Council Overturns Mayor's Veto of Transfer of $1.6 Million of Siemens Fund | Jackson Free Press | Jackson, MS

Council Overturns Mayor's Veto of Transfer of $1.6 Million of Siemens Fund

Ward 4 councilman Stamps successfully led the charge to overturn the mayor’s veto. Photo courtesy De’Keither Stamps.

Ward 4 councilman Stamps successfully led the charge to overturn the mayor’s veto. Photo courtesy De’Keither Stamps.

The Jackson City Council recently overturned Mayor Chokwe A. Lumumba's veto of its resolution to take $1.6 million from the $89.8 million Siemens settlement with the City and separating it to invest in the development of Highway 18 corridor.

The council had, on May 12, at the prompting of Ward 4 Councilman De'Keither Stamps voted for the resolution, against the protestation of the executive branch. Lumumba later vetoed the resolution, saying it was ill-timed, ill-advised and a fiscally irresponsible move.

However, the council summoned the two-third votes required to neutralize the veto, voting 4-2 vote on June 9 to reverse Lumumba’s decision . Council President Virgi Lindsay of Ward 7 and Ward 5 Councilman Charles H. Tillman voted against the reversal of the veto with Ward 3 Councilman Kenneth I. Stokes absent.

The discussion sometimes became heated with Lindsay regularly interjecting to maintain decorum, lasting over thirty minutes. The mayor painted a gloomy picture of what will happen if the council succeeded in overturning his veto. It, however, held its ground despite appeals to the contrary.

The initial resolution passed May 12 on a 4-to-3 vote, with Ward 2 Councilman Melvin V. Priester Jr.,Tillman and Lindsay voting against it. But in a twist, at the June 9 meeting, Priester's vote was the decider in overturning the veto. He switched from being against the resolution to being for it.

While announcing his decision, Priester said the information available convinced him that moving $1.6 million from Siemens funds to a separate account to attend to the Highway 18 corridor would not jeopardize the City's finances.

"I voted against this item when originally brought to the floor," he said before casting the swing vote. "But at the moment, a path is made where we can pull both goals off, of investing in this particular area and repairing the water-billing system within the City’s financial constraints."

The resolution was to "revise the Fiscal year 2019-2020 budget" to transfer $1.6 million "from Account Number 110-5899, the Applied Fund Balance, to be placed in Fund 365, the Grand Gulf Emergency Planning Improvement Fund."

"This is one issue that has been a point of contention over the years," Stamps said. "The monies received from the Grand Gulf fund have been in place for 35 years. For roughly 30 of those years, this council has just put the money into the general fund."

He said the fund should be legally separated and focused on the development of the Highway 18 corridor, designated as one of the evacuation routes for the Grand Gulf Nuclear Station, the source of the funds. Stamps emphasized that the motion does not propose to spend “a dime,” which would require coming back to the council for approval.

The councilman expressed sadness at divestment from the Highway 18 corridor over the years and wants to revitalize the area for revenue generation as it develops through beautification, lighting, strategic investments and partnerships, housing inside and outside the city to grow the economy and the tax base.

"We've been going through several possibilities for the future, and this corridor (highway 18) is a vital corridor for the city of Jackson and for our growth," he said. "If we look at the map of the city, one of the prime opportunities for growth is on this corridor. We could grow if we make some investments in that area."

Lumumba, however, disputed the legal basis of the resolution and said his discussions with other mayors contradict it. He said they all said they put it into the general funds since the revenue is in lieu of taxes, as nuclear stations are not taxed.

He expressed fear that such a move will take the budget, backed by the Siemens settlement fund, out of balance, and will severely damage the City's ability to fix the water and sewer system that has hampered citizens. He added that he is open to further discussions on realising the vision of developing the Highway 18 corridor.

Ward 6 Councilman Aaron Banks, who voted to override the mayor's veto, said he did so realizing the need to invest in the city, saying that is what the people he represents want.

"This is a responsible investment. I feel, as a city, we should be doing three things, managing, maintaining, and then also investing; $1.6 million is a drop of the bucket to what this needs," he said.

Email story tips to city/county reporter Kayode Crown at [email protected]. Follow him on Twitter at @kayodecrown.

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