Assuming NFL owners approve the “Stadium of the Future” deal between the city of Jacksonville and the Jacksonville Jaguars, it will soon be time for the city to make good on its commitment to contribute $625 million for the project’s construction and $150 million to make the venue usable for two seasons while work is underway.
In addition, the city will provide $56 million for construction of riverfront parks and improvements to the stadium-adjacent flex field.
The city’s payment plan revolves around restoring the timing of a 30-year tax increase adopted in 2000 to mostly fund infrastructure projects.
As the stadium payments become due, here is a timeline to show how the plan is designed to work:
Sept. 5, 2000
Jacksonville voters approved the Better Jacksonville Plan half-cent sales tax to fund $2.25 billion in road, infrastructure and public facility improvements, environmental preservation and targeted economic development. The measure passed with 56.5% voter approval.
Over the next two-plus decades, the additional tax revenue funded dozens of road and drainage projects, $211 million for construction of the Duval County Courthouse and related projects for the Public Defender’s Office and State Attorney’s Office, construction of the Jacksonville Public Library’s Main Library in Downtown and other library branches, purchases of land for preservation and improvements to the VyStar Veterans Memorial Arena and 121 Financial Ballpark.
Jan. 4, 2016
Mayor Lenny Curry unveiled a plan for a new half-cent sales tax to fund the city’s unfunded pension liability.
It is designed to begin after the Better Jacksonville Plan tax ends, which is no later than 2030. The sales tax would pay down the city liability for the Police and Fire Pension Fund, Corrections Officers Pension Fund and General Employees Pension Plan.
The plan keeps the Duval County sales tax at 7% and avoids a property tax increase.
When Curry announced the plan, the city’s pension debt was about $2.7 billion.
Aug. 30, 2016
In a public referendum, the pension fund sales tax passed with 65.1% approval by Duval County voters.
April 21, 2017
Jacksonville City Council approved Curry’s pension reform plan, which includes ending pensions as a retirement benefit for newly hired city employees, including police officers and firefighters.
Instead of pensions, new city employees will be enrolled into 401(k)-style retirement accounts.
At the time, the city’s annual pension costs were at $290 million, but Curry’s plan brings down the expenditure by pushing a large portion of it to the future to be paid down with the pension fund tax.
April 22, 2022
The Curry administration informs the Better Jacksonville Plan Financial Administration and Project Administration committees that due to higher-than-projected revenue generated by the sales tax, the plan is on pace to be fully funded four years ahead of schedule.
The administration will put into motion a plan to sunset the Better Jacksonville Plan tax at the end of 2026 and start the pension tax in 2027, four years earlier than expected.
April 2024
The city received its annual reports for the Police and Fire Pension Fund, General Employees Pension Fund and Corrections Officers Retirement Plan.
The reports showed the city’s combined unfunded pension liability at $3.9 billion, up more than $1 billion from 2016. The total liability is $4.79 billion.
For the General Employees Pension Fund, the $1.7 billion liability is divided between the city, Jacksonville Transit Authority, Jacksonville Housing Authority and North Florida Transportation Planning Organization.
The city’s portion of that liability is about $800 million, or 46% of the total.
May 14, 2024
In unveiling the framework for the stadium deal and the plan for paying the city’s contribution, Mayor Donna Deegan’s administration announced a proposal that hinges on keeping the Better Jacksonville Plan tax in place through its original 2030 expiration date.
Under the administration’s plan, revenue from the final four years of the Better Jacksonville Plan tax (2027 through 2030) will be used to fund $600 million in capital projects that would otherwise be financed.
With those projects covered by the Better Jacksonville Plan tax revenue, the city will have financing to pay for most of its share of the stadium improvements.
June 5, 2024
Council auditors presented a report on the Deegan administration’s plan, estimating that not ending the Better Jacksonville Plan tax early will provide about $600 million in revenue over four years while also resulting in $25 million in net positive cash flow to the city per year.
The $25 million figure results from estimated savings of $40 million in debt service on the infrastructure projects that will be paid for through the tax versus financed, minus an annual savings of $15 million that would come from starting the sales tax for pension debt early.
Council member Joe Carlucci cautioned against considering the plan “debt neutral” since the Better Jacksonville Plan tax will not cover the city’s entire $775 million for stadium construction, deferred maintenance and capital improvements.
He asked how the city plans to cover the $175 million “gap,” and was later told it will come from the city’s 6% bed tax on hotel rooms and some short-term rentals.
The bed tax generates about $30 million a year, a third of which will go to the stadium under Deegan’s plan.
For several years, the city had divided a one-third portion of the bed tax revenue to maintain the stadium, VyStar Veterans Memorial Arena and 121 Financial Ballpark, but now the stadium will receive that entire portion, with the city shifting to financing maintenance of the arena and ballpark.
June 25, 2024
Council approved the stadium deal. The approved agreement includes $56 million in funding to develop riverfront parks and improve the flex field adjacent to the stadium.
Those projects will be part of the Capital Improvement Plan and will be financed.
Oct. 15-16, 2024
Dates of the NFL’s Fall League Meeting, where the approved agreement will need to draw a two-thirds majority vote among the league’s owners to take effect.
Jan. 1, 2031
Date when the pension fund sales tax takes effect.
The tax is projected to generate $175 million in its first year, which will cover only about one-third of the city’s annual obligation of $429 million for the pension funds. The independent agencies will provide $68 million between them.
Barring changes between now and then, the city would need to use general fund taxpayer dollars to make up the difference of $254 million to fund its share of contributions.
2046
Year when the Corrections Officers fund will be paid off under current projections.
2047
Year when the General Employees and Police and Fire funds will be paid off under current projections.