A.G. Gancarski
The Jacksonville City Council Finance Committee Budget Hearing Day One commenced with the administration overview, then a bracing 165-minute romp through capital improvement projects with Council Auditor Kirk Sherman. As the old song goes, “Let’s get this party started right; let’s get this party started quickly.”
Overall, it was a very smooth session, with minor alterations to the budget. Red-light cameras, surprisingly, occasioned discussion. Shands was red hot also, and was the biggest talker of Thursday morning. Play by play below.
9:05 a.m.: The day begins with prop comedy. Chairman Bill Gulliford has a big bottle of Advil and a dollarweed plant in front of him.
9:07: Mousa leads off. “My remarks will be pretty brief, and I will not get into the weeds.” Promises that “senior, knowledgeable staff” will be there to field questions on Mayor Lenny Curry‘s proposed budget.
9:11: Chief Financial Officer Mike Weinstein speaks. “We’re not here to defend what we’ve given you; we’re here to help you improve it.” Urges a holistic, not siloed, perspective on the budget from council. References the IT issues, which have been a pain point throughout city government: 308 projects, with a backlog a couple of years long.
9:15: Council Auditor Kirk Sherman up now. Discusses the various pieces of budget legislation: millage levy ordinances, and the budget change for the property appraiser office, budget timeline overview, and so on.
9:25: Sherman talks ad valorem taxes. The tax base is still lower than it was in 2007, when it was ~$60 billion. Now it’s $52.5 billion. This explains the “austere” budgets prettty well. Ad Valorem revenue is up $27.446 million, or 5.17 percent. The net increase is ~$535 million.
9:28: The median assessed value of Duval homes is up 2.65 percent. The net property tax bill: up 2.98 percent.
9:32: The Budget Overview. The Jacksonville Aviation Authority with significant upticks in capital and operations because of improvements at the airport. No contribution from the city. The Port Authority will get $5.2 million, from the city. JTA gets $111 million,, most of it via gas tax and sales tax. The Mayport Ferry line item of $900,000 is in the budget; Sherman says it’s subject to change. JEA gives $114 million, to the city, but as Sherman reminds us, the agreement with them will have to be renegotiated by next year.
9:39: Shands gets its $26 million, and the city’s net contribution is just north of $29 million, to independent agencies. The gross budget for all independent agencies: ~$4.7 billion.
9:40: On to summary of departmental budgets. The total general fund budget is up, all told, just shy of $35 million,. The property appraiser budget, up half a million dollars, is subject to change. $50.7 million, goes to emergency contingency, satisfying the 5 to 7 percent threshold.
9:45: A “huge jump” in planning, economic development, and concurrency management, notes Sherman. Increase in transportation budget is not a moment too soon.
9:48: Councilman Hazouri wants “tracking” for “sales tax for tolls” and wants to know what’s going on with that.
9:49: Back to Council Auditor Sherman. Enterprise funds are, he says, run as “businesses,” such as public parking, motor vehicle inspection, solid waste disposal, stormwater, and various arenas and stadiums. The Equestrian Center’s budget is “challenged”; this is a perpetual loss leader.
9:52: Internal services budget; Information Technologies budget is down, as CIP money went in during the previous year. Fleet Management also down. The internal loan pool is up, and the overall internal serviced budget is up $12 million, to $409 million,. General government funds up to $2.12 billion from just under $2 billion in the previous year.
9:56: 74 more city employees than in the previous year. Vast majority (65) are police increases. Six more in building inspection. The Inspector General office, with four employees, is new. 15 more officers will be added via the COPS grant we reported on in July.
10 a.m.: Onward to personnel expenses. In total, a 1.86 percent increase year over year; the main driver, the sheriff’s office and fire and rescue increases. Part time salaries down, as the Supervisor of Elections office has two elections this fiscal year, down from three last year.
10:09: The city’s pension contribution rates for two of the three city plans are up over last year’s percentages: Corrections and Police and Fire.
10:13: The schedule of revenue. That and salary lapses will have more details as we get to the specific departments. The $25.6 million, uptick in ad valorem taxes is the big news.
10:19: A discussion of the communications tax. Projection is that less will be collected, continuing the trend. Council is going off the state estimate, which wasn’t available when the mayor’s budget was available, and the state estimate is historically optimistic.
10:27: A few recommendations from the Council Auditor Office. Included, the aforementioned decrease in communications tax revenue, a proposed $30,000 transfer from the drug abuse trust fund, an elimination of the $400,000 transfer from the red-light camera revenue fund. The latter brings John Crescimbeni to observe that maybe the Sheriff plans to add more red light cameras; Sheriff Mike Williams: “we have no plans to increase the red-light camera program” and he expects revenue to go down based on drivers getting hep to the cameras.
