One week before scheduled budget hearings are set to conclude, the City Council Finance Committee still faces about a $12 million hole.
The majority of the hole originated from errors and alterations in Mayor Brown’s proposed fiscal 2012-13 budget. The errors include a $5 million miscalculation in state revenue sharing, close to $1 million posting error due to a misplaced decimal point and $4.5 million in Community Redevelopment Area funds that City officials do not want swept into the general fund but were originally planned for such an action.
The committee, led by Council member and chair John Crescimbeni, charged the administration with finding solutions to the budgetary errors. It did so last week, with City Chief Financial Officer Ronnie Belton issuing the committee a memo with an alleged $11.85 million in savings, but Council Auditor Kirk Sherman said Thursday it was yet to be determined if the suggestions were feasible.
The proposed source of those budgetary savings include: $3 million from an increase in state revenue; $2 million in debt service in the next budget year; $1 million in debt service from the current fiscal year; $1 million through additional staff reductions based on departures and attrition; and $600,000 through a trust transfer recommended by the auditor’s office.
Sherman said at the beginning of Thursday’s session that his office agreed with parts of the administration’s proposal but that further discussion was needed on several other suggestions. Discussions during the midday break yielded no results, but Sherman said his office would have a final report for the committee this morning. Crescimbeni said the issue would then be taken up Wednesday.
With the $12 million hole, if a deficit is still present because some or all of the recommendations aren’t fruitful, committee members said the cuts would have to come from somewhere – even from those departments that have already had their budgets reviewed.
“I have heard from some folks an assumption that they are ‘good’,” Council member Lori Boyer said.
That assumption is incorrect, Crescimbeni said.
“Any seasoned employee or division chief would know otherwise,” he said. “We’re going to have to figure out a way to make up that deficit.”
Thursday’s review included a look at Brown’s newly created Office of Economic Development, which takes over several roles including the duties of the former Jacksonville Economic Development Commission.
The office has a proposed $3.6 million budget, which includes the budget of the recently approved Downtown Investment Authority that will solely handle economic development Downtown.
The office’s budget also does not include a closing fund for economic development, a feature Brown has sought in the past. Instead, it is included in legislation about expediting incentives that the Council has not yet reviewed.
Paul Crawford, office acting director, said that legislation would create the fund with no funds in it, and it could then be added to as Council deemed appropriate.
No major flaws were found within the OED’s budget.
The Council also took a look at its own budget to find savings of just under $172,000.
Those savings included reducing expenditures of the Value Adjustment Board by $20,000 and altering salaries and positions.
Also from Thursday’s budget hearing:
• The morning sessions focused on the budgets of the City’s four independent authorities: JEA, Jacksonville Transportation Authority, Jacksonville Aviation Authority and Jacksonville Port Authority. Their reviews bore no major changes or findings, but Council members did take the opportunity to question aspects of each and have concerns addressed. For JEA, that included discussion between Council member Bill Guliford and JEA Executive Director Jim Dickenson about the process local contractors take, or can’t take, when pursuing contracts with the utility. Gulliford said the contractors have indicated the price and precision required by JEA makes it difficult for them to pursue such business. “I think it demands we get together and talk about it,’ Gulliford said. Dickenson agreed.
• As it has in the past few budget cycles when discussing JTA, questions about the Skyway, its funding and its future were asked. Unlike past years, though, there was no large discussion about ending the service.
• The budget review also was the last for executive directors from JEA and JTA. Dickenson and JTA Executive Director Michael Blaylock appeared before the committee one last time for questions about their budgets, but Finance Chairman John Crescimbeni and others assured them they could return each year for questions, if they would like. Joseph Belachak was recently elected JEA’s CEO, with an Oct. 1 start date, while Blaylock’s successor has yet to be selected.
• No money was allocated within the Jacksonville Aviation Authority’s budget for the spaceport program by design, said JAA Executive Director and CEO Steve Grossman said. He told the committee the program is still in its infancy and in planning stages.
• The idea of transferring the traffic court program to the new Duval County Courthouse, which could save $275,000 in rent, had no real update. Parking solutions were needed and Jack Shad, City Parking Facilities and Enforcement chief, said about 400 spots available for parking were available “on any given day.” Crescimbeni urged Glenn Hansen, City budget director, to pursue the potential savings sooner rather than later.
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An event for all season
Here’s a breakdown of the City’s Office of Economic Development’s special events currently proposed for fiscal 2012-13. The total costs combine advertising, promotions, equipment rentals and miscellaneous services and charges. The City Council Finance Committee reviewed them Thursday and tentatively approved, though it can review each department again later to find cuts should a deficit remain. Those with totals of $0 are still line items.
| Events budgeted fiscal 2012-13 | Total |
| 4th of July Celebration | $23,706 |
| Downtown/Live Events | $22,244 |
| Blessing of the Fleet | $500 |
| Environmental Luncheon | $6,000 |
| Florida-Georgia Weekend | $204,649 |
| Jacksonville Jazz Festival | $305,174 |
| Light Parade | $0 |
| Martin Luther King Jr. Breakfast | $55,211 |
| Mayor’s College Expo (n) | $5,587 |
| Mayor’s Holiday Open House | $2,752 |
Military-related events
| Sea and Sky | $170,000 |
| Memorial Wall | $2,000 |
| Veteran’s Day Parade | $20,000 |
| Mayor Brown’s Business Builder (n) | $7,776 |
| Starry Nights/Music Festival or Concert | $38,500 |
| Interfaith Celebration (n) | $8,146 |
| Hispanic Heritage Celebration (n) | $3,336 |
| World of Nations Celebration | $106,500 |
| Total | $982,081 |
(n) – indicates new event
Source: City of Jacksonville