission and the Jackson Redevelopment Authority is
restricted for debt service.

Investments are reflected at cost, which approximates fair value, and are uninsured, unregistered, and held by
the counterparty brokerage firm. At September 30, 2020, the component units did not have any investments.

46
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

B. RECEIVABLES AND PAYABLES

Receivables at September 30, 2020, for the primary government’s individual major funds and nonmajor, internal service, and
fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows (in thousands):
1% Federal Water and Non-Major
General Infrastructure Grants Sewage Sanitation and Other
Fund Tax Fund Fund Disposal Fund Fund Funds Total
Property taxes $ 56,104 $ - $ - $ - $ - $ 22,138 $ 78,242
Sales taxes 4,534 2,541 - - - 1,172 8,247
Franchise fees 1,403 - - - - - 1,403

Federal and state

assistance 132 - 9,447 8,535 - 7,553 25,667
Water, sewer, and sanitation
user charges - - 126,549 19,498 - 146,047
Debt proceeds 8,747 - - - 211 188 9,146
Other 466 - 352 - - 1,209 2,027
Gross receivables 71,386 2,541 9,799 135,084 19,709 32,260 270,779
Allowance for uncollectible - - (317) (80,109) (12,474) (32) (92,932)
Net receivables $ 71,386 $ 2,541 $ 9,482 $ 54,975 $ 7,235 $ 32,228 $ 177,847

Revenues are reported net of uncollectible amounts. The uncollectible amounts netted from revenue of the water and sewage
disposal fund and the sanitation fund were $5,944,632 and $1,095,283, respectively, for the year ended September 30, 2020.

Deferred inflows of resources related to the receivables consisted of the following at September 30, 2020 (in thousands):
Water and
1% Federal Sewage Non-Major
General Infrastructure Grants Disposal Sanitation and Other
Fund Tax Fund Fund Fund Fund Funds Total
Property taxes levied for the
subsequent year $ 55,232 $ - $ - $ - $ - $ 21,920 $ 77,152

Long-term receivables
unavailable for current use - - 35 - - - 35
Net receivables $ 55,232 $ - $ 35 $ - $ - $ 21,920 $ 77,187

Amounts reflected as accounts payable and other liabilities at September 30, 2020, for the primary government’s individual
major funds and nonmajor and internal service funds in the aggregate, are as follows (in thousands):
1% Federal Water and Non-Major
General Infrastructure Grants Sewage Sanitatio and Other
Fund Tax Fund Fund Disposal Fund n Fund Funds Total
Accounts payable $ 4,285 $ 2,236 $ 2,195 $ 8,612 $ 847 $ 8,770 $ 26,945
Payroll and benefits 2,952 - 86 331 28 173 3,570
Seized and forfeited cash 2,585 - - - - - 2,585
Health claims - - - - - 1,771 1,771
Others 8 - - 60 - - 68
$ 9,830 $ 2,236 $ 2,281 $ 9,003 $ 875 $ 10,714 $ 34,939

47
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

B. RECEIVABLES (Continued):

1. Property taxes

Property taxes on real and personal property, exclusive of automobiles, attach as an enforceable lien on the levy
date or January 1 for the preceding calendar year. Hinds, Rankin and Madison Counties bill and collect the real,
personal and auto ad valorem taxes for the City of Jackson, Jackson Municipal Separate School District and the
Jackson/Hinds Library System. Automobile taxes are remitted monthly and real and personal property taxes are
remitted on a weekly basis to the City of Jackson. Hinds County remits directly to the Jackson Municipal Separate
School District taxes collected for all school funds except the Bond and Interest Fund in accordance with State
law. Hinds County also remits to the City a pro rata shares of road and bridge taxes collected by the County.

The taxes are due on or before February 1; however, installment payments can be made for one-half of the
balance due on February 1 and one-fourth each on May 1 and August 1.

Tax millage levies for 2020 were collected in the current fiscal year and statutory maximum millage rates were as
follows:

Fund Levy (in mills) Purpose Maximum

General Fund 49.30 General None
Parks and Recreation Fund 2.00 Recreation 2.00 mills
Debt Service Fund 6.15 Debt retirement None
Disability and Relief Fund 3.87 Retirement None
Total City of Jackson 61.32

Jackson/Hinds Library System 1.71 Public library None

Jackson Municipal Separate

School District:
District Supplement Levy 65.91 Public schools None
Special Debt Retirement Bond 2.92 Public schools None
Special Debt Retirement Bond 13.44 Public schools None
Special Debt Retirement Bond 0.25 Public schools None
Special Debt Retirement Bond 4.34 Public schools None
86.86

Total mills 149.89

The City levies an assessment for the Business Improvement fund, which consists of ten cents times the gross
square footage of land and building of property owners located in the downtown development district. The City is
permitted to levy taxes based on a percentage of up to 100% of fair value of property at the millage indicated
above. At the present time, the City levies taxes based on 11% of fair value for homeowner-occupied real property,
15% of fair value for all other real and personal property, and 30% of fair value for all motor vehicles and property
owned by public service corporations. The City may levy taxes as necessary to meet bonded debt retirement.
Limitations are imposed on the amount of bonded debt that may be issued based upon assessed valuation of
properties.

Annual tax increases for all purposes except payment of general obligation bonds and interest are limited by State
law to 10% of the preceding year's receipts plus new construction.

48
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

C. CHANGES IN CAPITAL ASSETS
Primary government capital asset activity for the year ended September 30, 2020, was as follows (in thousands):

Balance Balance
October 1, September 30,
Governmental Activities: 2019 Additions Deletions 2020
Capital assets not being depreciated:
Land $ 13,721 $ - $ - $ 13,721
Construction in progress 32,444 33,963 (30,198) 36,209
Total capital assets not being depreciated 46,165 33,963 (30,198) 49,930
Capital assets being depreciated:
Buildings 108,317 952 - 109,269
Infrastructure 343,019 33,027 - 376,046
Automotive and equipment 78,931 4,846 (1,775) 82,002
Total capital assets being depreciated 530,267 38,825 (1,775) 567,317
Less accumulated depreciation for:
Buildings (38,485) (1,935) - (40,420)
Infrastructure (134,770) (8,961) - (143,731)
Automotive and equipment (65,256) (3,652) 1,695 (67,213)
Total accumulated depreciation (238,511) (14,548) 1,695 (251,364)
Total capital assets being depreciated, net 291,756 24,277 (80) 315,953
Total governmental activities capital assets, net $ 337,921 $ 58,240 $ (30,278) $ 365,883

Balance Balance
October 1, September 30,
Business-Type Activities: 2019 Additions Deletions 2020
Capital assets not being depreciated:
Land $ 1,838 $ - $ - $ 1,838
Construction in progress 2,108 18,525 (1,213) 19,420
Total capital assets not being depreciated 3,946 18,525 (1,213) 21,258

Capital assets being depreciated:

Buildings 11,978 - - 11,978
Infrastructure 734,435 1,213 - 735,648
Automotive and equipment 32,387 4,014 (1,181) 35,220
Total capital assets being depreciated 778,800 5,227 (1,181) 782,846

Less accumulated depreciation for:

Buildings (1,676) (288) - (1,964)
Infrastructure (281,110) (61,999) - (343,109)
Automotive and equipment (22,985) (1,892) 1,181 (23,696)
Total accumulated depreciation (305,771) (64,179) 1,181 (368,769)
Total capital assets being depreciated, net 473,029 (58,952) - 414,077
Total business-type activities capital assets,
net $ 476,975 $ (40,427) $ (1,213) $ 435,335

49
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

C. CHANGES IN CAPITAL ASSETS (Continued):

2. Depreciation expense was charged to functions of the primary government as follows (in thousands):

Governmental Activities:
General government $ 1,309
Public Works 9,602
Human & Cultural 1,455
Public Safety 2,182
Total Depreciation Expense – Governmental Activities $ 14,548

Business-Type Activities:
Water/Sewage Disposal $ 17,702
Sanitation 146
Madison-Ridgeland Sewage 15
Transportation 1,182
Total Depreciation Expense – Business-type Activities $ 19,045

3. The Water/Sewage Disposal Fund had a litigation settlement gain for the year ended September 30, 2020,
related to a contract for water meters, billing systems, and related service. The gain consists of the following
(in thousands):

Litigation settlement gross amount $ 89,800j

Attorneys contingent fees and expenses (29,971)
Capital assets impairment (reflected as an increase in accumulated depreciation) $ (45,134)
Litigation settlement gain $ 14,695j

4. Construction work in progress at September 30, 2020 for the governmental activities of the primary
government is composed of the following:

REMAINING
SPENT-TO-DATE COMMITMENT

FY20 FY20
Community Development Block Grant $ - $ 6,714
1998 G O Public Improvement Construction Bond - 13,012
2003 G O Public Improvement Construction Bond 226,505 594,094
2008 G O Street Construction Bond - 19,736
Capital Street 2-Way Project - 356,889
Museum to Market Trail 1,104,465 989
Economic Development Initiative
Traffic - Repair and Replacement 1,995,870 46,350
Resurfacing- Repair and Replacement 8,001,998 82,768
1% Infrastructure Tax 13,901,234 885,328
Hail Damage March 2013 - 20,883
Tiger Grant 10,978,611 90,186
Total $ 36,208,683 $ 2,116,769

50
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

C. CHANGES IN CAPITAL ASSETS (Continued)

5. Construction work in progress at September 30, 2020 for primary government enterprise funds is composed
of the following:

Project Spent-To-Date Remaining Commitment

FY20 FY20
Water/Sewer Construction Fund $ 19,420,108 $ 431,161
Total $ 19,420,108 $ 431,161

6. A summary of changes in capital assets for component units is as follows (in thousands):

Activity for the Jackson Redevelopment Authority for the year ended September 30, 2020, was as follows (in
thousands):
Balance
Balance September 30,
Business-Type Activities: October 1, 2019 Additions Deletions 2020
Capital assets not being depreciated:
Land $ 5,268 $ - $ - $ 5,268
Property held for development 5,951 48 - 5,999
Total capital assets not being depreciated 11,219 48 - 11,267
Other capital assets:
Land improvements 76 - - 76
Buildings 50,635 - - 50,635
Equipment and furniture 1,515 - - 1,515
Total other capital assets 52,226 - - 52,226
Less accumulated depreciation for:
Land improvements (48) - - (48)
Buildings (29,134) (1,233) - (30,367)
Equipment and furniture (1,477) - - (1,477)
Total accumulated depreciation (30,659) (1,233) ¤ - (31,892)
Total other capital assets, net 21,567 (1,233) - 20,334
Total capital assets, net $ 32,786 $ (1,185) $ - $ 31,601

Activity for the Capital City Convention Center Commission for the year ended September 30, 2020, was as follows
(in thousands):

Balance Balance
October 1, September 30,
Business-Type Activities: 2019 Additions Deletions 2020
Capital assets not being depreciated:
Land and improvements $ 5,828 $ - $ - $ 5,828
Total capital assets not being depreciated 5,828 - - 5,828
Capital assets being depreciated:
Building and improvements 80,113 - - 80,113
Equipment 5,607 5 - 5,612
Total other capital assets 85,720 5 - 85,725
Less accumulated depreciation (26,959) (2,147) - (29,106)
Other capital assets, net 58,761 (2,142) - 56,619
Total capital assets, net $ 64,589 $ (2,142) $ - $ 62,447

51
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

D. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS:

Individual fund interfund receivable and payable balances as of September 30, 2020 follow (in thousands):

Interfund Interfund
Receivables Payables
General Fund $ 4,064 $ -
Federal Grants Special Revenue Fund - 4,064
Total $ 4,064 $ 4,064

The General Fund interfund receivable from the Federal Grants Special Revenue Fund was to provide temporary
cash flow for operations.

Summary of transfer in/transfer out within primary government (in thousands):

Transfer Transfer
In Out
General Fund $ - $ 11,818
1% Infrastructure Tax Capital Project Fund - 4,474
Federal Grants Special Revenue Fund 891 -
Infrastructure Bond 2020 Capital Project Fund - 3,216
Water/Sewage Disposal System Fund 5,894 7,589
Sanitation Fund 7,710 -
Nonmajor Governmental Funds 11,139 1,900
Nonmajor Proprietary Funds 3,363 -
Total $ 28,997 $ 28,997

Interfund transfers at September 30, 2020 consist of the following (in thousands):

From the 1% infrastructure Tax Capital Project Fund to the Water/Sewage Disposal System Fund for
$ 4,127 infrastructure projects.
891 From the General Fund to the Federal Grants Special Revenue Fund to subsidized grant programs.
1,033 From the General Fund to the Water/Sewage Disposal System Fund to subsidize operations.
121 From the General Fund to the Sanitation Fund to subsidize operations.
6,410 From the General Fund to the Nonmajor Governmental Funds to subsidize operations.
3,363 From the General Fund to the Nonmajor Proprietary Fund to subsidize operations.
From the Water/Sewage Disposal System Fund litigation settlement proceeds to the Sanitation Fund to subsidize
7,589 operations.
3,216 From the Infrastructure Bond 2020 Capital Project Fund to the Nonmajor Debt Service Fund for debt service.
347 From the 1% Infrastructure Tax Capital Project Fund to the Nonmajor Debt Service Fund for debt service.
1,116 From a Nonmajor Capital Project Fund to another Nonmajor Capital Project Fund for capital projects.
734 From Nonmajor Capital Project Funds to the Water/Sewage Disposal System Fund for infrastructure projects.
$ 28,997 Total

52
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

E. CAPITAL LEASES:

The City leases property with varying terms and options. Most leases contain a clause that states that the lease
shall terminate in the event that no funds or insufficient funds are appropriated. However, if renewal is reasonably
assured, leases are considered noncancellable leases for financial reporting purposes.

The City has financed through lease agreements the acquisition of various equipment and a building. These lease
agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present
value of future minimum lease payments as of the date of their inception. Future minimum lease payments for
capital leases are disclosed in Note 4.G.8. At September 30, 2020, there were capital assets under capital leases
with a total cost of $36,002,632 and estimated accumulated depreciation of $12,324,625. Amortization of the
capital lease assets is included in depreciation expense.

F. OPERATING LEASES:

The City is obligated under certain noncancellable leases for land, buildings and equipment with terms remaining
more than one year that are classified as operating leases. Operating leases do not give rise to property rights;
therefore, the results of the lease agreements are not reflected in the City's capital assets. The following is a
schedule by years of future minimum lease payments required under the noncancellable land and building
operating leases as of September 30, 2020, (in thousands):

Fiscal Year Amount

2021 $ 577
2022 368
2023 303
2024 268
2025 213
2026 - 2030 328
2031 – 2035 162
2036 – 2040 162
2041 – 2045 162
2046 – 2050 162
2051 – 2055 162
2056 – 2060 162
2061 – 2065 162
2066 – 2070 162
2071 – 2075 162
2076 – 2080 162
2081 – 2085 162
2086 $ 32
Total $ 3,871

The total rental expenditures for all operating leases of the City for the year ended September 30, 2020 totaled
$1,213,777. There were no subleases or contingent rentals associated with the operating leases.

53
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT:

1. General Obligation Bonds

The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for both general government and proprietary activities.
These bonds therefore are reported in the proprietary funds if they are to be repaid from proprietary revenues.

The City issued $20 million of general obligation bonds in January 2003 to provide funds for the costs of: (A)
erecting, repairing, improving, and equipping municipal buildings, (B) improving streets, (C) traffic signals, (D)
drainage improvements.

On September 1, 2010, the City issued $23,665,000 in General Obligation Refunding Bonds Series A & B. The
bonds were issued to provide funds to the City in order to refund, defease and/or restructure certain outstanding
maturities on the $5,490,000 General Obligation Refunding Bond, Series 1998, the $35,000,000 General
Obligation Bonds, Series 1998, the $20,000,000 General Obligation Bonds, Series 2003, the $20,960,000 General
Obligation Refunding Bonds, Series 2005, the $5,155,000 General Obligation Refunding Bonds, Series 2008, and
the $26,210,000 General Obligation Bonds, Series 2009, and to pay the costs of issuance. The average interest
rate on the 2010 General Obligation Refunding Bond is 4.17%. The 1998 General Obligation Bond $5,490,000,
the 1998 General Obligation Bond $35,000,000, and the 2008 General Obligation Bond $5,155,000 are
considered to be defeased and the liability for those bonds have been removed from the Government-Wide
Statement of Net Position. A portion of the 2003 General Obligation Bond $20,000,000, 2005 General Refunding
Bond $20,960,000, and the 2009 General Obligation Bond $26,210,000 were not refunded.

On February 21, 2013, the City issued $64,940,000 in General Obligation Refunding Bonds, Series 2013. The
proceeds of the Series 2013 Bonds were used by the City for the purposes of (a) refunding, defeasing and/or
restructuring all or a portion of the outstanding maturities of the 2006 City Bond and (b) paying certain costs of
issuance of the Series 2013 Bonds and the City Bond. The 2006 Bank Bonds were issued to provide funds to
purchase the 2006 City Bond. The proceeds of the 2006 City Bond were used by the City to finance construction
and equipping of the Capital City Convention Center (the “Convention Center”).

On December 18, 2015, the City issued $17,635,000 in General Obligation Refunding Bonds Series 2015 A & B.
The bonds were issued for the purpose of (a) refunding, defeasing and restructuring all or a portion of the
outstanding maturities on the original principal amount of (i) $20,000,000 Mississippi Development Bank Special
Obligation Bonds, Series 2003 (City of Jackson, Mississippi General Obligation Bonds Project) dated January 15,
2003, and a corresponding portion of the $20,000,000 City of Jackson, Mississippi General Obligation Bond,
Series 2003, (ii) $20,960,000 City of Jackson, Mississippi General Obligation Bonds, Series 2005, dated August
4, 2005, (iii) $65,000,000 Mississippi Development Bank Special Obligation Bonds, Series 2006 (City of Jackson,
Mississippi General Obligation Capital City Convention Center Project), dated November 8, 2006, and a
corresponding portion of the $65,000,000 City of Jackson, Mississippi General Obligation Bond, Series 2006
(Capital City Convention Center Project), (iv) $26,210,000 Mississippi Development Bank Special Obligation
Bonds, Series 2009 (City of Jackson, Mississippi General Obligation Street Resurfacing Project), dated January
6, 2009, and a corresponding portion of the $26,210,000 City of Jackson, Mississippi General Obligation Street
Resurfacing Bond, Series 2009, and (v) $64,940,000 Mississippi Development Bank Special Obligation Bonds,
Series 2013 (City of Jackson, Mississippi General Obligation Capital City Convention Center Refunding Project),
dated February 28, 2013, and a corresponding portion of the $64,940,000 City of Jackson, Mississippi General
Obligation Refunding Bond, Series 2013 (Capital City Convention Center Project), and (b) paying the costs
incident to the sale and issuance of the Series 2015 A & B Bonds.

The average interest rate on the 2015 General Obligation Refunding Bond is 4.15%. The 2005 General Obligation
Bond $20,960,000 and the 2006 General Obligation Bond $65,000,000 are considered to be defeased and the
liability for those bonds have been removed from the Government-Wide Statement of Net Position. A portion of
the 2003 General Obligation Bond $20,000,000, the 2009 General Obligation Bond $26,210,000, and the 2013
General Obligation Refunding Bond $64,940,000 were not refunded.

54
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

On August 30, 2016, the City issued $12,384,000 in General Obligation Refunding Bonds, Series 2016. The
bonds were issued to provide funds for the purpose of advance refunding and defeasing a portion of the
$26,210,000 (original principal amount) Mississippi Development Bank Special Obligation Bonds, Series 2009
(City of Jackson, Mississippi General Obligation Street Resurfacing Project), dated January 6, 2009. The average
interest rate on the 2016 General Obligation Refunding Bond is 2.125%. A portion of the 2009 General Obligation
Bond $26,210,000 were not refunded.

General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds
generally are issued as serial bonds in denominations of $5,000 with principal maturing annually and interest due
at various semi-annual dates. General obligation bonds currently outstanding at September 30, 2020, were as
follows (in thousands):

Final
Date of Maturity
General Obligation Bonds: Obligation Interest Rate Date Issued Outstanding
MS Development Bank GO Bonds, Series 2003 01/05/03 2.00 – 5.25% 03/01/23 $ 20,000 $ 4,370
General Obligation Refunding, Series 2010A 09/01/10 3.00 – 5.00% 09/01/24 16,655 12,120
General Obligation Refunding, Series 2010B 09/01/10 4.37% 09/01/24 7,010 4,875
General Obligation Refunding, Series 2013 02/21/13 3.00 – 5.00% 03/01/36 64,940 59,505
General Obligation Refunding, Series 2015A 12/18/15 3.00 – 5.00% 05/01/36 17,465 17,455
General Obligation Refunding, Series 2015B 12/18/15 2.95% 05/01/20 170 -
General Obligation Refunding, Series 2016 08/30/16 3.00 – 4.00% 01/01/24 12,384 9,338
Total General Obligation Bonds $ 107,663

55
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

2. Revenue Bonds

On September 1, 2011, the City issued $46,720,000 and $2,565,000 in Water/Sewer System Revenue Refunding
Bonds to advance refund $42,355,000 of outstanding Water/Sewer System Revenue Bonds, Series 2002,
$1,140,000 of outstanding Water/Sewer Revenue Refunding, Series 2004, and $2,790,000 of outstanding
Water/Sewer Revenue Refunding, Series 2005. The purpose for issuing the Tax-Exempt Bonds is (a) to fund the
2011A Purchase Account, in order to provide funds for the purchase of the Tax-Exempt City Bond (which amounts
are to provide financing for the refunding, defeasance and/or restructuring of a portion of the Prior Bonds pursuant
to the Act), (b) to pay the premium for the Bond Insurance Policy and the Surety Bond for the Tax-Exempt Bonds,
and (c) to fund the 2011A Bond Issuance Expense Account to pay the Costs of Issuance in connection with the
Tax-Exempt Bonds and the Tax-Exempt City Bond. The purpose for issuing the Taxable Bonds is (a) to fund the
2011B Purchase Account, in order to provide funds for the purchase of the Taxable City Bond (which amounts
are to provide financing for the refunding and/or restructuring of a portion of the Prior Bonds pursuant to the Act),
(b) to pay the premium for the Bond Insurance Policy and the Surety Bond for the Taxable Bonds, and (c) to fund
the 2011B Bond Issuance Expense Account to pay the Costs of Issuance in connection with the Taxable Bonds
and the Taxable City Bond.

On September 1, 2012, the City issued $63,045,000 and $19,180,000 in Water/Sewer Revenue Refunding Bonds
to advance refund $76,120,000 of outstanding Water/Sewer System Revenue Refunding, Series 2004. The
purpose for issuing the Tax-Exempt Bonds is (a) amount will provide financing for the refunding, defeasance
and/or restructuring of the Series 2004 Bonds and the 2004 City Bonds, (b) as to the Taxable Bonds, to purchase
the Taxable City Bond, which amount will provide financing for the refunding, defeasance and/or restructuring of
the Series 2004 Bonds and 2004 City Bonds, (c) to pay premium for the Surety Bond and the Policy and (d) to
fund the costs of issuance in connection with the Series 2012 Bonds and the Series 2012 City Bonds.

On June 1, 2013, the City issued $89,990,000 in Water/Sewer Revenue Bonds with an average interest rate of
6.07. The Series 2013 Bonds are being issued pursuant to the Act for the purpose of providing funds to purchase
the Series 2013 City Bond. This amount will provide financing for improvement and repair of the system in
accordance with the Performance Contract, pay the premium for the Surety Bond and the Policy, and fund the
costs of issuance in connection with the Series 2013 Bonds and the Series 2013 City Bond.

On August 24, 2016, the City issued $17,135,000 in Water/Sewer Revenue Refunding Bonds, Series 2016. The
Series 2016 Bonds were issued to realize debt service savings and for the purpose of providing funds to: (i)
currently refund all of the City’s outstanding Water and Sewer System Revenue Refunding Bonds, Series 2005,
issued in the original principal amount of $27,180,000, of which $18,325,000 remains outstanding; (ii) pay the
premium for the Surety Bond and the Policy; and (iii) pay certain costs of issuance in connection with the Series
2016 Bonds. The average interest rate on the 2016 Water/Sewer Revenue Refunding Bonds is 4.66%. The 2005
Water/Sewer System Revenue Refunding Bonds of $27,180,000 are considered to be defeased and the liability
for those bonds have been removed from the Government-Wide Statement of Net Position.

Revenue bonds outstanding at September 30, 2020, were as follows (in thousands):
Final
Date of Interest Maturity
Revenue Bonds: Obligation Rate Date Issued Outstanding
Enterprise Funds:
Water/Sewer Revenue Refunding 2011A 09/01/11 2.50 - 5.00% 09/01/34 $ 46,720 $ 32,545
Water/Sewer Revenue Refunding 2011B 09/01/11 4.07 - 5.40% 09/01/34 2,565 1,910
Water/Sewer Revenue Refunding 2012A 09/01/12 3.50 - 5.00% 09/01/34 63,045 62,670
Water/Sewer Revenue Refunding 2012B 09/01/12 1.00 - 2.375% 09/01/20 19,180 -
Water/Sewer Revenue 2013 06/01/13 5.00 - 6.875% 12/01/40 89,990 83,095
Water/Sewer Revenue Refunding 2016 08/24/16 3.00 - 4.000% 09/01/24 17,135 9,260
Total Revenue Bonds $ 189,480

56
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):
3. Tax Increment Limited Obligation Bonds

The City issued $2.270 million of tax increment limited obligation bonds in December 2007 to provide funds for
the costs of constructing certain infrastructure improvements, site development and or site preparation in
connection with the development and construction of a redevelopment project located within the City. The City
entered into an Interlocal Cooperation Agreement with Hinds County, Mississippi, to provide the pledge of certain
ad valorem tax revenues for the payment of the principal and interest on the bonds. As a result, the bonds are
not a general obligation of the City.

On April 24, 2009, the City issued $407,000 of tax increment limited obligation bonds to provide funds for
infrastructure improvements, including site utilities such as electrical, water, sanitary sewer and natural gas lines;
installation of storm drainage and site work; construction of entrances with curb and gutter, sidewalks; landscaping
of rights-of-way; installation of fencing and entry gates; capitalized interest; related engineering costs and
expenses; TIF plan preparation fees; other incidental costs; and related professional fees.

On June 19, 2009, the City issued $1,600,000 of tax increment limited obligation bonds to provide funds for
infrastructure improvements supporting the project including, installation of site utilities such as water, sanitary
sewer, and natural gas lines; landscaping of rights-of-way; capitalized interest; engineering; TIF Plan preparation
fees; other incidental costs; and related professional fees for the project.

On December 30, 2010, the City issued $2,800,000 of tax increment limited obligation bonds to provide funds for
the renovation and related construction of properties generally known as the King Edward Hotel and Garage and
the Standard Life Building and related properties located in a portion of the City Block bounded by Mill, Capitol,
Roach, and Pearl Streets.

On August 24, 2018, the City issued $4,447,000 tax increment limited obligation bonds to provide funds for
infrastructure and site improvements to the District Project located between the City’s Eastover and Fondren
neighborhoods, adjacent to the I-55 corridor and the University of Mississippi Medical Center, and to pay cost of
issuance of the Loan Obligation.

On October 15, 2018, the City issued $1,750,000 tax increment limited obligation bonds to provide funds for
infrastructure and site improvement costs of the Westin Hotel Project located in downtown Jackson, Mississippi
on Congress Avenue, to fund a debt service reserve account, and to pay the costs of issuance.

On August 30, 2019, the City issued $1,762,000 tax increment limited obligation bonds to provide funds for
infrastructure and site improvements to the Landmark Healthcare Facilities Project located in downtown Jackson,
Mississippi, the Project on Congress Avenue, to fund a debt service reserve account, and to pay the costs of
issuance.

Limited obligation bonds outstanding at September 30, 2020, are as follows (in thousands):

Final
Date of Interest Maturity
Limited Obligation Bonds: Obligation Rate Date Issued Outstanding
General Long-Term Debt:
Tax Increment Financing Bonds, 2007 12/28/07 4.47% 03/01/20 $ 2,270 $ -
Tax Increment Financing Bonds, 2009 04/23/09 4.20% 04/01/24 407 138
Tax Increment Financing Bonds, 2009 06/19/09 4.75% 07/01/22 1,600 305
Tax Increment Financing Bonds, 2010A/B 12/30/10 4.75-5.50% 03/01/30 2,800 1,344
Tax Increment Financing Bonds, 2018 08/24/18 3.83% 07/01/33 4,447 3,967
Tax Increment Financing Bonds, 2018 10/15/18 3.50% 03/15/29 1,750 1,445
Tax Increment Financing Bonds, 2019 04/02/19 4.49% 03/01/34 1,762 1,677
Total Limited Obligation Bonds $8,876
57
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

4. Section 108 Loan

On July 1, 2008, the City entered into a loan guaranty assistance agreement in an amount not to exceed the
$10,000,000 under Section 108 of the Housing and Community Development Act of 1974 for the purpose of
providing assistance for the Capital City Center Revitalization Project and for development of a revolving business
loan program. Under the Contract for Loan Guarantee Assistance between the City and HUD, HUD authorized
the City to loan up to $10,000,000 under the 108 Program to TCI MS Investment, Inc. for special economic
development activities under 24 CFR 570.703(i)(1) and 570.203(b) and, in particular, for “site assemblage” costs
for the Revitalization Project. Upon repayment of the TCI Loan, the City is authorized to use funds under the 1098
program for the Business Loan Pool.

The Revitalization Project is to consist of development of two (2) hotels, commercial and retail space, a parking
garage and residential facilities to help revitalize the City’s Central Business District while providing job creation
for persons of low and moderate income through construction activities and then through the new businesses
opened as part of the Revitalization Project. The Business Loan Pool is to be used to provide loans to for-profit
and non-profit businesses and organizations which meet the eligibility requirements of 24 CFR 570.703, the
national objective requirements of 570.208 and, if applicable, the public benefit standards of 570.209(b).

As required by the Guaranty Agreement, the City also entered into an agreement with Regions Bank to serve as
custodian of original loan and security documents for the loan to TCI. As of September 30, 2020, $5,450,000 was
outstanding under the Section 108 loan.

