MASTER PLAN OF THE 1% SALES TAX

COMMISSION

MESSAGE FROM THE COMMISSION

On January 14, 2014, citizens throughout Jackson convincingly passed legislation
to approve a 1% increase in the sales tax charged on many purchases within the city,
with the money raised by this tax to be used exclusively for addressing in part the citys
infrastructure needs. This vote recognized the need for improving Jacksons
infrastructure largely resulting from a lack of maintenance over many decades.

The support expressed by the citizens vote was due at least in part to the
assurance that the money collected would be spent strictly on infrastructure and not
become part of the citys general budget to be spent on routine operating expenses.
This assurance was given to the voters by the legislatures requirement that an
Oversight Commission would be established with the responsibility to establish a Master
Plan for infrastructure improvements. Once the Master Plan was developed, the
commission was further charged with insuring that the tax funds were spent in
compliance with the Master Plan.

The Oversight Commission is composed of ten voting members four

representing the business community and appointed by the Greater Jackson Chamber
Partnership, three appointed by the Mayor with approval by the Jackson City Council,
and one each appointed by the Governor, Lt. Governor and the Speaker of the House of
Representatives.

In the fall of 2014 the members appointed to the Oversight Commission began
meeting with staff of the Citys public works department discussing the existing
condition of the citys roads, bridges, drainage structures, water, sewer and related
infrastructure along with the information or lack thereof of any existing plans or
detailed listing of the component parts of the infrastructure. Over the ensuing months
the commission has worked with the city to begin addressing some immediate needs
while this plan was being developed. The status of these early actions and approvals of
the commission are included in this plan as an attachment.

This Master Plan was developed following the requirements of the enabling
legislation. In developing this Master Plan, the commission has worked with the citys
department of public works to insure that the confidence expressed by the citizens
support of this tax upon themselves would result in the improvement of the overall
infrastructure of the city. We look forward to the coming years as this plan is
implemented and projects funded in full or in part with these tax dollars assist the
residents and guests of Jackson.

This plan has been considered and approved by the 1% Municipal Sales Tax
Commission of the City of Jackson, Mississippi this the 1st day of March, 2017.

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 Section 27-65-241 of the Mississippi Annotated Code lays out the process and
the requirements for use of the municipal sales tax. This Master Plan has been
developed in accordance with this statute and is intended to be used as a guide for the
investments to be made from the revenue received from this additional sales tax.

The authorizing legislation allows expenditures from the sales tax fund for
specific purposes, and none other. The Commission is charged with the oversight to
insure that the funds are used only for one or more of those purposes, which include:

The costs of road and street repair, reconstruction and resurfacing projects,
based on specific prioritizing
The costs of water, sewer and drainage projects
The repayment of bonds issued by the city (with the approval of the
commission) when the proceeds of the bonds are used for approved purposes
and projects
Professional services required for project implementation

In accordance with the legislation, these funds shall only be expended as follows:

1) Projects that were approved by the commission prior to the adoption of this
master plan shall be reviewed by the commission and either submitted to the city
for their approval and the obligation of the necessary required funding or in the
alternative, removed from the lists of approved projects until further
consideration by the commission is deemed appropriate.

2) No less often than annually the commission will review potential projects for
funding consideration in accordance with the priority considerations outlined in
this Master Plan. Once a list of specific projects has been approved by the
commission and submitted to the City Council for funding, amendments to the
list may be made throughout the year when needs arise that merit immediate
consideration and funding.

3) Opportunities for using the 1% sales tax revenue as matching dollars for other
program funds (federal, state, private, or otherwise) shall be considered with a
higher consideration when they fit within the other priority rankings established
herein. Also partnerships with the county will be encouraged where projects that
fitting the priorities of this plan can be found.

4) Until determined that a modification shall be appropriate, a minimum of 50% of

the funds received annually from the 1% sales taxes shall be expended on street
improvement and related underground utility projects. Selection of projects by
the commission for improvement shall be done based on traffic patterns,
economic impact of the area served, facilities served by the street improvement
project (schools, hospitals, etc.) and current condition of the street as found by
the Stantec report commissioned by the city in 2013. Priority will be given in
order to (1) Other Principal Arterial Streets, (2) Connector Streets, (3) Minor
Arterial Streets, and (4) Local Street.

5) Other infrastructure projects will be selected for funding by the commission

considering the best available reports relative to the current condition of the
infrastructure item. Bridges will be considered based on the MDOT sufficiency
ratings provided annually to the city, the traffic count of the bridge, economic

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 necessity of the route containing the bridge, and other issues similar to those
used in evaluating street improvement priorities. Drainage structures will be
prioritized by the information contained in the citys Capital Reinvestment in
Urban Drainage Infrastructure study conducted in 2013, the economic impact of
the failure of the structure (i.e. its affect on public buildings, business entities,
residences) and other available funding sources. Water projects will be
considered when deemed appropriate for this funding source as opposed to the
water/sewer enterprise funds available to the city. Sewer projects will receive
little priority at the present time due to the separate work being conducted by
the city relative to the EPA Consent Decree.

6) Funds derived from the 1% sales tax revenue shall be expended only upon the
approval of the commission as reflected in the commission minutes. In
accordance with the statute, funds will only be used on those items included in
the enabling legislation, and will not be used for experimental projects,
demonstration projects, mentoring programs, public relations efforts, or other
programs that are not approved in advance by the commission.

7) Any debt obligation that is entered into by the city where repayment of the debt
will require the use of funds derived from the 1% sales tax revenue shall be
approved in advance by the commission and any project intended to be funded
from the debt obligation must be approved by the commission in accordance
with the priorities established in this Master Plan.

8) Funds may be allocated annually to be used for urgent needs or emergency

issue projects as determined by the commission. Expenditures from such
allocations will meet the priorities established in this Master Plan.

9) The Commission may determine a need for a Construction Manager (CM) to serve
the commission in coordinating projects funded by the 1% sales tax revenue. If a
Construction Manager is engaged by the city utilizing these funds, the role of the
CM shall be determined by the commission and the CM will serve as a liaison
between the commission, the department of public works, and the city.

Beyond the development of this master plan the commission is charged with
providing oversight to the process to insure that all the funds collected due to this
additional sales tax are spent in accordance with the commissions actions and this
master plan. As part of its oversight the commission is aware of the intent expressed in
the passage of the legislation - the funds are not to be used to substitute for the citys
general fund expenditures but are to supplement previously established budgets.

The commissions oversight will include reviewing monthly the expenditures by

the city from the sales tax fund, obligations made from the fund in the form of
contracts, and tracking the expenditures by project. Approval of projects will be based
on estimated costs provided to the commission by the city department of public works;
any changes required for the award of a project after approval by the commission that
would result in an increase in the expenditure exceeding the approved amount by 10%
or more will be submitted to the commission for consideration and approval prior to the
contract being awarded by the city. In addition the commission will review the annual
audit that is prepared by an independent CPA for submission to the Mississippi
Legislature.

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 During the first quarter of each calendar year, the commission will meet to
consider amendments to this Master Plan with commission members being advised in
advance that the meeting will consider amendments. Further, this plan may be
modified or amended at any time by a majority vote of the commission at any meeting
wherein the commission members are provided notice at least seven days in advance of
a proposal for amendment.

Included as a part of this Master Plan in Attachment A are the projects approved
for funding by the commission and contained within the interim plans adopted while this
plan was being developed.