It’s important for any project to have a deadline. A critical project with many parties involved makes a deadline even more important.
The City Council committee negotiating a contribution agreement with JEA on Tuesday set March 15 as its deadline to settle on a new formula.
That will allow legislation that will lead to an amendment of JEA’s charter to be filed by March 22 and make it through the standing committees in order to be adopted by council before the end of June.
That schedule also will allow the administration to plan the fiscal year 2016-17 budget — which must be submitted by July 30 — based on JEA’s contribution.
The existing agreement expires Sept. 30, the deadline for council to adopt the 2016-17 budget.
The current contribution from JEA represents nearly 12 percent of the city’s annual revenue.
Adding to that figure the franchise fee the utility pays the city and the public service tax charged to every JEA customer, revenue from the utility accounts for more than 20 percent of the city’s $1 billion general fund budget.
The contribution plus the fee and tax represent the second-largest annual expenditure for JEA, behind only fuel cost, said JEA CEO Paul McElroy.
On Nov. 17, the committee submitted a proposed formula that McElroy was asked to comment on Tuesday.
He said he and his staff have not had time to adequately review the proposal he described as a “comprehensive document” for projected fiscal impacts.
Some of the changes could lead to higher costs for customers, McElroy said.
“We’ve made no decisions. We won’t accept or decline any items,” said McElroy. “We just need to fully understand (the implications of the proposal).”
He also said due to the magnitude of the changes — such as setting a minimum annual contribution, building in an annual increase in the contribution and a proposed $25 million payment by JEA to the city for septic tank mitigation — the utility’s board will be involved in settling on a new agreement.
Bringing the board into the discussion presents its own challenges. Mayor Lenny Curry on Monday accepted the resignation of Robert Heekin from the board, leaving only one member of seven serving since before Curry took office. Curry has appointed members to fill five of the vacated spots.
McElroy said the contribution proposal is not on the agenda for the new board’s first meeting scheduled Monday. The earliest the board might be presented the proposal would be Dec. 15.
Committee Chair Bill Gulliford said he will invite the board to participate in the process. He said he looks forward to “give-and-take” with board members and a “healthy discussion.”
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