1. Budget Address 2007-2008 Mayor John Peyton Consolidated City of Jacksonville July 16, 2007

2. Tradition Of Fiscal Responsibility
11.31
9.64
8.48
6.85*
* Effective millage rate with proposed Constitutional Amendment

3. Tradition Of Fiscal Responsibility
Millage rate includes operating, voted debt service, land preservation, and hospital

4. Tradition Of Fiscal Responsibility

5. Tradition Of Fiscal Responsibility

6. A New Day For Local Governments
Governor Crist pledged property tax reform
Legislature failed to reach agreement in regular session
Special session convened for property tax reform
Passed two phases of cuts:
Statutory rollback effective Oct. 1, 2007
Constitutional Amendment before voters Jan. 29, 2008 – To be effective Oct. 1, 2008

7. Impact Of Tallahassee Legislation On Budget
Revenue for 07/08 determined by new formula
Roll back revenue to 06/07 level
Add in new construction
Subtract 3 percent
New millage rate equals 8.48 mills
Revenue minus projected expenses leaves budget $65 million out of balance

8. Options To Balance The Budget
Road to a
balanced budget
Option A:
Cut Departmental
Funding
Option B:
Generate
New Revenue
Option C:
Hybrid – Cuts
& New Revenue

9. Guiding Principles For Preparing New Budget
Prioritize core government services
Diversify revenue and reduce reliance on property taxes
Aggressively capture cost savings
Make surgical reductions in public safety budgets excluding first responders
Prioritize public service grant funding
Prepare for impact of Constitutional Amendment

10. Key Factors In Preparing Budget
Focus on core services to the community
Identify ways to increase service and decrease cost
Factor in fixed expenses
Collectively bargained wages and benefits
Pension costs
Debt service
Internal costs: technology, legal, insurance
Ensure acting responsibly with taxpayers’ money

11. Flexibility To Reduce Expenses
Fiscal Year 06/07

12. Government Reorganization
Reorganize 17 previous departments and executive agencies into 8 new business units
Abolish 55 positions
Eliminate duplications in services
Results in approximately $3 million savings

13. Public Service Grants
Worked to minimize reductions to non-profit community
Developed more stringent criteria
Tiered reductions based on type of services provided

14. Total Reductions and Adjustments
Capital Maintenance
$5.5 Million
Public Service Grants
$4.2 Million
Children's Commission
$2.7 Million
Mayport Ferry
$738,000
Constitutional Officers
$1.2 Million
Reorganization
$3.0 Million
State Health Department
$1.9 Million
Public Library
$2.1 Million
Fire and Rescue
$4.0 Million
Sheriff's Office
$8.3 Million
Other Cuts and Adjustments
$4.9 Million
Total Savings
$38.5 Million

15. Budget Breakdown By Department

16. Public Works Department
Responsible for:
Solid Waste
Right-of-way and grounds maintenance
Engineering and construction management
Real Estate
Public Buildings
12 %

17. Recreation and Community Services Department
Responsible for:
Recreational and Community programs
Behavioral and Human Services 6%

18. Commissions and Quasi-Executive Departments
Includes:
Jacksonville Public Library
Jacksonville Children’s Comm.
Jacksonville Human Rights Comm.
Medical Examiner
Jacksonville Economic Development Comm. 8%

19. Sustainable Communities
Responsible for:
Planning and Development
Housing and Neighborhoods
Environmental and Compliance 2%

20. Cuts Alone Are Not Enough
$26.5 million out of balance after cuts
Non-public safety departments absorbed significant reductions in prior years
Further cuts significantly diminish service
Next year, more than $100 million shortfall with passage of Constitutional Amendment

21. Forced To Make A Difficult Decision
Road to a
balanced budget
Option A:
Override Statutory
Rollback
Option B:
Diversify Revenue

22. Overriding Statutory Rollback: Bad Idea
Penalties built in for overriding cap
Creates one time money
Cannot be used for reoccurring expenses
Maintains reliance on unreliable source of revenue

23. Tradition Of Fiscal Responsibility
12 Straight Years of Locally Driven Millage Rate Reductions
11.31
9.64
8.48
6.85*
* Effective Millage rate with passage of Constitutional Amendment

24. Diversifying Revenue: Good Idea
Property tax revenue no longer reliable source
Public safety and non-public safety related costs continue to grow
Non-public safety has absorbed significant reductions in prior years
Cannot continue to cut funding and provide quality services
Property Tax Revenue
51%
Non-Property Tax Revenue
49%

25. DIVERSIFICATION is key to positioning community for the future.25

26. Diversifying Revenue: New Fee Structure
Modest in scale
Phased in over time
Balanced approach to minimize impact on taxpayers
Proportionate application to avoid unfair burden

27. Franchise Fee 3 percent of utility bill starting April 1, 2008
JEA will continue to be low cost provider
Join comparable cities across Florida including St. Petersburg, Tampa, Orlando, St. Augustine and Tallahassee
Neighbor to Neighbor program

28. Residential Solid Waste Fee
$5 per month for homeowners starting April 1, 2008
Offsets costs of residential solid waste collection
Join 24 other largest cities in Florida in assessment of similar fee
Atlantic, Jacksonville and Neptune Beaches all currently pay residential solid waste fees

29. Stormwater Fee
Average $5 per month for homeowners starting July 1, 2008
Formula-based impact with credit for onsite improvements for commercial properties
Offsets costs related to stormwater runoff and drainage
Join approximately 80 percent of urbanized Florida that already has a stormwater fee
Includes more than 100 cities

30. Estimated Impact To Average Homeowner
Assessed Home Value
of $160,000*
Annual Savings from Property Tax Reform
$156
Franchise Fee
4/1/08-9/30/08
$32
Residential Solid Waste Fee 4/1/08-9/30/08
$30
Stormwater Fee
7/1/08- 9/30/08
$15
HOMEOWNER SAVINGS
$79
* $160,000 is median home value in Duval County

31. How We Balanced The Budget

32. Balanced Budget With Combination Of Reductions and New Revenue
Out of Balance
- $65 Million
Net Adjustment and Reductions
$38.5 Million
Estimated Revenue from New Fees
$26.5 Million
Balanced Budget

33. What This Budget Does Prioritizes core government services
Diversifies revenue and ensures sustainability
Reduces reliance on property taxes
Aggressively captures cost savings
Makes surgical reductions in public safety budgets excluding first responders
Prioritizes public service grant funding
Positions for impact of Constitutional Amendment