by Max Marbut
Staff Writer
Heather Patterson, chair of the Jacksonville Regional Chamber of Commerce Business Advocacy Local Issues Committee, opened Wednesday’s meeting with what, following the vote on the proposed ad valorem tax rate at the previous evening’s City Council meeting, would have to be considered the understatement of the week.
“We are certainly living in interesting times,” she said.
The meeting consisted of a panel discussion with Alan Mosley, the City’s chief administrative officer, joined by City Council Vice President Jack Webb and J.F. Bryan IV, who chaired the recent Jacksonville Community Council Inc. study “Our Money, Our City: Financing Jacksonville’s Future.”
Half an hour after the meeting at the Chamber was called to order, Mayor John Peyton announced at City Hall his intention to veto the 8.48 mill tax rate (level with 2008-09) approved by the Council Tuesday, setting up the possibility of a special meeting of the Council to attempt to override the veto. Peyton had asked for a millage rate of 9.5 mills, a 12 percent increase over last year’s property tax.
“The mayor and I talked about it this morning and we agreed it is what it is,” said Webb, who predicted he and his colleagues would be unable to lobby enough votes to negate Peyton’s action.
The millage rate will now likely be set at 9.27 mills, a “rollback” tax assessment that will generate the same amount of revenue as last year based on the current decline in property values.
Webb said it will be up to the Council to balance the budget through “cuts of some sort” and additional revenue.
“It was an interesting debate last night and I’m looking forward to a community discussion,” said Mosley, who said that at 9.27 mills the budget submitted by Peyton will be about $12 million short of balanced.
He believes the Council and the administration aren’t far from the same page when it comes to the City’s budget.
“We both believe government can be more efficient and should be more efficient. We don’t need to force the Council into a box. The administration is looking forward to working with the Council,” said Mosley.
Bryan said one of the most important things that came out of the JCCI study was that government must work to reestablish trust with its constituents and the budget process proved to be an example.
“Most of the budget information is available to the public but you’d have to be a genius to follow it,” said Bryan. He also suggested a “community conversation” held every three or four years and “not in an election year” would also be productive.
“It would be an opportunity to prioritize issues and determine how to pay for services and projects,” said Bryan.
Mosley pointed at that with pension funds for police officers and firefighters, corrections officers and general employees making up about half of the City’s almost $1 billion budget, the retirement benefits packages are sure to be a topic of conversation in the coming weeks of budget hearings. The Police & Fire Pension Fund is currently underfunded by as much as $1.5 billion, he said, but the Corrections Officers and General Employees packages are in much better fiscal condition. Negotiations with the unions will begin Aug. 1 and Mosley said there may be some changes made.
“We’re ready to go to the table to try to resolve the issues. Our best hope is to have a new agreement by the first of the year. There will probably be less benefits for new employees,” said Mosley.
Webb tempered his comments by first pointing out there has already been discussion of future pension issues at a “shade meeting,” then said, “Given the state of the economy I think we have the opportunity to make some historic changes in the City’s pension plans. The Council is eager to get creative with fresh eyes on the issues.”
Webb also said the City is leaving a lot of possible revenue “on the table” including property taxes on land used by the Jacksonville Aviation Authority. Bryan pointed out in some instances, maximum tax rates on things other than property aren’t currently being applied and the City has yet to implement impact fees on developers.
“Inasmuch as people are hurting right now we have to look at additional revenue sources that already exist,” said Webb. “We have a lot of opportunities to expand our tax base so we’re able to properly invest in our community without overly relying on ad valorem taxes.”
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