by Mike Sharkey
Staff Writer
With millions in outstanding stormwater and solid waste fees — and no real feasible, economical means to collect those fees — the mayor’s office and three City Council members in October sponsored legislation that would see those fees included in ad valorem property tax bills starting in November 2010. Monday, that legislation moved one step closer to reality when the Council Finance Committee unanimously approved the bill.
According to Sherry Hall of the mayor’s office, the current outstanding fees may be collected one of two ways, both of which she called the “most cost-effective manner.” Hall said a lien could be placed on large property owners with large outstanding bills while a collection agency could be used to collect unpaid fees from smaller property owners.
“Moving forward, the total amount will be on the property tax bill,” she said, provided the bill passes Council Tuesday night.
The bill is cosponsored by Council Vice President Jack Webb, Finance Chair Stephen Joost and Council member John Crescimbeni. To date, the City has collected about 70 percent of the revenue expected as opposed to the revenue received. Some entities — such as the Duval County School System — are exempt. But, in real dollars, the City has collected $33.5 million since the fees were passed in the 2007-08 budget and billing began the following spring. According to Marcy Cook of the Public Works Department, there is approximately $19.3 million in outstanding fees, a figure that includes late fees.
According to the background information on the legislation, the City’s Central Operations Department has determined that it currently costs about $737,000 a year to assess the stormwater and solid waste fees. Under the new law, which is permissible under state law, the fees would be line items on the property tax bills that go out every year in November.
Hall said there is an option for property owners to pay their tax bill — and thus the fees — on a quarterly basis provided the property taxes are at least $100.
“Are the fees something we put a lien on?” asked Finance member Ray Holt.
Hall said the City can put a lien on the property. However, she says that lien is “nonforeclosable.”
The full Council could vote on the bill Tuesday. If passed, the fees will be added to property tax bills next year and issued through the Tax Collector’s Office.
The Finance Committee got its first report on the status of the Northwest Economic Development Trust Fund.
The fund was created in 1986 under former Mayor Jake Godbold through a tax revenue bond, moved under the purview of the Jacksonville Economic Development Commission and eventually into the City’s Housing and Neighborhoods Department two years ago. It was designed to kick-start small business development and expansion in the area of Jacksonville north of I-10 and west of I-95. It expanded to include areas such as Springfield and East Jacksonville.
According to James Richardson of the Housing Department, the fund currently has $6.7 million in it and, over the years, has helped generate and retain thousands of job.
“It has created 1,900 new jobs and 1,500 jobs have been maintained,” he said. “There has been more than $118 million in private capital invested.”
Richardson said the current economy has adversely affected the businesses the fund was designed to help. Under the current provisions, a business owner is required to put up at least 20 percent of their own capital, but not more than 25 percent. He said even with that investment, banks are hesitant to loan money.
Joost said he would consider raising the maximum threshold in an effort to encourage banks to loan money to the small businesses eligible for the funding.
“If they would put more money at risk, I’d be willing to put more money at risk,” said Joost.
356-2466