Uncertainty Envelops Metro Finances, But City Says It Has Sufficient Cash For Now

Metro Nashville leaders are bracing for a major economic hit. But during a briefing Monday, Metro Councilmember Bob Mendes, who leads the budget committee, said the city has enough cash to finish the fiscal year and continue its storm recovery efforts. 

“Metro is going to take care of the things it needs to take care of,” he said. “There’s no risk to employees being paid. There’s no risk to government services, whether that’s police, fire. Basic government services are going to continue, and the city’s going to be able to pay for them.” 

Mayor John Cooper recently told The Tennessean he expects a “large multimillion-dollar hit,” and in the wake of storms he increased his capital spending plan by roughly $26 million.

Tourism leaders, meanwhile, are citing some 70,000 canceled hotel room nights when estimating more than $6 million in lost tax revenue.

But hovering over Monday’s briefing were several uncertainties:

• It’s unclear how well the city can replenish its depleted reserve fund after several “rainy day” emergency situations. 
• Metro is still calculating what it would cost to provide relief or unpaid leave to employees. 
• And officials aren’t ready to project how much sales tax Nashville will lose out on. Finance Director Kevin Crumbo said he is waiting to see if spending shifts — like moving away from bars and restaurants and toward groceries.

The council has gotten some clarity on its next steps.

The mayor still intends to give his State of Metro speech on March 31, and he will also detail his budget that same day.

That schedule is accelerated compared to typical years, a move made in response to the state comptroller, who wants time to check on Metro’s finances before the new fiscal year in July.

Some council members asked Monday if the timeline should slow down so that more information can be gathered.

But Crumbo said the adjustment makes sense for this year and others going forward.

“My fear for us is we’ll get into a little bit of analysis paralysis,” he said. “Hopefully we’ll see some normalization.”

Crumbo would not disclose his thinking, or the mayor’s, regarding the much-discussed possibility of a property tax increase. When pressed, he would say only that “it’s something I’ve analyzed and discussed with the mayor.”