With the budget in the books, City Council now turns its attention to the next massive issue facing Jacksonville.
An all-too-familiar topic that pops up in most conversations when leaders talk about the future of the city. An issue that’s been wrestled with for years.
Pension contributions.
“Until we address that stubborn problem, our collective ability to make necessary investments in Jacksonville’s future will be limited,” Mayor Alvin Brown wrote in a letter to council President Clay Yarborough.
It was part of Brown’s message informing Yarborough he had signed the budget council approved. The one that includes a $153 million toward the public safety plan.
Brown and Police and Fire Pension Fund leadership hammered out a reform deal over the summer, about a year after council almost immediately rejected a first pact without discussion. It must be approved by council.
Yarborough said discussion over the latest agreement is a priority. He said he plans to convene a special council meeting about the issue in mid-October. By including the entire council, he said, it will allow members not on committees like Finance and Rules to have questions answered in one setting.
“That allows all members to participate … and everyone can be on the same page,” Yarborough said.
He said for the meeting he hopes to see the proposal presented by the mayor and have council members’ questions answers in a reasonable time.
But, he said he is not expecting council members to vote on the deal after that one meeting.
“I’m not trying to shove it through … but we need to move it along at a good pace,” he said.
One of the key points of the deal still remains a “burning question” for Yarborough: What’s the long-term funding source, particularly for the additional $40 million payment Brown has proposed paying above regular annual contributions.
That overpayment would help the plan reach acceptable unfunded liability levels earlier, allowing taxpayer dollars to be used on other city services.
Yarborough said he and other council members have concern over Brown’s plan of having JEA contribute an additional $40 million for that payment. In return, the public utility could spin its employees off into their own retirement plans separate from the city.
Yarborough said JEA leadership has said rates might increase under that scenario. He believes council members aren’t as receptive to the idea as Brown has been.
The utility is still doing its due diligence on the topic and Yarborough said he hopes a representative will be able to address the council when it meets on the topic.
As for timing, Yarborough said it “would be great” to have it done before council members break for the holidays in mid-December. But again, he doesn’t want to rush the issue, given its importance.
“I want us to make an informed decision,” Yarborough said. “I know he (Brown) would like to get it done … but council has to responsibly look at what’s being presented.”
And if they don’t like what they see, Yarborough said council members can feel free to offer something different.
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