The Potential Impact of Amendment 1

[Metro Jacksonville]

The Potential Impact of Amendment 1



On Tuesday, voters will go to the polls and decide on the Republican nominee for President.  Most of the talk about this week's election has centered on how the democrats aren't here (Florida's Democratic delegates were stripped when the primary was moved), on whether or not Giuliani will be done after Tuesday (polls show him fighting for third), and who is going to pull out the win in what is now a statistical tie between Mitt Romney and John McCain.  Turnout among Democrats and Independents is expected to be very light, since Florida will have no impact at the Democratic National Convention, and Independents have just one issue on the ballot.

Full Article
http://www.metrojacksonville.com/content/view/704

[Lunican]

So, somebody explain to me what the difference is between a $2,000 property tax bill and an $1,700 tax bill coupled with $300 in new fees?

I think the fees do not qualify as a tax deduction like property tax does, effectively increasing your federal income tax.

[second_pancake]

It saddens and sickens me that there are so many people in our communities that truly believe having what equates to $20 extra a month in their pocket, is worth not having emergency service to their home in a timely manner, having free curbside garbage collection revoked, and having even more crime outside their front door with little activity from a short-staffed police force.  We'll pay $20 a month for a personal home security system, but not for city services?

[SunKing]

The difference is accountablity.  Think about it, the existing system is pure communism.  I like the pictures leading the article because that is what we have in Jacksonville today.  My businesses were robbed 6 times last year.  In business 12 years, maybe twice before.  Over the last 10 years the median home price in Jacksonville, I am guessing here, but it went from around $75k to over $200, it more than doubled.  There has been very little inflation until the last two years.  All those new homes with fair share fees which werent previously paid all being paid over the last five years of growth.  All of those homes that had been homesteaded are now paying.  Don't forget about commercial property which does not have increase restrictions.  I have a commercial property that I have owned for several years, taxes jumped from $3k to $11k.  WTF?  Commercial values haven't increased a dime in the last 10 years, all the growth is in residential.  Yet crime is way up, our bond rating is down.  The city doesnt have any money.  It's a joke, It is all archaic and this would provide accountability for services.  My recyclables have now been sitting in front of my house for a week btw.

[vicupstate]

Regardless of home appreciation, the Save Our Homes admendment prevents the taxable value from going up more than a nominal percentage every year.   

There is no additional accountability that I see in this, just a very convenient excuse for the local governments NOT to fund anything.   

[willydenn]

Amen SunKing!

[DevilsAdvocate]

All the supporters of the amendment:  Enjoy the state income tax that will be created w/i the decade to deal with the impending financial crisis facing the state after the property taxes are slashed.  Great idea to me, tax only working state residents instead of taxing people using services tho not working and people with second or third homes in FL that don't live here.  Lovely idea.

[dowtown-entrepreneur]

It's sad our how misinformed a large portion of the population is about this amendment. Like stated in the article, people will only save approx. $20 a month. Crist is doing a great job of spinning it to make it sound like a great idea. Hopefully the voting public knows what is best for the Duval County government.

[SunKing]

Fees here to stay even after vote
Article reprints available.
Find out more. 01/29/2008

by Mike Sharkey

Staff Writer

Based on public perception, “Joe Voter” probably thinks if the property tax amendment is defeated today, the three fees enacted by City Council last fall will be repealed.

That perception would be inaccurate, as would the perception the fees were passed in an effort to offset potential lost City revenue created by lower property taxes.

In a memo to Council members Monday, Mayor John Peyton’s Policy Chief Adam Hollingsworth explained the necessity of the fees and why they will be imposed regardless of today’s election.

“Some have asked: ‘If Amendment One fails, do the fees go away?’ The answer to that question is no,” said Hollingsworth in the e-mail memo. “Remember that the fees enacted in the current year budget helped offset the property tax reductions forced on Jacksonville by the Legislature in the current year budget. These reductions, passed through statutory changes, required Jacksonville to roll-back property tax revenue by three percent from FY 06/07 levels.

“Going forward, Jacksonville’s property tax revenue will be capped at the rate of population growth and Florida’s per capita income growth. The new, diversified fee structure, combined with budget reductions in the current year, helped balance the budget and provide for basic services (like police, fire, parks, public works, libraries, human services, etc.). In addition, the fees provide for diversification in an environment in which local government property tax revenue continues to be under attack.

“Governor Crist continues to say that, win or lose, he will continue to push for additional property tax reductions. The Florida Tax and Budget Reform Commission is considering constitutional amendments for the November, 2008 ballot that would further restrict property tax revenue. In addition, we continue to face a challenging public safety environment, likely requiring new investments like the one referenced above from the sheriff for $30 million.”

According to Hollingsworth, lower property taxes would create a financial burden.

“Our finance team has estimated that Amendment One will cost our local government between $50 million and $75 million per year in lost property tax revenue,” he said. “However, the fees passed as part of the FY 07-08 budget will help close the gap. Considering all revenue sources, and anticipating modest expense increases (primarily related to contractually-obligated wage, pension and health-care costs), we expect a total budget hole of approximately $30 million in FY 08/09 if Amendment One passes.”