10:33: Two more years on that damned RedFlex camera contract. 40 cameras currently, says Williams. That level is expected to stay stable. “We’re not going to expand the program to 50 cameras,” the sheriff continues.
10:38: Weinstein and Comptroller Kevin Stork having sideline discussion as Finance hashes out this red-light camera issue. Red light camera revenue projection chopped to $150K.
10:41: A recommendation of cutting Franchise Fees – Electric by $700,000 to account for a fuel credit approved by the JEA Board of Directors after the budget was submitted. Motion carries.
10:46: A positive! Recommended increase of $200,000 for homestead liens. And another $127,000 from the sales tax. Motions on both carry.
10:52: A number of council members have sought out the OGC and Ethics regarding potential conflicts, says General Counsel Margaret Sidman. This will come up later on in more specific detail.
10:54: Departmental expenses. Mayor’s office budget up almost 20 percent. Public Health down almost 47 percent. Finance Department with a 17 percent uptick also.
10:56: Non-departmental expenditures. Economic development grants up 25 percent, which is contingent on goals reached by the companies. Recommendation to cut Juvenile Justice by $1.386 million, based on a lower state assessment; motion approved. This budget still looks balanced.
11:02: $832,000 budgeted for maintaining vacant buildings.
11:05: $200,000 for JaxChamber affiliation is going to be moved out of budget and into different legislation. Our U.S. Conference of Mayors membership is up almost 10 percent YOY, to over $26,000 now. Saving $2,000, as Jax no longer is part of U.S. Conference of Black Mayors.
11:10: Shands lobbying for a “one-time cash infusion” for capital improvement. Gulliford isn’t biting: why not sell the buildings and lease them, and let owner do CIP.
11:14: Still on Shands. Money is needed to “show Jacksonville will continue to support us.” They want $30.2 million, up from the $26.2 million.
11:16: Mayor Lenny Curry can be seen in the Council bullpen. Sam Mousa has re-materialized.
11:17: Crescimbeni leading the questions. Shands rep continues, arguing they are “woefully underfunded.” Gulliford discussing the Miami-Dade boost from the dedicated local taxation.
11:19: Mousa: “The mayor is fully committed to UF Health” but “desires the opportunity” to conduct a workshop with stakeholders to really resolve the funding issue. Concerns of “throwing good money after bad” with the added $4 million. Not sure what would be done with this money. Spotlights the real issue as the payer mix problem. Administration does not support the extra allocation; “the community needs to get together” to resolve the cord funding issue, and a “strategic plan needs to be put in place” before added appropriation.
11:22: Strategic planning session scheduled for first week in September for Shands and other issues by MLC Admin. Other things being discussed that could create “tremendous benefit to the city,” resolving “pension” and “UF Health”, and “you all know what I’m talking about,” Mousa says to council.
11:28: Hazouri just gave what effectively is a campaign speech for the continued viability of UF Health.
11:29: Joyce Morgan: “What happens if all the work … breaks down and we don’t have” contingency moneys to deal with UF Health issues?
11:30: Gulliford suggests a notice meeting; “we’d probably have a good turnout.” Indeed.
11:30: Mousa: Contingency is an “unwise” commitment until we have a complete understanding of priorities. The meeting with the senior leadership team and community leaders is to set up a framework. Alternative revenue sources, including going to the legislature and trying to change the law, are on the table. Tallahassee has a “responsibility” to help with alternative funding sources. No firm commitments/solutions at this point. Mousa doesn’t want a firm commitment this early in the process, “wouldn’t recommend it at this stage.”
11:32: Very limited money comes in from surrounding counties; not enough to offset their effect on Shands’ services. Services and infrastructural needs are both underfunded. Gulliford wants a contract with regional counties to “bump up the revenue.”
11:34: Lori Boyer is not recommending a contingency be set up at this time. Crescimbeni notes that a contingency fund would present a hard encumbrance of funds; they would be “locked down.”
11:38: Payer mix is what it is because of “historical reasons,” because they get money from the city contract, and because of “location,” says Penny Thompson from Shands.
11:41: The $928,000 Special Council Contingency for Pension from FY 14-15 is not on the current budget. $2.3 million for collective bargaining is new in this budget, however.
11:49: The administration did not budget money for the Neptune Beach solid waste disposal charge. Auditor recommends $201,000 added. For now, the administration budget stands, as Gulliford is trying to “hammer something out.”
11:53: General Fund Transfers. 77 percent jump in allocations to the Baseball Grounds. The administration wants to drop its $200,000.
12:04: A lengthy discussion of merit pay increases.
12:09: On to a debt service recap. About a 1 percent decrease YOY in debt service requirements.
12:12: A recommendation of a reduction of an outlay for “specialized equipment” from the banking fund, from $7 million to $1.728 million. Motion carries.
12:16: $100,000 will be allocated for cemetery rehab assessment. So goth.
Adjourned until 1:15 p.m.
