Jeffrey R. Clements Chief of Research (904) 630-1405		RESEARCH ASSISTANTS Rick Campbell (904) 630-1679 John Jackson (904) 630-1729 Keith Weiss (904) 630-1775 Rachel Welsh (904) 630-7234
	OFFICE OF THE CITY COUNCIL RESEARCH DIVISION

M E M O R A N D U M

DATE: July 16, 2007

TO: Cheryl Brown, Council Secretary/Director

THROUGH: Jeff Clements, Chief of Research

FROM: John J. Jackson Research Assistant

Mayor John Peyton delivered his Budget Message to a Special Meeting of the City Council on Monday, July 16, 2007, in the Council Chambers at 10:00 a.m. The Council President, Daniel Davis, called the meeting to order. Council Members in attendance: Bishop, Clark, Corrigan, Fussell, Gaffney, Holt, Hyde, Jabour, Jones, M., Jones, W., Joost, Lee, Redman, Shad, Webb and Yarborough. Council Members Graham and Johnson were excused. Staff in attendance: Kirk Sherman, Council Auditor, Janice Billy, Assistant Council Auditor, Phillip Peterson, Assistant Council Auditor; Steve Rohan and Margaret Sidman, Office of General Counsel; Carol Owens, Assistant Chief, Legislative Services Division; Steve Cassada, Information and AV Systems Manager. John J. Jackson, Council Research Division.

Before discussing budget issues with a PowerPoint presentation, the Mayor introduced his team, particularly those staff assistance whose purview has been preparation of the budget.

In commenting on his 5^th budget, the Mayor reviewed work that the administration and the Council have accomplished by working together such as tax breaks for military personnel in combat zones and promoting literacy in young people’s education and training.

The Mayor indicated that his budget was a different budget that reflected a different world and a different climate. The Mayor discussed the a long Tradition of Fiscal Responsibility that has characterized the City of Jacksonville’s fiscal record. Jacksonville has a reputation as one of the best managed cities in Florida. For twelve straight years, the City’s millage rate has been reduced.

The Mayor discussed the Governor’s quest for tax reform, the property tax reform enacted during the recent Special Session of the Florida Legislature and the impending referendum on the ballot for a January 19, 2008 vote that have brought us to juncture where we are now.

These actions force us to revisit the way we, as a City, do business.

As we face a $65 million budget shortfall, we are challenged to either cut spending or generate additional revenue. The Mayor sees our challenge as a combination of the two.

Our challenge consists of prioritizing government’s functions; reducing our reliance on property taxes for revenue is critical; and, we must prioritize public service grants.

The Mayor explained how the budget is prepared starting with the predicate: how much does it cost to operate the City’s functions at the status quo level. The, we begin to trim; identifying imbedded factors are areas where we can cut.

The Mayor saw the Administration’s proposed reorganization as critical. The number of City departments is being reduced from 17 to 8 in an effort to deliver services more efficiently.

Cuts along, according to the Mayor, is not enough.

The City has to choose to either (1) override the statutory rollback or (2) diversifying the City’s revenue sources. To the Mayor, an override is a bad idea. Diversifying our revenue sources is the best option for Jacksonville. Property taxes are no longer a reliable revenue source.

The Mayor discussed the recently announced fee structure (to wean us away from the reliance on property taxes for revenue). The three basic fees discussed were a 3% JEA franchise fee (3% of the utility bill staring April 1, 2008); a residential solid waste fee; and a stormwater fee.

The Mayor concluded his remarks by pledging to work closely with City Council Members in meeting the City’s fiscal challenges.

The Special Meeting of the City Council was adjourned at 10:45 a.m.