Key Points
- Financial Crisis: Hernando’s Utility Fund faces a $2.6 million shortfall, leaving the city with a critical two-month “runway” before the fund becomes insolvent.
- Rates Raised: The Board of Aldermen voted to increase monthly garbage rates from $22 to $28—a 27 percent hike—to cover actual contract costs from Waste Connections.
- Internal Friction: Board members are demanding higher standards of transparency and austerity, with some calling the lack of financial reporting “shocking” and “premature” without deeper budget cuts.
HERNANDO, Miss. — Facing a looming financial crisis that could leave the city’s utility operations insolvent within 60 days, the Hernando Board of Aldermen voted Tuesday night to hike garbage collection fees and authorized an emergency transfer of funds to keep the city fund afloat.
The meeting centered on a staggering $2.6 million projected deficit in the Utility Fund, an enterprise account intended to be self-sustaining. Mayor Chip Johnson and Chief Financial Officer Ed Green warned that without immediate intervention, the fund would lack the cash to meet payroll and operational expenses by early spring.
“We are in our straits with a two-month leeway,” Green told the board, noting that the fund holds only about $30,000 in immediate cash.
Board Members React to “Shocking” Disclosures
The announcement of the shortfall prompted an outpouring of frustration from aldermen, who questioned how such significant errors went unnoticed during the budgeting process. Mayor Johnson openly admitted to the board that the deficit was caused by “mistakes in the budget,” including overstated revenues and a failure to account for recurring contract increases…