5. Jackson Redevelopment Authority

Urban Renewal Bonds

Urban renewal bonds issued to provide funds for various rehabilitation projects at September 30, 2020, were as
follows (in thousands):

Final
Date of Interest Maturity
Obligation_ Rate _Date Issued Outstanding
Urban Renewal Bonds:
Enterprise Funds:
Urban Renewal Bond, Series, 2011A 06/01/11 3.25%-4.50% 06/01/31 $ 7,165 $ 4,930
Urban Renewal Bond, Series, 2011B 06/01/11 5.15% 06/01/23 2,745 710
Urban Renewal Bond, Series, 2018A 11/13/18 1.375% 11/01/21 2,763 1,420
Total Urban Renewal Bonds $ 7,060

58
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

6. A summary of long-term liabilities transactions for the primary government and for the component unit for the
year ended September 30, 2020, was as follows (in thousands):
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:
General obligation bonds $ 116,621 $ - $ 8,958 $ 107,663 $ 9,414
Limited obligation bonds 9,938 1,061 8,877 851
State revolving loan (MDA) 431 - 99 332 75
Miss. Development Bank Loan 1,002 - 273 729 294
Mississippi Development Bank Note - 32,140 - 32,140 2,545
Section 108 Loan 6,100 - 650 5,450 650
Capital lease obligations 13,947 8,935 2,929 19,953 3,619
Issuance discount (313) - (22) (291) -
Issuance premium 5,787 6,747 577 11,957 -
Total Long-Term Debt Payable 153,513 47,822 14,525 186,810 17,448

Net pension liability 192,079 13,689 - 205,768 -

Other Post-employment benefits 46,745 12,110 - 58,855 1,112
Claims and judgments 5,634 1,093 295 6,432 3,324
Workers’ Compensation Claims 2,498 - 519 1,979 1,152
Compensated absences 4,039 786 716 4,109 655
250,995 27,678 1,530 277,143 6,243

Total Governmental Activities $ 404,508 $ 75,500 $ 16,055 $ 463,953 $ 23,691

Business-Type Activities

General Obligation Note $ - $ 2,932 $ - $ 2,932 $ -

Revenue bonds 198,185 - 8,705 189,480 9,015
State revolving loan (DEQ) 26,867 11,730 1,950 36,647 1,992
State revolving loan (DOH) 3,620 4,392 101 7,911 276
State revolving loan (MDA) 2,868 - 853 2,015 853
Capital lease obligations 2,303 211 284 2,230 359
Issuance discount (698) - (48) (650) -
Issuance premiums 12,225 - 777 11,448 -
Total Long-Term Debt Payable 245,370 19,265 12,622 252,013 12,495

Net pension liability 19,250 12 - 19,262 -

Other Post-employment benefits 6,830 1,125 - 7,955 150
Compensated absences 495 80 119 456 119
26,575 1,217 119 27,673 269

Total Business-type activities $ 271,945 $ 20,482 $ 12,741 $ 279,686 $ 12,764

Component Unit - Jackson Redevelopment

Authority:
Urban Renewal bonds $ 8,522 $ - $ 1,462 $ 7,060 $ 1,524
Issuance discount (136) - - (136) -
Total Component Unit $ 8,386 $ - $ 1,462 $ 6,924 $ 1,524

59
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

7. The City's legal debt margin for the issuance of general obligation bonds was $78,927,000 at September 30,
2020.

8. Annual Maturities Requirements

The annual requirements to amortize all long-term debts outstanding of September 30, 2020, including interest,
by source of retirement are as follows (in thousands):

Debt Service Fund (Special Tax Levy)

General Obligation Bonds

Fiscal Year Interest Principal Total

2021 $ 4,066 $ 9,414 $ 13,480

2022 3,655 9,911 13,566
2023 3,221 10,426 13,647
2024 2,810 10,922 13,732
2025 2,548 3,980 6,528
2026 – 2030 12,569 23,965 36,534
2031 – 2035 5,160 31,565 36,725
2036 – 2040 199 7,480 7,679
Total $ 34,228 $ 107,663 $ 141,891

State Revolving Loan MDA

Fiscal Year Interest Principal Total

2021 $ 5 $ 75 $ 80
2022 4 50 54
2023 3 51 54
2024 2 52 54
2025 2 52 54
2026-2030 1 52 53
Total $ 17 $ 332 $ 349

60
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

MS Development Bank Loans

Fiscal Year Interest Principal Total
2021 $ 31 $ 294 $ 325
2022 31 294 325
2023 9 87 96
2024 5 54 59
Total $ 76 $ 729 $ 805

Limited Obligation Bonds

Fiscal Year Interest Principal Total
2021 $ 313 $ 851 $ 1,164
2022 364 785 1,149
2023 463 543 1,006
2024 444 566 1,010
2025 404 569 973
2026 - 2030 800 3,877 4,677
2031 - 2035 148 1,686 1,834
Total $ 2,936 $ 8,877 $ 11,813

1% Infrastructure Tax Special Revenue Fund

Mississippi Development Bank Note

Fiscal Year Interest Principal Total
2021 $ 1,611 $ 2,545 $ 4,156
2022 1,480 2,685 4,165
2023 1,346 2,820 4,166
2024 1,205 2,960 4,165
2025 1,056 3,105 4,161
2026 - 2030 2,791 18,025 20,816
Total $ 9,489 $ 32,140 $ 41,629

61
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

General Fund (General Fund Revenues)

Obligation Under Capital Leases

Fiscal Year Interest Principal Total
2021 $ 286 $ 3,619 $ 3,905
2022 231 2,955 3,186
2023 227 2,890 3,117
2024 203 3,010 3,213
2025 100 1,410 1,510
2026 – 2030 175 5,692 5,867
2031 - 2035 9 377 386
Total $ 1,231 $ 19,953 $ 21,184

HUD Section 108

Fiscal Year Interest Principal Total
2021 $ 29 $ 650 $ 679
2022 29 650 679
2023 29 650 679
2024 29 650 679
2025 29 650 679
2026 - 2030 91 2,200 2,291
Total $ 236 $ 5,450 $ 5,686

Enterprise Funds - Water/Sewage Disposal System Fund (Water/Sewer Revenue)

Revenue Bonds
Fiscal Year Interest Principal Total
2021 $ 10,142 $ 9,015 $ 19,157
2022 9,750 9,405 19,155
2023 9,333 9,820 19,153
2024 8,849 10,300 19,149
2025 8,173 8,565 16,738
2026 – 2030 34,062 50,440 84,502
2031 – 2035 22,978 55,425 78,403
2036 – 2040 7,785 29,335 37,120
2041 - 2045 247 7,175 7,422
Total $ 111,319 $ 189,480 $ 300,799

62
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

Obligations Under Capital Leases

Fiscal Year Interest Principal Total
2021 $ 36 $ 359 $ 395
2022 35 237 272
2023 27 224 251
2024 23 155 178
2025 23 155 178
2026 - 2030 45 818 863
2031 - 2035 5 282 287
Total $ 194 $ 2,230 $ 2,424

General Obligation Note

Fiscal Year Interest Principal Total
2021 $ - $ - $ -
2022 210 - 210
2023 95 - 95
2024 95 - 95
2025 48 2,932 2,980
Total $ 448 $ 2,932 $ 3,380

State Revolving Loans

Fiscal Year Interest Principal Total
2021 $ 520 $ 3,121 $ 3,641
2022 742 5,000 5,742
2023 663 4,003 4,666
2024 599 3,477 4,076
2025 536 3,427 3,963
2026 - 2030 1,738 15,419 17,157
2031 - 2035 684 9,083 9,767
2036 – 2040 121 3,043 3,164
Total $ 5,603 $ 46,573 $ 52,176

63
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

Jackson Redevelopment Authority (Urban Renewal Project Revenues)

Jackson Redevelopment Authority

Urban Renewal Bonds
Fiscal Year Interest Principal Total
2021 $ 300 $ 1,524 $ 1,824
2022 243 1,086 1,329
2023 214 635 849
2024 172 410 582
2025 153 425 578
2026 - 2030 462 2,425 2,887
2031 – 2035 25 555 580
Total $ 1,569 $ 7,060 $ 8,629

The City has unconditionally and irrevocably agreed to grant and contribute to the Jackson Redevelopment
Authority from the General Fund of the City sums sufficient to pay the principal of and interest on the bonds issued
by the Jackson Redevelopment Authority for urban renewal purposes, as the same shall mature and become due.
In addition, the city has agreed to contribute to the Jackson Redevelopment Authority $492,707 in May, 2021, and
$200,000 annually in June of the years 2023 through 2027. Principal and interest maturities for 2020 were paid
by contributions from the General Fund of $1,821,512.

There are a number of requirements contained in various revenue bond ordinances. As indicated in Note 1(D)
(15), the Water/Sewage Disposal Fund’s operation and maintenance fund, debt service fund, and contingent fund
were at the required amounts at September 30, 2020.

The net pension and other postemployment benefits liabilities of the governmental activities are typically
liquated by the General Fund.

64
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 4 – Detailed notes on all funds (Continued):

G. LONG-TERM DEBT (Continued):

9. Annual Maturities Requirements

The annual requirements to amortize all debt outstanding for the City and the component unit as of September
30, 2020, including interest are as follows (in thousands):
Jackson
City of Redevelopment
Fiscal Year Jackson Authority y
2021 $ 46,982 $ 1,824
2022 48,503 1,329
2023 46,930 849
2024 46,410 582
2025 37,764 578
2026 – 2030 172,760 2,887
2031 – 2035 127,402 580
2036 – 2040 47,963 -
2041 – 2045 7,422 -
Total $ 582,136 $ 8,629

10. Revenue Pledge to Secure Debt

The City has pledged its share of general sales tax collected by the State Mississippi (the State) to secure its
notes payable to the State for various public improvements and utility improvement projects. The City received
general sales tax revenue totaling $26,605,786 for the current year and made principal and interest payments on
the notes payable to the state totaling $3,967,779 during the current year. As of September 30, 2020, the future
principal and interest requirements for the notes payable totaled $53.3 million, and the maturity dates of the notes
payable extend through September, 2040.

The City has pledged its 1% infrastructure sales tax revenues to secure its limited obligation note payable to the
Mississippi Development Bank for infrastructure projects. The City received 1% infrastructure sales tax revenue
totaling $14,514,570 for the current year and made no principal or interest payments on the note payable during
the year because the first payment is due in March, 2021. As September 30, 2020, the future principal and interest
requirements for the note payable totaled $41.6 million, and the maturity date of the note payable extends through
September, 2030.

The City has pledged incremental ad valorem tax revenues resulting from commercial development projects to
secure limited obligation bonds that were issued to fund the projects. The City’s incremental ad valorem tax
revenues and interfund transfers received in the current year totaled, $1,295,387, and the City also received
63,341 from Hinds County in the current year for the county’s pledged portion of incremental ad valorem tax
revenues. The principal and interest payments made by the City on the limited obligation bonds totaled $1,410,508
during the current year. As of September 30, 2020, the future principal and interest requirements on the bonds
totaled $11.8 million, and the maturity dates extend through March, 2034.

The City has pledged Water/Sewage Disposal System Fund revenues, net of operating expenses, to repay
revenue bonds issued for utility improvement projects. The Water/Sewage Disposal System Fund had an
operating loss of $9,996,899 in the current year, and the principal and interest payments made by the City on
revenue bonds totaled $19,162,425 during the current year. As of September 30, 2020, the future principal and
interest requirements for revenue bonds totaled $301 million, and the maturity dates extend through December,
2040.

65
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020

Note 5 – GASB 54 Fund Balance Presentation – Classification Total

In accordance with GASB Statement 54, the fund balances of the governmental funds at September 30,2020, are classified by specific purpose as
follows:

Federal
1% Grants Infrastructure
Infrastructure Special Bond 2020 Total Total
Tax Capital Revenue Capital Project Nonmajor Governmental
General Fund Project Fund Fund Fund Funds Funds
Fund Balances:
Non Spendable:
Public Works Supplies Inventory $ 877,163 $ - $ - $ - $ - $ 877,163
877,163 - - - - 877,163
Restricted For:
Public Safety 3,618,080 - 135,196 - 48,458 3,801,734
Public Works Projects 542,753 18,148,748 515,096 35,001,482 2,562,249 56,770,328
Human and Cultural Services 235,492 - 864,475 - 472,060 1,572,027
Capital Outlay - equipment 10,994,989 - - - 290,387 11,285,376
Debt Service - - - - 8,568,974 8,568,974
Employee Benefits 636 - - - - 636
15,391,950 18,148,748 1,514,767 35,001,482 11,942,128 81,999,075
Committed To:
Public Works Projects 75,000 - - - 4,912,106 4,987,106
Human and Cultural Services - - - - 532,811 532,811
Employee Benefits - - - - 64,559 64,559
Tort Claims 5,099,066 - - - - 5,099,066
5,174,066 - - - 5,509,476 10,683,542
Assigned To:
Technology and Communication 189,011 - - - - 189,011
Public Works Projects 1,340,427 - - - - 1,340,427
Various Other Specific Purposes 19,226 - - - - 19,226
1,548,664 - - - - 1,548,664

Unassigned 25,523,710 - - - - 25,523,710

Total Fund Balances $ 48,515,553 $ 18,148,748 $ 1,514,767 $ 35,001,482 $ 17,451,604 $ 120,632,154

66
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information

A. RISK MANAGEMENT

1. Workers Compensation Benefits

The City maintains a self-funded workers’ compensation plan accounted for in the General Fund for claims
incurred through July, 2018. Estimates of the liability for unpaid claims are actuarially determined based on
observed patterns of claims payments and case reserves development. Liabilities are based on the ultimate costs
of settling claims, including inflation and other factors, and include provisions for estimated claims adjustment
expenses. Benefits paid to employees during fiscal year 2020 were $531,994.

Excess workers’ compensation insurance was obtained to cover the City for workers’ compensation claims
incurred through July, 2018, in excess of the City’s liability of $1,000,000. Coverage limit was up to $750,000
except $1,000,000 for police, firefighters, and first responders.

The City has obtained commercial insurance to fully cover workers’ compensation claims incurred after July, 2018.

2. Unemployment Benefits

The City also maintains an Unemployment Compensation Revolving Fund (Employee Benefit Trust Fund)
established pursuant to state law. In addition to funding all valid claims, the City is required to maintain the balance
in the fund at not less than 2% of the first $6,000 paid each employee during the preceding year and the General
Fund typically provides the necessary funding. As of September 30, 2020, the required amounts were funded.
Claims totaled $93,152 during fiscal year 2020. Estimates of the liability for unpaid claims are based on patterns
of claims payments.

3. Group Benefits

Additionally, the City maintains the Employees' Group Benefit Fund (Internal Service Fund) to account for the
accumulation of revenues, principally contributions from the City of Jackson and employees to be used to fund
future liabilities and current payment of employer medical claims and related administration expenditures of the
City's group benefit plan. The City’s contributions are typically funded primarily by the General Fund and
Water/Sewage Disposal System Fund. Revenues totaled $17,164,217 and employee benefit costs were
$17,171,682, net of $985,289 stop-loss insurance proceeds, during fiscal year 2020. Claims incurred but not
reported at September 30, 2020, in the Employees’ Group Benefit Fund are provided for based on pattern of claim
payments. The City has obtained stop-loss insurance through December 31, 2021 to cover medical claims in
excess of $300,000 annually per individual.

4. Tort Liability

In compliance with the Tort Claims Act, Chapter 46 of Title 11 and as amended by the 1993 Legislature, Section
11-46-17(3) requires all municipalities from and after October 1, 1993, to obtain such policies of insurance,
establish self-insurance reserves, or provide a combination of insurance and reserves necessary to cover all risks
of claims and suits for which the City of Jackson may be liable under the Tort Claims Act.

In order to assure compliance with the Tort Claims Act, House Bill 417 established the Mississippi Tort Claims
Board. Municipalities are required to submit plans of insurance, self-insurance and or reserves to the Tort Claims
Board for approval.

Municipalities may comply with the requirements of the Tort Claims Act by one of the following methods: (1)
Purchase of liability insurance, (2) Pooling of two or more municipalities or other political subdivisions to purchase
liability insurance or to self-insure, (3) Self-insure with the establishment of a self-insurance reserve fund.

67
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

A. RISK MANAGEMENT (Continued):

The City of Jackson is in compliance by using method number three as indicated above, and the necessary funding is typically
provided by the General Fund. The 2020 fiscal year budget had the monies necessary to establish the reserve fund within the
General Fund at the required funding level. Estimates of the liability for unpaid claims are actuarially determined.

5. Claims Liabilities

The following table provides a reconciliation of changes in the liabilities for claims and related expenses for years ended
September 30, 2020 and 2019:

Employees’ Unemployment Workers’

Group Tort Benefits Compensation
Benefit Fund Claims Fund Fund Benefits
2020:
Beginning Balance $ 2,102,853 $ 5,633,736 $ - $ 2,497,794
Current Year Claims/Changes in Estimates 17,171,682 1,093,029 93,152 13,402
Claims Payments 17,318,101 294,882 93,152 531,991
Ending Balance $ 1,956,434 $ 6,431,883 $ - $ 1,979,205

2019:
Beginning Balance $ 2,066,618 $ 4,774,537 $ - $ 3,629,370
Current Year Claims/Changes in Estimates 15,683,272 1,155,987 94,338 23,584
Claims Payments 15,647,037 296,788 94,338 1,155,160
$
Ending Balance 2,102,853 $ 5,633,736 $ - $ 2,497,794

6. Other Risks:
Commercial insurance is obtained by the city for certain risk coverages. The commercial policy includes various
amounts of coverage ranging from $25,000 to $250,000. Commercial property crime carries a limit of $25,000
per occurrence for computer fraud, employee theft, forgery or alteration, funds transfer fraud, money and
securities-inside buildings, money and securities-outside buildings. The property deductible is $100,000; the
crime deductible is $5,000; the unintentional errors and omissions coverage is $1,000,000 per occurrence; and
the catastrophe coverage is $25,000,000 per occurrence. Amounts of settlements have not exceeded insurance
coverage for these risk types in the past three years.

B. COMMITMENTS
Federal Grants

The City participates in a number of state and federally funded grant programs, principal of which are Community
Development Block Grant, Federal Highway Administration, Department of Transportation and Department of
Justice grants. Expenditures financed by grants are subject to audit by the appropriate grantor government. If
expenditures are disallowed due to noncompliance with grant program regulations, the City may be required to
reimburse the grantor government.

68
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

C. WATER AND SEWER OPERATION & MAINTENANCE FUND
As specified in Section 6.03 (d) of the General Bond Resolution, a transfer may be made from the Water and
Sewer Contingent Fund when a deficiency occurs in the deposit amount for the Water and Sewer Operation and
Maintenance Fund. The Water and Sewer Operation and Maintenance Fund has first priority on revenues of the
Water and Sewer System. As specified by Section 6.03 (d) of the General Bond Resolution for the Water and
Sewer Contingent Fund, as of September 30, 2020, the balance in the Water and Sewer Contingent Fund was in
compliance with the required reserve.

D. SUBSEQUENT EVENTS:

Subsequent events have been evaluated through February 14, 2022, which represents the date the
comprehensive annual financial report was available to be issued.

In September, 2018, the City was approved for a loan from the Mississippi Department of Environmental Quality
(MDEQ) for improvements at the Savanna Wastewater Treatment Plant. The maximum loan amount is
$26,808,150 bearing interest at 1.75%, and proceeds of $11,730,053 had been received or requested through
September 30, 2020. Monthly repayments are to begin in December, 2021 for a period of 237 months.

In September, 2019, the City received a loan from the Mississippi Department of Health (MSDH) for improvements
at both O.B. Curtis and J.H. Fewell Treatment Plants and distribution improvements. The maximum loan amount
is $12,903,093 bearing interest at 1.95%, and proceeds of $681,234 had been received or requested through
September 30, 2020. Monthly repayments are to begin in May, 2022, for a period of 237 months.

In November, 2019, the City issued Taxable General Obligation Note, Series 2019 to provide funds to resolve
outstanding issues with the City’s water/sewer billing and meter system and to pay other outstanding liabilities of
the City. The maximum note amount is $7,000,000, and proceeds of $2,931,993 had been received through
September 30, 2020. The interest rate is 3.25% for a 5-year term. Semi-annual interest payments begin
November, 2021, and the principal is due in November, 2025.

In August, 2020, the City authorized a $357,000 loan from the Mississippi Development Authority for energy-
efficient LED lighting at the police/court facility to be financed over 8 years at 1.25% with annual payments and
secured by sales tax revenue. However, the loan had not been finalized at September 30,2020.

In March, 2021, the City issued General Obligation Refunding Bonds, Series 2021 for $16,920,000 to refinance
the 2010A and 2016A General Obligation Bonds. Semi-annual repayments are to begin September, 2021 for a
period of 9 years. The interest rate is 5.00%.

In September, 2021, the City received Drinking Water System Improvement revolving fund loan from the
Mississippi Department of Health for OB Curtis & JH Fewell Water Treatment facility improvements. The maximum
loan amount is $28 million to be financed over 20 years at 1.95%, and will be secured by sales tax revenue.

In September, 2021, the City entered a $484,351 master lease agreement with a bank to finance equipment
purchases at an interest rate of 1.61% for a 3-year term with semi-annual payments.

In October, 2021, the City authorized the issuance of $5.5 million general obligation bond series 2021B for
planetarium renovations & arts center HVAC equipment to be financed over 15 years with semi-annual interest
payments and annual principal payments.

69
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

Litigation

The City is defendant in a number of legal actions and claims seeking actual and punitive damages. Contingencies
totaling $6,431,883 for which it is probable a loss has been incurred and which are subject to reasonable
estimation, are recognized as liabilities in the financial statements. The City is vigorously defending all matters of
litigation and believes there will be no material adverse financial effect

E. CONTINGENCIES:

Water/Sewage Disposal System Fund and Sanitation Fund

The Water/Sewage Disposal System Fund had an operating loss in the year ended September 30, 2020, and its
cash flows from operating activities were not sufficient to cover its debt service requirements during the year. The
Sanitation Fund had both an operating loss and negative cash flows from operating activities during the year
ended September 30,2019. These conditions resulted primarily from complications experienced in the installation
and operation of water meters and a water, sewer, and garbage customer billing system, which caused customer
billing delays and inaccuracies and extended delays in collection of revenues from customers. The City has
established customer payment plans and collection procedures to facilitate the collection of the past due balances
from customers. To provide cash for operations and debt service while the City works to collect the past due
customer balances, the General Fund advanced funds to the Water/Sewage Disposal System Fund Sanitation
Fund. In addition, the City initiated litigation against the companies that provided the software and meters and the
installation thereof seeking to recover over $450 million in damages, and negotiated a settlement of approximately
$60 million, net of legal fees, in March, 2020. The City has now begun the process of replacing the water meters
and billing system to resolve these issues.

Capital City Convention Center Commission

The Capital City Convention Center Commission (the Commission), which is a discretely presented component
unit of the City, has a contractual obligation to provide operational funding as needed for the operations of the
Jackson Convention Complex (the Complex). While initial pro forma forecasts anticipated operating losses would
be incurred by the Complex from inception and funded by the Commission, lagging tax revenues due to the
general economy have depleted the Commission’s general and unrestricted working capital funds and have limited
the Commission’s resources to provide such operational funding going forward. Also, as noted below, these trends
are further negatively impacted by the spread of the COVID-19 coronavirus subsequent to year-end. Operating
losses and cash shortfalls are still expected in 2021. The Commission is continuing to seek ways to alleviate this
condition through budgeting and seeking additional funding sources. There is no assurance as to the availability,
timing or terms of such additional funding that might be available. This condition raises substantial doubt about
the Commission’s ability to continue as a going concern.

As a result of the spread of the COVID-19 coronavirus in 2020, economic uncertainties have arisen which may
negatively affect the financial position, results of operations and cash flows of the Commission. Events have been
postponed or cancelled during the spread. The duration of these uncertainties and the ultimate financial effects
cannot be reasonably estimated at this time.

70
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

F. JOINT VENTURES

The following provides the summary financial information of the Jackson/Hinds Library System as of and for the
year ended September 30, 2020 (in thousands):

Jackson/Hinds Library System

Total assets $ 715
Total liabilities $ 246
Total fund balances 469
Total liabilities and fund balances $ 715
Total revenues $ 4,306
Total expenditures 4,186
Net increase (decrease) in fund balances $ 120

The Jackson/Hinds Library System is funded equally by the City and Hinds County.

G. EMPLOYEES’ RETIREMENT SYSTEM:

The City of Jackson participates in two retirement systems administered by the Public Employees' Retirement
System of Mississippi (PERS). Both systems are defined benefit plans and include a multi-employer, cost-sharing
pension plan and an agent multi-employer pension plan as described below. The total pension expense for both
plans was $17,364,752 for the year ended September 30, 2020.

Public Employees' Retirement System

1. Plan Description and Provisions
The City of Jackson, Mississippi contributes to the Public Employees Retirement System of Mississippi (“PERS”),
a cost-sharing multiple- employer defined benefit pension plan. PERS provides retirement and disability benefits,
annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Plan provisions and the
PERS Board of Trustee’s authority to determine contribution rates are established by Miss. Code Ann. Section
25-11-1 et seq., (1972, as amended) and may be amended only by the Mississippi Legislature. PERS issues a
publicly available financial report that includes financial statements and required supplementary information. That
report may be obtained by writing to Public Employees’ Retirement System of Mississippi, PERS Building, 429
Mississippi Street, Jackson, MS 39201 or by calling (601) 359-3589 or 1-800-444-PERS.

Membership in PERS is a condition of employment granted upon hiring for qualifying employees and officials of
the State of Mississippi, state universities, community and junior colleges, and teachers and employees of the
public districts. For those persons employed by political subdivisions and instrumentalities of the State of
Mississippi, membership is contingent upon approval of the entity’s participation in PERS by the PERS’ Board of
Trustees. If approved, membership for the entity’s employees is a condition of employment and eligibility is granted
to those who qualify upon hiring.

Participating members who are vested and retire at or after age 60 or those who retire regardless of age with at
least 30 years of creditable service (25 years of creditable service for employees who became members of PERS
before July 1, 2011) are entitled, upon application, to an annual retirement allowance payable monthly for life in
an amount equal to 2.0 percent of their average compensation for each year of creditable service up to and
including 30 years (25 years for those who became members of PERS before July 1, 2011), plus 2.5 percent for
each additional year of creditable service with an actuarial reduction in the benefit for each year of creditable
service below 30 years or the number of years in age that the member is below 65, whichever is less. Average
compensation is the average of the employee’s earnings during the four highest compensated years of creditable
service. A member may elect a reduced retirement allowance payable for life with the provision that, after death,

71
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

a beneficiary receives benefits for life or for a specified number of years. Benefits vest upon completion of eight
years of membership service (four years of membership service for those who became members of PERS before
July 1, 2007). PERS also provides certain death and disability benefits. In the event of death prior to retirement
of any member whose spouse and/or children are not entitled to a retirement allowance, the deceased member’s
accumulated contributions and interest are paid to the designated beneficiary.

A Cost-of-Living Adjustment (COLA) payment is made to eligible retirees and beneficiaries. The COLA is equal
to 3.0 percent of the annual retirement allowance for each full fiscal year of retirement up to the year in which the
retired member reaches age 60 (55 for those who became members of PERS before July 1, 2011), with 3.0
percent compounded for each fiscal year thereafter.

G. EMPLOYEES’ RETIREMENT SYSTEM (CONTINUED):

2. Description of Funding Policy

PERS members are required to contribute 9.00% of their annual covered salary and the City of Jackson,
Mississippi is required to contribute at an actuarially determined rate. The City’s contribution rate is 17.4% of
annual covered payroll and is typically funded primarily by the General Fund and the Water/Sewage Disposal
System Fund. The contribution requirements of PERS members are established and may be amended only by
the State of Mississippi Legislature. The City of Jackson, Mississippi contributions (excluding amounts withheld
from members’ salaries) to PERS for the year ended September 30, 2020, were $10,685,195, which was equal
to the required contributions for the year, and includes $787,069 payable at September 30, 2020.

3. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions

At September 30, 2020, the City reported a liability of $175,713,009 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net
pension liability was based on the ratio of the City’s contributions to the pension plan relative to contributions of
all participating entities for the measurement year. For the year ended June 30, 2020, the City’s proportion was
0.907663 percent, which was a decrease of 0.018344 percent from its 0.926007 percent proportion for the year
ended June 30, 2019.

For the year ended September 30, 2020, the City recognized PERS pension expense of $12,845,592. At
September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following:

A. Governmental Activities:
Deferred
Deferred Outflows Inflows of
of Resources Resources
Differences between expected and actual experience $ 1,358,011 $ -
Net Difference between projected and actual earnings on
pension plan investments 6,426,402 -
Changes of assumptions 875,186 -
Changes in the City’s proportion - 1,961,238
City contributions subsequent to the measurement date 2,627,016 -

Total $ 11,286,615 $ 1,961,238

72
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued)

3. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions (Continued)

The net effect of these deferred outflows of resources and deferred inflows of resources on governmental
activities’ net position is an increase of $9,325,377 at September 30, 2020.

B. Business-Type Activities:
Deferred Outflows Deferred
of Resources Inflows of Resources

Differences between expected and actual experience $ 167,198 $ -

Net Difference between projected and actual earnings on

pension plan investments 791,216 -

Changes of assumptions 107,753 -

Changes in the City’s proportion 415,180 1,558,429

City contributions subsequent to the measurement date 323,437 -

Total $ 1,804,784 $ 1,558,429

The net effect of these deferred outflows of resources and deferred inflows of resources on business-type
activities’ net position is an increase of $246,355 at September 30, 2020.

Collective Deferred Outflows of Resources and Deferred Inflows of Resources. Annual changes to the net pension
liability resulting from differences between expected and actual experience with regard to economic and
demographic factors and from changes of assumptions about future economic or demographics factors or other
inputs are deferred and amortized over the average of the expected remaining service life of active and inactive
members.

At September 30, 2020, $2,950,453 was reported as deferred outflows of resources related to pensions resulting
from City PERS contributions subsequent to the measurement date and will be recognized as a reduction of the
net pension liability in the year ending September 30, 2021. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended September 30 Amount

2021 $ (970,861)
2022 2,427,178
2023 2,839,214
2024 2,325,748
Total $ 6,621,279

73
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued)

4. Actuarial Assumptions

The total pension liability in the June 30, 2020 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:

Inflation 2.75%
Salary changes 3.00% – 18.25%, average, including inflation

Investment rate of return 7.75%, net of pension plan investment expense,

including inflation

Mortality rates were based on the Pubs.H-2010(B) Retiree Table with the following adjustments: For males, 112%
of males rates from ages 18 to 75 scaled down to 105% for ages 80 to 119. For females, 85% of the female rates
from ages 18 to 65 scaled up to 102% for ages 75 to 119. Mortality rates were projected generationally using MP-
2018 projection scale to account for future improvements in life expectance.

The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period July 1, 2014 to June 30, 2018. The experience report is dated April, 2019.

The long-term expected rate of return on pension plan investments was determined using a log-normal distribution
analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of
pension plan investment expense and the assumed rate of inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset
allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2020, are
summarized in the following table:

Target Long-Term Expected

Asset Class Allocation Real Rate of Return
Domestic Equity 27% 4.90%
International Equity 22 4.75
Global Equity 12 5.00
Fixed Income 20 0.50
Real Estate 10 4.00
Private Equity 8 6.25
Cash Equivalents 1 0.00
Total 100%

Discount Rate. The discount rate used to measure the total pension liability was 7.75 percent. The projection of
cash flows used to determine the discount rate assumed that plan member contributions will be made at the
current contribution rate (9.00%) and that employer contributions will be at the current contribution rate (17.40%).
Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total pension
liability.

74
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued)

Sensitivity of the net pension liability to change in the discount rate. The following table presents the City’s
proportionate share of the net pension liability of the cost-sharing plan, calculated using the discount rate of 7.75%,
as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point-lower (6.75%) or 1-percentage-point higher (8.75%) than the current rate:

Current
1% Decrease Discount Rate 1% Increase
(6.75%) (7.75%) (8.75%)
City’s proportionate share
of net pension liability $ 227,438,900 $ 175,713,009 $ 133,018,367

Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is
available in the separately-issued PERS financial report.

City’s Firefighters and Police Officers Disability and Relief- Municipal Retirement Systems Pension Plan
1. Plan Description

The City of Jackson contributes to the Municipal Retirement Systems Fire and Police Disability and Relief Fund
(MRS), an agent multiple-employer defined benefit pension plan administered by the Public Employees'
Retirement System of Mississippi. The City's uniformed police officers and firefighters employed prior to April 1,
1976, participate in MRS. Firefighters and police officers employed subsequent to April 1, 1976, are members of
the Public Employees' Retirement System of the State as previously described. MRS provides retirement and
disability benefits and death benefits to plan members and beneficiaries. Benefit provisions are established by
Sections 21-29, Articles 1, 3, 5 and 7, Mississippi Code Ann. (1972) and annual local and private legislation.
Legislation may be amended only by the State of Mississippi Legislature. At June 30, 2019, the date of the most
recent actuarial verification, there were 537 retired participants and beneficiaries currently receiving benefits.
PERS issues a publicly available financial report that includes financial statements and required supplementary
information for MRS. That information may be obtained by writing to Public Employees' Retirement System, PERS
Building, 429 Mississippi Street, Jackson, MS 39201-1005 or by calling (601) 359-3589 or 1-800-444-PERS.

As of the most recent measurement date of the net pension liability, membership data for the pension plan is as
follows:

Members Category Pension

Retirees and beneficiaries currently receiving benefits 523
Former members entitled to benefits but not yet receiving them -
Former members – not entitled to benefits -
Active members: -
Vested -
Non-vested -
Total Participants 523

75
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued)

Benefits Provided: Plan members who are vested and retire at or after age 65 or those who retire with at least
20 years of creditable service regardless of age are entitled, upon application, to an annual retirement allowance
payable monthly for life in an amount equal to 2.5% of their average compensation for each year of creditable
service up to and including 20 years plus 1.7% for each additional year of creditable service over 20 years, not to
exceed a total retirement allowance of 66.67% of average compensation. Average compensation is the average
of the employee’s earnings during the last six month period of service. A cost of living adjustment is made annually
for eligible retirees and beneficiaries based on the change in the Consumer Price Index, not to exceed a total
adjustment of 19.5%. MRS also provides certain death and disability benefits. In the event of death prior to
retirement of any member whose spouse and/or children are not entitled to a retirement allowance, the deceased
member’s accumulated contributions and interest are paid to the designated beneficiary.

2. Description of Funding Policy

Under the funding policy adopted in 2011, the employer contribution rate, expressed as a millage rate tax applied
to assessed property values, is established that will generate an ultimate asset reserve level equal to a reasonable
percentage (initially 100% - 150%) of the next year’s projected benefit payments. At that point, employer
contributions are set equal to the fiscal year’s projected benefit payments and adjusted as necessary to maintain
the assets at the established reserve level. This calculation is performed using projected cash flow analysis using
the current market value of assets as of the valuation date, a 6.5% assumption on investment earnings, and an
assumption that assessed property values will remain level over time. During the year ended September 30,
2020, the City of Jackson contributed the avails of a 3.87% mill tax levy in the Disability and Relief Special
Revenue Fund. The contribution requirements for MRS are established, and may only be amended, by the State
of Mississippi Legislature. Annual MRS tax levy increases are limited to 1/2 mill per year. Contributions from
other funds may be provided.

The City of Jackson’s contributions to MRS for the year ended September 30, 2020, were $4,836,683, which was
equal to the required contributions for the year, and includes $144,994 payable at September 30, 2020.

3. Net Pension Liability

The “Net Pension Liability” (NPL) is the difference between the “Total Pension Liability: (TPL) and the plan’s
“Fiduciary Net Position” (FNP). The TPL is the present value of pension benefits that are allocated to current
members due to past service by entry age normal actuarial cost method. The TPL includes benefits to projected
salary and service, and automatic cost of living adjustments (COLA’s). In addition, ad hoc COLA’s are also
included in the TPL to the extent they are substantively automatic. The FNP is determined on the same basis
used by the pension plan. The City’s net pension liability was measured as of June 30, 2020 and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

Net Pension Liability

Measurement Date June 30, 2020

Total Pension Liability $ 95,735,228
Fiduciary Net Pension 46,418,510
Net Pension Liability $ 49,316,718

A schedule of Net Pension Liability, in addition to the information above, includes multi-year trend information
(beginning with FY 2015) and is presented in the Required Supplementary Information Section.

