OFFICE OF
THE CITY COUNCIL
117 WEST DUVAL STREET, SUITE 425
4TH FLOOR, CITY HALL
JACKSONVILLE, FLORIDA 32202
904-630-1377
CITY
COUNCIL SPECIAL MEETING – PENSION LEGISLATION
MEETING
MINUTES
April 24, 2017
1:00
p.m.
Location: City Council
Chamber, City Hall – St. James Building; 117 West Duval Street,
In attendance:
Council Members Lori Boyer (President), Greg Anderson, Danny Becton, Aaron
Bowman, Anna Lopez Brosche, Katrina Brown, Reggie Brown, John Crescimbeni,
Garrett Dennis, Al Ferraro, Reginald Gaffney, Bill Gulliford, Tommy Hazouri,
Jim Love, Joyce Morgan, Sam Newby, Matt Schellenberg, Scott Wilson
Excused: Council Members Doyle
Carter
Also: Mayor Lenny Curry; Jason Gabriel, Peggy
Sidman, Paige Johnston, Stephen Durden – Office of General Counsel; Kyle Billy,
Kim Taylor, Phillip Peterson, Brian Parks – Council Auditor’s Office; Carol
Owens, Jessica Matthews and Crystal Shemwell – Legislative Services Division;
Steve Cassada – Council Staff Services; Sam Mousa, Ali Korman Shelton, Jessica
Baker and Jordan Elsbury – Mayor’s Office; Mike Weinstein and Joey Greive –
Finance Department
Meeting Convened:
1:04 p.m.
Council Member Love gave the invocation and led the Pledge of
Allegiance.
President Boyer asked for the council’s thoughts and prayers for
Council Member Carter who suffered an accident over the weekend and is
currently in the hospital.
Consent agenda
2017-251 (approving 3
collective bargaining agreements between the City and FOP Lodge 5-30)
2017-252 (approving
collective bargaining agreement between the City and IAFF Local 122)
2017-253 (approving
collective bargaining agreement between the City and Communications Workers of
America)
2017-254 (approving
collective bargaining agreement between the City and AFSCME)
2017-255 (approving
collective bargaining agreement between the City and Jax Supervisors
Association)
2017-256 (approving
collective bargaining agreement between the City and LIUNA Local 630)
The consent agenda was approved unanimously.
Third reading ordinances
2017-246 (approving
collective bargaining agreement between JEA and Professional Employees
Association)
Motion: amend to attach
Revised On File Agreement (signed and executed version) – approved unanimously.
Motion: approve 2017-246
as amended – approved unanimously.
2017-247 (approving
collective bargaining agreement between JEA and AFSCME Local 429)
Motion: amend to attach
Revised On File Agreement (signed and executed version) – approved unanimously.
Motion: approve 2017-247
as amended – approved unanimously.
2017-248 (approving
collective bargaining agreement between JEA and JEA Supervisors Association)
Motion: amend to attach Revised
On File Agreement (signed and executed version) – approved unanimously.
Motion: approve 2017-248
as amended – approved unanimously.
2017-249 (approving
collective bargaining agreement between JEA and LIUNA Local 530)
Motion: amend to attach
Revised On File Agreement (signed and executed version) – approved unanimously.
Motion: approve 2017-249
as amended – approved unanimously.
2017-250 (approving
collective bargaining agreement between JEA and IBEW Local 2358)
Motion: amend to attach
Revised On File Agreement (signed and executed version) – approved unanimously.
Motion: approve 2017-250
as amended – approved unanimously.
2017-257 (levying a ˝ cent
pension liability sales surtax)
Motion: amend to correct
title of Sec. 776.104; inserts the word “year” in Sec. 776.105; add sales tax
growth rate of 4.25%; clarify which fiscal year is impacted by a change in the
growth rate; require a super-majority (minimum of 13) vote of the Council to
increase the sales tax assumed growth rate above 4.25%; require the Council to
approve the sales tax assumed growth rate each year by October 31st
- approved unanimously.
Motion: approve 2017-257
as amended – approved unanimously.
