Jacksonville City Council skeptical of Peyton’s borrow-to-build roads plan

[thelakelander]

Some worry mayor's plan for transportation will hurt the city later

By Tia Mitchell

The mayor’s proposal to fund Better Jacksonville Plan road projects by borrowing against part of the city’s general fund is receiving an icy reception from some City Council members.

The plan is to issue up to $300 million in bonds using part of the general fund’s debt capacity. The money will be used to finance dozens of projects, such as the reconstruction of portions of Kernan Boulevard, and Greenland and Collins roads.

Only revenue from voter-approved Better Jacksonville half-cent sales taxes will be used to repay the debt, according to Mayor John Peyton’s plan.

It will be at least two weeks before council committees consider the proposal, but so far there are more questions than support.

Michael Corrigan, chairman of the council’s Finance Committee, said he needs convincing that the plan isn’t a short-term fix that creates headaches down the road. He wonders if revenue from the sales tax â€" set to sunset in 2030 â€" will be adequate to pay off the debt.

If not, he might be putting a future City Council into the tough spot of extending the tax, he said.

“By this action am I going to dictate to a future council action it must take?” Corrigan said.

Councilman Stephen Joost said he wants assurances that the new borrowing won’t hurt the city’s bond rating and trigger higher interest rates.

Alan Mosley, the city’s chief administrative officer, said the mayor’s staff will spend the next couple of weeks soothing those fears. Both internal and external financial advisers have assured him that future Better Jacksonville tax revenue, despite the economic downturn, will be able to retire the debt without extending the tax beyond 2030.

The city has plenty of borrowing potential, Mosley said, and issuing new bonds won’t hurt its credit rating.
Peyton is on vacation and could not be reached for comment.

In a letter to the Better Jacksonville Plan Citizens Oversight Committee signed by the mayor and committee Chairman Ron Salem, the borrowing is touted as a stimulus of sorts.

“By taking this approach, we hope to weather this economic downturn by providing much-needed jobs in our community, while maintaining the integrity of the BJP program by delivering projects that will improve the quality of life for the people of Jacksonville,” they wrote.

Councilman Clay Yarborough said all borrowing gives him pause, but this makes him even more concerned about the city’s long-term health.

“I’m not crazy about the idea,” he said.

Even if the council approves the new borrowing strategy, at least $250 million worth of road projects still lack funding. They include intersection improvements at Atlantic and University boulevards, and ramps at Interstate 95 and Butler Boulevard.

Councilman Bill Bishop said he’s still concerned that the $350 million courthouse project is eating too much into Better Jacksonville funds.

“It’s not the only thing but it’s a contribution to the problem,” he said. “No question about it.”

http://www.jacksonville.com/news/metro/2009-06-02/story/jacksonville_city_council_skeptical_of_peyton’s_borrow-to-build_roads_pl

[thelakelander]

I wonder how much transit could you get out of $300 million dollars?  For that price you could construct two of the three commuter rail lines suggested in JTA's feasibility study.

[tufsu1]

not really Lake...in 2009 dollars, each of those lines would cost between $175 and $200 million

[Ocklawaha]

Invest that money in moving our Convention Phone Booth, to the water front downtown. Use the credit line to rebuild the station on a compact single block location where the Convention Center now stands and the former Post Office stood. Build suburban stations in Yukon, and South Jax, Avenues. (Cley and St. Johns could add their own stations).

Join the effort to get Amtrak back in the saddle on the Florida East Coast and we'd be far better off then adding more asphalt to the wire grass along Collins Road.

OCKLAWAHA

[thelakelander]

not really Lake...in 2009 dollars, each of those lines would cost between $175 and $200 million

Still cheap, compared to the continuous onslaught of isolated road projects.  However, I guess I should clarify my long term position on local rail-based cost estimates being cooked.  When we are serious about implementing an initial corridor, strip the immediate bells and whistles mentioned as a cost basis for the initial estimates to help get the plan off the ground.  For example, go Nashville-style with used rolling stock, limited park-n-ride lots, simple bus shelter style stations and single track lines with passing sidings. As the system grows, then add the extra shiny components as the need arises.

[Steve]

^Amen.  We always seem to want to pretty it up, with things like elevated walkways and stuff.  We need to get back to basics, and I bet that we can get the price down significantly.