76
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued)

4. Schedule of Changes in Net Pension Liability

The change in Net Pension Liability, for the Disability and Relief municipal pension plan, for the fiscal year ended
September 30, 2020 is as follows:

Plan
Total Pension Fiduciary Net Net Pension
Change in Net Pension Liability: Liability Position Liability

Service cost $ - $ - $ -

Interest on the total pension liability 7,290,938 - 7,290,938

Benefit terms changes - - -

Difference between expected and actual experience 35,465 - 35,465

Changes of assumptions - - -

Employer’s contributions - 5,114,519 (5,114,519)

Employees’ contributions - - -

Pension plan net investment income - 1,423,772 (1,423,772)

Benefit payments, including refunds of employee

contributions (11,335,587) (11,335,587) -

Administrative expense - (102,290) 102,290

Other changes - - -

Net Changes (4,009,184) (4,899,586) 890,402

Net Pension Liability, Beginning of Year 99,744,412 51,318,096 48,426,316

Net Pension Liability, End of Year $ 95,735,228 $ 46,418,510 $ 49,316,718

77
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued)

5. Pension Expense

For the year ended September 30, 2020, the City recognized MRS pension expense of $4,519,160 Pension
expense recognized by the plan is as follows:
Pension
Expense

Service cost $ -
Interest on the total pension liability 7,290,938
Expensed portion of current-period difference between expected and actual experience in
the total pension liability 35,465
Expensed portion of current-period changes of assumptions -
Members contributions -
Projected earnings on plan investments (3,732,122)
Expensed portion of current-period difference between actual and projected earnings on
plan investments 461,670
Administrative expense 102,290
Other -
Recognition of beginning deferred outflows of resources as pension expense 360,919
Total Pension Expense for MRS $ 4,519,160

6. Schedule of Deferred Outflows and Inflows of Resources

Deferred outflows of resources and deferred inflows of resources by source reported by the City at September 30,
2020 for the Disability and Relief municipal plan are as follows:

Deferred Outflows Deferred Inflows

of Resources of Resources
City contributions subsequent to the measurement date $ 514,642 $ -
Net difference between projected and actual earnings
on pension plan investments 1,679,012 -
Total $ 2,193,654 $ -

78
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued):

At September 30, 2020, $514,642 reported as deferred outflows of resources related to pensions resulting from
city MRS contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending September 30, 2020. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions at September 30, 2020 will be recognized in pension expense
as follows:

Year Ended September 30 Amount

2021 $ (34,466)
2022 614,671
2023 637,138
2024 461,669
Total $ 1,679,012

The effect of these deferred outflows of resources on the governmental activities’ net position is an increase of
$2,193,654 at September 30, 2020.

7. Actuarial Assumptions

Discount Rate. The discount rate used to measure the total pension liability was 7.75 percent The projection of
cash flows used to determine the discount rate assumed that plan member contributions will be made at the
current contribution rate and that Employer contributions will be made at rates equal to the difference between
actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of the current
plan. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.

Sensitivity of the net pension liability to changes in the discount rate. The following presents the City’s
proportionate share of the net pension liability calculated using the discount rate of 7.75%, as well as what the
City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point-lower (6.75%) or 1-percentage-point higher (8.75%) than the current rate:

1% Decrease Current Discount 1% Increase

(6.75%) Rate (7.75%) (8.75%)
Plan’s net pension liability $ 56,100,269 $ 49,316,718 $ 43,355,091

Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is
available in the separately issued MRS financial report.

79
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

G. EMPLOYEES’ RETIREMENT SYSTEM (Continued):

8. Schedule of Assumptions

Schedule of Assumptions Disability and Relief Municipal Pension

Valuation date June 30, 2020
Actuarial cost method Entry Age
Amortization method Level dollar ,closed
Remaining amortization period 14 years
Asset valuation method 5-year smoothed market
Actuarial assumptions:
7.75% net of pension plan investment expense,
Investment rate of return including inflation at 2.75%
Projected salary increases 3.00% - 4.50%, including wage inflation at 3.00%

Mortality rates were based on the Pubs.H-2010(B) Retiree Table with the following adjustments: For males, 112%
of males rates from ages 18 to 75 scaled down to 105% for ages 80 to 119. For females, 85% of the female rates
from ages 18 to 65 scaled up to 102% for ages 75 to 119. Mortality rates were projected generationally using MP-
2018 projection scale to account for future improvements in life expectancy.

The PubT.H-2010 Disabled Retiree Table was used for disabled retirees with the following adjustments: 137% of
male rates at all ages and 115% of female rates at all ages. Projection scale MP-2018 was used to project future
improvements in life expectancy generationally.

The actuarial assumptions used in the June 30, 2020 valuation are based on the results of the experience
investigation for the four-year period ended June 30, 2018 and adopted by the MRS Board in August, 2019.

The long- term expected rate of return on pension plan investments was determined using a log-normal distribution
analysis in which best-estimate ranges of expected future real rates of return (expected normal return, net of
pension plan investment expense and the assumed rate of inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset
allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30,2020, are
summarized in the following table:

Long-Term Expected Real

Asset Class Target Allocation Rate of Return
Domestic Equity 27% 4.90%
International Equity 22 4.75
Global Equity 12 5.00
Fixed Income 20 0.50
Real Estate 10 4.00
Private Equity 8 6.25
Cash Equivalents 1 0.00
Total 100%

80
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

H. OTHER POSTEMPLOYMENT BENEFITS (OPEB)

Plan Description

The City’s OPEB plan is a single-employer defined-benefit plan that provides post-employment healthcare
coverage, including dental benefits, and life insurance to eligible individuals. Eligible individuals include all regular,
full-time employees of the City, as well as permanent part-time employees who work at least 20 hours per week,
and their spouses and dependent children. Employees must have earned at least 25 years of service with the
City in order to be eligible for retiree healthcare coverage. Coverage continues at the election of the retiree until
age 65. Retirees must pay the required monthly premium for either single or family medical coverage, as
applicable, which was $325 and $675 respectively as of September 30, 2020. Dental and life insurance benefits
are provided under a fully-insured plan, and retirees pay the entire insurance premiums for these coverages. The
plan was established under authority of the City Council and may be amended or abolished by council action. No
assets are accumulated in a trust that meets the criteria in GASB Statement No. 75, Paragraph 4. The City funds
the plan on a pay-as-you-go basis, and funding is primarily provided from the General Fund.

Employees Covered by Benefit Terms. At September 30, 2020, the following employees were covered by
benefit terms:

Inactive employees or beneficiaries currently receiving benefit payments 75

Inactive employees or beneficiaries entitled to but not yet receiving benefit payments -
Active plan members 1,618
1,693

Total OPEB Liability

The City’s total OPEB liability of $66,809,297 was measured as of September 30, 2020, and was determined by
an actuarial valuation as of October 1, 2018, rolled forward to September 30, 2020.

Actuarial assumptions and other inputs. The total OPEB liability as of September 30, 2020, was determined
using the following actuarial assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:

Salary increases 3% per annum

Healthcare cost trend rates 7.5% for 2019 graded down 0.5% per year to a rate of 5% for 2024 and later
Age-related morbidity Healthcare costs are assumed to increase 3.5% for each year of age
Retirement Retirement is assumed to occur at any age with 25 years of service
Coverage election 75% of eligible employees are assumed to elect medical coverage until age
65 upon retirement

Retirees’ contributions Retiree contributions have been assumed to increase 2.5% per year

81
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

H. OTHER POSTEMPLOYMENT BENEFITS (Continued):

A discount rate of 2.14% was applied in the measurement of the total OPEB liability. The discount rate is based
on the index rate for 20-year, high-grade, municipal bonds.

Mortality rates were based on the sex-distinct PUB-2010 Mortality Table (without income adjustments) for
general employees with full generational improvements in mortality using Scale MP-2020.

The actuarial assumptions used in the September 30, 2020, measurements were based on the results of an
actuarial experience study for the year ended September 30, 2018.

Since the prior measurement date, the discount rate was decreased from 3.58% per annum to 2.14% per
annum and the mortality rate improvement scale was changed from scale MP-2017 to scale MP-2020.

Changes in the total OPEB liability

Changes in the total OPEB liability were as follows:

Total
OPEB
Liability

Balance at September 30, 2019 $ 53,574,462

Changes for the year:
Service cost 4,374,997
Interest 1,226,679
Changes of benefit terms -
Differences between expected and actual experience -
Changes in assumptions or other inputs 8,895,842
Benefit payments (1,262,683)
Net changes 13,234,835

Balance at September 30, 2020 $ 66,809,297

Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total
OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a
discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:

1.0%
1.0% Decrease Discount Rate Increase
(1.14%) (2.14%) (3.14%)
Total OPEB liability $ 74,320,225 $ 66,809,297 $ 60,204,447

82
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

H. OTHER POSTEMPLOYMENT BENEFITS (Continued):

Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents
the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated
using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the
current healthcare cost trend rates:

1.0% Decrease 1.0% Increase

(6.5% decreasing Healthcare Cost Trend Rates (8.5% decreasing
to 4%) (7.5% decreasing to 5%) to 6%)
Total OPEB liability $ 54,265,676 $ 66,809,297 $ 81,798,932

OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB

For the year ended September 30, 2020, the City recognized OPEB expense of $5,102,871 as follows:

Service cost $ 4,374,997

Interest 1,226,679
Demographic gain/loss (78,114)
Benefit payment (1,262,683)
Assumption changes 841,992
OPEB expense $ 5,102,871

At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following:

A. Governmental Activities

Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ - $ 663,361
Changes of assumptions 7,150,402 -
Changes in proportion 640,122 -

Total $ 7,790,524 $ 663,361

The net effect of these deferred outflows of resources and deferred inflows of resources on governmental
activities’ net position is an increase of $7,127,163 at September 30, 2020.

B. Business-Type Activities:

Deferred Deferred
Outflows of Inflows of
Resources Resources

Differences between expected and actual experience $ - $ 89,656

Changes of assumptions 966,409 -

Changes in proportion 166,519 806,641

Total $ 1,132,928 $ 896,297

83
 CITY OF JACKSON
Notes to Financial Statements
For the Year Ended September 30, 2020
_______

Note 6 – Other Information (Continued):

H. OTHER POSTEMPLOYMENT BENEFITS (Continued):

The net effect of these deferred outflows of resources and deferred inflows of resources on business-type
activities’ net position is an increase of $236,631 at September 30, 2020.

Collective Deferred Outflows of Resources and Deferred Inflows of Resources. Annual changes to the OPEB
liability resulting from differences between expected and actual experience with regard to economic and
demographic factors and from changes of assumptions about future economic or demographics factors or other
inputs are deferred and amortized over the average of the expected remaining service life of active and inactive
members.

At September 30, 2020, amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:

Year Ended September 30 Amount

2021 $ 763,879
2022 763,879
2023 763,879
2024 763,879
2025 763,879
Thereafter 3,544,399
Total $ 7,363,794

84
REQUIRED SUPPLEMENTARY
INFORMATION

85
 CITY OF JACKSON
Required Supplementary Information
Schedule of Employer
Other Post-Employment Benefits (OPEB) Plan Liability
Last Three Fiscal Years

2020 2019 2018

Total OPEB Liability:
Service Cost $ 4,374,997 $ 3,266,727 $ 2,978,551

Interest 1,226,679 1,898,654 1,778,355

Changes of benefit terms - - -

Differences between expected and actual experience - (909,245) -

Changes of assumptions and other inputs 8,895,842 68,876 -

Benefit payments (1,262,683) (1,028,674) (705,951)

Net change in total OPEB liability 13,234,835 3,296,338 4,050,955

Total OPEB liability, beginning 53,574,462 50,278,124 46,227,169

Total OPEB liability, ending $ 66,809,297 $ 53,574,462 $ 50,278,124

Covered-employee payroll $ 54,458,536 $ 54,458,536 $ 48,212,278

Total OPEB liability as a percentage of covered-employee payroll 122.68% 98.38% 104.28%

The accompanying notes to the required supplementary information are an integral part of this schedule.

86
 CITY OF JACKSON
Notes to Required Supplementary Information-OPEB
For the Year Ended September 30, 2020

No assets are accumulated in a trust that meets the requirements of GASB Statement No. 75, Paragraph
4. The City funds the plan on a pay-as-you-go basis, and funding is primarily from the General Fund.

Changes in OPEB assumptions:

2020:

Since the prior measurement date, the discount rate was decreased from 3.58% per annum to
2.14% per annum and the mortality rate improvement scale was changed from scale MP-2017 to
Scale MP-2020.

2019:

Since the prior measurement date, the discount rate was decreased from 3.64% per annum to
3.58% per annum and the mortality basis was changed from the RP-2000 Combined Mortality
Table with generational improvements in mortality using Scale BB to the PUB-2010 Mortality
Table for general employees (without income adjustments) with generational improvements in
mortality using Scale MP-2017.

Earlier years of OPEB information: Because GASB Statement No. 75 was first implemented by the City
for the year ended September 30, 2019, all ten years of the required supplementary information in
accordance with GASB Statement No. 75 was not available. Additional years of data will be added as
they become available.

87
 CITY OF JACKSON
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and the City's Contributions
to the Public Employees Retirement System of Mississippi (PERS)
Last Six Fiscal Years

2020 2019 2018 2017 2016 2015

City's proportionate share of the net pension liability $ 175,713,009 162,902,901 154,248,183 157,007,624 165,975,320 134,815,609

City's proportion of the net pension liability 0.907663% 0.926007% 0.927364% 0.944498% 1.073716% 1.110675%

City's covered payroll for the measurement years ended June 30th $ 60,439,126 60,308,457 59,221,035 60,590,070 68,688,190 69,388,616

City's proportionate share of the net pension liability as a percentage

of its covered payroll for the measurement years ended June 30th 290.73% 270.12% 260.46% 259.13% 241.64% 194.29%

Plan fiduciary net position as a percentage of the total

pension liability 58.97% 61.59% 62.54% 61.49% 57.47% 61.70%

2020 2019 2018 2017 2016 2015

Contractually required Contributions for the fiscal years ended September 30th $ 10,685,195 10,102,426 9,392,492 9,523,772 10,201,773 11,504,087

Actual Contributions for the fiscal years ended September 30th 10,685,195 10,102,426 9,392,492 9,523,772 10,201,773 11,504,087

Contribution deficiency (excess) $ - - - - - -

City's covered payroll for fiscal years ended September 30th $ 61,409,165 60,885,622 59,634,873 60,468,391 64,753,114 73,041,822

Contributions as a percentage of covered payroll for the fiscal years 17.40% 16.59% 15.75% 15.75% 15.75% 15.75%
ended September 30th

The accompanying notes to the required supplementary information are an integral part of this schedule.

88
 CITY OF JACKSON
Notes to Required Supplementary Information-PERS
For the Year Ended September 30, 2020

Changes of pension assumptions:

2020: None

2019:
 The expectation of retired life mortality was changed to the PubS.H-2010(B) Retiree Table with
the following adjustments:
o For males, 112% of male rates from ages 18 to 75 scaled down to 105% for ages 80 to
119.
o For females, 85% of the female rates from ages 18 to 65 scaled up to 102% for ages 75 to
119.
o Projection scale MP-2018 will be used to project future improvements in life expectancy
generationally.
 The expectation of disabled mortality was changed to PubT.H-2010 Disabled Retiree Table for
disabled retirees with the following adjustments:
o For males, 137% of male rates at all ages.
o For females, 115% of female rates at all ages.
o Projection scale MP-2018 will be used to project future improvements in life expectancy
generationally.
 The price inflation assumption was reduced from 3.00% to 2.75%.
 The wage inflation assumption was reduced from 3.25% to 3.00%
 Withdrawal rates, pre-retirement mortality rates, and service retirement rates were also adjusted to
more closely reflect actual experience.
 The percentage of active member disabilities assumed to be in the line of duty was increased from
7% to 9%.

2018: None

2017:
 The expectation of retired life mortality was changed to the RP-2014 Healthy Annuitant Blue
Collar Mortality Table projected with Scale BB to 2022. Small adjustments were also made to the
Mortality Table for disabled lives.
 The wage inflation assumption was reduced from 3.75% to 3.25%.
 Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were
also adjusted to more closely reflect actual experience.
 The percentage of active member disabilities assumed to be in the line of duty was increased
from 6% to 7%.

2016:
 The assumed rate of interest credited to employee contributions was changed from 3.50% to
2.00%.
 Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were
also adjusted to more closely reflect actual experience.
 Assumed rates of salary increase were adjusted to more closely reflect actual and anticipated
experience.
 The price inflation and investment rate of return assumptions were changed from 3.50% to 3.00%
and 8.00% to 7.75%, respectively.

89
 CITY OF JACKSON
Notes to Required Supplementary Information-PERS (Continued)
For the Year Ended September 30, 2020

2015:

 The expectation of retired life mortality was changed to the RP-2014 Healthy Annuitant Blue
Collar Table projected to 2016 using Scale BB rather than the RP-2000 Mortality Table, which
was used prior to 2015.
 The expectation of disabled mortality was changed to the RP-2014 Disabled Retiree Table, rather
than the RP-2000 Disabled Mortality Table, which was used prior to 2015.
 Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were
also adjusted to more closely reflect actual experience.
 The assumed rates of salary increase were adjusted to more closely reflect actual and anticipated
experience.
 The price inflation and investment rate of return assumptions were changed from 3.50% to 3.00%
and from 8.00% to 7.75%, respectively.

Changes in pension benefit provision:

2016:
 Effective July 1, 2016, the interest rate on employee contributions shall be calculated based on
the money market rate as published by the Wall Street Journal on December 31 of each
preceding year with a minimum rate of one percent and a maximum rate of five percent.

Earlier years of pension information: Because GASB statement no. 68 was first implemented by the City
of Jackson for the year ended September 30, 2015, all ten years of the required supplementary
information in accordance with GASB statement no. 68 was not available. Additional years of data will be
added as they become available.

90
 CITY OF JACKSON
Required Supplementary Information
Schedule Of Employer Net Pension Liability and the City's Contributions
to the Fire and Police Disability and Relief Fund (MRS)
Last Six Fiscal Years

2020 2019 2018 2017 2016 2015

Actuarially determined contribution $ 4,836,683 $ 5,538,892 $ 5,464,210 $ 5,247,946 $ 5,099,714 $ 5,544,877

Annual Contributions 4,836,683 5,538,892 5,464,210 5,247,946 5,099,714 5,544,877

Contribution deficiency (excess) $ - $ - $ - $ - $ - $ -

City's covered payroll N/A N/A N/A N/A N/A N/A

Contribution as a percentage of covered payroll

N/A N/A N/A N/A N/A N/A

Payroll-related information is not provided because the plan is closed to new entrants and there were very
few remaining active members and many municipalities have no remaining active members.

The accompanying notes to the required supplementary information are an integral part of this schedule.

91
 CITY OF JACKSON
Required Supplementary Information
Schedule of Employer Net Pension Liability and the City's Contributions to the Fire and Police
Disability and Relief Fund (MRS)
Last Six Fiscal Years

2020 2019 2018 2017 2016 2015

Total pension liability
Service Cost $ - $ - $ - $ - $ - $ -
Interest 7,290,938 7,577,988 7,998,928 8,297,602 8,619,793 8,901,563
Changes of benefit terms - - - - - -
Differences between expected and actual
experience 35,465 676,814 (1,617,123) (305,474) (462,872) (91,754)
Changes of assumptions - (438,615) - 213,769 - 3,676,246
Benefit payments, including refunds of
employee contributions (11,335,587) (11,704,532) (11,922,045) (12,197,472) (12,430,953) (12,633,969)
Net change in total pension liability (4,009,184) (3,888,345) (5,540,240) # (3,991,575) (4,274,032) (147,914)
Total pension liability - beginning 99,744,412 103,632,757 109,172,997 113,164,572 117,438,604 117,586,518
Total pension liability - ending (a) $ 95,735,228 $ 99,744,412 $ 103,632,757 $ 109,172,997 $ 113,164,572 $ 117,438,604

Plan fiduciary net position

Contributions - employer $ 5,114,519 $ 5,569,716 $ 5,541,778 $ 5,247,946 $ 5,099,714 $ 5,544,877
Contributions - member - - - 2,363 6,022 4,750
Net investment income 1,423,772 3,578,675 4,220,438 7,314,024 306,774 2,166,108
Benefit payments, including refunds of
employee contributions (11,335,587) (11,704,532) (11,922,045) (12,197,472) (12,430,953) (12,633,969)

Administrative Expense (102,290) (111,394) (110,837) (104,958) (101,994) (114,673)

Other - 6,370 (3,408) (29,110) 175,260 -

Net change in plan fiduciary net position (4,899,586) (2,661,165) (2,274,074) 232,793 (6,945,177) (5,032,907)
Plan net position - beginning 51,318,096 53,979,261 56,253,335 56,020,542 62,965,719 67,998,626
Plan net position - ending (b) $ 46,418,510 $ 51,318,096 $ 53,979,261 $ 56,253,335 $ 56,020,542 $ 62,965,719

Net pension liability - ending (a) - (b) $ 49,316,718 $ 48,426,316 $ 49,653,496 $ 52,919,662 $ 57,144,030 $ 54,472,885

Plan fiduciary net position as a percentage

of the total pension liability 48.49% 51.45% 52.09% 51.53% 49.50% 53.62%

Covered payroll * N/A N/A N/A N/A N/A N/A

Net pension liability as a percentage

of covered payroll* N/A N/A N/A N/A N/A N/A

*Payroll-related information is not provided because the plan is closed to new entrants and there are very few
remaining active members and many municipalities have no remaining active members.

The accompanying notes to the required supplementary information are an integral part of the schedule.

92
 CITY OF JACKSON
Notes to Required Supplementary Information-MRS
For the Year Ended September 30, 2020

The information presented is based on June 30th measurement dates for each year. Actuarially determined
contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are
reported. Contributions for the fiscal year ended September 30, 2020 were based on the June 30, 2018 actuarial
valuation.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Ultimate Asset Reserve

Amortization method Not Applicable

Remaining amortization period Not Applicable

Asset valuation method Market Value of Assets

Inflation 3.00%

Salary increases 3.25% - 4.75%, including inflation

Investment rate of return 6.5%, net of pension plan investment

expenses, including inflation

The following changes in actuarial assumptions or methods were made:

2020: None

2019: The investment return assumption to calculate the certified millage rates was lowered from 6.50%
to 6.25% and will maintain a 150 basis point difference with the long-term investment return
assumption.

The wage inflation assumption was reduced from 3.25% to 3.00%.

The price inflation assumption was reduced from 3.00% to 2.75%.

Changes were made to the Mortality Table for both healthy and disables lives.

2018: None

2017: Assumed rates of mortality have been revised to reflect the results of the experience
investigation for the four-year period ending June 30, 2016 and adopted by the Board on April 25, 2017.

2016: None

2015: The post-retirement mortality tables have been changed.

The price of inflation assumption has been reduced from 3.50% to 3.00%.

The real rate of return net investment expenses has been changed from 4.50% to 4.75%. Due to this
change and the change in price inflation, the investment return assumption has been changed from 8.00%
to 7.75%.

Earlier years of pension information: Because GASB Statement No. 68 was first implemented by the City of Jackson
for the year ended September 30, 2015, all ten years of the required supplementary information in accordance with
GASB Statement No. 68 was not available. Additional years of data will be added as they become available.

93
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

GENERAL FUND (001,002,003,004,010,011,189,300,302,305,370,371,375)

REVENUES

Licenses and Permits:

Privilege Licenses-Misc $ - $ - $ 171 $ 171

Privilege Licenses 368,216 368,216 266,139 (102,077)
Building Permits 747,036 747,036 752,431 5,395
Air Conditioning & Duct Permit 43,085 43,085 31,516 (11,569)
Plumbing Permits 30,307 30,307 35,449 5,142
Electric Permits 144,081 144,081 179,226 35,145
Gas Permits 23,071 23,071 29,443 6,372
Maintenance Fees 6,990 6,990 100 (6,890)
Landscape Permits 130 130 350 220
Historic Preservation Applic. 1,935 1,935 1,470 (465)
Dance Hall & Other Recr Fees 4,343 4,343 2,048 (2,295)
Transit Merchants-Peddlers Lic 1,250 1,250 500 (750)
Aircraft Registration 12,710 12,710 9,108 (3,602)
Adult Entertn-Licenses & Fees 3,546 3,546 3,692 146
Special Event Fee 9,905 9,905 2,025 (7,880)
Passport Fees - - 355 355
Signs-Misc. 7,527 7,527 3,465 (4,062)
Sign Permits 35,850 35,850 28,400 (7,450)
Sign Registration 9,260 9,260 9,260 -
Signs Temporary 2,570 2,570 2,160 (410)
Fire Inspection Permit 22,725 22,725 15,425 (7,300)
Commercial Burn Permit 400 400 230 (170)
Conbust & Flamm Liquid Permit 10,500 10,500 4,750 (5,750)
Fireworks Display Permit 900 900 300 (600)
Zoning Permits 38,834 38,834 36,489 (2,345)
Taxicab License Fees 750 750 180 (570)
Annual Vehicle Inspection 90 90 - (90)
Total Licenses & Permits 1,526,011 1,526,011 1,414,682 (111,329)

Fines and Forfeitures:

Misdemeanor Fines 264,000 264,000 248,370 (15,630)

Vehicle Parking Fines 46,679 46,679 50,723 4,044
Moving Traffic Violations 711,704 711,704 707,743 (3,961)
City Court Costs 6,425 6,425 4,483 (1,942)
Warrant Fee 69,439 69,439 70,006 567
Animal Control Citations 293 293 1,387 1,094
Municipal Court Computer 9,766 9,766 8,404 (1,362)
Drug Court - - 350 350
Municipal Ct Drivers Impr Fees 35 35 - (35)
Administrative Fee + Del Cases 184,683 184,683 177,991 (6,692)
Contempt Fee + Municipal Court 51,674 51,674 49,879 (1,795)
Computerzd Crime Preven+Police 11,115 11,115 9,563 (1,552)
Municipl Court Enhancement Fee 131,000 131,000 84,907 (46,093)
Jackson Enhancement Fee 49,976 49,976 42,457 (7,519)
Bad Check Fees 1,153 1,153 500 (653)
Daily Storage Fee+Vehicle 62,575 62,575 66,605 4,030
Wrecker Fees 77,145 77,145 61,735 (15,410)
Expungement Fee + Municipal Ct 8,650 8,650 6,450 (2,200)
Jackson Collection Fee (15%) 45,478 45,478 33,429 (12,049)

94
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance
Docket Fee + Municipal Court 70,535 70,535 67,615 (2,920)
Dropped Charge Fee + Mun Crt 900 900 1,400 500
Cash Bond Clearing Account +Mc (5,091) (5,091) 1,161 6,252
Rearraignment Fee + Mun Court 9,833 9,833 9,200 (633)
Total Fines and Forfeitures 1,807,967 1,807,967 1,704,358 (103,609)

REVENUES
INTERGOVERNMENTAL REVENUE

FEDERAL

Police Overtime - FBI/DEA Grant 59,325 59,325 70,121 10,796

DEA - Ms Gulf Coast (HIDTA) 26,806 26,806 25,561 (1,245)
DEA - Assest & Forfeiture 31,000 31,000 17,424 (13,576)
Total Intergovernmental - Federal 117,131 117,131 113,106 (4,025)

STATE

Alcohol Permits + Abc 330,649 330,649 301,455 (29,194)

Gasoline Tax 569,395 569,395 593,857 24,462
Municipal Revolving Fund 99,262 99,262 86,528 (12,734)
State Fire Protection 1,024,101 1,024,101 1,046,781 22,680
Pro+rata State Sales Tax 28,348,681 28,348,681 26,668,100 (1,680,581)
Homestead Exemption 1,720,158 1,720,158 1,684,727 (35,431)
Homestead Exemption Chargeback 17,282 17,282 24,903 7,621
State Reimb Training Academy - - 86,900 86,900
Wireless Radio Communicat Prgm 72,123 360,275 360,275 -
Bus & Truck Privilege Tax 431,879 431,879 388,599 (43,280)
Mdot+Litter Pickup+JPD 12,660 12,660 306 (12,354)
TSA Precheck Services - - 2,980 2,980
Total Intergovernmental- State 32,626,190 32,914,342 31,245,411 (1,668,931)

LOCAL

Pro-Rata County Road Tax 594,357 594,357 608,108 13,751

Smith Robertson Museum 6,516 6,516 - (6,516)
Total Intergovernmental - Local 600,873 600,873 608,108 7,235

ADMISSIONS, FEES, RENTALS

Parking Meters 158,152 158,152 48,407 (109,745)

Local Records Fee 3,669 3,669 2,682 (987)
MS GOV Crash Reports - - 61,186 61,186
Data Collection - - 1,667 1,667
Mun Aud+Thalia Mara Hall Rents 262,455 262,455 133,124 (129,331)
Smith Robtsn Museum+Donations 600 600 - (600)
Sm Robtsn Mus+Admission Rental 9,035 9,035 3,862 (5,173)
Smith Robtsn Mus + Room Rent 5,425 5,425 5,898 473
Senior Centers Reservation Fee 2,549 2,549 (65) (2,614)
Smith Robertson+Gift Shop Sale 580 580 723 143
Arts Ctr+Rent on Community Rm 9,270 9,270 3,232 (6,038)
Carnival Inspection Fee 50 50 - (50)
Daycare Fire Inspection+Afterc 5,880 5,880 5,705 (175)
Fire Water Flow Test Fee 2,800 2,800 2,800 -
Fire Reports 17,200 17,200 16,700 (500)
Accident Report Fee 124,171 124,171 69,795 (54,376)
Background Check Fee 10,530 10,530 3,555 (6,975)
Fingerprinting 24,115 24,115 10,440 (13,675)

95
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance
Verification of Records 17,789 17,789 17,305 (484)
Bail Bondsman Applicant Photo 120 120 150 30
Telecomm. Franchise Agreement 518,845 518,845 436,883 (81,962)
Rents And Royalties 11,100 11,100 11,100 -
Tower Rentals 3,694,644 3,694,644 3,926,523 231,879
Pistol Range Rent 2,323 2,323 523 (1,800)
Sprinkler+Hydro Static+Pump 420 420 900 480
Fire Alarm Acceptance Test 780 780 720 (60)
Fire Re+Inspection 550 550 50 (500)
Fire Suppresion System Test 600 600 480 (120)
Outdoor Advertising Leases 11,970 11,970 12,153 183
Rental Fee + Fire Museum 260 260 206 (54)
School TOURS Fee+ Fire Museum 1,476 1,476 498 (978)
Land Rental - - 12,012 12,012
Credit Card Fees - - 626 626
Zoo Gift Shop - - 818 818
Zoo Admissions - - 25,220 25,220
Zoo Vendor Fees - - 2,784 2,784
Total Admissions, Fees and Rentals 4,897,358 4,897,358 4,818,662 (78,696)

Interest Revenues:
Interest Earned on Investments 11,267 30,511 28,980 (1,531)
Interest Earned on Repos 268,686 275,530 896,019 620,489
Total Interest Earned 279,953 306,041 924,999 618,958

Revenues
Miscellaneous Income:

Public Utility Franchise Fee 4,752,792 4,752,792 4,544,589 (208,203)

Franchise Cable Television 1,362,119 1,362,119 1,149,542 (212,577)
Nuclear Power Plant 1,604,810 1,604,810 1,592,845 (11,965)
In+Lieu+of Property Tax 503 503 70,380 69,877
Water/Sewer Franchise Fee 972,534 972,534 972,534 -
T Warner+Pa/Ga Operation Fund 78,561 78,561 65,213 (13,348)
Sale of Land 60,167 60,167 4,004 (56,163)
Sale of Fixed Assets 137,360 137,360 252,967 115,607
Small Animal Control - - 1,390 1,390
Police+Misc 95,804 95,804 38,887 (56,917)
Police + Sale Of Weapons 15 15 11 (4)
Public Safety Comm Trng Reim 100,000 100,000 2,605 (97,395)
Union Station Tenants/Jra 102,379 102,379 91,734 (10,645)
Grants & Donations 110,621 560,621 583,476 22,855
Indirect Cost 2,680,223 2,680,223 2,381,913 (298,310)
Other Departments 15,148 65,148 49,810 (15,338)
I.d. Badge Fee+City Employees 180 180 15 (165)
Parking Fee+City Employees 6,730 6,730 5,233 (1,497)
Admin. Fee+Payroll Deductions 15,725 15,725 13,236 (2,489)
Building & Permit+Misc. 110,957 110,957 108,515 (2,442)
Penalty on Demo/Grass/Weeds 7,579 7,579 - (7,579)
Site Plan Review 16,157 16,157 11,211 (4,946)
Sale of Maps Plan Specs 158 158 13,773 13,615
Smith Robertson + Nissan Grant 23,775 23,775 - (23,775)
NLC Champs Grant 90,000 57,394 30,000 (27,394)
Traffic 170 170 40 (130)
Abstract Fees MCS 6,961 6,961 4,665 (2,296)
Cellular Rebate 30,707 30,707 36,197 5,490
City Clerk 15,271 15,271 17,498 2,227