Council member Jay Jabour sits on the Council Finance Committee and said he understands why many in Jacksonville would feel as though the fees should be repealed if the amendment fails. As someone who sat through hours of budget hearings in September, he remembers hearing often how devastating the lost revenue would be to the City’s nearly $960 million budget.

“I think there is a misunderstanding why the fees were passed initially,” said Jabour.

In late September, just before the start of the 2007-08 fiscal year, Council passed three new fees â€" a stormwater management fee, a garbage fee and a JEA franchise fee. April 1, the garbage and JEA fee go into effect, while the stormwater management fee will be implemented July 1. Overall, the fees are expected to generate approximately $25.7 million annually.

If the amendment is defeated, Jabour doesn’t expect it to go quietly.

“I still don’t believe this is the end of the journey,” he said. “Whatever happens to the referendum, the Legislature has the right to what they want anyway. First, we need to get through the referendum, then get through the legislative session.

“One thing that’s interesting is there’s so much uncertainty.”

Jabour believes it would be wise of Council President Daniel Davis or another Council member to address the matter publicly if the amendment fails. He said it’s important to communicate what happened at the polls and the effect the outcome will have on the property tax issue and the pending fees.

Robert Arleigh White, executive director of the Cultural Council, was also a regular at the fall budget hearings, often going to bat on behalf of his organization as well as dozens of area non-profits. Like many City departments, White’s budget was slashed along with most of the non-profits. White said he has already met with City officials to discuss what happens if the bill is defeated.

“We started, some time ago, thinking about this issue,” he said. “We will think creatively, and we have visited with officials at City Hall. There is no question if it passes we will all live differently.

“We are hearing all kinds of things from all kinds of people. If it does not pass, I will not be surprised if something else comes out of Tallahassee this spring.”


The fees broken down


The soon-to-be-implemented fees passed by City Council in late September are broken down into three categories. One fee is a set dollar amount while the other two are based on usage and percentages.

Garbage fee

• Implemented April 1

• $3 per month

• Expected to generate $3 million annually

JEA franchise fee

• Implemented July 1

• Based on electric usage

• 3 percent of a JEA customer’s combined electric, water and sewer bill

• Expected to cost an average of $5.31 a month

• Expected to generate $17 million annually

Stormwater management fee

• Implemented July 1

• Varies depending on a property owner’s impervious surface

• For residential property owners, this will average $5 a month

• Commercial property owners will be assessed based on a formula of impervious surface area divided by an equivalent residential unit (ERU) and multiplied by $5.

• Expected to generate $5.7 million annually



The fees are here regardless, so you want them to have these fees and continue to raise taxes?  I love this deal I know what I am paying for.  Take back your city.  Did you know the Sheriff's office had 5 planes?  FIVE of them?  Rutherford is full of it, his dept. has plenty of resources, he isnt managing his budget.  More cops?  I see 10 of them every day and they are writing speeding tickets.  He has low morale on the force and a lack of support from the hood.  The city has to completely rewrite its budget, it is broke.  We all need to pay our fair share but under the current system what are your paying for?  The budget is based on last year's budget plus cost of living increases plus whatever new program is in place, blah, blah, blah.  Break it up, how much does it cost to fix 15% of the roads every year?  Cops, firemen, pickup trash, maintain parks and streetlights, keep crap out of the river, landfill capacity to the year 3000.  Am I missing anything?  Why should I not want to move because my taxes will litterally triple?  Are my services going to increase?  Is that money lost because I dont move?  It is a stupid system and it is only going to get fixed when it gets finally broken down.

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I changd the color, as you couldn't read the yellow....jbm32206/moderator

[SunKing]

http://www.jaxdailyrecord.com/showstory.php?Story_id=49326

http://www.firstcoastnews.com/news/politics/election2008/news-article.aspx?storyid=101047

Ooooh, yellow was a bad choice, blue is better.  Posted a link instead.  Did you notice how everyone that gets paid by a taxpayer is against this?  Think about it.

[thelakelander]

Well it passed by a landslide.  Now the ball is back in Peyton's court.

[Lunican]

Figuring out how to balance the budget will likely consume all of city hall's time and resources, leaving nothing left over for any other issue.

[Dapperdan]

Whoo Hoo, it passed! I agree with Governor Crist. Now, the local governments can't be wasteful with their spending any more. They will have to be creative. I believe this will be a time of change but not of the predicted doom and gloom. Its like you had a  pension comming  in addition to your normal income and now the pension is all spent. I guess you would have to learn to live back in your means. Good job voters!

[second_pancake]

DD, the problem is Peyton is not known for balancing the budget in a manner that benefits the citizens of this city.  While the pockets of his "friends" get greased, we lose out on police protection and city services.  The only way he is going to be creative is to figure out how he can keep those promises to his friends of inherent wealth and job contracts.  There goes the neighborhood.

[DevilsAdvocate]

I would recommend the city now start placing some heavy impact fees on developers to offset a part of the lost property tax revenue.  Also, Florida will have an income tax within the decade.  Congrats to the retirees and out-of-state residents with the million dollar beach front homes, you managed to shift the tax burden away from yourselves.