Jackson's fiscal situation an enviable one

While most governments are being forced to reduce spending and consider ways to increase revenue to meet next year's budgets, Jackson, Mo., is doing just fine.

Nine months of recession and the Sept. 11 terrorist attacks have taken their toll on the economy, and governments, like businesses, are feeling the effects. Yet Jackson is entering 2002 with a budget that tops this year's by $2 million.

Not only does Jackson's $18.8 million budget for next year exceed this year's, but it includes spending for capital improvements, and $1.5 million of those improvements will be done to the city's electric system.

Considering the system is expected to produce about $8.5 million toward Jackson's $18.8 million 2002 budget, the money for system improvements will be well spent. But the city also is in the midst of unprecedented growth, and the electric system must be upgraded and expanded to meet growing demands in newly-developed commercial and residential areas.

Jackson's electric system offers a good argument for municipalities operating utilities. Of the $8.5 million in electric receipts anticipated next year, about half will be used to maintain the electric system and provide reserve funds for emergencies. The other $4.25 million will be transferred into other funds that maintain city departments, including parks. The result is that the city is able to keep taxes at a minimum.

The city's sales-tax revenues have grown significantly over the past five years. Even this year, with a few rocky months of consumer spending, Jackson's sales-tax revenue is expected to top last year's by about 7.5 percent. An increase of 5.5 percent anticipated in 2002 should produce about $1.8 million in city income.

Jackson's population has increased by 30 percent over the past decade, and Mayor Paul Sander expects the growth to continue through 2010 at a rate of 10 to 15 percent.

City growth and a money-making utility are chiefly responsible for Jackson's fiscal well-being. It says a lot for Jackson governmental and business leaders, who obviously have planned well and stayed on top of growth and development in their city.