96
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance
Inkind Peg Fees 40,132 40,132 34,824 (5,308)
Publications + Misc 7,089 7,089 616 (6,473)
Cafeteria Plan+Flexible Spend 150,000 150,000 - (150,000)
Settlement of INS Claim Prop 75,000 75,000 49,915 (25,085)
Proceeds of Long Term Debt 5,519,079 9,225,957 - (9,225,957)
Fees for Lost Fuelman Cards - - 190 190
Total Miscellaneous Income 18,188,706 22,362,978 12,127,828 (10,235,150)

Operating Transfers In:

Transfer In/From General Fund 369,287 2,869,287 - (2,869,287)
Transfer In/From Water/Sewer - 12,614,800 - (12,614,800)
Transfer In/From Other Funds 1,659,830 1,659,830 - (1,659,830)
Total Operating Transfers In 2,029,117 17,143,917 - (17,143,917)

Beginning Fund Balance 5,479,662 14,798,137 28,388,113 13,589,976

Total Revenue from Sources other than Taxation and Beginning Fund Balance 67,552,968 96,474,755 81,345,267 (15,129,488)

Taxes:

Current Realty Taxes 35,063,203 35,063,203 35,312,427 249,224

Current Personal Taxes 16,388,919 16,388,919 16,571,570 182,651
Delinquent Reality Taxes 927,952 927,952 588,005 (339,947)
Delinquent Personal Taxes 218,093 218,093 74,213 (143,880)
Ad Valorem Tax on Automobiles 7,443,551 7,443,551 7,086,657 (356,894)
Motor Vehicle Rental Tax DISTR 702,375 702,375 784,544 82,169
Interest on Delinquent Taxes 801,265 801,265 916,444 115,179
Damages on Delinquent Taxes 631,317 631,317 660,365 29,048
Hazardous Waste AX - - 113 113
Rail Car Taxes 49,975 49,975 64,472 14,497
Tax Fortefied Land - - 109,036 109,036
MISC Fees Community Improvement 265,896 265,896 22,054 (243,842)

Total Taxes 62,492,546 62,492,546 62,189,900 (302,646)

Total Revenue from all Sources and Beginning Fund Balance $ 130,045,514 $ 158,967,301 $ 143,535,167 $ (15,432,134)

97
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

POLICE

EXPENDITURES

Personnel Services 30,212,611 29,895,736 23,543,389 (6,352,347)

Supplies 1,508,679 2,023,457 1,711,202 (312,255)
Other Services & Charges 2,591,596 1,472,056 1,232,754 (239,302)
Capital Outlay 1,463,355 1,767,615 685,509 (1,082,106)
Debt Services - 41,996 646,253 604,257
Grants, Contributions - 1,298,566 1,298,566 (1,298,566)
Total Expenditures 35,776,241 36,499,426 29,117,673 (7,381,753)

FIRE `

EXPENDITURES

Personnel Services 21,604,056 21,535,056 20,954,372 (580,684)

Supplies 715,082 723,326 657,437 (65,889)
Other Services & Charges 1,038,089 970,553 650,953 (319,600)
Capital Outlay 5,527,056 5,656,198 79,148 (5,577,050)
Debt Services - 64,440 726,807 662,367
Grants, Contributions - 69 - (69)
Total Expenditures 28,884,283 28,949,642 23,068,717 (5,880,925)

PUBLIC WORKS

EXPENDITURES

Personnel Services 7,600,914 7,495,380 6,194,928 (1,300,452)

Supplies 1,682,170 1,688,211 1,283,514 (404,697)
Other Services & Charges 2,697,932 4,264,691 2,094,485 (2,170,206)
Capital Outlay 1,163,360 1,164,525 153,821 (1,010,704)
Debt Services - 155,528 603,166 447,638
Grants, Contributions - 76,041 - (76,041)
Total Expenditures 13,144,376 14,844,376 10,329,914 (4,514,462)

98
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

PLANNING & DEVELOPMENT

EXPENDITURES

Personnel Services 2,726,989 2,743,379 2,356,297 (387,082)

Supplies 85,632 79,896 42,000 (37,896)
Other Services & Charges 8,004,278 4,495,402 3,951,314 (544,088)
Capital Outlay 2,400 64,899 47,200 (17,699)
Debt Service - 1,025 - (1,025)
Grants, Contributions - 71,675 71,660 (15)
Transfer to other funds - 3,363,227 3,363,226 (1)
Total Expenditures 10,819,299 10,819,503 9,831,697 (987,806)

HUMAN & CULTURAL SERVICES

EXPENDITURES

Personnel Services 1,566,909 1,479,390 1,540,713 61,323

Supplies 111,260 286,423 216,368 (70,055)
Other Services & Charges 2,950,107 1,704,859 1,494,101 (210,758)
Capital Outlay 460,116 543,861 64,292 (479,569)
Debt Services - 56,964 440,578 383,614
Grants, Contributions - 465,000 431,650 (33,350)
Transfers to other Funds - 847,475 - (847,475)
Total Expenditures 5,088,392 5,383,972 4,187,702 (1,196,270)

PERSONNEL

EXPENDITURES

Personnel Services 838,420 838,420 844,480 6,060

Supplies 15,687 30,687 2,564 (28,123)
Other Services & Charges 129,553 1,351,675 1,177,522 (174,153)
Capital Outlay 61,036 61,036 - (61,036)
Debt Services - 11,541 50,766 39,225
Grants, Contributions - 1,337 - (1,337)
Total Expenditures 1,044,696 2,294,696 2,075,332 (219,364)

99
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

ADMINISTRATION

EXPENDITURES

Personnel Services 6,848,074 6,848,074 6,143,554 (704,520)

Supplies 841,263 5,292,528 1,465,797 (3,826,731)
Other Services & Charges 5,940,026 5,626,975 3,868,875 (1,758,100)
Capital Outlay 845,791 3,460,759 3,715,817 255,058
Debt Services - 86,335 - (86,335)
Grants, Contributions - 10,100 - (10,100)
Transfers to other Funds - 1,446,000 - (1,446,000)
Total Expenditures 14,475,154 22,770,771 15,194,043 (7,576,728)

GENERAL GOVERNMENT

EXPENDITURES

Personnel Services 5,532,051 5,137,021 4,971,676 (165,345)

Supplies 309,598 293,664 72,767 (220,897)
Other Services & Charges 14,885,268 4,992,239 4,931,301 (60,938)
Capital Outlay 86,156 86,111 - (86,111)
Debt Services - 2,947,717 1,704,854 (1,242,863)
Grants, Contributions - 12,925,448 1,821,512 (11,103,936)
Transfers to other Funds - 10,532,473 8,705,694 (1,826,779)
Total Expenditures 20,813,073 36,914,673 22,207,804 (14,706,869)

MUNICIPAL CLERK

EXPENDITURES

Personnel Services - 418,476 226,919 (191,557)

Supplies - 11,288 2,403 (8,885)
Other Services & Charges - 60,433 30,706 (29,727)
Capital Outlay - 45 - (45)
Total Expenditures - 490,242 260,028 (230,214)

Ending Fund Balance - - 27,262,257 27,262,257

Total General Fund Expenditures and Ending Fund Balance $ 130,045,514 $ 158,967,301 $ 143,535,167 $ (15,432,134)

100
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

STATE TORT CLAIMS FUND (018)

REVENUES

Interest Earned $ - $ 45,428 $ 46,834 $ 1,406

Transfers from General Fund 250,000 250,000 250,850 850
Beginning Fund Balance 3,917,717 3,918,215 5,097,114 1,178,899

Total Revenues and Beginning Fund Balance $ 4,167,717 $ 4,213,643 $ 5,394,798 $ 1,181,155

EXPENDITURES

Other Services and Charges $ 4,167,717 $ 5,930 $ 850 $ (5,080)

Grants, contributions, settlements - 4,207,713 294,882 (3,912,831)
Ending Fund Balance - - 5,099,066 5,099,066

Total Expenditures and Ending Fund Balance $ 4,167,717 $ 4,213,643 $ 5,394,798 $ 1,181,155

101
 City of Jackson
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

GENERAL FUND

This budgetary statement represents a modified General Fund. Certain other funds are combined with the General Fund for financial reporting purposes.
For managerial purposes, the City treats the General Fund and State Tort Claims Fund separately. However, the latter does not meet the criteria of a
major fund as set forth by GASB and for reporting purposes is presented in combination with the General Fund in order to comply with GAAP. However,
the Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual compares the General Fund and State Tort Claims Fund as
adopted in the budget along with the related revenues and expenditures. It does not separately reflect the budget or actual data for other individual funds
captured within the General Fund. The table below shows the combination of the General Fund and the State Tort Claims Fund.

State Tort
General Claims Combined
Fund Fund Eliminations General Fund
REVENUES
General property taxes $ 61,368,051 $ - $ - $ 61,368,051
Franchise taxes 6,842,109 - - 6,842,109
Licenses and permits 1,405,219 - - 1,405,219
Intergovernmental 34,429,419 - - 34,429,419
Fines and forfeitures 1,704,377 - - 1,704,377
Admissions, fees, rentals and concessions 4,606,777 - - 4,606,777
Interest 924,999 46,834 - 971,833
Other 3,770,580 - - 3,770,580

Total revenues 115,051,531 46,834 - 115,098,365

EXPENDITURES
Current:
General government 31,981,347 295,732 - 32,277,079
Public safety 50,048,673 - - 50,048,673
Public works 9,572,927 - - 9,572,927
Human and Cultural services 3,682,832 - - 3,682,832
Debt Service:
Principal 3,716,352 - - 3,716,352
Interest and service charges 456,072 - - 456,072
Capital outlay:
General government 3,763,017 - - 3,763,017
Public Works 153,821 - - 153,821
Public safety 764,657 - - 764,657
Human and Cultural services 64,292 - - 64,292
Total expenditures 104,203,990 295,732 - 104,499,722

Excess (deficiency) of revenues

over (under) expenditures 10,847,541 (248,898) - 10,598,643

OTHER FINANCING SOURCES (USES)

Transfers in - 250,850 (250,850) -
Transfers out (12,068,920) - 250,850 (11,818,070)
Proceeds from long-term debt 8,746,830 - - 8,746,830
Sale of capital assets 256,971 - - 256,971
Total other financing sources (uses) (3,065,119) 250,850 - (2,814,269)

Net change in fund balances 7,782,422 1,952 - 7,784,374

Fund balances at beginning of year 35,634,065 5,097,114 - 40,731,179

Fund balances at end of year - GAAP basis 43,416,487 5,099,066 - 48,515,553

Reconciliation of Schedule of Revenues, Expenditures, and Changes

in Fund Balance - Budget and Actual

Amounts reported for general fund activities under the budgetary basis
are different from the amounts reported under the GAAP basis because:

Revenues recognized on the budgetary basis for the general fund are
recognized when cash is received (16,154,230) - - (16,154,230)

Fund balances at end of year - budgetary basis $ 27,262,257 $ 5,099,066 $ - $ 32,361,323

102
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

SENIOR AIDES FUND (012)

REVENUES

NCSC Senior Aides $ 423,144 $ 376,965 $ 466,685 $ 89,720

Interest on Investments - - - -
Transfer In/From General Fund 91,790 102,168 102,167 (1)
Beginning Fund Balance - - (156,342) (156,342)

Total Revenues and Beginning Fund Balance $ 514,934 $ 479,133 $ 412,510 $ (66,623)

EXPENDITURES

Personnel Services $ 498,138 $ 459,875 $ 557,635 $ 97,760

Supplies 6,419 2,600 2,224 (376)
Other Services and Charges 6,097 14,378 1,674 (12,704)
Capital Outlay 4,280 2,280 - (2,280)
Ending Fund Balance - - (149,023) (149,023)

Total Expenditures and Ending Fund Balance $ 514,934 $ 479,133 $ 412,510 $ (66,623)

FEDERAL GRANT FUND (019, 063, 069, 083, 084, 087,090, 103, 106, 117, 119, 139)

REVENUES

Interest Income $ - $ - $ 8,648 $ 8,648

Beginning Fund Balance - - 816,373 816,373

Total Revenues and Beginning Fund Balance $ - $ - $ 825,021 $ 825,021

EXPENDITURES

Other Services and Charges $ - $ - $ - $ -

Ending Fund Balance - - 825,021 825,021

Total Expenditures and Ending Fund Balance $ - $ - $ 825,021 $ 825,021

103
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

EARLY CHILDHOOD FUND (081)

REVENUES

USDA Food Revenue (Daycare) $ - $ 216,928 $ 84,156 $ (132,772)

OCY- Partnership - 750,027 345,553 (404,474)
Interest - 2,511 7,262 4,751
Mary Jones Daycare - 66,000 96,629 30,629
Westside Daycare - 73,000 153,220 80,220
Other Revenue - - 11,756 11,756
Transfer In/From General Fund - 387,696 387,696 -
Beginning Fund Balance - 206,186 239,647 33,461

Total Revenues and Beginning Fund Balance $ - $ 1,702,348 $ 1,325,919 $ (376,429)

EXPENDITURES

Personal Services $ - $ 1,350,968 $ 1,259,115 $ (91,853)

Supplies - 290,317 46,104 (244,213)
Other Services and Charges - 60,671 31,300 (29,371)
Capital Outlay - 392 - (392)
Ending Fund Balance - - (10,600) (10,600)

Total Expenditures and Ending Fund Balance $ - $ 1,702,348 $ 1,325,919 $ (376,429)

CDBG FUND (085)

REVENUES

CDBG - Housing & Community Development Grant $ - $ 4,617,759 $ 1,125,472 $ (3,492,287)

Interest Earned - 13,539 44,357 30,818
City Matching Funds - 429,809 - (429,809)
Lead Based Hazard Grant - 1,032,503 - (1,032,503)
Program Income/Other Department - - 11,389 11,389
Transfer In from other funds - 43,461 43,461 -
Beginning Fund Balance - - (592,627) (592,627)

Total Revenues and Beginning Fund Balance $ - $ 6,137,071 $ 632,052 $ (5,505,019)

EXPENDITURES

Personal Services $ - $ 829,002 $ 581,839 $ (247,163)

Supplies - 50,092 5,697 (44,395)
Other Services and Charges - 3,284,953 402,772 (2,882,181)
Capital Outlay - 70,273 161,854 91,581
Grants, Contribution - 1,902,751 323,539 (1,579,212)
Ending Fund Balance - - (843,649) (843,649)

Total Expenditures and Ending Fund Balance $ - $ 6,137,071 $ 632,052 $ (5,505,019)

104
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

EMERGENCY SHELTER GRANT (086)

REVENUES

Emergency Shelter Grant $ - $ 443,548 $ 223,763 $ (219,785)

Beginning Fund Balance - - (92,538) (92,538)

Total Revenues and Beginning Fund Balance $ - $ 443,548 $ 131,225 $ (312,323)

EXPENDITURES

Personal Services $ - $ 31,357 $ 23,044 $ (8,313)

Other Services and Charges - - 148,050 148,050
Grants, Contribution - 412,191 - (412,191)
Ending Fund Balance - - (39,869) (39,869)

Total Expenditures and Ending Fund Balance $ - $ 443,548 $ 131,225 $ (312,323)

METRO MEDICAL RESPONSE SYSTEM (093)

REVENUES

MMRS Grant-Metro Med Response $ 25,198 $ 25,198 $ - $ (25,198)

Interest on Investment - 175 707 532
Beginning Fund Balance - - 506 506

Total Revenues $ 25,198 $ 25,373 $ 1,213 $ (24,160)

EXPENDITURES
Supplies $ 105 $ 105 $ - $ (105)
Other Services and Charges 24,445 24,620 - (24,620)
Capital Outlay 648 648 - (648)
Ending Fund Balance - - 1,213 1,213

Total Expenditures and Ending Fund Balance $ 25,198 $ 25,373 $ 1,213 $ (24,160)

105
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

HOME PROGRAM (120)

REVENUES

Home Program $ 2,881,959 $ 2,881,959 $ 744,345 $ (2,137,614)

Interest Earned on Investments - - - -
Other Revenue - - 10,360 10,360
Beginning Fund Balance - - (400,976) (400,976)

Total Revenues and Beginning Fund Balance $ 2,881,959 $ 2,881,959 $ 353,729 $ (2,528,230)

EXPENDITURES

Personnel Services $ 118,265 $ 118,265 $ 66,711 $ (51,554)

Supplies 4,800 7,800 2,195 (5,605)
Other Services and charges 2,758,894 16,012 5,162 (10,850)
Grants and Contributions - 2,739,882 533,740 (2,206,142)
Ending Fund Balance - - (254,079) (254,079)

Total Expenditures and Ending Fund Balance $ 2,881,959 $ 2,881,959 $ 353,729 $ (2,528,230)

HOPWA GRANT FUND (122)

REVENUES

HOPWA Grant-Dept. of HUD $ 5,153,922 $ 5,297,316 $ 2,315,618 $ (2,981,698)

Beginning Fund Balance - - (291,740) (291,740)

Total Revenues and Beginning Fund Balance $ 5,153,922 $ 5,297,316 $ 2,023,878 $ (3,273,438)

EXPENDITURES

Personnel Services $ 107,432 $ 107,432 $ 51,607 $ (55,825)

Supplies 3,000 3,000 551 (2,449)
Other Services and charges 5,043,490 13,268 1,350 (11,918)
Grants, Contributions - 5,173,616 2,073,226 (3,100,390)
Ending Fund Balance - - (102,856) (102,856)

Total Expenditures and Ending Fund Balance $ 5,153,922 $ 5,297,316 $ 2,023,878 $ (3,273,438)

106
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

TITLE III AGING (125)

REVENUES

Title IIIB Outreach $ 13,000 $ 13,000 $ 11,917 $ (1,083)

Title IIIB Transportation 142,115 142,115 217,001 74,886
Title III Congregate Meals 80,666 78,266 78,266 -
SSBG Title XX Home Delivery 282,000 280,112 251,627 (28,485)
Interest Earned - 8,317 34,470 26,153
Grants & Donations 10,935 10,935 - (10,935)
Title III Congregate Donation 2,473 3,000 3,979 979
Title III Trans Donation - - 96 96
Title XX-Transportation Donation P.I. 500 500 - (500)
Transfer In/From General Fund 360,803 357,611 357,611 -
Beginning Fund Balance - 3,000 1,096,093 1,093,093

Total Revenues and Beginning Fund Balance $ 892,492 $ 896,856 $ 2,051,060 $ 1,154,204

EXPENDITURES

Personnel Services $ 167,124 $ 167,124 $ 172,978 $ 5,854

Supplies 398,163 402,527 339,556 (62,971)
Other Services and charges 325,205 325,205 328,486 3,281
Capital Outlay 2,000 2,000 (2,000)
Ending Fund Balance - - 1,210,040 1,210,040

Total Expenditures and Ending Fund Balance $ 892,492 $ 896,856 $ 2,051,060 $ 1,154,204

AMERICORPS (134)

REVENUES

Interest Earned $ - $ - $ 1,399 $ 1,399

Beginning Fund Balance - - 94,620 94,620

Total Revenues and Beginning Fund Balance $ - $ - $ 96,019 $ 96,019

EXPENDITURES

Ending Fund Balance $ - $ - $ 96,019 $ 96,019

Total Expenditures and Ending Fund Balance $ - $ - $ 96,019 $ 96,019

107
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

ED BYRNE MEMORIAL GRANT FUND (353, 356, 359, 361,367)

REVENUES

Edward Byrne Mem Justice Grant $ 498,553 $ 498,553 $ 172,216 $ (326,337)

Beginning Fund Balance - - (678) (678)

Total Revenues and Beginning Fund Balance $ 498,553 $ 498,553 $ 171,538 (327,015)

EXPENDITURES

Grants, Contributions $ 40,000 $ 70,000 $ 28,676 $ (41,324)

Capital Outlay 458,553 428,553 219,523 (209,030)
Ending Fund Balance - - (76,661) (76,661)

Total Expenditures and Ending Fund Balance $ 498,553 $ 498,553 $ 171,538 $ (327,015)

KABOOM GRANT-PLAYGROUND EQUIPMENT (354)

REVENUES

KABOOM-Playground Equipment $ 38,151 $ 38,151 $ - $ (38,151)

Beginning Fund Balance - - 29,887 29,887

Total Revenues and Beginning Fund Balance $ 38,151 $ 38,151 $ 29,887 $ (8,264)

EXPENDITURES

Other Services and Charges $ 38,151 $ - $ - $ -

Grants, Contribution - 38,151 - (38,151)
Ending Fund Balance - - 29,887 29,887

Total Expenditures and Ending Fund Balance $ 38,151 $ 38,151 $ 29,887 $ (8,264)

108
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

TIGER GRANT (357)

REVENUES

Tiger Grant $ 6,764,996 $ 6,764,996 $ 7,089,863 $ 324,867

Beginning Fund Balance - - (2,792,668) (2,792,668)

Total Revenues and Beginning Fund Balance $ 6,764,996 $ 6,764,996 $ 4,297,195 $ (2,467,801)

EXPENDITURES

Other Services and Charges $ 6,764,996 $ 6,764,996 $ - $ (6,764,996)

Capital Outlay - - 8,884,740 8,884,740
Ending Fund Balance - - (4,587,545) (4,587,545)

Total Expenditures and Ending Fund Balance $ 6,764,996 $ 6,764,996 $ 4,297,195 $ (2,467,801)

BLIGHT ELIMINATION GRANT (360)

REVENUES

Intergovernmental- Federal $ 323,560 $ 323,560 $ - $ (323,560)

Beginning Fund Balance - - 297,122 297,122

Total Revenues and Beginning Fund Balance $ 323,560 $ 323,560 $ 297,122 $ (26,438)

EXPENDITURES

Other Services and Charges $ 323,560 $ - $ 260 $ 260

Debt Services - 1,060 - (1,060)
Grants and Contribution - 322,500 197,669 (124,831)
Ending Fund Balance - - 99,193 99,193

Total Expenditures and Ending Fund Balance $ 323,560 $ 323,560 $ 297,122 $ (26,438)

109
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

BODY CAMERA GRANT (362)

REVENUES

Intergovernmental- Federal $ 162,227 $ 4,612 $ - $ (4,612)

Transfer from Other Funds 160,500 - - -
Beginning Fund Balance - - 4,612 4,612

Total Revenues and Beginning Fund Balance $ 322,727 $ 4,612 $ 4,612 $ -

EXPENDITURES

Other Services and Charges $ 1,727 $ 4,612 $ - $ (4,612)

Capital Outlay 321,000 - - -
Ending Fund Balance - - 4,612 4,612

Total Expenditures and Ending Fund Balance $ 322,727 $ 4,612 $ 4,612 $ -

CARES ACT SB3047 (384)

REVENUES

Cares Act Senate Bill 3047 $ - $ - $ - $ -

Beginning Fund Balance - - - -

Total Revenues and Beginning Fund Balance $ - $ - $ - $ -

EXPENDITURES

Personnel $ - $ - $ 4,064,043 $ 4,064,043

Ending Fund Balance - - (4,064,043) (4,064,043)

Total Expenditures and Ending Fund Balance $ - $ - $ - $ -

MEMA- FEMA (397)

REVENUES

MEMA-FEMA $ - $ - $ - $ -
Beginning Fund Balance - - - -

Total Revenues and Beginning Fund Balance $ - $ - $ - $ -

EXPENDITURES

Other Charges and Services $ - $ - $ 70,429 $ 70,429

Ending Fund Balance - - (70,429) (70,429)

Total Expenditures and Ending Fund Balance $ - $ - $ - $ -

110
 City of Jackson
Federal Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

For managerial and budgeting purposes, the City maintains multiple special revenue funds for
federal grants that it treats separately. However, these separate federal grant funds do not meet the
criteria for separate fund presentation as set forth by GASB and for reporting purposes are
presented together as a single Federal Grants Special Revenue Fund in order to comply with GAAP.
The Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget to Actual compares
the budgets adopted for various separate federal grant funds with the related revenues and
expenditures of these separate funds. Following is a reconciliation of the ending budgetary basis
fund balances of the separate federal grant funds to the ending GAAP basis fund balance of the
Federal Grants Special Revenue Fund.

Ending budgetary basis fund balance:

Senior Aides Fund $ (149,023)
Federal Grant Fund 825,021
Early Childhood Fund (10,600)
CDBG Fund (843,649)
Emergency Shelter Grant Fund (39,869)
Metro Medical Response System Fund 1,213
Home Program Fund (254,079)
HOPWA Grant Fund (102,856)
Title III Aging Fund 1,210,040
Americorps Fund 96,019
Ed Byrne Memorial Grant Fund (76,661)
Body Camera Grant Fund 4,612
Kaboom Grant- Playground Equipment Fund 29,887
TIGER Grant Fund (4,587,545)
Blight Elimination Grant Fund 99,193
CARES Act SB3047 Fund (4,064,043)
MEMA FEMA Fund (70,429)
(7,932,769)
Amounts reported are different under GAAP basis because:
Revenues under the budgetary basis are recognized
when cash is received 9,447,536
Ending GAAP basis fund balance $ 1,514,767

111
112
113
 City of Jackson
1% Infrastructure Tax
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

1% INFRASTRUCTURE TAX (173)

REVENUES

General Property Taxes $ 12,963,269 $ 12,963,269 $ 14,390,176 $ 1,426,907

Interest Earned - 175,162 666,765 491,603
Transfer In - 27,086,033 - (27,086,033)
Other Revenues - - 20,873 20,873
Beginning Fund Balance - 346,744 19,757,761 19,411,017

Total Revenues and Beginning Fund Balance $ 12,963,269 $ 40,571,208 $ 34,835,575 $ (5,735,633)

EXPENDITURES

Other Services and Charges $ 12,963,269 $ 39,106,869 $ 291,113 (38,815,756)

Grants, Contribution - 984,314 - (984,314)
Transfers - 346,744 4,474,443 4,127,699
Capital Outlay - 133,281 14,462,469 14,329,188
Ending Fund Balance - - 15,607,550 15,607,550

Total Expenditures and Ending Fund Balance $ 12,963,269 $ 40,571,208 $ 34,835,575 (5,735,633)

114
 City of Jackson
Infrastructure Bond 2020 Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

INFRASTRUCTURE BOND 2020 (157)

REVENUES

Sales of Bond $ - $ 32,140,000 $ 32,140,000 $ -

Premium - 6,747,332 6,747,332 -
Interest Earned - - 1,482 1,482
Beginning Fund Balance - - - -

Total Revenues and Beginning Fund Balance $ - $ 38,887,332 $ 38,888,814 $ 1,482

EXPENDITURES

Grants, Contribution $ - $ 35,000,000 $ - $ (35,000,000)

Transfers to Other Funds - 3,215,600 3,215,600 -
Debt Service - 671,732 671,732 -
Ending Fund Balance - - 35,001,482 35,001,482

Total Expenditures and Ending Fund Balance $ - $ 38,887,332 $ 38,888,814 $ 1,482

115
 NON-MAJOR
GOVERNMENTAL FUNDS

116
 Nonmajor Governmental Funds
Parks and Recreation Special Revenue Fund

To account for the operation and maintenance of all City-owned parks. Financing is provided by
a 2- Mill annual property tax levy, admissions, fees and concessions. Appropriations are made
from General Fund sources to the extent that such tax levy and other revenues are not sufficient
to finance expenditures.

Disability and Relief Special Revenue Fund

To account for the receipt of revenues, principally tax levies, for the pensions of retired and
disabled police and fireman employed prior to April 1, 1976.

State Grant Special Revenue Fund

To account for proceeds of state grants or loans other than those grants or loans for Enterprise
Fund or Capital Projects Fund items.

Improvement Special Revenue Fund

To account for revenues that are restricted for improvements and major repairs to City facilities.
The revenues are provided primarily by external grantors.

Library Special Revenue Fund

To account for receipt of revenues, principally tax levies, for the support, upkeep, and
maintenance of the Jackson-Hinds Library System (JHLS). Additionally, this fund is used to
account for certain lease & maintenance costs related to city owned/leased buildings utilized by
JHLS.

Debt Service Fund

To account for the accumulation of resources and the subsequent disbursement of such resources
to pay principal and interest on long-term debt of the City (other than debt of the Enterprise
Funds). Bond ordinances require the City to account for debt service transactions in separate
funds, restrict the flow of cash between such funds, and comply with various other covenants.
For financial statement reporting, the various debt service funds have been combined.

117
 Nonmajor Governmental Funds (Cont.)
1998 General Obligation Bond Capital Project Fund

To account for proceeds of general obligation bonds of $35,000,000 issued to finance certain
projects including storm drainage systems, construction of a youth detention center, and
repairing buildings.

2003 General Obligation Bond Refunding Fund

To account for funds raised to pay cost of multiple tasks for the City for various departments

2009 General Obligation Bond Capital Project Fund

To account for proceeds of general obligation bonds of $26,210,000 issued to pay the costs of
constructing, improving and paving streets, sidewalks, driveways, parkways and public parking
facilities.

Capitol Street 2 – Way Capital Project Fund

To account for revenues restricted for improvements to Capitol Street.

2012 General Obligation Note Capital Project Fund

To account for proceeds of general obligation note of $11,500,000 providing updates to City
Facilities and rehabilitation of sewer line projects.

Thalia Mara Hall Capital Project Fund

To account for proceeds received for the renovation and improvements being made to Thalia
Mara Hall.

Museum to Market Capital Project Fund

To account for proceeds received for the walking and biking trail from LeFleur's Bluff State Park
to the Mississippi Agriculture Museum.

.
Modernization Tax Capital Fund

To account for the City’s portion of state sales tax restricted to pay for repair, maintenance, and
reconstruction of roads, streets and bridges.

