JACKSONVILLE
RESEARCH DIVISION
FINANCE COMMITTEE
MID-YEAR BUDGET REVIEW MEETING MINUTES
May 21, 2009
1:00 p.m.
City Council Chamber
1st Floor, City Hall
117 W. Duval Street
Attendance: Chairman Michael Corrigan, Warren Jones (arr.
1:25), Clay Yarborough and Art Graham (arr.1:50)
Excused: Daniel
Davis, Stephen Joost
Guests: Council
Members Don Redman, Reginald Brown, Johnny Gaffney, John Crescimbeni, Ray Holt,
and President Ronnie Fussell
The meeting was called to
order at 1:10 p.m. by Chairman Corrigan who introduced Mayor John Peyton.
Mayor Peyton gave a brief
overview of the mid-year status of the current budget. Revenues are coming in below projections
(particularly the sales tax, state-shared revenues and building permit fees),
but the City has been cutting expenses to ensure that the budget will remain
balanced at year-end. He anticipates
that next year’s budget will be even more challenging because of the national
economy, an anticipated drop in property tax revenues because of declining
property valuations, and rapidly growing pension contribution obligations. The mayor stated that the upcoming budget
preparation process will work from the premise of no raises for City employees,
5 percent across-the-board cuts in all departments except public safety, and
further elimination of vacant positions.
The mayor also stated that
the current budget troubles highlight the need for the City to be thinking
strategically about its future and to determine where it can best make strategic
investments that will produce the best possible returns for the citizens of the
city. He suggested that one important
priority for this strategic investment should be enhancing river access and
downtown public spaces. This would
include extending and rebuilding the Northbank and Southbank Riverwalks,
reconceptualizing the Friendship Fountain Park, planning for the future of the
Shipyards property should it come back into public ownership, planning for the
redevelopment of the existing courthouse and courthouse annex properties for
when the new courthouse is completed, redeveloping Metropolitan Park, and
making a substantial investment in a signature Brooklyn Park. Creating Grade A public spaces downtown will
attract new private investment that will generate new tax revenues, will
attract more residential development and help reduce urban sprawl, and will
give the community public space of which it can be proud and which can be
enjoyed by everyone.
Budget Officer Kent Olsen
made a brief presentation on the state of the current fiscal year budget at the
mid-point of the year. As the mayor
mentioned, revenues are coming in below projections, largely in the areas of
sales tax collections (projected deficit of $10.7 million by year-end at the
current collection rate) and state-shared revenues (projected deficit of $5.2
million). Expenditure cuts are mainly
being made in the area of elimination of vacant positions and an ongoing hiring
freeze. The enforced departmental lapse
will increase from the original budget of $5.7 million to approximately $10.5
million to compensate for reduced revenue collections. The building inspection fund and Clerk of the
Court filing fees are also running below projections as a result of the
dramatic slowdown in development due to the national economic condition. One saving grace has been the reduction in
the price of motor vehicle fuel. The City had budgeted for fuel at $4 per
gallon during last year’s price spike.
The current price is about half of that, saving the City $8 million in
its fuel budget.
Chairman Corrigan reminded
the committee that the Council’s decision not to extend the Waste Management
operational contract for Trail Ridge Landfill leaves a $2 million
“extraordinary lapse” hole that will need to be filled somehow.
Mr. Corrigan reminded the
audience that the City Council would be electing new officers for 2009-10 at
the beginning of the Council meeting on May 26th.
There being no further
business, the meeting was adjourned at 1:52 p.m.
Jeff Clements, City Council
Research
630-1405
Posted 5.22.09
4:00 p.m.
c.c. cityc@coj.net