Natchez board braces for budget woes as virus pandemic cripples economy

NATCHEZ. Miss. – The city treasury is beginning to feel the impact of the forced shutdown of Natchez businesses prompted by the coronavirus pandemic.

Sales tax collections for Natchez in March declined by about $60,000 – a 13 percent drop from the same time in 2019, according to the state Department of Revenue. Natchez retailers collected about $422,000 in sales taxes for the city in March, down from the $485,000 in March 2019.

Sales tax collections at Natchez restaurants and hotels were down even more.

The Natchez Board of Aldermen on March 24 enacted a quarantine that ordered businesses deemed nonessential to close their doors as the COVID-19 crisis spiked. Natchez residents were directed to stay home as much as possible except to shop for groceries, visit health-care providers and tend to other vital needs.

The board on April 30 began easing back the business shutdowns by allowing stores and restaurants to reopen their doors but with restrictions and mandates limiting the number of people inside and keeping places sanitized.

In addition to the general state sales taxes generated for Natchez, the city also has special city taxes imposed on Natchez restaurants and hotels. Their business was down dramatically in March as they were forced to shutter: sales taxes in March totaled nearly $69,000 — a steep 50 percent drop from the $138,000 generated in March 2019. An additional levy imposed on hotel guests was also down sharply compared to last year: March 2020 brought about $15,000 while March 2019 had $40,000.

March and April each year is Natchez’ peak tourist season as the annual four-week Spring Pilgrimage takes place. It was cancelled March 17 as the tours of antebellum houses had just begun.

April tax collection data will be published soon by the state Department of Revenue.

With sales taxes essential sources of revenues to run city government and promote tourism, the Natchez Board of Aldermen is braced for more declines as the coronavirus pandemic continues to cripple the economy. The board has begun imposing budgetary restraints “to get us through the tough economic times that we’re facing,” said Ward 3 Alderman Sarah Carter Smith.

Those include a freeze on hiring new employees and purchasing new vehicles. However, more austerity measures are likely while city officials try to avoid cutting essential services and  laying off municipal workers.

“We’re going to be looking at a difficult situation when the next term comes around, and some of it will be dependent on what we do now,” said Ward 6 Alderman Dan Dillard.

The new term begins July 24 after Natchez voters elect the new mayor and six aldermen in the June party primaries and July general election.

Mayor Darryl Grennell opted not to run for re-election, but he’s urging aldermen in the next couple of months “to make sure we’re not overspending in this city” so “we can have money that’s available for the next administration coming in.”

Four candidates are vying to replace Grennell, who’s served only one term – following a 20-year trend of Natchez having only one-term mayors.