by Bradley Parsons
Staff Writer
The City’s chief operating officer will step into the void left by departing interim Chief Financial Officer Walt Bussells when he retires Aug. 27.
Already charged with oversight of the City’s $2.5 billion Better Jacksonville Plan, Dan Kleman will become Mayor John Peyton’s point man on the City’s budget and investments, Peyton said in an interview last week.
In his year at City Hall, Bussells helped revamp the City’s investment strategies and vehicle replacement program. Since Kleman joined the mayor’s staff in March, Bussells has worked with him and members of the City’s Finance Department, and Peyton said the City’s finances shouldn’t skip a beat. Peyton said Kleman played an integral role in putting together the budget for the next fiscal year. That budget will lower the City’s property tax rate for the 10th consecutive year.
The new investment strategies ushered in by Bussells helped Peyton close a $10 million gap in his inaugural budget. Bussells matched the City’s borrowing to investments of equal amount and duration. The “matched book” allowed the City to take advantage of tax-exempt government borrowing. The City began earning more on its investments than it paid to borrow.
“Walt helped start up a lot of initiatives that have paid great returns for the City,” said Peyton. “He brought a professionalism to the department that will continue when he leaves. The staff we have in place will be more than capable to manage the City’s finances.”
Kleman brought an extensive background in public finance with him to Jacksonville. During a 20-year tenure as Tallahassee’s city manager, Kleman helped finance several public improvements that spurred private development in the state capitol’s urban core. In addition to a new city hall, the city financed parking garages and parks that attracted office and residential investors.
When he arrived, the date of Bussells’ departure was still uncertain and Peyton hadn’t announced a successor. At that time, Kleman said he would work with whomever Peyton hired, but said he was ready to step in if asked.
“I believe I have great strengths in the area of finance and administrative services,” he said in a March interview.
That assessment is shared by Bussells. Kleman’s name was the only one he mentioned when asked who might replace him at City Hall shortly after he announced his retirement. He said Kleman was respected in Tallahassee and on Wall Street as a professional and innovative handler of public finances.
Bussells said he would leave behind a three-year financial plan that will allow the City to continue to operate “without raising taxes.” Peyton said this year’s budget would continue a trend of shrinking property tax rates.
“This budget will include another rollback of the millage rate, that’s the rate people pay on their property taxes,” said Peyton. “We’re proud of that. I don’t know how many other cities can say they’ve reduced taxes for 10 consecutive years.”
Peyton said an era of strong growth, both economic and demographic, allowed the City to keep rates low. He said the City’s “tax-friendly policy” was one of its key competitive advantages in attracting business.