The Jacksonville City Council Finance Committee began looking through Mayor Lenny Curry’s $131 million Capital Improvement Program on Wednesday.
The largest CIP budget in a decade includes money for the removal of vacant Downtown buildings and the addition of new sidewalks, roads, parks and senior centers.
It comprises more than 100 ongoing and one-time projects that span five years.
The mayor proposes the city authorize up to $122 million in new debt to fund the projects with grants and cash making up the difference.
Concerns about adding to the city’s existing $2.2 billion debt were dismissed at Tuesday night’s council meeting and again at Wednesday’s Finance Committee meeting.
“The reality is, in the last few years, we have substantially paid down debt,” council member Lori Boyer said.
“We are in compliance and in the range in every ratio, where we were not previously,” she said referring to targets the Finance Department wants to meet concerning debt.
“These projects need to get done,” said council member Matt Schellenberg. We’ve waited a long time, got through the pension crisis, and now we have to address our priorities.”
City Chief Administrative Officer Sam Mousa said that new debt is a two-step process and not all of the borrowing would happen in one year.
“First comes the authority to create these projects, and then the authority to borrow the money,” Mousa told the Finance Committee. “Both steps have to be approved by council.”
Council also questioned the proposed increase in city reserves.
The mayor’s office proposes to set aside $60 million for a pension reserve fund. Another $7 million is being placed in a reserve to address issues caused by Hurricane Matthew.
The administration also asks to increase emergency reserves by $10 million with cash coming from the general fund.
Boyer questioned the idea last week, expressing concern that the city was putting money in the reserve “just for the sake of saving money.”
She said she’s since met with the administration to work out a compromise.
Boyer offered an amendment Wednesday that divides the $10 million to pay for projects spanning multiple years in the CIP with cash instead of debt.
She listed 24 projects totaling $4.55 million, already in the CIP, that could be paid with cash this year.
“This allows us to check off some of these projects in this budget, and gives us more flexibility in future years,” Boyer said.
Road resurfacing, improvements to community centers, and renovations at other city-owned assets are included in the list.
“This allows us to still increase our emergency reserves to satisfy the ratings agencies while paying cash for some of these capital projects, which is our goal,” she said.
Her amendment received unanimous support.
The Finance Committee addressed another high-profile project, $8.4 million to enhance a community field and to renovate dormitories at Edward Waters College.
Council removed $4.4 million set aside to renovate the dorms from the CIP project list because it is not considered a city asset.
Mousa told the committee the money still will be allocated through the capital project sub-fund.
Council member Danny Becton voiced concern over spending taxpayer money on a private school’s needs, an opinion shared by others since Curry introduced the request.
“This is not what our local government should be doing,” Becton said.
He said the inclusion of the project may ultimately affect his vote when budget legislation comes before the full council, calling it a “game-changer.”
“Our passion is to make Edward Waters College a lighthouse,” Mousa said in response.
Committee chair Garrett Dennis, who represents District 9, proposed putting the money toward funding a campus police force instead. The college is in his district.
The committee moved forward with the dorm funding, but the issue is likely to come up for debate when council votes on the proposed budget in September.
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