Fair to taxpayers. Fair to police and fire pension members. Fair to citizens.
That’s how Bill Scheu described recommendations a pension reform task force finalized Wednesday, which if taken as a whole, save taxpayers an estimated $1 billion over the next 30 years but also means a half-cent sales tax.
That means adopting a plan design that requires further contributions from current employees and paying down the city’s $1.7 billion in unfunded liability more quickly through $200 million annual payments over the next 14 years. Governance changes are recommended to ensure oversight and stability.
The crux of funding toward the liability would come from almost $150 million paid each year by the city, coupled with another $50 million annually coming from a new half-cent sales tax the group is pitching. Such a tax — slated for fire and rescue facilities — would have to be approved by voters and is estimated to raise about $68 million each year.
Scheu suggested the additional money could be used to pay down unfunded liability in the general employees’ pension plan.
Mayor Alvin Brown, who appointed the task force, has held a firm stance against raising taxes and fees. City Council raised property tax rates last year during budget talks to fund quality-of-life issues.
Scheu said resolving the pension issue is as important as consolidation was in Jacksonville’s history.
“It’s time to step up and be leaders, that’s what it’s all about,” Scheu said after Wednesday’s meeting. “These leaders will go down in the history of Jacksonville as having the courage to do what is right. … If they fail, they will have an entirely different legacy.”
A formal hand-off of the finalized recommendations is scheduled at 10 a.m. today.
Chris Hand, Brown’s chief of staff, told the group the administration would review the work then reach out to the Police and Fire Pension Fund or public safety unions to discuss the issues and “hopefully reach an agreement” that would then head to council.
Scheu said all of the recommendations needed to be provided as a package, with the report saying it “should not be jeopardized by piecemeal negotiations.”
Council President Bill Gulliford said after receiving the recommendations he will schedule a special meeting for council members to review the report.
“It would be a disservice and discredit to your efforts to let this thing languish,” he told
the group.
Scheu later warned that delay would mean be more costly long term.
“It can’t wait another year,” Scheu said. “There are consequences.”
@writerchapman
(904) 356-2466