118
 City of Jackson
Combining Balance Sheet
Nonmajor Governmental Funds
As of September 30, 2020

Special Revenue

Parks and Disability and Improvement Total Special

Recreation Relief State Grant Fund Library Revenue
ASSETS
Cash and cash equivalents $ 866,799 $ 148,298 $ 1,698,109 $ 3,933,865 $ 91,008 $ 6,738,079
Receivables 2,626,940 4,656,899 151,191 4,621,292 2,084,393 14,140,715
Total current assets $ 3,493,739 $ 4,805,197 $ 1,849,300 $ 8,555,157 $ 2,175,401 $ 20,878,794

LIABILITIES
Current Liabilities:
Accounts payable $ 97,309 $ 144,994 $ 41,615 $ 2,244,019 $ - $ 2,527,937
Unearned grant revenue - - 1,423,711 75,169 - 1,498,880
Other liabilities 148,781 - - - - 148,781
Total liabilities 246,090 144,994 1,465,326 2,319,188 - 4,175,598

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue-property taxes levied for subsequent year 2,406,096 4,595,644 - 1,323,863 2,057,212 10,382,815
Total deferred inflows of resources 2,406,096 4,595,644 - 1,323,863 2,057,212 10,382,815

FUND BALANCES
Restricted 308,742 - 383,974 - 118,189 810,905
Committed 532,811 64,559 - 4,912,106 - 5,509,476
Total fund balance 841,553 64,559 383,974 4,912,106 118,189 6,320,381

Total liabilities, deferred inflows of resources and fund balances $ 3,493,739 $ 4,805,197 $ 1,849,300 $ 8,555,157 $ 2,175,401 $ 20,878,794

119
 Capital Projects

Thalia Mara Total Nonmajor

1998 GO 2003 GO 2009 GO Capitol Street 2012 GO Hall Modernization Museum-to- Total Capital Governmental
Debt Service Bond Bond Bond 2-way Note Renovation Tax Capital Fund Market Project Projects Funds

$ 8,472,557 $ 11,034 $ 1,243,358 $ 134,475 $ 649,496 $ 768,930 $ 116 $ 580,808 $ - $ 3,388,217 $ 18,598,853
11,634,049 - - - 35,992 - - - 811,160 847,152 26,621,916
$ 20,106,606 $ 11,034 $ 1,243,358 $ 134,475 $ 685,488 $ 768,930 $ 116 $ 580,808 $ 811,160 $ 4,235,369 $ 45,220,769

$ 400 $ - $ 858,418 $ - $ 3,542 $ - $ - $ - $ 811,160 $ 1,673,120 $ 4,201,457

- - - - - - - - - - 1,498,880
- - - - - - - - - - 148,781
400 - 858,418 - 3,542 - - - 811,160 1,673,120 5,849,118

11,537,232 - - - - - - - - - 21,920,047
11,537,232 - - - - - - - - 21,920,047

8,568,974 11,034 384,940 134,475 681,946 768,930 116 580,808 - 2,562,249 11,942,128
- - - - - - - - - - 5,509,476
8,568,974 11,034 384,940 134,475 681,946 768,930 116 580,808 - 2,562,249 17,451,604

$ 20,106,606 $ 11,034 $ 1,243,358 $ 134,475 $ 685,488 $ 768,930 $ 116 $ 580,808 $ 811,160 $ 4,235,369 $ 45,220,769

120
 City of Jackson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended September 30, 2020

Special Revenue

Parks and Disability and Improvement Total Special

Recreation Relief State Grant Fund Library Revenue
REVENUES
General property taxes $ 2,486,974 $ 4,688,420 $ - $ 1,308,694 $ 2,063,201 $ 10,547,289
Intergovernmental 70,239 140,252 613,770 6,751,804 61,006 7,637,071
Admissions, fees, rentals and concessions 188,456 - - - - 188,456
Interest 25,222 12,569 18,780 106,718 - 163,289
Other 11,658 - 584,663 - - 596,321
Total revenues 2,782,549 4,841,241 1,217,213 8,167,216 2,124,207 19,132,426

EXPENDITURES
Current:
General government - - 201,312 - - 201,312
Public safety - 4,836,683 203,808 - - 5,040,491
Public works - - - 1,309,561 - 1,309,561
Human and cultural services 5,400,020 - 622,476 - 2,062,564 8,085,060
Debt Service:
Principal 233,887 - - - - 233,887
Interest and service charges 18,528 - - - - 18,528
Capital Outlay:
Public works - - - 8,069,640 - 8,069,640
Public safety - - 53,400 - 53,400
Human and cultural services 610,907 - - - - 610,907
Total expenditures 6,263,342 4,836,683 1,080,996 9,379,201 2,062,564 23,622,786

Excess (deficiency) of revenues over expenditures (3,480,793) 4,558 136,217 (1,211,985) 61,643 (4,490,360)

OTHER FINANCING SOURCES

Transfers in 3,616,464 - - 2,794,153 - 6,410,617
Transfers out - - - - - -
Issuance of long-term debt 187,791 - - - - 187,791
Total other financing sources 3,804,255 - - 2,794,153 - 6,598,408

Net change in fund balances 323,462 4,558 136,217 1,582,168 61,643 2,108,048

Fund balances at beginning of year 518,091 60,001 247,757 3,329,938 56,546 4,212,333
Fund balances at end of year $ 841,553 $ 64,559 $ 383,974 $ 4,912,106 $ 118,189 $ 6,320,381

121
 Capital Projects
Total
Thalia Mara Nonmajor
1998 GO 2003 GO 2009 GO Capitol 2012 GO Hall Modernization Museum-to- Total Capital Governmental
Debt Service Bond Bond Bond Street 2-way Note Renovation Tax Capital Fund Market Project Projects Funds

$ 7,523,515 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,070,804
4,180,321 - - - 35,992 - - 971,160 811,160 1,818,312 13,635,704
- - - - - - - - - - 188,456
274,870 318 - 4,163 41,953 22,140 2 - - 68,576 506,735
4,359 - - - - - - - - - 600,680
11,983,065 318 - 4,163 77,945 22,140 2 971,160 811,160 1,886,888 33,002,379

- - - - - - - - - - 201,312
- - - - - - - - - - 5,040,491
- - 210,734 - - - - - 210,734 1,520,295
- - - - - - - - - - 8,085,060

10,019,181 - - - - - - - - - 10,253,068
4,928,528 - - - - - - - - - 4,947,056

- - 226,505 15,068 33,128 - - - 811,160 1,085,861 9,155,501

- - - - - - - - - - 53,400
- - - - - - - - - - 610,907
14,947,709 - 437,239 15,068 33,128 - - - 811,160 1,296,595 39,867,090

(2,964,644) 318 (437,239) (10,905) 44,817 22,140 2 971,160 - 590,293 (6,864,711)

3,562,344 - 1,166,018 - - - - - - 1,166,018 11,138,979

- - (343,839) - (1,166,018) - - (390,352) - (1,900,209) (1,900,209)
- - - - - - - - - - 187,791
3,562,344 - 822,179 - (1,166,018) - - (390,352) - (734,191) 9,426,561

597,700 318 384,940 (10,905) (1,121,201) 22,140 2 580,808 - (143,898) 2,561,850

7,971,274 10,716 - 145,380 1,803,147 746,790 114 - - 2,706,147 14,889,754

$ 8,568,974 $ 11,034 $ 384,940 $ 134,475 $ 681,946 $ 768,930 $ 116 $ 580,808 $ - $ 2,562,249 $ 17,451,604

122
 City of Jackson
Parks and Recreation Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

REVENUES

Aircraft Registration $ 500 $ 500 $ 370 $ (130)

Homestead Exemption 65,000 65,000 68,897 3,897
Homestead Exemption Chargeback - - 973 973
Sonny Guy Green Fees 45,000 45,000 65,073 20,073
Sonny Guy Pk Elec Glf Cart Ren 25,000 25,000 37,117 12,117
Range Balls 1,247 1,247 3,621 2,374
Swimming Fees 10,000 10,000 132 (9,868)
Athletic Fees 35,000 35,000 14,115 (20,885)
Gym User Fees 20,000 20,000 8,288 (11,712)
Parks Building Rentals 25,000 25,000 928 (24,072)
Parks Field Rentals 23,000 23,000 529 (22,471)
Parks Concessions 100 100 - (100)
Parks Programs Registration 7,000 7,000 220 (6,780)
Jones Center Rental 10,000 10,000 5,963 (4,037)
Dance Karate Aerobics 1,000 1,000 - (1,000)
Parks-Other 2,000 2,000 - (2,000)
Vendor Fees - Park Events 2,000 2,000 200 (1,800)
Admissions /Summer Festivals 50,000 50,000 3,744 (46,256)
Mynelle Garden-Photography 2,161 2,161 100 (2,061)
Mynelle Garden Admissions 5,000 5,000 722 (4,278)
Mynelle Garden Rental 499 499 1,067 568
Mynelle Garden Weddings 2,000 2,000 2,400 400
Mynelle Garden Gift Shop Sales 200 200 28 (172)
Mynelle Garden Grants 1,211 1,211 - (1,211)
Donations-Summer Festivals 24,000 24,000 4,633 (19,367)
Rents and Royalties 22,000 22,000 17,810 (4,190)
Interest Earned On Investments - - 1,803 1,803
Interest Earned On Repos - - 23,418 23,418
Grants & Donations 30,884 30,884 6,000 (24,884)
Other Departments - - 1,025 1,025
Cemeteries Opening Clsg & Misc 25,000 25,000 26,400 1,400
Proceeds Of Long Term Debt 144,000 144,000 - (144,000)
Applied Fund Balance/R.E. - - - -
Transfers In/From General Fund 3,625,548 3,662,203 3,616,464 (45,739) .
Beginning Fund Balance - 446,232 484,654 38,422
Total Revenue from Sources other than Taxation 4,204,350 4,687,237 4,396,693 (290,544)

Taxes
Real Property 1,421,471 1,421,471 1,430,443 8,972
Personal Property 664,865 664,865 672,296 7,431
Delinquent Real 43,160 43,160 23,025 (20,135)
Delinquent Personal 1,596 1,596 2,999 1,403
Automotive 301,970 301,970 358,595 56,625
Total Taxes 2,433,062 2,433,062 2,487,358 54,296

Total Beginning Fund Balance and Anticipated Revenue from all Sources $ 6,637,412 $ 7,120,299 $ 6,884,051 $ (236,248)

EXPENDITURES

Personnel Services $ 4,436,257 $ 4,299,547 $ 3,845,464 $ (454,083)

Supplies 551,698 601,734 498,832 (102,902)
Other Services and Charges 1,259,632 1,674,974 1,055,725 (619,249)
Capital Outlay 389,825 477,327 610,907 133,580
Debt Service - 66,717 252,414 185,697
Ending Fund Balance - - 620,709 620,709

Total Expenditures and Ending Fund Balance $ 6,637,412 $ 7,120,299 $ 6,884,051 $ (236,248)

123
 City of Jackson
Disability and Relief Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

DISABILITY AND RELIEF FUND (055)

REVENUES

Real Property $ 2,779,443 $ 2,778,713 $ 2,778,713 $ -

Personal Property 1,271,377 1,301,651 1,301,651 -
Delinquent Realty - 29,580 51,492 21,912
Delinquent Personal - 6,819 6,819 -
Automotive 586,193 583,166 556,205 (26,961)
Aircraft Registration - 716 716 -
Homestead Exemption 67,508 137,535 139,536 2,001
Interest Income - 872 12,569 11,697
Beginning Fund Balance - 3,922 (7,712) (11,634)

Total Revenues and Beginning Fund Balance $ 4,704,521 $ 4,842,974 $ 4,839,988 $ (2,986)

EXPENDITURES

Other Services and Charges $ 4,704,521 $ - $ - $ -

Grants and Contributions - 4,842,974 4,836,684 (6,290)
Ending Fund Balance - - 3,304 3,304

Total Expenditures and Ending Fund Balance $ 4,704,521 $ 4,842,974 $ 4,839,988 $ (2,986)

124
 City of Jackson
State Grants Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

STATE GRANTS FUNDS 76,109,123,140,340,373,374)

REVENUES

Intergovernmental Revenue-MEMA/Public Safety $ - $ 493,138 $ 212,470 $ (280,668)

Intergovernmental Revenue-KELLOGG - 1,418,262 534,663 (883,599)
Intergovernmental Revenue-Human & Culture - - 20,000 20,000
DFA - - 351,715 351,715
Aspen - - 30,000 30,000
Intergovernmental Revenue-Planning - - 8,775 8,775
Project SA - 70,649 - (70,649)
Interest - - 18,780 18,780
Beginning Fund Balance - 540,429 137,376 (403,053)

Total Revenues and Beginning Fund Balance $ - $ 2,522,478 $ 1,313,779 $ (1,208,699)

EXPENDITURES
Salaries $ - $ 433,323 $ 169,401 $ (263,922)
Supplies & Materials - 162,638 111,470 (51,168)
Other Services and Charges - 1,564,843 746,725 (818,118)
Capital Outlay - 361,674 53,400 (308,274)
Ending Fund Balance - - 232,783 232,783

Total Expenditures and Ending Fund Balance $ - $ 2,522,478 $ 1,313,779 $ (1,208,699)

125
 City of Jackson
Improvement Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

BUSINESS IMPROVEMENT TAX ASSESSMENT (007)

REVENUES

Real Property Taxes $ 1,082,747 $ 1,092,431 $ 1,092,431 $ -

Interest on Investment - - 639 639
Beginning Fund Balance - - 15,011 15,011

Total Revenues and Beginning Fund Balance $ 1,082,747 $ 1,092,431 $ 1,108,081 $ 15,650

EXPENDITURES

Other Services and Charges $ 1,082,747 $ 1,092,431 $ 1,092,431 $ -

Ending Fund Balance - - 15,650 15,650

Total Expenditures and Ending Fund Balance $ 1,082,747 $ 1,092,431 $ 1,108,081 $ 15,650

CAPITAL IMPROVEMENT FUND (047,141, 213, 214, 215, 216, 217, 223, 364)

REVENUES

Interest Earned on Investments $ - $ 31,268 $ 106,079 $ 74,811

Intergovernmental-Federal- (MDOT) - - 168,836 168,836
Intergovernmental-State - (MDOT)(TRAFFIC) 170,622 - 176,234 176,234
Intergovernmental (MDOT) Lynch Street - 170,622 49,437 (121,185)
Intergovernmental-State - (MDOT) 500,000 500,000 - (500,000)
Intergovernmental-State- (MDOT)- Mill Street 2,101,994 2,101,994 517,121 (1,584,873)
Intergovernmental-State- Fondren Enhancement Proj 129,533 129,533 11,380 (118,153)
Intergovernmental-State- (MDOT) ERB Beasley - 391,673 406,047 14,374
Intergovernmental-State - (DFA Parham Bridges) 99,952 99,952 - (99,952)
Intergovernmental-Local - (Street Resurfacing) 101,318 101,318 67,207 (34,111)
Inergovenmental-State- (MDOT) Many - 3,888,750 1,429,797 (2,458,953)
Intergovernmental-State- Fort Web - 1,415,681 956,036 (459,645)
Intergovernmetnal- State-West St Br - - 41,252 41,252
Grants and Donations 15,200 15,200 250,000 234,800
Settlement of Insurance Claims 140,481 140,481 - (140,481)
Proceeds of Long Term Debt 496,800 496,800 - (496,800)

Transfer In/From General Fund - - 1,194,153 1,194,153

Beginning Fund Balance 3,719,155 3,841,942 2,698,279 (1,143,663)

Total Revenues and Beginning Fund Balance $ 7,475,055 $ 13,325,214 $ 8,071,858 (5,253,356)

EXPENDITURES

Supplies $ 45,204 $ 45,204 $ - $ (45,204)

Other Services and Charges 7,387,192 12,378,684 477 (12,378,207)
Grants, Contributions - 466,994 - (466,994)
Capital Outlay 42,659 434,332 8,069,640 7,635,308
Ending Fund Balance - - 1,741 1,741

Total Expenditures and Ending Fund Balance $ 7,475,055 $ 13,325,214 $ 8,071,858 $ (5,253,356)

126
 City of Jackson
Improvement Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

GRAND GULF EMERGENCY PLANNING (365)

REVENUES

Interest $ - $ 31 $ - $ (31)
Nuclear Power Plant 477,057 321,576 - (321,576)
Transfers - 1,600,000 1,600,000 -
Beginning Fund Balance - - (2,323) (2,323)

Total Revenues and Beginning Fund Balance $ 477,057 $ 1,921,607 $ 1,597,677 $ (323,930)

EXPENDITURES

Other Services and Charges $ 477,057 $ 5,000 $ 391 $ (4,609)

Grants, Contribution - 1,916,607 - (1,916,607)
Ending Fund Balance - - 1,597,286 1,597,286

Total Expenditures and Ending Fund Balance $ 477,057 $ 1,921,607 $ 1,597,677 $ (323,930)

FONDREN BUSINESS IMPROVEMENT FUND (192)

REVENUES

Current Realty Taxes $ - $ 201,698 $ 216,264 $ 14,566

Beginning Fund Balance - - - -

Total Revenues and Beginning Fund Balance $ - $ 201,698 $ 216,264 $ 14,566

EXPENDITURES

Grants, Contribution $ - $ 201,698 $ 216,264 $ 14,566

Ending Fund Balance - - - -

Total Expenditures and Ending Fund Balance $ - $ 201,698 $ 216,264 $ 14,566

127
 City of Jackson
Library Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

LIBRARY FUND

REVENUES

Current Realty Taxes $ 1,215,358 $ 1,215,358 $ 1,223,381 $ 8,023

Current Personal Taxes 568,459 568,459 574,841 6,382
Delinquent Realty Taxes 1 1 20,756 20,755
Delinquent Personal Taxes - - 2,620 2,620
Ad Valorem Tax on Automobiles 258,184 258,184 242,730 (15,454)
Aircraft Registration - - 316 316
Homestead Exemption 21,268 21,268 60,690 39,422
Beginning Fund Balance - - 28,238 28,238

Total Revenues and Beginning Fund Balance $ 2,063,270 $ 2,063,270 $ 2,153,572 $ 90,302

EXPENDITURES

Other Services and Charges $ 2,063,270 $ 116,262 $ 115,556 (706)

Grants and Contributions $ - $ 1,947,008 $ 1,947,008 -
Ending Fund Balance - - 91,008 91,008

Total Expenditures and Ending Fund Balance $ 2,063,270 $ 2,063,270 $ 2,153,572 $ 90,302

128
 City of Jackson
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

BOND AND INTEREST FUND

REVENUES

Current Realty Taxes $ 4,416,944 $ 4,413,853 $ 4,552,557 $ 138,704

Current Personal Taxes 2,020,406 2,009,655 2,076,925 67,270
Delinquent Realty Taxes 1 - 43,014 43,014
Delinquent Personal Taxes - - 8,748 8,748
Ad Valorem Tax on Automotive 931,547 926,737 837,424 (89,313)
Aircraft Registration - - 1,138 1,138
Homestead Exemption 18,652 220,296 201,644
Homestead Exemption Chargeback - - 3,122 3,122
Interest Earnings - 40,206 274,869 234,663
Special Assessment - - 1,786 1,786
Capital City Convention Commission - - 3,892,424 3,892,424
Other Departments - - 2,573 2,573
County Taxes 59,393 59,393 63,341 3,948
Transfer In From Other Funds 14,547,895 15,310,203 3,562,344 (11,747,859)
Beginning Fund Balance 2,900,809 3,530,203 7,873,829 4,343,626

Total Revenue and Beginning Fund Balance $ 24,876,995 $ 26,308,902 $ 23,414,390 $ (2,894,512)

EXPENDITURES

Other Services & Charges $ 24,876,995 $ 64,106 $ - $ (64,106)

Debt Service - 15,184,058 14,942,233 (241,825)
Transfers and Other Functions - 11,060,738 - (11,060,738)
Ending Fund Balance - - 8,472,157 8,472,157

Total Expenditures and Ending Fund Balance $ 24,876,995 $ 26,308,902 $ 23,414,390 (2,894,512)

129
 City of Jackson
1998 General Obligation Bond Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

G.O. BONDS 1998 CONSTRUCTION FUND (156)

REVENUES

Interest Earned $ - $ 78 $ 318 $ 240

Beginning Fund Balance 10,540 10,540 10,716 176

Total Revenues and Beginning Fund Balance $ 10,540 $ 10,618 $ 11,034 $ 416

EXPENDITURES

Other Services and Charges $ 10,540 $ 10,618 $ - $ (10,618)

Ending Fund Balance - - 11,034 11,034

Total Expenditures and Ending Fund Balance $ 10,540 $ 10,618 $ 11,034 416

130
 City of Jackson
2003 General Obligation Bond Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

G.O.PUB IMPROVEMENT CONSTRUCTION BOND (148)

REVENUES

Intergovernmental- State $ 4,043,462 $ 4,043,462 $ - $ (4,043,462)

Transfers In/From Other Funds - 1,166,019 1,166,018 $ (1)

Total Revenues and Beginning Fund Balance $ 4,043,462 $ 5,209,481 $ 1,166,018 $ (4,043,463)

EXPENDITURES

Other Services and Charges $ 4,043,462 $ 5,109,481 $ 210,734 $ (4,898,747)

Capital Outlay - - 226,505 226,505
Grants and Contributions - 100,000 - (100,000)
Transfers to Other Funds - - 343,839 343,839
Ending Fund Balance - - 384,940 384,940

Total Expenditures and Ending Fund Balance $ 4,043,462 $ 5,209,481 $ 1,166,018 $ (4,043,463)

131
 City of Jackson
2009 General Obligation Bond Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

G.O. BONDS 2009 STREET CONSTRUCTION FUND (168)

REVENUES

Interest Earned $ - $ 1,063 $ 4,163 $ 3,100

Beginning Fund Balance 148,389 148,389 145,380 (3,009)

Total Revenues and Beginning Fund Balance $ 148,389 $ 149,452 $ 149,543 $ 91

EXPENDITURES

Other Services and Charges $ 148,389 $ 149,452 $ - $ (149,452)

Capital Outlay - - 15,068 15,068
Ending Fund Balance - - 134,475 134,475

Total Expenditures and Ending Fund Balance $ 148,389 $ 149,452 $ 149,543 $ 91

132
 City of Jackson
Capitol Street 2 - Way
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

CAPITOL STREET 2-WAY PROJECT (171)

REVENUES

Interest Earned $ - $ 13,223 $ 41,953 $ 28,730

Beginning Fund Balance 935,796 1,782,149 1,803,147 20,998

Total Revenues and Beginning Fund Balance $ 935,796 $ 1,795,372 $ 1,845,100 49,728

EXPENDITURES

Other Services and Charges $ 935,796 $ 629,353 $ - $ (629,353)

Capital Outlay - - 33,128 33,128
Transfers To Other Funds - 1,166,019 1,166,018 (1)
Ending Fund Balance - - 645,954 645,954

Total Expenditures and Ending Fund Balance $ 935,796 $ 1,795,372 $ 1,845,100 $ 49,728

133
 City of Jackson
2012 General Obligation Note Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

2012 G.O. NOTE-CAPITAL PROJECT FUND (190)

REVENUES

Interest Earned $ - $ 5,464 $ 22,140 $ 16,676

Beginning Fund Balance 743,027 743,027 746,790 3,763

Total Revenues and Beginning Fund Balance $ 743,027 $ 748,491 $ 768,930 $ 20,439

EXPENDITURES

Other Services and Charges $ 680,840 $ 434,877 $ - (434,877)

Grants and Contributions - 251,427 - (251,427)
Capital Outlay 62,187 62,187 - (62,187)
Ending Fund Balance - - 768,930 768,930

Total Expenditures and Ending Fund Balance $ 743,027 $ 748,491 $ 768,930 20,439

134
 City of Jackson
Thalia Mara Hall Renovation
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

THALIA MARA HALL RENOVATION (172)

REVENUES

Interest Earned $ - $ - $ 2 $ 2
Beginning Fund Balance - - 114 114

Total Revenues and Beginning Fund Balance $ - $ - $ 116 $ 116

EXPENDITURES

Ending Fund Balance $ - $ - $ 116 $ 116

Total Expenditures and Ending Fund Balance $ - $ - $ 116 $ 116

135
123
 City of Jackson
Modernization Tax
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

MODERNIZATION TAX (372)

REVENUES

Modernization Tax $ - $ 971,160 $ 971,160 $ -

Beginning Fund Balance - - - -

Total Revenues and Beginning Fund Balance $ - $ 971,160 $ 971,160 $ -

EXPENDITURES

Other Services and Charges $ - $ 971,160 $ - $ (971,160)

Transfers to Other Funds - - 390,352 390,352
Ending Fund Balance - - 580,808 580,808

Total Expenditures and Ending Fund Balance $ - $ 971,160 $ 971,160 $ -

136
 City of Jackson
Museum To Market Project
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2020

Original Final Actual

Budget Budget Amount Variance

MUSEUM TO MARKET PROJECT (351)

REVENUES

Intergovernmental-State $ 1,000,000 $ 1,000,000 $ - $ (1,000,000)

Grants & Donation - - - -

Total Revenues and Beginning Fund Balance $ 1,000,000 $ 1,000,000 $ - (1,000,000)

EXPENDITURES

Other Services and Charges $ 1,000,000 $ 1,000,000 $ - $ (1,000,000)

Capital Outlay - - 811,160 811,160
Ending Fund Balance - - (811,160) (811,160)

Total Expenditures and Ending Fund Balance $ 1,000,000 $ 1,000,000 $ - (1,000,000)

137
 NON-MAJOR
PROPRIETARY FUNDS

138
 Nonmajor Proprietary Funds

Madison-Ridgeland Sewage Disposal System Fund

To account for costs of construction, operation and maintenance of the East Madison County
Sewage Disposal System. The City of Ridgeland, Mississippi is responsible for the service
contracts with Madison County participating in the system.

Transportation Fund

To account for operational costs of the City’s transit system. Deficiencies in the revenues
over expenses are financed by the City.

139
 City of Jackson
Combining Statement of Net Position
Proprietary Funds - Nonmajor Enterprise Funds
As of September 30, 2020

Madison-Ridgeland
Sewage Transportation Totals
ASSETS
Current assets:
Cash and Cash equivalents $ - $ 2,415,200 $ 2,415,200
Intergovernmental Receivables - 3,258,460 3,258,460
Total Current Assets - 5,673,660 5,673,660

Property, Plant and Equipment, at Cost

Land - 450,000 450,000
Buildings - 8,664,594 8,664,594
Water plant, distribution system and equipment 587,818 655,773 1,243,591
Automotive and other equipment 5,278 16,069,094 16,074,372
593,096 25,839,461 26,432,557
Less: accumulated depreciation (332,650) (9,454,986) (9,787,636)
Net property, plant and equipment 260,446 16,384,475 16,644,921
Total Assets 260,446 22,058,135 22,318,581

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows of resources - other post employment
benefits - 121,467 121,467
Deferred outflows of resources - pension - 219,387 219,387
Total deferred outflows of resources - 340,854 340,854

140
 City of Jackson
Combining Statement of Net Position
Proprietary Funds - Nonmajor Enterprise Funds
As of September 30, 2020

Madison-Ridgeland
Sewage Transportation Totals
LIABILITIES
Current Liabilities:
Accounts payable and accrued expenses $ 41,748 $ 4,365,515 $ 4,407,263
Unearned grant revenue - 565,843 565,843
Compensated absences - 1,275 1,275
Other Post Employments Benefits liability - 7,011 7,011
Total current liabilities 41,748 4,939,644 4,981,392

Net pension liability - 1,131,395 1,131,395

Other Post Employment Benefits liability - 363,923 363,923
Compensated absences - 31,619 31,619
Total long-term liabilities - 1,526,937 1,526,937
Total liabilities 41,748 6,466,581 6,508,329

DEFERRED INFLOWS OF RESOURCES

Deferred inflows of resources - other post employment benefits - 4,180 4,180

Total deferred inflows of resources - 4,180 4,180

NET POSITION
Net investment in capital assets 260,446 16,384,475 16,644,921
Unrestricted (41,748) (456,247) (497,995)
Total net position $ 218,698 $ 15,928,228 $ 16,146,926

141
 City of Jackson
Combining Statement of Revenues, Expenditures, and Changes in Net Position
Proprietary Funds - Nonmajor Enterprise Funds
For the Year Ended September 30, 2020

Madison-
Ridgeland
Sewage Transportation Totals
Operating Revenues:
Sales to Customers $ 195,133 $ 228,976 $ 424,109
Total Operating Revenues 195,133 228,976 424,109

Operating Expenses:
Personnel services - 750,403 750,403
Supplies 10,700 750,635 761,335
Other services and charges 196,661 7,592,209 7,788,870
Depreciation 15,344 1,182,223 1,197,567
Total Operating Expenses 222,705 10,275,470 10,498,175
Operating Loss (27,572) (10,046,494) (10,074,066)

Nonoperating Revenues (Expenses):

Noncapital grants - 8,011,489 8,011,489
Interest revenue - 42,265 42,265
Gain on sale of capital assets - 1,384 1,384
Total nonoperating revenues (expenses) - 8,055,138 8,055,138
Loss before transfers (27,572) (1,991,356) (2,018,928)
Transfers In:
General Fund - 3,363,226 3,363,226
Change in Net Position (27,572) 1,371,870 1,344,298
Total net position - beginning 246,270 14,556,358 14,802,628
Total net position - ending $ 218,698 $ 15,928,228 $ 16,146,926

142
 City of Jackson
Combining Statement of Cash Flows
Proprietary Funds - Nonmajor Enterprise Funds
For the Year Ended September 30, 2020

Madison-
Ridgeland
Sewage Transportation Totals
Cash Flows from Operating Activities
Receipts from customers and users $ 195,133 $ 228,976 $ 424,109
Payments to suppliers (195,133) (8,341,976) (8,537,109)
Payments to employees - (443,188) (443,188)
Payments to internal service fund - (112,292) (112,292)
Net cash provided (used) by operating activities - (8,668,480) (8,668,480)

Cash Flows from Noncapital Financing Activities

Operating Grants - 6,554,718 6,554,718
Transfers and advances from other funds - 3,363,226 3,363,226
Net cash provided (used) by noncapital financing activities - 9,917,944 9,917,944

Cash Flows from Capital and Related Financing Activities

Acquisition and construction of capital assets - (944,629) (944,629)
Proceeds from capital asset sales - 1,384 1,384

Net cash provided (used) by capital and related financing activities - (943,245) (943,245)

Cash Flows from Investing Activities

Interest on investments - 42,265 42,265
Net cash provided (used) by investing activities - 42,265 42,265
Net increase (decrease) in cash and cash equivalents - 348,484 348,484
Cash and cash equivalents at beginning of year - 2,066,716 2,066,716
Cash and cash equivalents at end of year $ - $ 2,415,200 $ 2,415,200

Reconciliation of Operating Loss to Net Cash Used for Operating

Activities
Operating loss $ (27,572) $ (10,046,494) $ (10,074,066)
Depreciation 15,345 1,182,223 1,197,568
Increase (decrease) in accounts payable and accrued expenses 12,227 3,769 15,996
Increase (decrease) in compensated absences - 8,011 8,011

Increase (decrease) in pension liability and deferred inflows (outlflows) - 147,758 147,758
Increase (decrease) in other post-employment liabilities and deferred
inflows (outflows) - 36,253 36,253
Total adjustments 27,572 1,378,014 1,405,586
Net cash provided (used) by operating activities $ - $ (8,668,480) $ (8,668,480)

Accounts payable for capital assets at year end $ - $ 2,781,788 $ 2,781,788

143
FIDUCIARY FUNDS

144
 Fiduciary Funds
Unemployment Compensation Revolving Fund

To account for money held in trust to fund unemployment claims pursuant to State law.

Mausoleum Trust Fund

To account for funds to be used for maintenance and upkeep of the Henry M ausoleum
located in Kernaghan Cemetery.

Tax Collections Agency Funds

To account for receipt of tax collections for and subsequent payment to the Jackson
Municipal Separate School District, Capital City Community Convention Center, and
Jackson Convention & Visitors Bureau.

145
 CITY OF JACKSON
ALL TRUST FUNDS
COMBINING STATEMENT OF NET POSITION
AS OF SEPTEMBER 30, 2020

Unemployment
Compensation Mausoleum
Revolving Trust
Fund Fund Total

Assets

Cash and cash equivalents $ 216,392 $ - $ 216,392

Investment at fair value:
Certificate of deposit - 32,802 32,802

Total assets $ 216,392 $ 32,802 $ 249,194

Liabilities and Net Position

Liabilities:
Total liabilities $ - $ - $ -

Net Position:
Held in trust for unemployment 216,392 32,802 249,194
benefits and other purposes

Total net position 216,392 32,802 249,194

Total liabilities and net position $ 216,392 $ 32,802 $ 249,194

146
 CITY OF JACKSON
ALL TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2020

Unemployment
Compensation Mausoleum
Revolving Trust
Fund Fund Total

Additions:
Interest $ $ 70 $ 70
Contributions from other funds 83,364 - 83,364

Total additions 83,364 70 83,434

Deductions:
General government:
Unemployment claims 93,152 - 93,152

Total deductions 93,152 - 93,152

Change in Net Position (9,788) 70 (9,718)

Net position - beginning of year 226,180 32,732 258,912

Net position - end of year $ 216,392 $ 32,802 $ 249,194

147
 CITY OF JACKSON
ALL AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2020

Cash Taxes Total Payables Total

Equivalents Receivable Assets to Others Liabilities
Capital City Community Convention Center
Balance at October 1, 2019 $ 12,925 $ 775,098 $ 788,023 $ 788,023 $ 788,023
Additions 3,972,152 - 3,972,152 3,972,152 3,972,152
Deductions 3,971,420 121,371 4,092,791 4,092,791 4,092,791

Balance at September 30, 2020 $ 13,657 $ 653,727 $ 667,384 $ 667,384 $ 667,384

Jackson Convention & Visitors Bureau

Balance at October 1, 2019 $ 338,868 $ 605,581 $ 944,449 $ 944,449 $ 944,449
Additions 3,157,061 - 3,157,061 3,157,061 3,157,061
Deductions 3,493,360 87,353 3,580,713 3,580,713 3,580,713

Balance at September 30, 2020 $ 2,569 $ 518,228 $ 520,797 $ 520,797 $ 520,797

Jackson Municipal Separate School District

Balance at October 1, 2019 $ - $ - $ - $ - $ -
Additions 14,719,727 - 14,719,727 14,719,727 14,719,727
Deductions 14,719,727 - 14,719,727 14,719,727 14,719,727

Balance at September 30, 2020 $ - $ - $ - $ - $ -

Total - All Agency Funds:

Balance at October 1, 2019 $ 351,793 $ 1,380,679 $ 1,732,472 $ 1,732,472 $ 1,732,472
Additions 21,848,940 - 21,848,940 21,848,940 21,848,940
Deductions 22,184,507 208,724 22,393,231 22,393,231 22,393,231

Balance at September 30, 2020 $ 16,226 $ 1,171,955 $ 1,188,181 $ 1,188,181 $ 1,188,181

148
CAPITAL ASSETS

149
 CITY OF JACKSON
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES
COMPARATIVE SCHEDULES BY SOURCE (1)
SEPTEMBER 30, 2020 AND 2019

2020 2019
Governmental activities capital assets:
Land $ 13,720,748 $ 13,720,748
Buildings 109,269,156 108,317,974
Automotive and equipment: 82,001,665 78,930,591
Infrastructure 376,046,427 343,018,522
Construction in progress 36,208,683 32,444,146

Total governmental activities capital assets $ 617,246,680 $ 576,431,981

Investment in governmental activities capital assets by source:

Assets prior to 1985 not segregated
by sources $ 13,720,748 $ 13,720,748
General Fund revenues 116,694,272 112,070,618
Special Revenue Fund revenues 147,333,848 123,424,699
Special Assessment bonds 2,123,934 2,123,934
General Obligation bonds 267,572,309 267,345,804
Limited Obligation bonds 4,330,429 4,330,429
Debt Service Fund revenues 65,000 65,000
Federal grants 64,560,457 52,547,643
State grants 414,734 372,157
County grants 430,949 430,949

Total governmental activities capital assets $ 617,246,680 $ 576,431,981

(1) This schedule presents only the capital asset balances (excluding accumulated depreciation)
related to governmental activities.

