1. City of Jacksonville: June 6, 2019 Council Orientation
Department of Finance and Administration

2. Department of Finance and Administration Overview
350 employees across 7 divisions:
Treasury (Randall Barnes) – Handles day to day cash operations, investment of operating and pension funds, banking, and debt operations.
Accounting (Kevin Stork) – Responsible for transaction recording and financial records of the city.
Budget (Angela Moyer) – Produces annual city budget and processes executive and legislatively driven changes throughout the year.
Fleet (Cris Tongol) – Manages and maintains city vehicles such as fire trucks, ambulances, police cars, and all other motorized vehicles.
Procurement (Greg Pease) – Oversees purchasing city-wide to ensure the city is getting the best value possible within operational and legal requirements
Information Technologies (Ken Lathrop) – Manages IT infrastructure city-wide
Office of the director also houses the city’s Grant Office

3. Consolidated Government of Jacksonville
Consolidated City and County
Florida’s most populous city and nation’s 12th most populous with approx. 900,000 residents and 1.5 million in the Jacksonville MSA
Financially strong, carrying an implied G.O. rating of AA/Aa by Standard & Poor’s and Fitch Ratings
Analysts note strong financial management, increasing reserves, strong local economy, and low unemployment as positive factors
Large Navy, Financial, and Healthcare industry presence
Not predominantly driven by tourism as are other large Florida cities
Beneficiary of growing Florida population and relocating businesses from more expensive and higher taxed areas of the country

4. Financial Overview
$1.2 billion annual General Fund Budget (>$2 billion total budget)
Roughly 50% for Public Safety (Police/Fire)
Another 10% for debt service
$1 billion in General Fund debt outstanding
$1.1 billion in Better Jacksonville Plan debt remaining outstanding
Generally $60 – $100 million in annual Capital spending needs
$4 billion+ in two closed DB plans
$300 million and growing in DC plans
Have reduced debt by $376 million since July 2015

5. General Fund Revenues
About 50% of City revenues are from property taxes, the other 50% are from a diversified basket of sales and usage-based revenues. This diversity is viewed as a positive from a financial planning and ratings perspective.

6. Millage Rate Comparison
Jacksonville is roughly median relative to living in other large Florida cities

7. Projected Debt Outstanding
Total debt burden is set to decline over time as BJP is in pay-down mode

8. Debt Ratios - Snapshot
These ratios have been improving in recent years thanks to conservative budgeting, a commitment to pay down more than we borrow, refinancing at attractive rates, and a strong economy

9. Historical Pension Contributions
In addition to past pain, actuarial analysis showed a potential $70 million increase in required pension contributions in FY18 if pension reform effort failed
*FY 2018 contributions were based on draft 10/1/16 valuation reports.

10. FY18 Impact of Reform – Closed DB to new hires
In 2017, we closed the DB plan to new hires and enacted a mandatory DC plan
$360 Million
Enacting pension reform resulted in approximately $139 Million of reduced pension costs in FY18
$360
-221
$139
$221 Million
April 12, 2017
22R

11. General Fund Reserves
Reserve funds available during times of stress have more than doubled over the last 10 years. Jacksonville is focused on maintaining and growing reserve fund balances through strong fiscal management. Pension reform helped.

12. Ratings Agency Comments
Strengths
Improved reserves
Strong local economy
Low unemployment
Recent economic development
Financial Flexibility
Demonstrated fiscal responsibility
Weaknesses
High fixed costs (debt and pension expenses)