OFFICE OF CITY COUNCIL

RESEARCH DIVISION

SPECIAL FINANCE COMMITTEE MEETING MINUTES

July 26, 2007

9:00 a.m.

City Council Chamber

City Hall, 117 W. Duval Street

Attendance: Chairman Art Shad, committee members Kevin Hyde, Richard Clark, Jay Jabour, Stephen Joost, and Denise Lee (Councilman Graham excused); Council President Daniel Davis and Council Member Don Redman; Kirk Sherman, Janice Billy, Dina Riddle and Kim Taylor – Council Auditor’s Office; Steve Rohan and Peggy Sidman – Office of General Counsel; Cal Ray and Kent Olsen – Administration and Finance Department; Lisa Rowe – Mayor’s Office

The chairman convened the meeting at 9:00 a.m. with a quorum present.

The sole item for consideration was Resolution 2007-811 concerning the proposed ad valorem millage rate and the required “rolled back rate” declaration for the 2007 tax year. Cal Ray made a presentation explaining the state-mandated property tax millage levy process and timeline, including the date of required reports to the Property Appraiser and of the required public budget hearing. He noted the changes to the process required by the state property tax reform legislation, including an additional 3% mandated rollback of property tax revenues. The proposed millage reduction from 9.64 to 8.4841 mills for next year represents the largest millage reduction since 1983 when a change in state revenue sharing required a 2-mill reduction in local taxes to qualify for the additional revenue sharing.

Council Auditor Kirk Sherman presented a 20-year history of Jacksonville’s millage levy and explained the millage differential in the General Services District rate within and outside of the Beaches and Baldwin communities due to the effects of the Interlocal Agreements that mandate a “county services” millage reduction to those jurisdictions. He noted that the effect of substantially increased property appraisals and new construction is that the proposed General Fund budget will grow by 3.6% ($16.5 million) even after the state-mandated rollback. Mr. Sherman also briefly described the upcoming Finance Committee budget hearing process.

Council members posed numerous questions to the Auditor and Administration and Finance personnel about various aspects of the proposed millage rate, the Interlocal Agreement differentials, property tax collection ratios, the Save Our Homes assessment cap, and the effects of the property tax rollback legislation. The issue of comparable jurisdictions and their use of user fees was raised. The proposed solid waste fee was also discussed, and questions were raised about how the fee would be applied, particularly to vacant lots or to lots with unoccupied buildings. Auditor’s Office and administration staff will provide answers to these questions to the committee by next week.

The committee took no action on the resolution, pending a special Council meeting to act on the bill by Friday, August 3^rd, the deadline for reporting the millage rates to the Property Appraiser.

The meeting was adjourned at 10:05 a.m.