150
 CITY OF JACKSON
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES
SCHEDULE BY FUNCTION AND ACTIVITY (1)
SEPTEMBER 30, 2020

Automotive and Construction

Land Buildings Infrastructure Equipment In Progress Total
Assets prior to 1985 not segregated by function and activity $ 10,636,579 $ - $ - $ 3,044,869 $ - $ 13,681,448
General Government:
Planning - 330,382 658,952 572,525 - 1,561,859
Code Services - - - 658,228 - 658,228
Telecommunication - 5,907,442 39,036 157,799 - 6,104,277
Data Processing / Information System - 42,257 555,255 12,496,069 - 13,093,581
Vehicle Pool Fund - - - 1,561,005 - 1,561,005
Mayor's Office of Development Assistance 100,000 - - 104,679 - 204,679
Office Services - - - 146,335 - 146,335
Purchasing - - - 50,452 - 50,452
Finance and Management - 2,299,392 133,238 288,302 - 2,720,932
Personnel - 913,546 - 225,894 - 1,139,440
Municipal Court Services - - - 1,466,044 - 1,466,044
Vehicle Maintenance - 5,816 - 655,395 - 661,211
Minority Business Development - - - 27,598 - 27,598
Total general government 100,000 9,498,835 1,386,481 18,410,325 - 29,395,641

Urban Development and Housing:

Neighborhood Enhancement Task - - - 11,125 - 11,125
Redevelopment Projects 87,578 - - 69,874 - 157,452
Post Office Project 500 - - - - 500
Union Station - 15,044,796 243,000 - - 15,287,796
Total urban development and housing 88,078 15,044,796 243,000 80,999 - 15,456,873

Health and Welfare:

Public Relations/Information - - - 14,829 - 14,829
Senior Services - 251,344 - 345,674 - 597,018
Day Care Services - 281,849 16,109 256,428 - 554,386
Senior Centers/Community Centers - 1,422,356 - 19,813 - 1,442,169
Group Home 46,245 - - - - 46,245
Human and Cultural Services - 471,638 1,876 65,837 - 539,351
Total health and welfare 46,245 2,427,187 17,985 702,581 - 3,193,998

Public Safety:
Fire Department 75,000 5,795,870 3,672,248 17,487,261 27,030,379
Police Department 123,992 19,362,027 10,784,134 24,970,194 59,447 55,299,794
Small Animal Control - 1,366,367 17,746 - 1,384,113
Juvenile Justice - 431,482 4,502,506 86,199 - 5,020,187
Emergency Management - - - 17,914 - 17,914
Communication Center - 1,292,879 - 300,903 - 1,593,782
Public Safety Garage - - - 29,060 - 29,060
Total public safety 198,992 28,248,625 18,958,888 42,909,277 59,447 90,375,229

Public Works:
Cemeteries - 8,430 - 143,318 - 151,748
Engineering 585,273 1,020,866 49,795,642 5,113,391 11,729,606 68,244,778
Traffic Engineering - 17,215 638,701 2,219,157 1,053,125 3,928,198
Traffic Signals - - 2,355,398 213,138 2,568,536
Care and Maintenance of Public Buildings - 8,456,917 8,536,528 73,658 911,001 17,978,104
Building & Ground - 516,800 - - - 516,800
Custodial Services - - - 34,818 - 34,818
Public Works Deputy Dir/Adm - - - 137,832 - 137,832
Public Works Infrastructure Management - 747,854 63,172,015 1,020,817 21,157,995 86,098,681
Pest Control - - - 1,426 - 1,426
Streets 354,278 - 141,885,667 - 867,671 143,107,616
Storm Drainage - - 71,942,748 838,301 244,123 73,025,172
Bridges - - 1,787,206 - - 1,787,206
Solid Waste - - - - -
Soil Conservation - 120,000 112,159 - - 232,159
Total public works 939,551 10,888,082 340,226,064 9,795,856 35,963,521 397,813,074

Culture and Recreation:

Planetarium - 827,314 34,963 1,342,865 - 2,205,142
Jackson Zoological Park - 3,000,000 3,392,767 465,122 - 6,857,889
Municipal Art Building - 5,758 29,049 5,907 2,544 43,258
Parks Maintenance - - 8,700 423,438 114,275 546,413
Parks and Recreation 225,820 19,425,404 8,698,033 3,604,312 68,897 32,022,466
Teen Center - - - 5,293 - 5,293
Library - 5,710,933 2,198,621 156,099 - 8,065,653
Smith Robertson Cultural Center - 1,238,810 340,745 57,595 - 1,637,150
City Auditorium and Art Center - 10,007,088 511,131 105,614 - 10,623,833
Total culture and recreation 225,820 40,215,307 15,214,009 6,166,245 185,716 62,007,097

Miscellaneous:
City Council/Mayor - 402,665 - 396,384 - 799,049
City Clerk - - - 192,219 - 192,219
City Hall - 2,526,372 - - - 2,526,372
Legal - 17,287 - 246,356 - 263,643
Mayor's Action Line - - - 34,862 - 34,862
Industrial Park 1,485,483 - - - - 1,485,483
Internal Audit - - - 21,692 - 21,692
Total miscellaneous 1,485,483 2,946,324 - 891,513 - 5,323,320

Total governmental funds capital assets $ 13,720,748 $ 109,269,156 $ 376,046,427 $ 82,001,665 $ 36,208,683 $ 617,246,680

(1) This schedule presents capital asset balances related to governmental activities.

151
 CITY OF JACKSON
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY (1)
FOR THE YEAR ENDED SEPTEMBER 30, 2020

Governmental Activities Governmental Activities

Capital Assets Capital Assets
September 30, 2019 Additions Deductions September 30, 2020
Assets prior to 1985 not segregated by function and activity $ 13,681,448 - - 13,681,448

General Government:
Planning 1,514,659 47,200 1,561,859
Code Services 658,228 - 658,228
Telecommunication 6,104,277 - - 6,104,277
Data Processing / Information System 9,377,763 3,715,818 13,093,581
Vehicle Pool Fund 1,575,817 - 14,812 1,561,005
Mayor's Office of Development Assistance 204,679 - - 204,679
Office Services 146,335 - - 146,335
Purchasing 50,452 - - 50,452
Finance and Management 2,720,932 - - 2,720,932
Personnel 1,139,440 - - 1,139,440
Municipal Court Services 1,466,044 - - 1,466,044
Vehicle Management 661,211 - - 661,211
Minority Business Development 27,598 - - 27,598
Total general government 25,647,435 3,763,018 14,812 29,395,641

Urban Development and Housing:

Neighborhood Enhancement Task 11,125 - - 11,125
Redevelopment Projects 157,452 - - 157,452
Post Office Project 500 - - 500
Union Station 15,287,796 - - 15,287,796
Total urban development and housing 15,456,873 - - 15,456,873

Health and Welfare:

Public Relations/Information 14,829 - - 14,829
Senior Services 597,018 597,018
Day Care Services 554,386 - - 554,386
Senior Centers/Community Centers 1,291,428 301,482 150,741 1,442,169
Group Home 46,245 - - 46,245
Human and Cultural Services 515,751 23,600 539,351
Total health and welfare 3,019,657 325,082 150,741 3,193,998

Public Safety:
Fire Department 27,039,150 79,149 87,920 27,030,379
Police Department 55,999,674 958,432 1,658,312 55,299,794
Small Animal Control 1,384,113 - 1,384,113
Juvenile Justice 5,020,187 - - 5,020,187
Emergency Management 17,914 - - 17,914
Communication Center 1,593,782 - - 1,593,782
Public Safety Garage 29,060 - - 29,060
Total public safety 91,083,880 1,037,581 1,746,232 90,375,229

Public Works:
Cemeteries 151,748 - - 151,748
Engineering 68,244,778 68,244,778
Traffic Engineering 3,928,198 - 3,928,198
Traffic Signals 2,568,536 2,568,536
Care and Maintenance of Public Buildings 17,888,117 179,974 89,987 17,978,104
Building and Ground 516,800 - - 516,800
Custodial Services 34,818 - 34,818
Public Works Deputy Dir/Adm 41,124 96,708 - 137,832
Public Works Infrastructure Management 52,728,938 62,782,469 29,412,726 86,098,681
Pest Control 1,426 - - 1,426
Streets 143,107,616 143,107,616
Storm Drainage 73,025,172 73,025,172
Bridges 1,787,206 - - 1,787,206
Solid Waste - - - -
Soil Conservation 232,159 - - 232,159
Total public works 364,256,636 63,059,151 29,502,713 397,813,074

Culture and Recreation:

Planetarium 2,205,142 - - 2,205,142
Jackson Zoological Park 3,465,122 3,392,767 - 6,857,889
Municipal Art Building 43,258 - 43,258
Parks Maintenance 546,413 546,413
Parks and Recreation 31,411,560 1,169,509 558,603 32,022,466
Teen Center 5,293 - - 5,293
Library 8,065,653 - - 8,065,653
Smith Robertson Cultural Center 1,637,150 - 1,637,150
City Auditorium and Art Center 10,583,141 40,692 10,623,833
Total culture and recreation 57,962,732 4,602,968 558,603 62,007,097

Miscellaneous:
City Council/Mayor 799,049 - 799,049
City Clerk 192,219 - - 192,219
City Hall 2,526,372 - - 2,526,372
Legal 263,643 - - 263,643
Mayor's Action Line 34,862 - - 34,862
Industrial Park 1,485,483 - - 1,485,483
Internal Audit 21,692 - - 21,692
Total miscellaneous 5,323,320 - - 5,323,320

Total governmental funds capital assets $ 576,431,981 72,787,800 31,973,101 617,246,680

(1) This schedule presents only the capital asset balances related to governmental activities.

152
153
 CITY OF JACKSON
SCHEDULE OF BONDS OF CITY OFFICIALS
SEPTEMBER 30, 2020

1) Company: Porter's Insurance Agency

Limits of liability: Honesty Blanket

Position Bond Coverage

Position Coverage per each Term of bond

All employees except City Council (7) $100,000 10/01/13 - Indefinite
Mayor, City Administrative Officer,
Director of Administration, Chief of Police,
Deputy Chief of Police, City Clerk,
Deputy Clerks(10)

2) Company: FCCI Insurance Group

Travelers Casualty and Surety Company of America
Old Republic Surety Group
Western Surety Company

Limits of liability: Surety Bond coverage as follows:

Position Coverage per each Term of bond

City Council (7) $100,000 12/23/18 - 12/23/22
07/03/19 - 07/03/21
07/01/19 - 07/01/21
07/06/18 - 07/06/22
07/03/19 - 07/03/21
07/03/17 - 07/03/21
07/01/19 - 07/01/21

Mayor $100,000 06/28/17 - 06/28/21

City Administrative Officer $50,000 08/15/17 - 08/15/21

City Clerk $50,000 09/12/20 - 09/12/21

Director of Administration $50,000 01/24/20 - 01/24/21

Chief of Police $50,000 12/23/18 - 12/23/20

Assistant Police Chief $50,000 01/27/20 - 01/27/21

Deputy Chief of Police $50,000 01/21/20 - 01/21/21

07/26/19 - 07/26/21
07/25/19 - 07/25/21
07/27/19 - 07/27/21

Assistant City Clerk $50,000 VACANT

Deputy Clerks (7) $50,000 10/10/19 - 10/10/20

11/21/18 - 11/21/20
12/07/18 - 12/07/20
12/28/18 - 12/28/20
09/07/19 - 09/07/21

154
STATISTICAL SECTION

155
 STATISTICAL SECTION
(UNAUDITED)
This part of the City of Jackson’s comprehensive annual financial report presents
detail information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
city’s overall financial health.

Contents Page

Financial Trends 157

These schedules contain trend information to help the reader understand how the City of
Jackson’s financial performance and well-being have changed over time.

Revenue Capacity 162

These schedules contain information to help the reader assess the City of Jackson’s most
significant local revenue source, the property tax.

Debt Capacity 167

These schedules present information to help the reader assess the affordability of the City
of Jackson’s current levels of outstanding debt and the city’s ability to issue additional
debt in the future.

Demographic and Economic Information 173

These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City of Jackson’s financial activities take
place.

Operating Information 176

These schedules contain service and infrastructure data to help the reader understand how
the information in the City of Jackson’s financial report relates to the services the city
provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.

156
 Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)

Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

Governmental activities
Net investment in capital assets $ 256,952 $ 259,506 $ 229,661 $ 210,819 $ 125,653 $ 121,798 $ 197,641 $ 179,234 $ 187,511 $ 180,357
Restricted 70,714 36,814 43,488 44,637 5,961 5,926 5,726 13,446 15,040 17,469
Unrestricted (287,064) (282,710) (277,805) (276,849) (190,475) (173,696) (8,168) (45,855) (41,290) (36,100)
Total governmental activities net position $ 40,602 $ 13,610 $ (4,656) $ (21,393) $ (58,861) $ (45,972) $ 195,199 $ 146,825 $ 161,261 $ 161,726

Business-type activities
Net investment in capital assests $ 197,266 $ 235,404 $ 242,146 $ 240,550 $ 218,760 $ 213,137 $ 192,012 $ 101,011 $ 184,185 $ 183,735
Restricted 5,145 1,284 3,491 8,261 - - - - - -
Unrestricted 42,390 7,899 16,543 15,928 68,728 59,674 84,672 159,496 73,303 78,501
Total business-type activities net position $ 244,801 $ 244,587 $ 262,180 $ 264,739 $ 287,488 $ 272,811 $ 276,684 $ 260,507 $ 257,488 $ 262,236

Primary government
Net investment in capital assests $ 454,218 $ 494,910 $ 471,807 $ 451,369 $ 344,413 $ 334,935 $ 389,653 $ 371,696 $ 371,696 $ 364,092
Restricted 75,859 38,098 46,979 52,898 5,961 5,926 5,726 15,041 15,040 17,469
Unrestricted (244,674) (274,811) (261,262) (260,921) (121,747) (114,022) 76,504 113,641 32,013 42,401
Total primary government net position $ 285,403 $ 258,197 $ 257,524 $ 243,346 $ 228,627 $ 226,839 $ 471,883 $ 500,378 $ 418,749 $ 423,962

Source: Statement of Net Position.

157
 City of Jackson
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)

Fiscal Year
Expenses 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Governmental activities:
General government $ 37,769 $ 38,798 $ 35,428 $ 31,782 $ 40,546 $ 40,625 $ 15,780 $ 40,602 $ 29,456 $ 29,312
Public safety 65,372 62,601 62,809 67,089 68,029 64,796 27,031 64,780 57,055 59,166
Public works 21,741 20,491 14,714 14,338 13,375 19,595 14,505 24,661 24,721 21,774
Human and cultural services 16,884 16,710 17,694 16,571 16,297 16,720 7,831 14,311 13,756 16,011
Employee benefits - - - - 6,485 1,564 8,232 7,860 8,685 8,625
Interest on long-term debt 5,669 5,331 5,236 5,570 7,825 5,912 844 8,230 7,448 5,864
Total governmental activities 147,435 143,930 135,881 135,350 152,557 149,212 74,223 160,444 141,121 140,752
Business-type activities:
Water/Sewer 68,277 77,587 67,911 65,503 50,962 45,439 55,553 48,891 55,347 41,795
Transportation 10,275 8,680 7,837 7,054 8,200 8,213 7,995 7,554 6,970 8,713
Madison-Ridgeland Sewage 223 113 25,971 117 60 55 109 82 74 51
Sanitation 10,761 11,084 10,657 10,904 11,996 10,857 10,766 11,699 11,894 11,156
Total business-type activities 89,536 97,464 86,431 83,578 71,219 64,564 74,423 68,226 74,285 61,715
Total primary government $ 236,971 $ 241,394 $ 222,312 $ 218,928 $ 223,776 $ 213,776 $ 148,646 $ 228,670 $ 215,406 $ 202,467
Program Revenues
Governmental activities:
Charges for services:
General government $ 6,428 $ 6,565 $ 6,028 $ 5,601 $ 8,439 $ 9,281 $ 10,875 $ 14,204 $ 15,019 $ 13,075
Public Safety 1,895 2,023 2,075 2,757 288 195 1,348 823 798 367
Public Works 75 101 144 167 208 195 162 200 253 15
Human and cultural services 571 740 596 607 658 455 464 595 885 619
Operating grants contributions 13,295 11,756 9,580 10,394 13,486 11,912 8,251 12,261 10,114 11,570
Capital grants and contributions 21,053 16,249 10,075 4,190 2,697 5,200 7,016 11,291 1,970 5,025
Total governmental activities 43,317 37,434 28,498 23,716 25,776 27,238 28,116 39,374 29,039 30,671
Business-type activities:
Charges for services:
Water/Sewer 47,754 49,863 57,709 61,212 63,085 59,849 69,423 44,052 47,966 47,578
Transportation 229 443 506 426 406 716 710 677 589 529
Madison-Ridgeland Sewage 195 70 9 - - - - - - -
Sanitation 8,537 8,374 9,502 10,272 11,606 11,349 11,024 11,311 12,007 11,473
Operating grants contributions 8,047 5,553 5,312 4,977 509 570 506 582 631 706
Capital grants and contributions 500 - - 338 6,415 2,143 2,516 4,675 2,844 2,568
Total business-type activities 65,262 64,303 73,038 77,225 82,021 74,627 84,179 61,297 64,037 62,854
Net (expense)/revenue
Governmental activities (104,118) (106,496) (107,383) (111,634) (126,781) (121,974) (46,108) (121,070) (112,082) (110,081)
Business-type activities (24,274) (33,161) (13,393) (6,353) 10,802 10,063 9,756 (6,929) (10,248) 1,139
Total primary government net expenses $ (128,392) $ (139,657) $ (120,776) $ (117,987) $ (115,979) $ (111,911) $ (36,352) $ (127,999) $ (122,330) $ (108,942)
General revenues:
Governmental activities:
Taxes:
Property taxes $ 79,439 $ 78,482 $ 78,079 $ 75,698 $ 69,708 $ 77,881 $ 77,634 $ 72,437 $ 74,856 $ 68,108
Sales taxes 14,515 14,548 14,234 14,515 36,731 31,937 32,740 32,718 32,701 31,656
Franchise taxes 6,842 7,298 7,510 7,140 8,119 8,975 9,667 8,245 8,218 7,878
Intergovernmental 37,271 38,213 39,412 38,920 - - - - - -
Investment earnings 2,244 1,417 426 302 52 59 74 145 395 341
Gain (loss) on sale of capital assets 177 227 554 137 489 318 561 108 166 172
Miscellaneous - - 13 - 401 1,071 1,714 577 282 317
Transfers (9,378) (15,423) (11,366) (4,483) (2,082) (3,054) (6,106) (9,585) (5,000) (10,232)
Total governmental activities 131,110 124,762 128,862 132,229 113,418 117,187 116,284 104,645 111,618 98,240

Business-type activities
Investment earnings 344 259 129 127 91 124 256 249 472 490
Gain on sale of capital assets 71 (114) 19 48 - 2 59 15 30 76
Miscellaneous - - - - 1,700 - - - - -
Litigation settlement gain on capital assets 14,695 - - - - - - - - -
Gain on retirement bonds - - - - - - - - - 1,275
Transfers 9,378 15,423 11,366 4,483 2,082 3,054 6,106 9,585 5,000 5,565
Total business-type activities 24,488 15,568 11,514 4,658 3,873 3,180 6,421 9,849 5,502 7,406
Total primary government $ 155,598 $ 140,330 $ 140,376 $ 136,887 $ 117,291 $ 120,367 $ 122,705 $ 114,494 $ 117,120 $ 105,646
Change in net position
Governmental activities $ 26,992 $ 18,266 $ 21,479 $ 20,595 $ (13,363) $ (4,787) $ 70,177 $ (16,425) $ (464) $ (11,841)
Business-type activities 214 (17,593) (1,879) (1,695) 14,675 13,243 16,177 2,920 (4,746) 8,545
Total primary government $ 27,206 $ 673 $ 19,600 $ 18,900 $ 1,312 $ 8,456 $ 86,354 $ (13,505) $ (5,210) $ (3,296)

Source: Statement of Activities

158
 City of Jackson
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)

Local and State State

State Motor Alcoholic
Fiscal Property Sales Franchise Fuel Beverage
Year Tax Taxes Tax Tax Tax Total

2020 $ 79,439 $ 41,120 $ 6,842 $ 597 $ 301 $ 128,299

2019 78,482 41,674 7,298 609 360 128,423
2018 78,079 42,742 7,510 594 331 129,256
2017 75,697 43,866 7,140 168 316 127,187
2016 69,708 36,429 8,119 44 258 114,558
2015 77,880 31,636 8,975 47 254 118,792
2014 61,797 29,440 1,552 30 270 93,089
2013 56,970 29,902 1,590 26 270 88,758
2012 55,855 29,155 1,652 30 268 86,960
2011 54,594 30,798 1,823 28 268 87,511

Source: Statement of Activities

159
 City of Jackson
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)

Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
General fund
Nonspendable $ 877 $ 811 781 $ 722 $ 1,187 $ 875 $ 997 $ 2,283 $ 2,160 $ 1,814
Restricted 15,392 6,573 1,731 749 687 550 517 492 658 437
Committed 5,174 7,348 6,990 6,771 5,066 3,780 3,833 3,585 4,789 6,086
Assigned 1,549 115 1,995 1,294 1,179 2,005 2,518 49 49 33
Unassigned 25,523 25,884 24,356 18,478 6,931 5,525 16,579 26,517 26,310 24,757
Total general fund $48,515 $ 40,731 $ 35,853 $ 28,014 $ 15,050 $ 12,735 $ 24,444 $ 32,926 $ 33,966 $ 33,127

All other governmental funds

Nonspendable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Restricted 66,607 36,460 43,202 43,888 8,261 7,876 8,362 7,210 4,045 3,600
Committed 5,510 3,394 5,906 7,225 8,084 8,188 10,699 13,943 11,692 19,780
Assigned - - - - - - - - - -
Unassigned - - (45) (194) - (498) (1,663) - - -
Total all other governmental funds $ 72,117 $ 39,854 $ 49,063 $ 50,919 $ 16,345 $ 15,566 $ 17,398 $ 21,153 $ 15,737 $ 23,380

Source: Governmental Funds - Balance Sheet

160
 City of Jackson
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)

Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Revenues

Taxes $ 79,439 $ 78,482 $ 78,079 $ 75,697 $ 69,945 $ 69,118 $ 77,435 $ 70,026 $ 69,887 $ 68,253
Franchise taxes 6,842 7,298 7,510 7,140 - - - - - -
Licenses and permits 1,405 1,464 1,587 1,403 1,448 1,973 2,006 2,291 2,676 2,873
Intergovernmental 80,618 73,894 72,239 67,550 46,900 47,489 50,291 55,535 49,721 46,069
Charges for services 1,704 5,683 4,760 4,689 4,581 4,695 4,092 4,152 3,693 3,499
Fines 5,047 1,739 1,996 2,350 2,849 3,457 3,109 3,923 4,166 4,537
Investment earnings 2,244 1,417 426 303 52 59 74 145 395 342
Special assessments - - - - 10 21 34 2 6 8
Other 4,426 3,550 4,010 3,625 18,209 18,625 18,626 18,423 16,560 15,923
Total revenues 181,725 173,527 170,607 162,757 143,994 145,437 155,667 154,497 147,104 141,504

Expenditures

General government 36,896 40,014 35,719 31,118 27,989 28,371 30,515 30,718 29,269 30,977
Public safety 59,182 60,196 60,996 60,507 53,086 54,068 54,738 52,586 57,035 52,606
Human and cultural services 14,507 14,757 15,328 14,113 13,339 14,619 14,242 13,753 8,349 13,370
Public works 11,455 11,476 10,830 10,547 9,175 16,554 30,334 23,232 24,698 19,126
Employee Benefits - - - 0 6,696 7,553 8,070 7,780 8,685 8,625
Capital Outlay 38,294 28,874 23,820 23,838 8,658 7,546 10,463 21,090 10,539 5,749
Debt service
Principal 13,969 16,640 7,341 4,368 7,150 15,700 6,030 2,780 873 624
Interest 6,075 5,741 5,696 5,763 8,244 6,491 6,013 5,061 6,575 6,424
Total expenditures 180,378 177,698 159,730 150,254 134,337 150,902 160,405 157,000 146,023 137,501

Excess of revenues
over (under) expenditures 1,347 (4,171) 10,877 12,503 9,657 (5,465) (4,738) (2,503) 1,081 4,003

Other financing sources (uses)

Transfer in 12,030 5,634 5,511 5,586 6,435 9,347 15,582 10,400 4,813 7,927
Transfer out (21,408) (21,057) (16,877) (10,069) (16,624) (19,836) (28,448) (26,745) (16,442) (18,159)
Issuance of long-term debt 41,075 15,007 5,892 497 30,019 2,095 4,808 87,269 3,500 9,213
Sale of capital assets 256 256 579 137 489 318 561 108 166 -
Payments to refunded bond escrow agent - - - - (28,440) - - (69,891) - (33)
Discount on long-term debt issued - - - - (88) - - - - -
Premium on long-term debt issued 6,747 - - - 1,172 - - 5,738 - -
Total other financing
sources (uses) 38,700 (160) (4,895) (3,849) (7,037) (8,076) (7,497) 6,879 (7,963) (1,052)

Net change in fund balances $ 40,047 $ (4,331) $ 5,982 $ 8,654 $ 2,620 $ (13,541) $ (12,235) $ 4,376 $ (6,882) $ 2,951

Debt service as a percentage of noncapital

expenditures 14.1% 15.0% 9.6% 8.0% 12.3% 15.5% 8.0% 5.8% 5.5% 5.4%

161
 City of Jackson
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)

Alcoholic
Fiscal Property Sales Franchise Motor Fuel Beverage
Year Tax Tax Tax Tax Tax Total

2020 $79,439 $41,120 $6,842 $597 $301 $128,299

2019 78,482 41,674 7,298 609 360 128,423

2018 78,079 42,742 7,510 594 331 129,256

2017 75,697 43,866 7,140 168 316 127,187

2016 69,945 30,691 8,119 44 258 109,057

2015 69,118 31,636 8,975 47 254 110,030

2014 77,435 29,440 1,552 30 270 108,727

2013 70,026 32,034 1,590 26 270 103,946

2012 69,887 29,155 1,652 30 268 100,992

2011 68,253 30,798 1,823 28 268 101,170

Source: Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balance

162
 City of Jackson
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years (2)

Real Property Personal Property Total Ratio of Total Assessed

Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Total Direct to Total Estimated
Year Value (1) Actual Value Value (2) Actual Value Value (2) Actual Value Tax Rate (3) Actual Value

2020 $ 794,990,628 $ 6,158,893,930 $ 489,461,149 $ 2,225,459,710 $ 1,284,451,777 $ 8,384,353,640 61.32 10%,15%,and 30%
2019 802,206,148 6,216,616,390 436,046,020 1,996,189,720 1,238,252,168 8,212,806,110 61.27 10%,15%,and 30%
2018 797,546,086 6,191,522,987 437,285,854 1,991,106,580 1,234,831,940 8,182,629,567 61.23 10%,15%,and 30%
2017 797,544,121 6,191,509,887 432,278,120 1,957,721,687 1,229,822,241 8,149,231,574 59.27 10%,15%,and 30%
2016 797,782,302 6,209,794,880 427,318,830 1,940,221,673 1,225,101,132 8,150,016,553 56.26 10%,15%,and 30%
2015 782,206,847 6,106,236,603 429,291,423 1,975,757,483 1,211,498,270 8,081,994,086 56.46 10%,15%,and 30%
2014 792,551,066 6,169,507,167 423,157,579 1,950,263,833 1,215,708,645 8,119,771,000 62.07 10%,15%,and 30%
2013 805,068,802 6,271,511,887 396,924,146 1,871,856,147 1,201,992,948 8,143,368,034 56.54 10%,15%,and 30%
2012 810,977,848 6,317,262,297 413,249,466 1,993,670,330 1,224,227,314 8,310,932,627 56.63 10%,15%,and 30%
2011 809,368,529 6,323,192,313 396,605,625 1,897,105,793 1,205,974,154 8,220,298,106 56.63 10%,15%,and 30%

(1) Ad valorem tax property assessments within the City and the Jackson Municipal
Separate School District are assessed at fifteen percent (15%). The assessed value for
motor vehicles and for property owned by public service corporations is determined by
an assessment schedule prepared each year by the State of Mississippi Tax Commission,
and is set at approximately thirty percent (30%) of appraised value.

(2) Includes automotive valuation.

(3) Total direct tax rate comes from the Public Hearing /Special Meeting of the City Council under
total for said municipal purposes.

SOURCE: Hinds, Rankin and Madison County Tax Collectors

163
 City of Jackson
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS

Overlapping Rates
City of Jackson County School District
(1) Debt Service Total
Debt Total & Operating Debt Total Library Direct &
Fiscal Operating Service City County Operating Service School Special Overlapping
Year Millage Millage Millage Milage Millage Millage Millage District Rates
2020 55.17 6.15 61.32 41.58 65.91 20.95 86.86 1.71 191.47
2019 54.66 6.61 61.27 41.58 65.91 18.82 84.73 1.76 189.34
2018 57.40 3.83 61.23 41.58 65.91 18.90 84.81 1.80 189.42
2017 56.19 3.08 59.27 38.83 65.91 18.68 84.59 1.76 184.45
2016 53.28 2.98 56.26 38.33 65.91 16.76 82.67 1.77 179.03
2015 48.90 7.56 56.46 38.33 65.91 16.53 82.44 1.57 178.80
2014 56.77 5.30 62.07 38.33 64.79 7.17 71.96 1.49 173.85
2013 53.50 3.04 56.54 38.33 62.58 14.91 77.49 1.49 173.85
2012
2011 53.43
53.56 3.20
3.07 56.63
56.63 38.33
44.13 62.66
62.58 12.33
12.41 74.99
74.99 1.40
1.40 171.35
177.15
2011 53.56 3.07 56.63 44.13 62.58 12.41 74.99 1.40 177.15
2010 50.09 6.63 56.72 39.12 68.91 6.08 74.99 1.31 172.14

(1) Total direct tax rate comes from the Public Hearing /Special Meeting of the City Council under
total for said municipal purposes.

Source: Hinds County Tax Collectors, Jackson Public School District, and Jackson/Hinds Library System

164
 City of Jackson
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)

2020 2011
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value

Entergy of Mississippi Inc $ 159,304 1 12.40% $ - -

Bell South 24,704 2 1.92% - -

Entergy Services Inc 21,205 3 1.65% - -

Atmos Energy 20,077 4 1.56% - -

Gulf South Pipeline Co. LP 18,105 5 1.41% - -

Texas Eastern Transmission LP 16,802 6 1.31% - -

Midcontinent Express Pipelane LLC 15,762 7 1.23% - -

FKA Illinois Central Railroad 9,658 8 0.75% - -

Jackson HMA Inc. LLC 5,957 9 0.46% - -

Eaton Aerospace LLC 5,877 10 0.46% - -

Totals $ 297,451 23.16% $ - 0.00%

The data was not available from Hinds County in 2011.

Source: Hinds County
Note: See the Schedule of Assessed Value and Estimated Actual Value of Taxable
Property on page 163 for property assessed value data.

165
 City of Jackson
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)

Fiscal Year Total Tax Collected within the

Ended Levy for Fiscal Year of the Levy Collections in Total Collections to Date
September 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy
2016
9-Jul
2020 $ 68,621 $ 66,324 96.7% 100 $ 977 $ 67,301 98.1 %
2019 67,275 65,024 96.7 100 958 65,982 98.1
2018 66,618 64,208 96.4 1,360 65,568 98.4
2017 64,507 62,170 96.4 1,096 63,266 98.1
2016 61,601 59,548 96.7 1,229 60,777 98.7
2015 59,436 59,314
54,276 99.8 528 59,842 100.7
2014 69,499 66,623 95.9 1,458 68,081 98.0
2013 69,069 61,147 88.5 1,106 62,253 90.1
2012 67,138 60,734 90.5 1,533 62,267 92.7
2011 - - - - - -
3
.
The data was not available from Hinds County in 2011.

The total tax levy does not include automobile ad valorem taxes.

166
 City of Jackson
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)

Governmental Activities

General Limited State Mississippi Mississippi General

Fiscal Obligation Obligation Revolving Development Development Section Obligation Capital
Year Bonds (2) Bonds Loan MDA Bank Loan Bank Note (2) 108 Loan Note Leases

2020 $ 112,677 $ 8,877 $ 332 $ 729 $ 38,792 $ 5,450 $ - $ 19,953

2019 122,095 9,938 431 1,002 - 6,100 - 13,947
2018 128,381 7,429 527 1,296 - 6,750 - 11,223
2017 131,834 3,546 621 1,590 - 7,000 - 12,932
2016 125,729 4,080 217 1,884 - 7,000 2,300- 11,640
2015 124,150 4,576 259 2,159 - 7,000 4,600- 15,677
2014 132,380 5,111 302 2,452 - 6,889 6,900- 17,880
2013 135,645 5,622 342 2,747 - 7,000 9,200- 18,167
2012 131,290 6,102 383 3,040 - 7,000 402- 17,058
2011 131,720 6,541 430 3,335 - 7,000 - 18,073

(Continued)

Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
(1) See the Schedule of Demographic and Economic Statistics on page 173 for personal income and population data.
(2) General obligation and revenue bonds and Mississippi Development Bank Notes include the related premium (discount).

