OFFICE OF
THE CITY COUNCIL
CHERYL L. BROWN 117 WEST
DUVAL STREET,
DIRECTOR 4TH
FLOOR, CITY HALL
OFFICE (904) 630-1452
FAX (904) 630-2906
E-MAIL: CLBROWN@coj.net
CITY COUNCIL MID-YEAR BUDGET REVIEW
MEETING MINUTES
May 31, 2011
1:00 p.m.
Location: City Council Chamber, City Hall –
In attendance: Council President Webb, Council Members Redman, Crescimbeni, Carter, Jones (arr. 1:13), Bishop, Holt, Shad, Brown, Joost and Yarborough
Excused: Council Members Clark, Corrigan and Hyde
Guests: Council Members-Elect
Also: Steve Rohan – Office of General Counsel; Kirk Sherman and Kyle Billy – Council Auditor’s Office; Steve Cassada – Council Staff Services; Lisa Rinaman and Sherry Hall - Mayor’s Office; Dana Farris and Carol Owens – Legislative Services Division; Mickey Miller and Kent Olsen – Administration and Finance Department; Maxine Person – Sheriff’s Office; Tom Goldsbury – Public Works Department; Bill Killingsworth – Planning and Development Department; Jeff Clements – Council Research Division; Steve Patterson – Florida Times-Union, Kevin Meerschaert – WJCT; Jim Piggott - WJXT
Meeting Convened: 1:04 p.m.
Council President Webb convened the meeting and introduced Chief Financial Officer Mickey Miller to give the mid-year budget review.
Mr. Miller stated that the General Fund budget currently projects to an $11.2 million unfavorable variance primarily due to revenue shortfalls, but the fund has approximately $9.4 million in available funds as a cushion, leaving an approximately $2 million hole still to be covered. On a $990 million budget, the remaining unfavorable variance of $2 million is slightly over 0.2%, and there is still half of the fiscal year remaining to make the necessary changes. Mr. Miller stated that the $11.2 million unfavorable variance is the smallest mid-year shortfall in several years.
A large part of the unfavorable variance results from a shortfall in sales tax revenues. It appears that the decline in sales tax revenues may have bottomed out; collections are not rebounding, but at least are no longer falling. The General Fund is fed by 7 revenue streams, only 2 of which the City can really control (property tax millage rate, electric franchise fee rate); the remaining sources are determined by the state (state sales tax, state-shared revenues) or by the long-term contract with JEA for the utility’s annual contribution.
The two major unfavorable variations on the expenditure side result from the failure of the police union to agree to a 2% wage reduction and a $5.4 million debit in a credit line set up as a contingency for the Sheriff’s Office labor contract negotiation. Favorable departmental expenditure variances are primarily related to the hiring freeze.
Mr. Miller discussed “citywide activities” which consists of the Shands Jacksonville indigent care contract, bills from the state for health care for youths in the juvenile justice system, Banking Fund debt service. Council Member Crescimbeni requested detailed information on the three citywide activities.
In response to a question about what steps were taken after last year’s projection of an $8 million unfavorable variance, Mr. Miller noted that the City took a $5 million dividend from the Self-Insurance Fund and made some reductions in force, as we have again this year.
The meeting was adjourned at 1:27 p.m.
Minutes: Jeff Clements, Council Research
6.2.11 Posted 5:30 p.m.
Tapes: Mid-year budget review meeting – LSD
5.31.11