Flaggs: Bankruptcy is not an option for Vicksburg

Vicksburg Mayor George Flaggs Jr. sat down with David Day of the Vicksburg Daily News Friday for a wide-ranging interview.

Among the subjects they spoke about is reopening the economy during the COVID-19 crisis. Of all the businesses and places that have yet to open, Flaggs mentioned that he was most reluctant to open the city’s senior center.

“These are your most vulnerable populations, and why should we put vulnerable populations in that close proximity?” he asked.

When the city reopens the center, Flaggs said he will mandate that temperatures be checked at the door.

The city’s budget dominated the interview. Flaggs has been advocating to everyone who will listen that the state government should allocate relief funds to municipalities to offset revenue losses. The $1.25 billion in federal relief funds allocated to Mississippi do not allow money to go to municipalities for revenue losses; however, the state has a rainy-day fund and other reserve accounts that could be used for that purpose, he said. Those accounts hold about $1.3 billion according to a report from the Legislative Budget Committee.

For Vicksburg, the drop in revenue because of loss of sales taxes in tourism could amount to as much as $3.5 million by the end of the fiscal year on Sept. 30. The mayor said his drop-dead deadline on getting relief is June 15, and while the relief could come through, he wants to be prepared if it doesn’t.

“If we don’t have the revenue made up in some kind of way … we’re going to have to do some drastic cuts, and it’s going to be devastating,” he said.

Among the cuts he is looking at are to city employees, always one of the largest expenses. Flaggs mentioned furloughs as an option as well as layoffs and terminations. He is also looking at moving people around to eliminate positions that are not necessary, moves he can make because of prior cross-training efforts.

“I believe we’re going to have to make some minimal reductions in order to save the city,” he said.

Raises are off the table for the moment, but salary reductions may be an option, including for himself and the aldermen. Flaggs said he would be the first to get a reduction in salary if the city decided to go that way.

“We’re not going to enhance your salary. We’re going to save your job,” he said.

Flaggs mentioned that Chapter 9 reorganization bankruptcy could be an option for some cities that don’t expect to regain their revenue streams any time soon, but not for Vicksburg, and he indicated his comments to The Clarion Ledger on the subject have been taken out of context.

“I believe there are a lot of other options” for Vicksburg, he said, adding, “I promise you, you’d have to put a gun to my head before I use it.”

Flaggs also said one of the city’s goals now is to get people back to spending money locally as businesses reopen.

“Let’s help each other,” he said, instead of spending money online or in other cities.

The mayor said he would put Vicksburg’s process of closing down and reopening up against any other city in Mississippi, and he believes about 98% of the people in Vicksburg support his decisions.

Watch the entire interview on Facebook.