from staff
The City Council Auditor’s report for the fiscal year 2005-06 is out and the overall numbers look good for the City of Jacksonville.
According to the report, the City ended the year with almost $15 million favorable budget variance, which is a big improvement from the projected $5.5 million deficit that was predicted in the mid-year quarterly summary report. The report credits the over $20 million swing to two major factors: an additional $1.7 million in revenue — mostly from property taxes — and $13.1 million worth of reductions in expenditures.
“Generally speaking, everybody ended up where we expected to be,” said Council Auditor Kirk Sherman. He said departments and agencies were told to tighten their belts based on the mid-year numbers. “We were fortunate in that we had the money to spend. Fifteen million bucks is a lot of money, but it’s only about a percent-and-a-half of the total budget.”
The report is required by City ordinance and also includes several City departments and independent agencies such as JTA, the Jacksonville Port Authority and the Jacksonville Aviation Authority. Other report findings include:
• The Clerk of the Court experienced a positive revenue variance of $2.7 million due to increased collections from recording fees, marriage licenses and documentary stamps. All of those fees came in higher than projected.
• The Jacksonville Children’s Commission finished the year $1.5 million higher than expected due to savings of $1 million within the grants and aids expenditure line and almost $300,000 saved from staff reductions.
• Fleet Management contributed almost $5.6 million less than budgeted due to shortfalls on earnings from investments and rising fuel costs. Through some expenditure reductions, this shortfall was reduced to a little over $3.5 million.
• SMG experienced a budget surplus of $194,072 from its normal operating expenses due to increased marketing revenues. Additional surpluses of $162,808 came from parking, the Equestrian Center and Cecil Recreation Center. Overall, the total subsidy to SMG before possible audit adjustments was a little over $9.6 million, a savings of $303,108 based on a budgeted subsidy of over $9.9 million.
• The Jacksonville Port Authority ended the year about $3 million over budget due mainly to excessive dredging expenditures. Those expenditures were due to costly change orders that may or may not have been covered within various dredging contracts. Port officials have done an internal audit and installed a new system designed to prevent these cost overruns in the future.
• JEA, which oversees Jacksonville’s electric and sewer systems, ended the fiscal year with operating revenues of over $20.7 million: That’s a $24 million shortfall from the $44.9 million budgeted revenue. According to the Auditor’s report, the shortfall may mean JEA will have to issue additional debt.
• The Jacksonville Transportation Authority has asked to submit an amended budget. However, JTA did exceed its operating budget of $13.1 million by $1.6 million.
• The Jacksonville Aviation Authority reported no budgetary stress, according to the report.