Jackson City Council voted unanimously Dec. 2 to approve a package of budget amendments that includes a $1,553,296.60 pass-through grant to 6 ks Energy from the Tennessee Department of Economic Community Development and a $1.5 million OCJIP violent-crimes intervention fund grant. Council also approved a reallocation of $89,396.09 to pay vendor upfitting costs for patrol vehicles.
City staff described the 6 ks Energy award as a pass-through arrangement: "Basically, the money comes in and the money goes out for us," (Unidentified Speaker 5). The staff representative said the city acts as the receiving entity for the payment and immediately forwards eligible disbursements to the company.
On the OCJIP violent-crimes grant, a staff speaker explained the state grant carries no local match and arrives "in one lump sum." "We put it in an interest-bearing account, we pay for the projects as we go, the interest that we receive we can also use for projects," said Unidentified Speaker 7. Council members asked how long funds could remain in that account; staff said there is a three-year limit on expending the funds.
Council discussed projected interest earnings and liquidity. One council member asked about prevailing interest rates; staff said daily rates were "hovering around 2%" and the local government investment pool yield was about "4.1%" (Unidentified Speaker 5). Council also clarified that the police upfitting allocation pays for equipment already installed on vehicles and that reimbursement from a future bond issue is expected when those bond funds become available.
Each of the motions on the agenda passed on voice or roll-call votes recorded as 6–0. The council did not record dissenting votes on any of these items during the meeting. Next procedural steps include standard accounting entries to place the state grant funds into the city’s LGIP account and monitoring of project benchmarks tied to the pass-through payments.