167
 Business-Type Activities

General State State State Total Percentage

Revenue Obligation Revolving Revolving Revolving Capital Primary of Personal Per
Bonds (2) Note Loan (DEQ) Loan (DOH) Loan (MDA) Leases Government Income (1) Capita (1)

$ 200,278 $ 2,932 $ 36,647 $ 7,911 $ 2,015 $ 2,230 $ 438,823 5.95% $ 2,855

209,712 - 26,867 3,620 2,868 2,303 398,883 6.51% 2,299
218,811 - 28,364 442 3,721 2,581 409,525 7.18% 2,360
227,608 - 30,437 222 4,574 2,971 423,335 7.42% 2,440
222,455 - 27,322 - 4,363 1,169 408,159 7.29% 2,520
227,910 - 25,633 - 5,021 2,719 419,704 7.31% 2,527
233,660 - 22,534 - 3,943 4,187 443,138 7.81% 2,700
239,265 - 15,653 - 2,727 4,137 440,505 7.59% 2,624
154,430 - 12,578 - - 3,069 335,352 5.59% 1,933
148,325 - 13,799 - - 2,758 331,981 5.54% 1,914

168
 City of Jackson
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)

Percentage of
Estimated
Limited General Less: Amounts Actual Value of
Fiscal Assessed Obligation Obligation Available in Debt Taxable Per
Year Value Bonds Bonds Service Fund Total Property (1) Capita (2)
2020 $ 1,284,452 $ 8,877 $ 112,677 $ 7,793 $ 113,761 1.36% $ 740.14
2019 1,238,252 9,938 122,095 7,971 124,062 1.51% 715.00
2018 1,234,832 7,429 128,381 6,971 128,839 1.57% 742.53
2017 1,229,822 3,546 131,834 5,992 129,388 1.59% 745.69
723.48
2016 1,225,101 4,080 125,729 4,275 125,534 1.54% 723.48
2015 1,211,498 4,576 124,150 4,509 124,217 1.54% 715.89
2014 1,215,709 5,111 132,380 4,045 133,446 1.64% 769.08
2013 1,201,993 5,622 135,465 5,149 135,938 1.67% 783.44
2012 1,224,227 6,102 131,290 2,331 135,061 1.63% 778.39
2011 1,205,974 6,541 131,720 1,832 136,429 1.66% 786.27
0.00
0.00

Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

(1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on page 163 for property value data.
(2) Population data can be found in the Schedule of Demographic and Economic Statistics on page 173.

169
 City of Jackson
Direct and Overlapping Governmental Activities Debt
As of September 30, 2020
(amounts expressed in thousands)

Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable Debt

Debt repaid with property taxes:

Hinds County $ 78,022 76.57% $ 59,741
Jackson Public Schools 195,729 100.00% 195,729
Subtotal, overlapping debt 255,470

City of Jackson direct debt 186,810 100.00% 186,810

Total direct and overlapping debt $ 442,280

Sources: Assessed value data used to estimate applicable percentages by City of Jackson, Hinds County, and Jackson Public Schools.

Note: Overlapping governments are those that coincide with the geographic boundaries of the city. This schedule estimates the portion
of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Jackson.
This process recognizes that, when considering the City of Jackson ability to issue and repay long-term debt, the entire debt
burden borne by the residents and business should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.

The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated
by determining the portion of the county's taxable assessed value that is with the government's boundaries and dividing it by the county's
total taxable assessed value.

170
 City of Jackson
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)

Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

Debt limit $182,360 $175,533 $175,212 $ 173,963 $ 174,666 $ 173,182 $ 176,428 $ 176,090 $ 174,971 $ 173,629

Total net debt applicable to limit 103,433 109,481 115,476 119,440 107,047 105,717 100,148 94,548 73,224 73,261

Legal debt margin $78,927 $66,052 $59,736 $ 54,523 $ 67,619 $ 67,465 $ 76,280 $ 81,542 $ 101,747 $ 100,368

Total net debt applicable to the limit 56.7% 62.4% 65.9% 68.7% 61.3% 61.0% 56.8% 53.7% 41.8% 42.2%
as a percentage of the debt limit

Legal Debt margin Calculation for Fiscal Year 2020

Assessed value $ 1,284,452

Less Homestead Exemption (68,718)
Total assessed value $ 1,215,734

Debt limit (15% of total assessed value) 182,360

Debt application to limit:
General obligation bond indebtedness 107,663
Less: Amount set aside for repayment of
General obligation bond debt (4,230)
Total net debt applicable to limit $ 103,433
Legal debt margin $ 78,927

Note: Under state finance law, the City of Jackson's outstanding general obligation bond debt should not exceed 15 percent of total assessed property value.
By law, the general obligation debt subject to the limation may be offset by amounts set aside for repaying general obligation bonds.

171
 City of Jackson
Pledged-Revenue Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)

Water / Sewer Revenue Bonds

Water/Sewer Less: Net

Fiscal Charges Operating Available Debt Service (1)
Year and Other Expenses Revenue Principal Interest Coverage

2020 $ 47,754 $ 40,050 $ 7,704 $ 8,705 $ 10,457 0.40

2019 49,863 49,197 666 8,370 10,786 0.03

2018 57,709 39,840 17,869 8,070 11,084 0.93

2017 61,109 37,636 23,473 7,830 11,327 1.23

2016 64,673 32,249 32,424 8,569 12,144 1.57

2015 59,883 29,442 30,441 14,063 12,205 1.16

2014 69,472 34,670 34,802 9,180 11,917 1.65

2013 44,186 33,337 10,849 9,380 6,680 0.68

2012 48,171 33,366 14,805 6,780 4,961 1.26

2011 47,578 32,755 14,823 4,870 6,876 1.26

Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating
expenses do not include interest or depreciation.

1
The City of Jackson increased water/sewer rates effective November 19, 2013. The sewer rate increase was 108% and the
water rate increase was 29%. Applied fund balance was used for water/sewer shortfall for fiscal year 2013 and 2018. An engineer
consultant will conduct an analysis on the water/sewer system.

172
 City of Jackson
Demographic and Economic Statistics
Last Ten Fiscal Years

Education
Personal Per Level in
Income Capita Years of
Fiscal (amounts expressed Personal Median Formal School Unemployment
Year Population (1) in thousands) Income (3) Age (4) Schooling (2) Enrollment (2) Rate (3)

2020 153,701 $ 7,376,418 $ 47,992 33 12 22,000 6.4%

2019 173,514 6,126,432 32,308 31 12 24,000 4.6%
2018 173,514 5,702,711 32,866 31 12 24,000 4.1%
2017 173,514 5,702,711 32,866 31 12 26,000 4.2%
2016 173,514 5,595,827 32,250 31 12 30,000 5.1%
2015 173,514 5,739,843 33,080 31.3 12 30,000 4.8%
2014 173,514 5,675,296 32,708 31.5 12 30,000 5.9%
2013 173,514 5,801,267 33,434 31.5 12 30,000 6.7%
2012 173,514 5,997,858 34,567 31.0 12 30,000 7.3%
2011 173,514 5,995,776 34,555 32.0
34.2 12 30,600 8.4%

Data Sources
(1) Mississippi Census Bureau
(2) Jackson Public Schools Estimate
(3) Bureau of Labor Statistics
(4) Mississippi Department of Employment Security

173
 City of Jackson
Principal Employers
Current Year and Nine Years Ago

2020 2011
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment

State of Mississippi 29,069 1 18.91% 31,556 1 17.13%

University of Mississippi 8,759 2 5.70% 8,000 2 4.34%
Jackson Public School District 4,100 3 2.67% 4,814 4 2.61%
U.S. Government 3,700 4 2.41% 5,500 3 2.98%
Baptist Health Systems 3,100 5 2.02% 2,875 5 1.56%
Merit Health 3,000 6 1.95% -
St. Dominic Health Services 3,000 7 1.95% 2,600 6 1.41%
City of Jackson, Mississippi 1,895 8 1.23% 2,323 7 1.26%
Jackson State University 1,500 9 0.98% 1,667 8 0.90%
AT&T 1,300 10 0.85% 1,300 9 0.71%
Central MS Medical Center - 1,200 10 0.65%
59,423 38.66% 61,835 33.56%

Source: MetroJackson Chamber of Commerce 2020

174
 City of Jackson
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years

Function 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

General government 269 268 267 249 266 267 278 302 290 315
Public safety
Police
Officers 298 352 415 352 440 389 412 455 499 479
Civilians 169 188 153 208 193 245 280 267 272 261
Fire
Firefighters and officers 332 336 314 311 338 333 345 316 337 357
Civilians 14 14 14 14 14 24 23 17 11 11
Public Works 330 373 367 333 157 395 425 461 484 482
Culture and Recreation 209 234 246 184 260 273 262 318 238 303
Total 1,621 1,765 1,776 1,651 1,668 1,926 2,025 2,136 2,131 2,208

Source: City of Jackson Information System Department.

175
 City of Jackson
Operating Indicators by Function
Last Ten Fiscal Years

Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

Function
Police
Parking violations 4,916 8,185 29,270 5,535 9,399 9,197 10,098 12,281 17,190 18,101
Traffic violations 21,970 28,498 63,634 17,666 30,405 44,008 41,823 52,425 60,598 57,815
Fire
Number of calls answered (1) 16,658 17,503 17,802 15,309 716 14,567 14,025 11,825 9,403 -
Inspections 1,784 2,461 1,276 3,392 3,941 3,205 4,141 4,500 4,635 3,590
Highways and streets
Street resurfacing (miles) (1) 18 13 4 25 24.8 6.2 6.1 4.2 10.6 -
Potholes repaired (2) 15,962 24,191 11,224 14,999 22,116 30,389 29,921 37,565 29,871 38,776
Sanitation
Refuse collected (tons/day) 3,456 7,799 9,880 3,381 4,114 5,496 5,361 5,301 7,904 4,523
Recyclables collected (tons/day) - 69 160 69 83.18 81.96 90.06 91.35 89.84 76.89
Culture and recreation
Community center admissions 97 160 169 80 79 110 64 89 118 53
Water
New connections (1) 3,748 1,078 188 121 - - - - 212 -
Average daily consumption
(thousands of gallons) (1) 75,517 96,600 7,189 7,008 - - - - - 24,024
Wastewater
Average daily sewage treatment
(thousands of gallons) (1) 75,686 96,929 7,218 43,896 - - - - - 46,650

Source: Various City of Jackson departments.

(1) The dashes indicate data that is not available.
(2) Prior years' data was recorded based on the number of pothole calls not the number of potholes repaired.

176
 City of Jackson
Capital Asset Statistics by Function
Last Ten Fiscal Years

Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Function

Public safety

Police stations 6 6 6 6 6 6 6 6 6 6

Fire stations 21 21 21 21 21 21 21 21 21 21

Highways and streets

Streets (miles) 1,201 1,201 1,201 1,201 1,201 1,201 1,201 1,201 1,204 1,300

Traffic signals intersection 321 321 321 319 358 358 358 358 358 358

Culture and recreation

Parks 57 57 57 57 57 57 54 54 54 54

Gymnasiums 5 5 5 5 5 5 5 5 5 5

Swimming pools 9 9 9 9 9 9 9 9 9 9

Tennis courts 61 61 61 61 61 61 61 61 61 61

Community centers 9 9 9 9 10 10 10 10 10 10

Water

Water mains (miles) 1,000 1,000 1,000 1,000 - - - - - -

Fire hydrants 7,000 7,000 7,800 22,000 - - - - - -

Maximum daily capacity 18,974 18,316 18,057 17,795 - - - - - -

(thousands of gallons)

Sewer

Sanitary sewers (miles) 1,000 1,000 1,000 900 - - - - - -

Storms sewers (miles) 9,391 9,478 9,859 3,908 - - - - - -

Source: Various City of Jackson departments.

(1) The dashes indicate data that is not available.

177
SINGLE AUDIT

178
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

184
 City of Jackson
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
_____________________________________

Federal Pass Through Current Year Current Year

CFDA Grantor Federal Expenditures
Federal Agency/Program Number Number Expenditures to Subrecipients

U.S. Department of Agriculture

Food and Nutrition Service (MS Department of Education - Pass Through)

Child and Adult Care Food Program (USDA) 10.558 V0000700018 $ 77,260 $ -
SUBTOTAL CFDA NUMBER 10.558 77,260 -

Food Distribution Cluster:

(Central Mississippi Planning and Development District - Pass Through)
Commodity Supplemental Food Program (Congregate) 10.565 1120-25 43,273 -
Commodity Supplemental Food Program (Home Delivered) 10.565 1520-25 45,216 -
SUBTOTAL CFDA NUMBER 10.565 88,489 -

TOTAL U.S. DEPARTMENT OF AGRICULTURE 165,749 -

U.S. Department of Housing and Urban Development

Direct Programs:
CDBG - Entitlement Grants Cluster:
Community Development Block Grants/Entitlement Grants 14.218 B-15-MC-28-0003 299 -
Community Development Block Grants/Entitlement Grants 14.218 B-16-MC-28-0003 4,572 -
Community Development Block Grants/Entitlement Grants 14.218 B-17-MC-28-0003 40,872 515
Community Development Block Grants/Entitlement Grants 14.218 B-18-MC-28-0003 639,095 -
Community Development Block Grants/Entitlement Grants 14.218 B-19-MC-28-0003 516,437 259,823
SUBTOTAL CFDA NUMBER 14.218 1,201,275 260,338

Emergency Solutions Grants Program 14.231 E-19-MC-28-0003 160,054 148,050

Emergency Solutions Grants Program 14.231 E-20-MW-28-0003 11,040 -
SUBTOTAL CFDA NUMBER 14.231 171,094 148,050

HOME Investment Partnerships Program 14.239 M-15-MC-28-0200 28,221 28,221

HOME Investment Partnerships Program 14.239 M-16-MC-28-0200 52,262 52,262
HOME Investment Partnerships Program 14.239 M-17-MC-28-0200 301,407 297,739
HOME Investment Partnerships Program 14.239 M-18-MC-28-0200 173,125 120,132
SUBTOTAL CFDA NUMBER 14.239 555,015 498,354

Housing Opportunities for Persons with AIDS 14.241 MS-H16-F001 308,122 308,122
Housing Opportunities for Persons with AIDS 14.241 MS-H18-F001 390,305 349,641
Housing Opportunities for Persons with AIDS 14.241 MS-H19-F001 1,370,844 1,358,000
SUBTOTAL CFDA NUMBER 14.241 2,069,271 2,015,763

Lead-Based Paint Hazard Control in Privately-Owned Housing 14.900 MSLHB0631-16 166,854 29,668
SUBTOTAL CFDA NUMBER 14.900 166,854 29,668

TOTAL U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 4,163,509 2,952,173

U.S. Department of Justice

Direct Programs:

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2017DJBX0618 248,199 -
SUBTOTAL CFDA NUMBER 16.738 248,199 -

Equitable Sharing Program 16.922 17,424 -

SUBTOTAL CFDA NUMBER 16.922 17,424 -

TOTAL U.S. DEPARTMENT OF JUSTICE 265,623 -

U.S. Department of Labor

Older Americans Act

(Senior Service America - Pass Through)
Senior Community Service Employment Program (Digital Inclusion Initiative) 17.235 AD-33688-19-55-A-24 338,860 -
Senior Community Service Employment Program (Digital Inclusion Initiative) 17.235 AD-35223-20-60-A-24 99,424 -
SUBTOTAL CFDA NUMBER 17.235 438,284 -

TOTAL U.S. DEPARTMENT OF LABOR 438,284 -

185
 City of Jackson
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
_____________________________________

Federal Pass Through Current Year Current Year

CFDA Grantor Federal Expenditures
Federal Agency/Program Number Number Expenditures to Subrecipients

U.S. Department of Transportation

(Mississippi Department of Transportation-Pass Through)

Highway Planning and Construction Cluster:
DHP-8276-00(003)
Highway Planning and Construction (Lynch Street Improvements) 20.205 104587-812000 837,702 -

TCSP-0250-00(046)
Highway Planning and Construction (ADA Project) 20.205 103924-305000 38,230 -

Highway Planning and Construction (Capital Street Phase II)) 20.205 TCSP-8312-00(002)
106058-802000 35,992 -

LER-7254-00(005)
Highway Planning and Construction (West Street Bridge) 20.205 10738-701000 41,252 -

STP-7621-00(01)
Highway Planning and Construction (Mill Street Rehabilitation-Hinds County) 20.205 107313-711000 419,384 -

TCSP-0250-00(046)
Highway Planning and Construction (Traffic Calming) 20.205 103924-304000 176,234 -

STP-6929-00(008)
Highway Planning and Construction (Northside Drive) 20.205 107547-701000 1,031,869 -

STP-7286-00(003)
Highway Planning and Construction (Terry Road) 20.205 106995-70100 67,208 -

STP-0200-00(038)
Highway Planning and Construction (Fondren Sidewalk and Landscape Improvement) 20.205 106056-70100 11,380 -

STP-0250-00(039)
Highway Planning and Construction (Museum to Market Trail) 20.205 106367-70100 811,160 -

SRSP-0250-00(051)
Highway Planning and Construction (Barr Elementary) 20.205 105812-40100 92,286 -

STP-8243-00(002)
Highway Planning and Construction (North Jackson Signals) 20.205 107546-70100 91,209 -

STP-6928-00(013)
Highway Planning and Construction (North State Street) 20.205 107548-70100 2,969,254 -

SUBTOTAL CFDA NUMBER 20.205 6,623,160 -

186
 City of Jackson
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
_____________________________________

Federal Pass Through Current Year Current Year

CFDA Grantor Federal Expenditures
Federal Agency/Program Number Number Expenditures to Subrecipients

Federal Transit Administration

Federal Transit Cluster:
Direct Programs:
Federal Transit Formula Grants 20.507 MS-90-00-88 13,255 -
Federal Transit Formula Grants 20.507 MS-90-X092-00 42,086 -
Federal Transit Formula Grants 20.507 MS-90-0081-01 37,865 -
Federal Transit Formula Grants 20.507 MS-2016-010-00 248,641 -
Federal Transit Formula Grants 20.507 MS-2017-005-01 144,760 -
Federal Transit Formula Grants 20.507 MS-2018-004-00 1,313,930 -
Federal Transit Formula Grants 20.507 MS-2019-001-00 1,500,000 -
Federal Transit Formula Grants 20.507 MS-2019-007-00 253,683 -
Federal Transit Formula Grants 20.507 MS-2020-001-00 1,873,576 -
Federal Transit Formula Grants 20.507 MS-2020-004-00 867,779 -
Federal Transit Formula Grants 20.507 MS-2020-009-00 1,235,914 -

SUBTOTAL CFDA NUMBER 20.507 7,531,489 -

Highway Safety Cluster:

(Mississippi Office of Highway Safety-Pass Through)

State and Community Highway Safety 20.600 PT-2020-PT-21-91 122,242 -
SUBTOTAL CFDA NUMBER 20.600 122,242 -

(Mississippi Department of Transportation-Pass Through) STP-0250-00(047)

National Infrastructure Investments (Tiger Grant) 20.933 107200/811000 8,187,737 -
SUBTOTAL CFDA NUMBER 20.933 8,187,737 -

TOTAL U.S. DEPARTMENT OF TRANSPORTATION 22,464,628 -

U.S. Department of Treasury

(Mississippi Emergency Management Agency-Pass Through)

COVID-10 Coronavirus Relief Fund 21.019 4,064,043 -
SUBTOTAL CFDA NUMBER 21.019 4,064,043 -

TOTAL U.S. DEPARTMENT OF TREASURY 4,064,043 -

U.S. Environmental Protection Agency

Mississippi Department of Environmental Quality- Pass Through Clean Water State Revolving Fund Cluster
Capitalization grants for Clean Water State Revolving Funds 66.458 SRF-C2800838-04 1,807,662 -
SUBTOTAL CFDA NUMBER 66.458 1,807,662 -

Drinking Water State Revolving Funds Cluster

Mississippi Department of Health (Pass-Through)
Capitalization Grants for Drinking Water State Revolving Funds 66.468 DWI-L250008-01 1,084,258 -
Capitalization Grants for Drinking Water State Revolving Funds 66.468 DWI-L250008-02 443,696 -
SUBTOTAL CFDA NUMBER 66.468 1,527,954 -

TOTAL U.S. ENVIRONMENTAL PROTECTION AGENCY 3,335,616 -

U.S. Department of Health and Human Services

Aging Cluster:
Special Programs for the Aging Title III, Part B, Grants for Supportive Services and Senior Centers
(Central MS Planning and Development District - Pass Through)
Title III-B Outreach 93.044 1030-25 10,833 -
SUBTOTAL CFDA NUMBER 93.044 10,833 -

Special Programs for the Aging Title III, Part C, Nutrition Services
(Central MS Planning and Development District - Pass Through)
Congregate Nutrition Program (Non-cash) 93.045 1120-25 34,993 -
SUBTOTAL CFDA NUMBER 93.045 34,993 -

TOTAL AGING CLUSTER 45,826 -

(State of MS Office of Child Nutrition - Pass Through)

CCDF Cluster:
Child Care Development Block Grant (OCY-Slots) 93.575 6017093 291,391 -
SUBTOTAL CFDA NUMBER 93.575 291,391 -

(Central MS Planning and Development District - Pass Through)

Social Services Block Grant (Transportation) 93.667 1530-25 153,732 -
Social Services Block Grant (Home Delivered Meals) (Non-cash) 93.667 1520-25 206,411 -
SUBTOTAL CFDA NUMBER 93.667 360,143 -

TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 697,360 -

187
 City of Jackson
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
_____________________________________

Federal Pass Through Current Year Current Year

CFDA Grantor Federal Expenditures
Federal Agency/Program Number Number Expenditures to Subrecipients

Executive Office of the President

Direct Program:
High Intensity Drug Trafficking Area Program 95.001 25,561 -
SUBTOTAL CFDA NUMBER 95.001 25,561 -

TOTAL EXECUTIVE OFFICE OF THE PRESIDENT 25,561 -

U.S. Department of Homeland Security

(Mississippi Emergency Management Agency-Pass Through)
Disaster Grants-Public Assitance (Presidentially Declared Diasters) 97.036 4538-DR-MS 70,971 -
SUBTOTAL CFDA NUMBER 97.036 70,971 -

(Mississippi Department of Public Safety- Pass Through)

Homeland Security Grant Program 97.067 1911S221 35,370 -
Homeland Security Grant Program 97.067 17HS2191 90,668 -
SUBTOTAL CFDA NUMBER 97.067 126,038 -

TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY 197,009 70,971

TOTAL EXPENDITURES OF FEDERAL AWARDS $ 35,817,382 $ 2,952,173

The accompanying notes are an integral part of this schedule. See auditor's report on supplementary schedules.

188
 CITY OF JACKSON
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020

NOTE 1 - BASIS OF PRESENTATION

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal
award activity of the City of Jackson under programs of the federal government for the year ended
September 30, 2020. The information in this Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operations of the City of Jackson, it is
not intended to and does not present the financial position, changes in net position, or cash flows of
the City of Jackson.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.

NOTE 3 - CONTINGENCY

The City has responsibility for expending grant funds in accordance with specific instructions from its
funding sources. Any deficits resulting from over expenditures and/or questioned costs are the
responsibility of the City.

Any unexpended grant funds at the end of the grant period may be refundable or carried over to the
following period at the discretion of the funding sources. Notwithstanding the audits by independent
certified public accountants, all costs included in this report remain subject to audit by the agencies
providing financial support within the limits of the Uniform Guidance. The determination as to whether
costs will be allowable or unallowable under the grants will be made by representatives of the funding
sources having authority to make and enforce contracts.

NOTE 4 – LOAN AND LOAN GUARANTEES

In accordance with the Uniform Guidance, loans and loan guarantees include new loans made during
the year, plus prior year loans for which the federal government imposes continuing compliance
requirements.

NOTE 5 – INDIRECT COSTS

The City did not elect to use the 10% de minimus indirect cost rate.

NOTE 6- NON CASH ASSISTANCE

Non-cash federal assistance totaling $241,404 is reflected under programs 93.045 and 93.667 for the
estimated value of food received.

189
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year Ended September 30, 2020

SUMMARY OF AUDITORS’ RESULTS

1. The auditors’ report expresses an unmodified opinion on whether the financial statements of
the City were prepared in accordance with GAAP.

2. Material weaknesses were disclosed during the audit of the financial statements and are
reported in this schedule. Significant deficiencies that are not considered to be material
weaknesses were disclosed during the audit of the financial statements and are reported in
this schedule.

3. Instances of noncompliance material to the financial statements were reported.

4. Significant deficiencies in internal control over major federal award programs disclosed during
the audit are reported in this schedule. No material weaknesses are reported.

5. The auditors’ report on compliance for the major federal award programs for the City
expresses an unmodified opinion on all major federal programs.

6. Audit findings that are required to be reported in accordance with 2 CFR section 200.516(a)
are reported in this schedule.

7. The programs tested as major programs were:

CDBG-Entitlement Grants Cluster (14.218)

Highway Planning and Construction Cluster (20.205)
Federal Transit Cluster (20.507)
Clean Water State Revolving Fund Cluster (66.458)
Drinking Water State Revolving Fund Cluster (66.468)
14.241 Housing Opportunities for Persons with AIDS
20.933 National Infrastructure Investments
21.019 COVID-19 Coronavirus Relief Fund

8. The threshold for distinguishing Types A and B programs was $1,074,521.

9. The Organization did not qualify as a low-risk auditee.

190 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

FINDINGS – FINANCIAL STATEMENT AUDIT

2020-001 Material Weakness – Financial Reporting (Repeated finding. See finding 2019-001)

Criteria: The City’s comprehensive annual financial report (CAFR) is the responsibility
of the City’s management. Therefore, a proper system of internal control over
financial reporting is essential in order to prevent, detect, and correct
misstatements in the CAFR.
Condition: We assisted the City’s management with drafting portions of the CAFR
because the City did not have adequate internal resources to prepare the
CAFR in accordance with generally accepted accounting principles (GAAP).
Cause: The City determined that it was more cost efficient to utilize the expertise of the
auditor to assist with preparing the CAFR during the audit process as opposed
to hiring an employee with comparable experience.
Effect: While we have implemented controls within our CPA firm, our controls cannot
be considered as part of the City’s controls over the CAFR preparation process.
Accordingly, a material weakness in the City’s internal controls exists in the
CAFR reporting function.
Recommendation: We recommend that appropriate training be made available to the
City’s finance department personnel involved in the CAFR preparation
process. The Government Finance Officers Association (GFOA) and similar
organizations have continuing education training opportunities available in
various formats.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-002 Material Weakness – Cash (Repeated finding. See finding 2019-002)

Criteria: Reconciliation of the bank account statements to the accounting system is a

primary control procedure to ensure that transactions are properly recorded in
the accounting system.
Condition: The operating bank account reconciliations did not agree with the general
ledger account balances, and discrepancies were not researched and
reconciled in a timely manner.
Cause: The City has had difficulties in reconciling the bank accounts’ activity within the
Water/Sewer billing system and the new accounting system.
Effect: The City’s internal financial reports did not accurately reflect cash balances
and activity.
Recommendation: We recommend that procedures be implemented to reconcile all bank
account statements to the accounting system on a monthly basis. Any
differences should be investigated and resolved in a timely manner.
Response: The City’s response is reflected in the accompanying corrective action plan.

191 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

2020-003 Material Weakness – Investment Accounts

Criteria: Reconciliation of bank and investment account statements to the accounting

system is a primary control procedure to ensure that transactions are properly
recorded in the accounting system.
Condition: The trust, escrow, and investment bank account statements were not periodically
reconciled to the general ledger account balances.
Cause: The City relied on year-end adjustments to record the activity in these accounts.
Effect: The internal financial reports did not accurately reflect the balances and activity in
the trust, escrow and investment bank accounts, and one investment account
(“Jackson Tri-Cent”) was not reflected in the City’s accounting system.
Recommendation: We recommend that procedures be implemented to reconcile all bank
and investment account statements to the accounting system on a monthly basis.
Any differences should be investigated and resolved in a timely manner.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-004 Material Weakness – Receivables (Repeated finding. See finding 2019-003)

Criteria: Reconciliation of accounts receivable totals in the accounting system to

detailed reports reflecting the individual customer accounts or other detailed
balance information is a primary control procedure to ensure that transactions
are properly recorded in the accounting system.
Condition: Water, sewer, and garbage customer receivable balances and various other
receivable balances in the accounting system weren’t periodically reconciled
to the detailed supporting records of balances actually owed to the City by
individuals and others.
Cause: The City has had difficulties in reconciling the activity within the water/sewer
billing system, and procedures did not appear to be in place to reconcile other
receivable balances to the underlying individual accounts of those who owe
the City.
Effect: The City’s internal financial reports did not accurately reflect receivable
balances owed to the City and the related revenues.
Recommendation: We recommend that procedures be implemented to reconcile all
receivable balances in the accounting system to the underlying balances owed
by individuals and others on a monthly basis. Any differences should be
investigated and resolved in a timely manner.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-005 Material Weakness – Receivables (Repeated finding. See finding 2019-004)

Criteria: Generally accepted accounting principles require that receivable balances and
the related revenues be reflected net of an allowance for amounts estimated
to be uncollectible.

192 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

Condition: The City’s water, sewer, and garbage customer accounts receivables balances
have continued to increase dramatically over the past several years, and the
allowances for uncollectible amounts were not adequately adjusted based on
the past-due status of the receivables and other factors affecting collectability.
Cause: As a result of difficulties experienced with the billing system, the City had
delayed the evaluation of the collectability of receivable balances.
Effect: Without appropriate allowances for uncollectible amounts, the internal financial
reports overstated both the receivables asset balances and the related
revenues.
Recommendation: We recommend that procedures be implemented to periodically review
and adjust the allowances for uncollectible accounts.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-006 Material Weakness – Inventories (Repeated finding. See finding 2019-005)

Criteria: Reconciliation of supplies inventory account totals in the accounting system to

detailed reports reflecting the actual inventory on hand is a primary control
procedure to ensure that transactions are properly recorded in the accounting
system.
Condition: A year-end inventory count of the water meters supply on hand at the
warehouse was not performed and reconciled to the accounting system.
Cause: Procedures were not in place to periodically reconcile the actual water meters
supply on hand to the inventory balances reflected in the accounting system.
Effect: The City’s accounting system did not properly reflect the water meter supply
inventory.
Recommendation: We recommend that procedures be implemented to reconcile the water
meters supply inventory on hand to the accounting system at least annually.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-007 Significant Deficiency – Inventories

Criteria: Year-end physical inventory procedures are necessary to ensure that the cost
of the inventory on hand is accurately reflected in the financial reports.
Condition: The City was unable to generate year-end supplies inventory reports from its
new accounting system after the physical inventory counts were performed.
Cause: Portions of the City’s new accounting system were not yet functioning at year
end.
Effect: The City was unable to adjust the year-end supplies inventory account
balances for any differences between the existing inventory account balances
and the cost of the actual year-end inventory on hand.
Recommendation: We recommend that the City implement procedures to ensure that the
supplies inventory account balances are accurately reflected in the accounting
system.
Response: The City’s response is reflected in the accompanying corrective action plan.

193 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

2020-008 Material Weakness – Liabilities (Repeated finding. See finding 2019-006)

Criteria: Reconciliation of liability account totals in the accounting system to detailed

reports reflecting the individual vendor accounts or other detailed balance
information is a primary control procedure to ensure that transactions are
properly recorded in the accounting system.
Condition: Accounts payable and other liability detailed reports were not reconciled to the
accounting system balances, and the vouchers payable subsidiary ledger
reflected old incorrect balances as being owed to certain vendors.
Cause: Procedures were not in place to periodically reconcile the underlying amounts
owed to individuals and entities with the liability balances reflected in the
accounting system.
Effect: The City’s accounting system did not properly reflect the balances owed by the
City.
Recommendation: We recommend that procedures be implemented to reconcile the
liability balances in the accounting system to the underlying amounts owed by
the City on a monthly basis.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-009 Material Weakness – Liabilities (Repeated finding. See finding 2019-007)

Criteria: Reconciliation of payroll liability account totals in the accounting system to

detailed reports reflecting the individual balances owed is a primary control
procedure to ensure that transactions are properly recorded in the accounting
system.
Condition: Payroll liability accounts for payroll taxes, retirement contributions, group
insurance premiums, and garnishment withholdings were not reconciled to
ensure that all payroll withholdings and the City’s related share of costs were
properly reflected and remitted to the appropriate entities in a timely manner.
Cause: Procedures were not in place to periodically reconcile the underlying amounts
owed to the liability balances reflected in the accounting system.
Effect: The City’s accounting system did not properly reflect the balances owed by the
City.
Recommendation: We recommend that procedures be implemented to reconcile on a
monthly basis the payroll liability balances in the accounting system to the
underlying amounts owed by the City.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-010 Material Weakness – Liabilities (Repeated finding. See finding 2019-008)

Criteria: Reconciliation of liability account totals in the accounting system to detailed

reports reflecting the individual balances making up the total is a primary
control procedure to ensure that transactions are properly recorded in the
accounting system.