Council Member Crescimbeni thanked the Mayor for his bold thinking and
his influence in getting the Florida Legislature to approve a sales tax option
for pension liability amortization, which he believes is the best possible
method. Council Member Gulliford echoed praise for the Mayor’s ability to get a
sales tax option through a very anti-tax legislature. Council Member Anderson
urged future City Councils to stay the course and continue making the required
pension payments even in good economic times when it might be tempting to back
off on payment amounts, and urged that the savings in the near term be invested
in infrastructure and other capital improvements rather than operating
expenses. Council Member Hazouri noted the presence of various annual reviews
and opportunities to check on progress and change assumptions as conditions
warrant. Council Member Bowman voiced concerns about some aspects of the plan
but felt that overall it is the best option to move the issue toward successful
resolution. Council Member Love said that the half-cent sales tax is the
linchpin to the solution and the pension reform plan is adjustable as time goes
on; it meets the City’s obligations to its retirees and employees. Council
Member Brosche added commendations to the mayor and his staff for their
countless hours spent answering the Council’s and Council Auditor’s questions
to everyone’s satisfaction. Council Member Reggie Brown expressed pleasure that
the pension issue will finally be resolved and the city can turn to addressing
its many deferred needs and priorities. He thanked the union leadership for
helping their members to understand and participate in the solution to the
problem. Several council members thanked the Council Auditor’s staff for their
review and confirmation of the soundness of the plan.
Council Auditor Kyle Billy, at the request of Council Member Reggie
Brown, reported that the net present value of the future pension liability
amortization is $199 million; some council members have received e-mails
claiming the cost of the pension reform will be $4.6 billion. Council Member
Ferraro praised the dedicated funding source that will resolve the issue
permanently and free up resources for short-term needs. Council Member Katrina
Brown commended the mayor for his concentrated focus on solving the pension issue
and praised his staff team for their professionalism and thoroughness. She did
not hear many complaints from the employee unions about the bargaining process,
which is a good sign. She urged the Mayor to immediately tackle crime and
infrastructure issues that have been on the back burner for a long time while
pensions were in the forefront. Council Member Dennis said that the solution of
the pension issue will make Jacksonville a city with an attractive future that
will encourage its young people to stay or return to their home town as a city
on the rise. Council Member Newby thanked the Mayor for his courage in tackling
this issue and reiterated earlier comments about the pension not being a
partisan issue. Council Member Gaffney congratulated the Mayor on his
outstanding team, thanked the City’s unions for their cooperation in the
process, and thanked the Council President for her leadership in shepherding
the process through to completion. Council Member Morgan pledged to the
citizens of Jacksonville that the council would be keeping a sharp eye on the
plan as it goes forward and would adjust as necessary to keep the plan on
course.
2017-257 was approved unanimously as amended.
2017-258 (amend Ordinance
Code Chapter 120 to close the defined benefit pension plans and create defined
contribution retirement plans)
Motion: approve the
substitute to 2017-258 to clarify language for active employee death/disability
program and the portion of employer and employee contributions as a funding
source; clarify that employees hired prior to October 1, 2017 will still have
the options to switch between the DB and DC plans after September 30, 2017 in
limited circumstances; insert “five” as the floor for the liquidity ratio left
blank in the bill as filed; insert minimum dollar contribution amounts for
General Employees and Corrections Officers that were left blank in the bill as
filed; clarify the basis for calculating the average annual growth rate in ad
valorem taxes; clarify the marriage requirement for General Employees; insert similar
“trigger” language for public safety DC members as there is for public safety
DB members - approved unanimously.
Motion: approve 2017-258
as substituted – approved unanimously.
2017-259 (amend Ordinance
Code Chapter 121 to close the defined benefit pension plan and create a defined
contribution retirement plan)
Motion: approve the amendment
to correct wording, formatting and subsection references to reflect tentative
agreements; clarify basis for calculating the average annual growth rate in ad
valorem taxes; insert “five” in the blanks in the liquidity ratio; insert the
reference to $110 million as the minimum contribution - approved unanimously.
Motion: approve 2017-259 as amended
– approved unanimously.
Council Member Becton praised the Mayor and his administration for
their great work and likened the potential of the pension reform program to
paying off a credit card bill or mortgage early by making more than minimal
payments. He intends to introduce a City extra contribution plan that will
invest the savings into further amortizations. Council Member Wilson said that
the City has faced lean and difficult budgets in the last 10 years and feels
that the sales tax is the best vehicle to reach a permanent solution to the
pension issue, especially since some of it is collected from non-City
residents. He hoped that savings can now be invested in aging neighborhoods,
infrastructure needs, commercial corridor revitalization and additional public
safety investments. President Boyer said that she is pleased that the plan has
a dedicated funding source which is vital to a permanent solution and thanked
the council members for their interest and participation in numerous meetings
to solve this long-standing issue.
Public comment
None
Mayor Curry thanked the council for their willingness to be bold
thinkers and to try something new. He stressed that his administration and the
council have kept their promise to City employees and retirees to ensure the
security of their retirement and to the taxpayers to do so without levying any
new taxes. He invited everyone to attend a bill signing ceremony tomorrow
afternoon at 3:15 p.m. to celebrate the completion of the process.
Meeting adjourned: 2:01
p.m.
Minutes: Jeff Clements, Council Research
4.24.17
Posted 2:30 p.m.
Tapes: City Council Special Meeting
– LSD
4.24.17