Highlights from the 57th Annual State of Metro Address
Social distancing has ushered in a period of unprecedented adjustments. Long-established customs have been modified to comply with social distancing practices and the 57th Annual State of Metro Address presented no exemption. Per Section 1.08 of the Metro Government Charter holds that “… the mayor shall personally address the metropolitan council on the state of the Metropolitan Government of Nashville and Davidson County…at a specially called meeting of the council that shall be open to the public.” However, due to the Safer At Home order, Mayor John Cooper delivered his first State of Metro address in a nearly empty Council Chamber at the Historic Metro Courthouse, as he was joined only by a few Metro staffers, Vice Mayor Jim Shulman, President Pro Tem Jeff Syracuse, and Rev. Lisa Hammonds, who delivered the Invocation. Like the general public, Metro Council Members watched the address as it was livestreamed.
Prior to his assessment of Metro’s finances, Mayor Cooper first highlighted the resilience of Nashville and surrounding counties following the March 3 category EF-tornado and uplifted the efforts of first responders, city leaders, volunteers and community members alike. To date, more than 21,000 donors have contributed $9.9 million to the Community Foundation of Middle Tennessee. Second, Mayor Cooper reiterated the importance of social-distancing in response to the COVID-19 pandemic. To strengthen efforts to “flatten the curve”, the aforementioned Safer At Home order has been extended through April 24. Mayor Cooper took time to thank health care providers and other essential service employees for their work and gave his charge: “Make no mistake: Just as the Greatest Generation met their challenges; we will meet ours.”
Finally, Mayor Cooper addressed the financial hardships of Metro. He first noted that the risks of natural disasters and global pandemics are the purpose of government rainy day funds. Last fall, the Nashville Area Chamber of Commerce and Greater Nashville REALTORS® commissioned an independent study on Metro’s finances. The assessment was completed by the Elliott Davis consultant group and findings were reported in February. Among findings, it was determined that at the end of FY18, Nashville had less than one month of general fund expenditures in unrestricted fund balance. Mayor Cooper later discussed the city’s lack of cash balances, increasing debt service payments and the reliance on non-recurring revenues to match recurring costs. The study concluded that since FY15, Nashville’s liabilities has exceeded its assets. Mayor Cooper reviewed the expected loss revenue following the tornado and the COVID-19 response: Nashville is expected to lose more than $200-$300 million in revenues from sales and activities taxes for the last quarter of FY20 and officials are expecting a similar trend for the first quarter of FY21. Notable fiscal solutions mentioned include hiring and promotion and pay freezes, a travel hold and a delay of all non-essential capital spending. In addition, it was announced that the Music City Center has agreed to contribute an additional $35 million, on top of its $12.6 million in payment in-lieu of taxes (PILOT). Most notable, however, was the proposal to “sharply increase the property tax rate from its current historically low level”. While a final amount has not been determined, it is considered a necessary action to stabilize Nashville’s fiscal health.
Mayor Cooper will submit his budget to Metro Council on April 28 and Council must approve a budget by June 30.
To watch Mayor Cooper’s State of the Metro Address, click here. To revisit our blog for more information on the Metro finance study, click here.