194 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

Condition: The detailed report of the individual customer meter deposits held by the City
was not periodically reconciled to the accounting system.
Cause: The City has had difficulties in reconciling the activity within the water/sewer
billing system.
Effect: The customer meter deposits liability reflected in the accounting system was
not periodically reconciled to the individual customer meter deposit amounts
reflected in the billing system.
Recommendation: We recommend that the City implement procedures to reconcile the
customer meter deposits report to the balance in the accounting system on a
monthly basis.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-011 Material Weakness – Liabilities (Repeated finding. See finding 2019-009)

Criteria: Reconciliation of liability account totals in the accounting system to detailed

reports reflecting the individual balances making up the total is a primary
control procedure to ensure that transactions are properly recorded in the
accounting system.
Condition: A detailed report of the individual case numbers and amounts of police seized
and forfeited cash held by the City pending court action was not available.
Cause: A comprehensive system was not in place to track the seized and forfeited
balances held by the City pending court decisions on whether the funds will be
retained as city revenue or returned to defendants.
Effect: The police seized and forfeited cash liability reflected in the accounting system
was not reconciled to the individual cases pending.
Recommendation: We recommend that the City develop a report reflecting the individual
case amounts held by the City pending court action and implement procedures
to reconcile the individual case amounts to the balance in the accounting
system on a monthly basis.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-012 Material Weakness – Fund Balances (Repeated finding. See finding 2019-010)

Criteria: Revenues and expense are required by GAAP to be separately reflected

(rather than netted), and donations received with restrictions on their use are
required to be reflected as restricted fund balances until utilized for the
intended purposes.
Condition: Some restricted fund balances for special programs were incorrectly reflected
as “other liabilities”, and some transactions were improperly netted within the
restricted liability or fund balance accounts rather than being reflected as
revenues and expenses.
Cause: Liability accounts were not monitored to ensure that liability account usage was
appropriate.

195 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

Effect: The City’s liabilities were overstated and revenues, expenses and restricted
fund balances were understated.
Recommendation: We recommend that liability accounts be periodically reviewed to
ensure that usage of liability accounts is appropriate. In addition, restricted
fund balances should be monitored to ensure that the restricted fund balance
is released to unrestricted fund balance upon utilization for the intended
purpose.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-013 Material Weakness – Revenues (Repeated finding. See finding 2019-011)

Criteria: Monitoring of lease agreements and payments due from lessees is a primary
control to ensure that lessees comply with lease terms and that payments are
received when due.
Condition: A tower lease agreement tracking system was not in place to monitor monthly
tower lease revenue due from cellular companies or to monitor remaining lease
terms, renewals, inflation adjustments, etc.
Cause: Because of the quantity and complexity of the City’s tower leases, the City has
primarily relied on the cellular companies to keep track of their own leases and
make payments when due.
Effect: Tower leases are a significant source of revenue for the City, and with limited
oversight from the City, lessees might underpay the City in connection with
their lease obligations.
Recommendation: We recommend that the City develop a tracking system for its tower
leases and the payments due from the lessees.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-014 Material Weakness – Expenditures (Repeated finding. See finding 2019-013)

Criteria: Generally accepted accounting principles require capital outlay expenditures

to be segregated from operating expenditures.
Condition: Capital outlay expenditure accounts included items that should have been
classified as supplies since they did not meet the City’s capitalization criteria,
and the Other Services and Charges expenditure accounts included amounts
that should have been classified as capital outlay.
Cause: The City relied upon year-end audit adjustments to correct these mispostings.
Effect: The City’s internal financial reports did not accurately reflect capital outlay and
debt service expenditures.
Recommendation: We recommend that the City’s procedures for classifying and recording
capital outlay expenditures be reviewed and revised as necessary to properly
reflect these expenditures.
Response: The City’s response is reflected in the accompanying corrective action plan.

196 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

2020-015 Material Weakness – Purchasing Procedures

Criteria: Municipalities have an obligation to their citizens and grantors to efficiently

utilize financial resources in providing the necessary municipal services.
Condition: The City paid contractors for cleaning and sanitizing City facilities and
equipment as part of its response to the Covid-19 pandemic. However, the
City did not obtain competitive proposals or contracts for these services, and
the cleaning and sanitizing services continued for an extensive period of time
beyond the initial emergency.
Cause: The City’s emergency purchasing procedures did not specify a time limit for
the emergency exception from normal competitive purchasing procedures for
ongoing services.
Effect: The City may not have paid the best price for the services that it received.
Recommendation: We recommend that the City review its emergency purchasing
procedures and revise them as necessary to ensure that emergency
purchases are adequately monitored and that the City’s normal competitive
purchasing procedures are utilized as soon as practicable after the initial
emergency exceptions are allowed.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-016 Significant Deficiency – Employee Benefits

Criteria: The City’s employee benefit plans have specific criteria and requirements for
individuals’ participation in those benefit plans.
Condition: A former employee of the City continued to receive benefits under the City’s
prescription drug employee benefit plan for several months after the
individual’s eligibility ended.
Cause: The benefit plan participant roster was not adequately monitored to ensure that
ineligible individuals were removed from participation.
Effect: Benefits continued to be paid for the former employee after the individual’s
eligibility ended.
Recommendation: We recommend that the City review its employee benefit plan
monitoring procedures and revise them as necessary to ensure that only
eligible individuals are participating in the benefit plans.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-017 Material Weakness and Noncompliance – Unclaimed Funds (Repeated finding. See
finding 2019-017)

Criteria: Funds that have been unclaimed (i.e. uncashed checks) for more than five
years are required under the Mississippi Unclaimed Property Act to be remitted
to the Mississippi Treasurer’s Office at least every three years if a check is not
cashed by the payee, the money is still owed, and the payee cannot be located
to reissue a check.

197 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

Condition: Approximately 1,400 old outstanding payroll checks dating back as far as 1996
were still reflected as outstanding in the accounting system and had not yet
been remitted to the Mississippi Treasurer’s Office as required.
Cause: The City was unaware of the requirement to transfer unclaimed funds to the
State Treasurer’s Office.
Effect: The City was not in compliance with the Mississippi Unclaimed Property Act.
Recommendation: We recommend that procedures be implemented to remit unclaimed
funds to the Mississippi Treasurer’s Office as required. In addition, we
recommend that procedures be implemented to periodically review the
outstanding checks schedule to ensure that voided checks have been properly
removed from the outstanding checks schedule and any significant old
outstanding checks are investigated to determine the reason they have not
been cashed by the payees.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-018 Noncompliance – City Council Meeting Minutes

Criteria: State statutes require minutes of city council meetings to be approved and
signed by the next regular city council meeting or within 30 days, whichever
occurs first.
Condiiton: We noted several instances in which the city council meeting minutes were not
approved and signed within the required timeframe.
Cause: Delays appear to have resulted from staffing changes and the Covid-19
pandemic.
Effect: The city council meeting minutes were not available to the public in a timely
manner.
Recommendation: We recommend that the procedures reviewed and revised as
necessary to ensure that the city council meeting minutes are approved in a
timely manner.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-019 Noncompliance – Municipal Compliance Questionnaire

Criteria: Regulations of the Mississippi State Auditor’s Office require that a municipality
complete and approve a Municipal Compliance Questionnaire at the City
Council’s first regular meeting after each fiscal year-end and include the
questionnaire in the official minutes as a means of certifying that it has
complied with applicable state statutes and regulations. The Municipal
Compliance Questionnaire provides a listing of various compliance
requirements along with the source of the requirements.
Condition: While the approval of the Municipal Compliance Questionnaire was reflected
in the city council meeting minutes, the actual questionnaire was not included
in the city council meeting minutes.

198 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

Cause: The City was not aware of the requirement to include the content of the
questionnaire in the city council meeting minutes.
Effect: The Municipal Compliance Questionnaire content was not documented in the
official minutes as required.
Recommendation: We recommend that the City’s procedures for approving the Municipal
Compliance Questionnaire be revised so that the actual questionnaire content
is reflected in the city council meeting minutes as required.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-020 Noncompliance – Budgeting (Repeated finding. See finding 2019-019)

Criteria: State statutes and regulations require that the City limit its expenditures to the
amounts in the approved budget line items except for court-ordered or
emergency purchases and capital outlay.
Condition: Several expenditure line items in the budget were exceeded with no known
applicable exception to the budget compliance requirement.
Cause: The correction of posting errors and misclassified expenditures as well as items
not separately budgeted as required resulted in actual expenditures that
exceeded expenditure budget line items.
Effect: The City was not in compliance with state statutes, and City officials could be
exposed to fines for budget violations.
Recommendation: We recommend that the City review and revise its budgeting and
reporting procedures to ensure that the transactions are properly recorded and
budget expenditures are adequately monitored to prevent expenditures in
excess of the budgeted line items.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-021 Noncompliance – Budgeting

Criteria: Budget revisions that cumulatively exceed 10% of the originally adopted
budget for a fund or department are required by state statute to be published
in a newspaper in the same manner as the originally adopted budget along
with the reason for the budget revisions.
Condition: Several revisions to budgets for funds and departments exceeded 10%
cumulatively but were not published as required.
Cause: The City did not adequately monitor budget revisions.
Effect: The public was not adequately informed of the budget revisions.
Recommendation: We recommend that the City’s budget revision procedures be reviewed
and revised as necessary to ensure that cumulative budget revisions in excess
of 10% are published as required.
Response: The City’s response is reflected in the accompanying corrective action plan.

199 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

2020-022 Noncompliance – Bank Accounts

Criteria: The City is required by state statute to obtain competitive bids every two years
from banks for municipal depository services and to designate its municipal
depository for holding City funds based on the best bid.
Condition: Three of the City’s bank accounts, which totaled approximately $35.5 million at
year-end and were held by the City’s primary municipal depository, only earned
interest at a rate of 0.05% rather than the 2.67% rate required by the City’s
municipal depository agreement with that bank.
Cause: The City did not adequately monitor the bank’s compliance with the municipal
depository agreement.
Effect: The City did not receive the correct amount of interest on its deposits with the
banks.
Recommendation: We recommend that the City review its bank account monitoring
procedures and revise them as necessary to ensure that the bank complies
with the municipal depository agreement.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-023 Noncompliance – Investments (Repeated finding. See finding 2019-020)

Criteria: State statutes generally restrict the types of investments that can be held by
municipalities to direct investments in government securities.
Condition: The Tort Claims Reserve Fund and the Water/Sewer EPA Consent Decree
Account held investments in a U.S. Treasury money market fund (rather than
direct U.S. Treasury securities), but this type of investment is only allowed for
debt-related trust accounts.
Cause: The City was unaware that this type of investment isn’t allowed.
Effect: The City was not in compliance with state statutes.
Recommendation: We recommend that the City transfer these funds to an allowable type
of investment.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-024 Noncompliance – Personnel (Repeated finding. See finding 2019-021)

Criteria: Federal regulations and state statutes require employers in Mississippi to

complete an I-9 employment eligibility form and online E-Verify process when
hiring employees.
Condition: I-9 forms were not properly completed and certified by the City for some new
employees.
Cause: The City’s controls over employment eligibility verifications for new employees
were not functioning as intended.
Effect: The City was not in compliance with federal regulations and state statutes.

200 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

Recommendation: We recommend that the City review its employee hiring procedures and
revise them as necessary to comply with employment eligibility verification
requirements and to document its compliance with those requirements.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-025 Noncompliance – State Purchase Laws (Repeated finding. See finding 2019-023)

Criteria: State statutes require municipalities to obtain competitive bids before

purchasing items over $50,000 unless the purchase is made under a vendor
state contract approved by the Mississippi Department of Finance and
Administration (MS DFA) or meets certain other limited exceptions to the
purchase laws.
Condition: The City made a purchase of police body-worn cameras totaling approximately
$173,000 under a vendor’s purchase contract with the National Cooperative
Purchasing Alliance (NCPA) that did not appear to be approved by MS DFA as
a state contract.
Cause: The City was not aware that the vendor’s contract with the NCPA did not meet
Mississippi’s requirements for a state contract exemption to the bid
requirements because the contract with the vendor had not been approved by
MS DFA.
Effect: The City was not in compliance with state purchase laws.
Recommendation: We recommend that the City review and revise its purchasing
procedures as necessary to ensure compliance with Mississippi purchase
laws.
Response: The City’s response is reflected in the accompanying corrective action plan.

2020-026 Noncompliance – Timely Pay Statute (Repeated finding. See finding 2019-024)

Criteria: State statutes require municipalities to pay vendors within 45 days of receiving
an invoice or pay the vendor interest on amounts paid after 45 days.
Condition: We noted that the City made several vendor payments that were more than 45
days after receipt of the applicable invoices without documentation of any
dispute or payment of the required interest.
Cause: The City’s procedures for processing and approving invoices for payment did
not adequately document any disputes that delayed payment and did not add
the required interest to vendor payments when payments were otherwise late.
Effect: The City was not in compliance with statutory timely pay requirements.
Recommendation: We recommend that the City review and revise its purchasing
procedures as necessary to ensure compliance with Mississippi timely pay
requirements.
Response: The City’s response is reflected in the accompanying corrective action plan.

201 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

2020-027 Significant Deficiency – Federal Grant Cash Management and Allowable Costs

Criteria: Grantees are required to request grant funds only for their immediate allowable
cost needs.
Condition: Funds totaling $565,843 were inadvertently requested by the City in
September, 2020, from the wrong Federal Transit Authority grants and were
then returned by the City to the grantor in December, 2020, upon discovery of
the error. The City subsequently requested the funds from the appropriate
Federal Transit Authority grants.
Cause: The reimbursement requests were not adequately reviewed prior to
submission.
Effect: The City’s reimbursement requests were delayed while the erroneously
requested grant funds were returned to the grantor.
Recommendation: We recommend that the City review its grant reimbursement request
procedures and revise them as necessary to ensure that funds are requested
from the appropriate grants based on its immediate needs for allowable costs.
Response: The City’s response is reflected in the accompanying corrective action plan.

202 
 
 

CITY OF JACKSON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

Year Ended September 30, 2020

FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT

U.S. DEPARTMENT OF TRANSPORTATION, FEDERAL TRANSIT ADMINISTRATION

Federal Transit Cluster (20.507)

MS-2017-004-01
MS-2018-003-01

The cash management and allowable costs significant deficiency at finding 2020-027 applies
to this federal award program.

203 
 
 

CITY OF JACKSON

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

Year Ended September 30, 2020

2019-001 Material Weakness – Financial Reporting

Condition: We assisted the City’s management with drafting portions of the CAFR
because the City did not have adequate internal resources to prepare the
CAFR in accordance with generally accepted accounting principles (GAAP).
Status: Not corrected. See finding 2020-001.

2019-002 Material Weakness – Cash

Condition: The operating bank account reconciliations did not agree with the general
ledger balances, and discrepancies were not researched and reconciled in a
timely manner.
Status: Not corrected. See finding 2020-002.

2019-003 Material Weakness – Receivables

Condition: Water, sewer, and garbage customer receivable balances and various other
receivable balances in the accounting system weren’t periodically reconciled
to the detailed supporting records of balances actually owed to the City by
individuals and others.
Status: Not corrected. See finding 2020-004.

2019-004 Material Weakness – Receivables

Condition: The City’s water, sewer, and garbage customer accounts receivables balances
have continued to increase dramatically over the past several years, and the
allowances for uncollectible amounts were not adequately adjusted based on
the past-due status of the receivables and other factors affecting collectability.
Status: Not corrected. See finding 2020-005.

2019-005 Material Weakness – Inventories

Condition: The inventory count of the water meters supply on hand at the warehouse was
not performed and reconciled to the accounting system.
Status: Not corrected. See finding 2020-006.

2019-006 Material Weakness – Liabilities

Condition: Accounts payable and other liability detailed reports were not reconciled to the
accounting system balances, and the vouchers payable subsidiary ledger
reflected old incorrect balances as being owed to certain vendors.
Status: Not corrected. See finding 2020-008.

204 
 
 

CITY OF JACKSON

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS – CONTINUED

Year Ended September 30, 2020

2019-007 Material Weakness – Liabilities

Condition: Payroll liability accounts for payroll taxes, retirement contributions, group
insurance premiums, and garnishment withholdings were not reconciled to
ensure that all payroll withholdings and the City’s related share of costs were
properly reflected and remitted to the appropriate entities in a timely manner.
Status: Not corrected. See finding 2020-009.

2019-008 Material Weakness – Liabilities

Condition: The detailed report of the individual customer meter deposits held by the City
was not periodically reconciled to the accounting system.
Status: Not corrected. See finding 2020-010.

2019-009 Material Weakness – Liabilities

Condition: A detailed report of the individual case numbers and amounts of police seized
and forfeited cash held by the City pending court action was not available.
Status: Not corrected. See finding 2020-011.

2019-010 Material Weakness – Fund Balances

Condition: Restricted fund balances for special programs were incorrectly reflected as
“other liabilities” and some transactions were improperly netted within the
liability accounts rather than being reflected as revenues and expenses.
Status: Not corrected. See finding 2020-012.

2019-011 Material Weakness – Revenues

Condition: A tower lease agreement tracking system was not in place to monitor monthly
tower lease revenue due from cellular companies or to monitor remaining lease
terms, renewals, inflation adjustments, etc.
Status: Not corrected. See finding 2020-013.

205 
 
 

CITY OF JACKSON

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS – CONTINUED

Year Ended September 30, 2020

2019-012 Significant Deficiency – Federal Awards Cash Management

Condition: The City received several federal awards passed through the Mississippi
Department of Transportation (MDOT) that were awarded on a reimbursement
basis, but we noted that some grant project costs were not paid prior to
requesting and receiving the reimbursements from MDOT. Of the twelve
MDOT reimbursement requests selected to test, three of the reimbursements
were received prior to the City’s payment of the project costs. The City also
received a federal award passed through the Mississippi Department of Health
(MS DOH) that was awarded on an advance basis, and we noted that $655,952
of project costs were not paid within three days of receiving the requested
award advance for these costs.
Status: Corrected.

2019-013 Material Weakness – Expenditures

Condition: Capital outlay expenditure accounts included items that should have been
classified as supplies since they did not meet the City’s capitalization criteria,
and the Other Services and Charges expenditure accounts included amounts
that should have been classified as capital outlay. In addition, debt service
payments on capital leases weren’t properly segregated into principal and
interest expenditure accounts.
Status: Not corrected. See finding 2020-014.

2019-014 Material Weakness – Expenditures

Condition: County fees charged for the collection of the City’s ad valorem taxes were
netted from tax revenues rather than being posted as contractual services
expense.
Status: Corrected.

2019-015 Material Weakness – Expenditures

Condition: We noted several instances in which vendors were overpaid as a result of

processing the same invoice for payment twice, payment of the wrong vendor
for an invoice, or payment in excess of the approved contract amount.
Status: Corrected.

2019-016 Significant Deficiency – Personnel

Condition: We noted that six of the 25 personnel files selected for testing did not contain
documentation of the employee’s current approved pay rate.
Status: Corrected.

206 
 
 

CITY OF JACKSON

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS – CONTINUED

Year Ended September 30, 2020

2019-017 Material Weakness and Noncompliance – Unclaimed Funds

Condition: Approximately 1,400 old outstanding payroll checks dating back as far as 1996
were still reflected as outstanding in the accounting system and had not yet
been remitted to the Mississippi Treasurer’s Office as required.
Status: Not corrected. See finding 2020-017.

2019-018 Material Weakness and Noncompliance – Budgeting

Condition: Debt service, grants/subsidies/allocations, and interfund transfers were not

budgeted separately from other expenditures as required by the OSA but
instead were included in the Other Services and Charges and Capital Outlay
budget line items.
Status: Corrected.

2019-019 Noncompliance – Budgeting

Condition: Several expenditure line items in the budget were exceeded with no known
applicable exception to the budget compliance requirement.
Status: Not corrected. See finding 2020-020.

2019-020 Noncompliance – Investments

Condition: The Tort Claims Reserve Fund and the Water/Sewer EPA Consent Decree
Account held investments in a U.S. Treasury money market fund (rather than
direct U.S. Treasury securities), but this type of investment is only allowed for
debt-related trust accounts.
Status: Not corrected. See finding 2020-023.

2019-021 Noncompliance – Personnel

Condition: I-9 forms and documentation of E-Verify online employment eligibility

verifications could not be located for some new employees.
Status: Not corrected. See finding 2020-024.

2019-022 Noncompliance – Bond Covenants

Condition: The Water/Sewer Fund’s debt service fund, operation and maintenance fund,
and contingent fund were below the required amounts at September 30, 2019,
and the total debt coverage ratio was below the 100% level required by the
bond covenants as of September 30, 2019.
Status: Corrected.

207 
 
 

CITY OF JACKSON

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS – CONTINUED

Year Ended September 30, 2020

2019-023 Noncompliance – State Purchase Laws

Condition: We noted that the City made two purchases of multiple buses totaling
approximately $1,040,000 under other states’ vendor contracts that were not
approved as state contracts by MS DFA.
Status: Not corrected. See finding 2020-025.

2019-024 Noncompliance – Timely Pay Statute

Condition: We noted that the City made several vendor payments that were more than 45
days after receipt of the applicable invoices without documentation of any
dispute or payment of the required interest.
Status: Not corrected. See finding 2020-026.

208 
 
 CORRECTIVE ACTION PLAN
02/14/2022

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

The City of Jackson respectfully submits the following corrective action plan for the year ended
September 30, 2020.
Name and address of independent public accounting firm: Tann, Brown & Russ Co., PLLC
1501 Lakeland Drive, Suite 300, Jackson, MS 39216

Audit period: Year Ended September 30, 2020

The findings from the September 30, 2020 schedule of findings and questioned costs are discussed
below. The findings are numbered consistently with the numbers assigned in the schedule. Section 1 of
the schedule, Summary of Audit Results, does not include findings and is not addressed.

FINDING- FINANCIAL STATEMENT AUDIT

Finding No. 2020-001

MATERIAL WEAKNESS- FINANCIAL REPORTING

Recommendation: We recommend that appropriate training be made available to the City’s

finance department personnel involved in the CAFR preparation process. The Government Finance
Officers Association (GFOA) and similar organizations have continuing education training
opportunities available in various formats.

Action Taken: The City of Jackson is a member of GFOA and often sends employees to training events
that they sponsor. The City’s plan of action is to continue enrolling all relevant finance employees
in available GFOA training opportunities.

Finding No. 2020-002

MATERIAL WEAKNESS- CASH

Recommendation: We recommend that procedures be implemented to reconcile all bank account

statements to the accounting system on a monthly basis. Any differences should be investigated
and resolved in a timely manner.

Action Taken: The procedures regarding the reconciliation of all bank accounts have been updated
and the finance staff are in the process of implementing monthly reconciliations. The City
implemented a new ERP system that will assist with the timely reconciliation of all bank accounts.

209
Finding No. 2020-003
MATERIAL WEAKNESS- INVESTMENT ACCOUNTS

Recommendation: We recommend that procedures be implemented to reconcile all bank and

investment account statements to the accounting system on a monthly basis. Any differences
should be investigated and resolved in a timely manner.

Action Taken: The procedures regarding the reconciliation of all bank and investment accounts
have been updated and the finance staff are in the process of implementing monthly reconciliations.
The City implemented a new ERP system that will assist with the timely reconciliation of all bank
accounts.

Finding No. 2020-004

MATERIAL WEAKNESS- RECEIVABLES

Recommendation: We recommend that procedures be implemented to reconcile all receivable

balances in the accounting system to the underlying balances owed by individuals and others on a
monthly basis. Any differences should be investigated and resolved in a timely manner.

Action Taken: Management is developing and implementing procedures to reconcile water, sewer
and solid waste accounts receivables balances for customer accounts to the corresponding general
ledger balances.

Finding No. 2020-005

MATERIAL WEAKNESS- RECEIVABLES

Recommendation: We recommend that procedures be implemented to periodically review and

adjust the allowances for uncollectible accounts.

Action Taken: The City has created a schedule for determining the appropriate adjustments to
allowances for uncollectible accounts.

Finding No. 2020-006

MATERIAL WEAKNESS- INVENTORIES

Recommendation: We recommend that procedures be implemented to reconcile the water meters

supply inventory on hand to the accounting system at least annually.

Action Taken: The City will reconcile the water meters supply inventory on hand to the accounting
system at the time of the annual inventory audit.

210
FINDING No. 2020-007
SIGNIFICANT DEFICIENCY- INVENTORIES

Recommendation: We recommended that the City implement procedures to ensure that the
supplies inventory account balances are accurately reflected in the accounting system.

Action Taken: The City will implement procedures to ensure that the supplies inventory account
balances are accurately reflected. The City implemented a new ERP system that will assist with the
accuracy of supplies inventory account balances.

FINDING No. 2020-008

MATERIAL WEAKNESS- LIABILITIES

Recommendation: We recommend that procedures be implemented to reconcile the liability

balances in the accounting system to the underlying amounts owed by the City on a monthly basis.

Action Taken: The City is updating its procedures to utilize subsidiary ledgers to record detailed
balance information as it relates to the outstanding liability. The City will also begin to monitor
liability accounts as part of its monthly reconciliation process.

FINDING No. 2020-009

MATERIAL WEAKNESS- LIABILITIES

Recommendation: We recommend that procedures be implemented to reconcile on a monthly

basis the payroll liability balances in the accounting system to the underlying amounts owed by the
City.

Action Taken: The City has updated it procedures and will begin to monitor payroll liability accounts
as part of its monthly reconciliation process.

FINDING No. 2020-010

MATERIAL WEAKNESS- LIABILITES

Recommendation: We recommend that the City implement procedures to reconcile the customer
meter deposits report to the balance in the accounting system on a monthly basis.

Action Taken: Management intends to develop and implement procedures to reconcile individual
customer meter deposits to the meter deposits liability on a monthly basis.

FINDING No. 2020-011

MATERIAL WEAKNESS- LIABILITIES

Recommendation: We recommend that the City develop a report reflecting the individual case
amounts held by the City pending court action and implement procedures to reconcile the individual
case amounts to the balance in the accounting system on a monthly basis.

211
Action Taken: The Jackson Police Department will submit a weekly report to Fiscal Affairs Division
of all evidence received by noon each Friday. JPD Fiscal Affairs will generate a weekly report of all
evidence which will include cash and property. JPD will submit a monthly report to Finance. City
Legal will compile a quarterly report and submit it to JPD Fiscal Affairs to be submitted to Finance
as well. Additionally, an annual report will be compiled and submitted to Finance.

FINDING No. 2020- 012

MATERIAL WEAKNESS- LIABILITIES

Recommendation: We recommend that liability accounts be periodically reviewed to ensure that

usage of liability accounts is appropriate. In addition, restricted fund balances should be monitored
to ensure that the restricted fund balance is released to unrestricted fund balance upon utilization
for the intended purpose.

Action Taken: The City is correcting the liability accounts that were incorrectly reflected for special
programs. The City will continue to monitor liability accounts as part of its monthly reconciliation
process.

FINDING No. 2020-013

MATERIAL WEAKNESS- REVENUES

Recommendation: We recommend that the City develop a tracking system for its tower leases and
the payments due from the lessees.

Action Taken: The City is working with a third-party consultant to review all cell tower regulations
and contracts, update City ordinances as its relations to cell towers, and create greater equity
between agreements. Furthermore, the City implemented a new ERP system to assist with the
electronic tracking of leases and payments. Finally, the City has engaged a consulting firm to conduct
business process improvements across the City, including with the tower leases.

FINDING No. 2020-014

MATERIAL WEAKNESS- EXPENDITURES

Recommendation: We recommend that the City’s procedures for classifying and recording capital
outlay expenditures be reviewed and revised as necessary to properly reflect these expenditures.

Action Taken: The City will implement new policies to correctly classify and record capital outlay
and debt service expenditures as required by GAAP.

FINDING NO. 2020-015

MATERIAL WEAKNESS- PURCHASING PROCEDURES

Recommendation: We recommend that the City review its emergency purchasing procedures and
revise them as necessary to ensure that emergency purchases are adequately monitored and that

212
the City’s normal competitive purchasing procedures are utilized as soon as practicable after the
initial emergency exceptions are allowed.

Action Taken: The purchasing staff will review its emergency purchasing procedures and make
revisions to ensure efficient utilization of financial resources.

FINDING No. 2020-016

SIGNIFICANT DEFICIENCY- EMPLOYEE BENEFITS

Recommendation: We recommend that the City review its employee benefit plan monitoring
procedures and revise them as necessary to ensure that only eligible individuals are participating in
the benefit plans.

Action Taken: The benefits plan will remove terminated employees on a monthly basis to ensure
terminated members aren’t receiving benefits after termination of their premium collection. In
addition, retired and Cobra eligible employees will be properly designated to ensure premium
collection from third party providers to closely monitor our active employee to active cobra enrolled
members. They also will be terminated upon an inactive status in our HRIS system based on weekly
to monthly generated inactive reports for reconciliation.

FINDING No. 2020-017

MATERIAL WEAKNESS AND NONCOMPLIANCE- UNCLAIMED FUNDS

Recommendation: We recommend that procedures be implemented to remit unclaimed funds to

the Mississippi Treasurer’s Office as required. In addition, we recommend that procedures be
implemented to periodically review the outstanding checks schedule to ensure that voided checks
have been properly removed from the outstanding checks schedule and any significant old
outstanding checks are investigated to determine the reason they have not been cashed by the
payees.

Action Taken: The City will continue to work with the Mississippi Treasurer’s Office to ensure
compliance with the Mississippi Unclaimed Property Act.

FINDING No. 2020-018

NONCOMPLIANCE- CITY COUNCIL MEETING MINUTES

Recommendation: We recommend that the procedures are reviewed and revised as necessary to
ensure that the city council meeting minutes are approved in a timely manner.

Action Taken: The City will revise its procedures to ensure city council meeting minutes are
approved in a timely manner. Additionally, the City has created a new Clerk of Council office to
assist with timely posting of city council meeting minutes.

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FINDING NO. 2020-019
NONCOMPIANCE- MUNICIPAL COMPLIANCE QUESTIONNAIRE

Recommendation: We recommend that the City’s procedures for approving the Municipal
Compliance Questionnaire be revised so that the actual questionnaire content is reflected in the
city council meeting minutes as required.

Action Taken: The City is revising its procedures to ensure the actual questionnaire content is
reflected in the city council meeting minutes as required.

FINDING NO. 2020-020

NONCOMPIANCE- BUDGETING

Recommendation: We recommend that the City review and revise its budgeting and reporting
procedures to ensure that the transactions are properly recorded and budget expenditures are
adequately monitored to prevent expenditures in excess of the budgeted line items.

Action Taken: The City is revising its budgeting and reporting procedures to ensure that transactions
are properly recorded and budget expenditures are adequately monitored to prevent expenditures
in excess of the budgeted line items. Efforts are underway to requires the approval of budget
department staff on all expenditures, prior to requests for payment being sent to accounts payable.
This extra budget review will prevent expenditures in excess of the budgeted line items.

FINDING NO. 2020-021

NONCOMPIANCE- BUDGETING

Recommendation: We recommend that the City’s budget revision procedures be reviewed and
revised as necessary to ensure that cumulative budget revisions in excess of 10% are published as
required.

Action Taken: The City is revising its budgeting and reporting procedures to ensure budget revisions
are published as required.

FINDING NO. 2020-022

NONCOMPIANCE- BANK ACCOUNTS

Recommendation: We recommend that the City review its bank account monitoring procedures
and revise them as necessary to ensure that the bank complies with the municipal depository
agreement.

Action Taken: The City has requested a correction to the interest rate and will continue to work
closely with the primary municipal depository to ensure compliance with the municipal depository
agreement.

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FINDING NO. 2020-023
NONCOMPIANCE- INVESTMENTS

Recommendation: We recommend that the City transfer these funds to an allowable type of
investment

Action Taken: The City has requested a change to the investment holding facility and will continue
to work with them to bring the investment type into compliance with state statues.

FINDING NO. 2020-024

NONCOMPIANCE- PERSONNEL

Recommendation: We recommend that the City review and revise its employee’s hiring procedures
and revise them as necessary to comply with employment eligibility verification requirements and
to document its compliance with those requirements.

Action Taken: The Department of Human Resources will revise its employee hiring procedures in
order to comply with the applicable employee eligibility verification and form I-9 requirements.

FINDING NO. 2020-025

NONCOMPIANCE- STATE PURCHASING LAWS

Recommendation: We recommend that the City review and revise its purchasing procedures as
necessary to ensure compliance with Mississippi purchase laws.

Action Taken: The City will obtain approval from MS DFA when using other vendor’s contracts in its
purchasing procedures to ensure compliance with Mississippi purchase laws.

FINDING NO. 2020-026

NONCOMPIANCE- TIMELY PAY STATUE

Recommendation: We recommend that the City review and revise its purchasing procedures as
necessary to ensure compliance with Mississippi timely pay requirements.

Action Taken: The City will utilize the implementation of its ERP system to provide more
accountability in monitoring and ensuring compliance with Mississippi timely pay requirements.
Policies and procedures will also be updated to enforce adherence to State regulations.

FINDING NO. 2020-027

SIGNIFICANT DEFICIENCY-FEDERAL GRANT CASH MANAGEMENT AND ALLOWABLE COST

Recommendation: We recommend that the City review its grant reimbursement request
procedures and revise them as necessary to ensure that funds are requested from the appropriate
grants based on its immediate needs for allowable costs.

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Action Taken: The City is revising its grant reimbursement request procedures to ensure funds
are requested from the appropriate grants. Additionally, the City implemented a new ERP system
that includes a grant module which will assist with the grant reimbursement request process.

FINDINGS AND QUESTIONS COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT

See finding no. 2020-027 above.

If the U.S. Department of Housing and Urban Development has questions regarding this plan,
please call me at (601) 960-1005.

Sincerely yours,

LaaWanda Jones-Horton, Director

Department of Administration

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