by Mike Sharkey
Staff Writer
The biggest news perhaps coming out of Monday’s City Council Finance Committee was the deferment of two bills that seemed destined for approval and movement on to the full Council for final passage.
One bill deals with how the Jacksonville Board of Library Trustees oversees and manages the budget of the Conference Center in the Main Library. Several weeks ago during a meeting of the Ad Hoc Budget Committee – which consists of Council members Stephen Joost, Mia Jones and Jack Webb and was created to work hand-in-hand with the Council Auditors Office to determine how much, if any, of the 2 percent of the City’s budget placed under the line would be reappropriated – the Conference Center became a topic of discussion. According to the Council Auditor, the Conference Center was funded through primarily private donations and user fees; however its costs were coming out of the Library’s general fund. The Council Auditor suggested that the 2 percent – or $111,672 – of the Library’s general fund budget be left below the line. Webb has sponsored legislation that would reappropriate those funds.
Rogers Towers attorney and Library Board Chair Bill Scheu explained the intent of the administrative bill was four-fold. One of the major components would allow the Conference Center and its funding mechanisms to become self-appropriating. Scheu argued the Conference Center generates revenue for the Library (despite the fact Council and the mayor’s office use it free of charge). However, assistant Council Auditor Janice Billy explained the costs associated with the Conference Center don’t come out of the Trust Fund, but rather the general fund.
“We are in competition with other facilities in the city,” said Scheu, adding that money that goes into the Trust Fund allows the Library to act quickly when it’s needed for such things as rentals, security and other items related to hosting an event. “It keeps us nimble.”
Scheu said there is a philosophical difference between the Library Board and the Council Auditor in how the Conference Center should be managed from a budgetary standpoint. He also pointed out the center generates about $150,000 annually.
Billy contends the Library Board has been non-compliant to the City’s Municipal Code since September of 2006. According to Billy, because of the nature of the Trust Fund, its budget should be presented to the Finance Committee every year for analysis and approval.
“Since September of 2006, there have never been any expenses to the Trust,” said Billy. “The general fund has been absorbing all of the expenses.”
Scheu took exception to Billy’s perceived inference that there was intentional wrongdoing.
“I’m insulted by that,” he said. “That is, in essence, accusing the Library Board of a lack of integrity.”
Finance Chair Art Shad suggested he, the Council Auditor and Scheu meet in the near future to hash out the differences and reach a compromise on the legislation.
“This is not what the ad hoc committee was assigned to do,” said Shad. “They had a certain job to do and this falls outside of that.”
The Committee also deferred legislation that would have appropriated $184,840 to Jacksonville Area Legal Aid for the purposes of dealing with the escalating foreclosure problem in Jacksonville. At the heart of the deferment was the fact no one could explain exactly how JALA intends to use the funds.
“It seems we are doing this before we have any information. We are being asked to appropriate money without knowing where it’s going,” said Committee member Denise Lee. “Is this setting a precedent? There are a lot of unanswered questions and I am not comfortable supporting this bill. It’s too vague and we are setting ourselves up. We are not bankers.”
According to the legislation, which is sponsored by Council members Glorious Johnson, Webb and Warren Jones, $59,840 will come from the “Special Council Operating Contingency” while another $125,000 will come from the “Special Council Lapse Contingency.” It’s the lapse funding – or the 2 percent put below the line – that bothered Committee member Art Graham.
“We never talked about what we were going to do with the 2 percent,” he said. “It sounds like we are just moving it around. I am surprised Mr. Webb has these two bills before us and he’s not here to speak about them.”
Committee Vice-Chair Kevin Hyde said he is meeting with several area bankers Friday to discuss what can be done to help JALA legally handle the foreclosure cases that are coming in faster than they can process them. Graham asked that a representative from JALA attend the next Finance meeting in an effort to address questions and concerns.
Several items did pass Monday:
• Legislation that appropriates $10,000 from the Public Works Art in Public Places Account for artwork at the Tillie Fowler Memorial.
• A bill that OKs an extension of the mutual aid agreement between the City and NAS and Mayport for emergency response assistance.
• A housing revenue bond for $33 million issued by the Jacksonville Housing Authority to develop Bennett Creek Apartments.
• An amendment to the Police & Fire Pension fund that will allow the Jacksonville Sheriff’s Office to hire five former employees who are currently receiving their pension without having them re-enroll in the Social Security plan. “It allows us to hire them at a lower rate and save $83,000 a year,” said Sheriff John Rutherford.