Peyton: www.Fixitnow.cc

[Adam Hollingsworth]

Over the last ten days, it has been helpful to read the many posts on the various threads about the city budget, fees and, most recently, the mayor's three-part proposal to cut expenses, reform the pension system and raise revenue.  This post will be an attempt to, briefly, respond to what I've read. 

Government needs to cut and make sacrifices -- Agreed.  We should work to get more efficient everyday, just as business does.  And we need to make sacrifices in tough times.  However, as Mayor Peyton said today, such a premise is not a management plan, it's a bumper sticker.  We have to seriously examine every expense, every program and the impact to every segment of our community.  And then we have to reach a consensus on what to fund and what to cut.  The question I asked in an earlier post remains...what specific expenditures would you propose cutting?  (Brainstormer, I did see your suggestion about eliminating weatherization programs for senior citizens.  Thanks for the specific suggestion.  However, that program is 100 percent funded by state and federal grants...no local/general fund dollars are used.  So even if we eliminated the program, it would have no impact on our local budget.)  We do appreciate suggestions like this as it helps us all better understand the city's budget...keep 'em coming!

Peyton needs to show sacrifice -- The first step of the mayor's plan is to cut expenses...$40 million to be exact.  These cuts include the elimination of 100 positions (on top of the 400 positions he has eliminated since 2006) and a five percent across-the board cut in all non-public safety departments.  He will also take to the bargaining table a pay freeze for ALL city employees and a furlough for all non-public safety employees.  More than half of the $20 million is related to city employee-related expenses.

The courthouse is an example of government waste -- The budget at issue is the city's general fund budget.  It is funded by property taxes, state shared revenue (primarily sales taxes), JEA contribution, and related revenue.  The courthouse is a Better Jacksonville Plan project, funded by a dedicated half-penny sales tax that does not go into the city's general fund.  Cancelling the courthouse project will have little effect on balancing the budget.

Peyton must gain the confidence of the community before he can ask for a tax increase -- During the next 90 days of budget season, the Mayor will remain unilaterally focused on talking with this community about the expense and revenue sides of this budget and his three part plan to fix it.  And we will create opportunities for people to go through the exercise of balancing the city's budget.  Only through such a session can you move people from a simple debate of "yes on taxes" or "no on taxes" to the complex exercise of making trade-offs and tough policy and financial decisions to balance a nearly one billion dollar municipal budget.

The budget numbers always seem to change -- You would find this to be true in every organization in American at budget time.  The only reason you seem to see it in City Hall and not in private business, is that the city's budget documents are a matter of public record and ultimate decision making is in the sunshine.  As a result, the dynamic budget machinations are played out in public as new information is gained and numbers are refined.  Because it's the public money, this should be a public process, but let's not think that numbers jumping around is unique to government.  That's the normal budget process for any large, complex organization.

Look for new revenue sources, like investing in growing our medical industry -- Great point.  New, private investment will both build the tax base and create jobs in Jacksonville.  I could wax on about about our economic development efforts, but I want to mention one bill now pending before the City Council related to an importance investment at Shands.  The legislation would direct about $1.5 million to purchase the Blood Bank property for the UF College of Medicine, adjacent to the Shands campus, to be converted to a new education facility for medical students.  This is the consistent with the Mayor's goal to further leverage both the Shands medical facilities and the University of Florida's medical school investment.  We have the proton beam therapy here.  Every UF medical school student does a rotation through Shands Jacksonville.  And UF's emergency medicine school is here in Jacksonville.

Jacksonville's tax burden is too high -- Even with the property tax increase proposed to 9.69 mills by the mayor, Jacksonville's millage (property tax) rate will be lower than other large, urban areas in Florida.  And, in reading newspapers from around the state, it appears that Jacksonville will not be alone in raising millage...so my guess is that our status as the lowest will remain strong.  (See page 16 of the JCCI study) And despite claims I have seen, I am struggling to believe that the tax burden is greater here than in Boston.  Does anyone have analysis on this?

I am certain that I have missed some issues, arguments and concerns.  Let's keep up the dialogue.  In the meantime, check out www.fixitnow.cc for more on the mayor's proposal.

[Joe]

What is the median tax bill increase that will result from the Mayor's plan to raise taxes?

[Adam Hollingsworth]

Joe -- This link might help...

http://www.fixitnow.cc/mypropertytax.html

[02roadking]

Adam, thanks for your input. Has any thought gone into an increase in sales tax at all. I really don't mind too much, paying a little more property tax, but the burden of this years, and, probably next years shortfall, seems to fall on the property owners shoulders and not too many other people, except where government cut backs are met.

[urbanlibertarian]

Adam, has any consideration been given to the sale of city assets to raise money?  Perhaps the Jags or the NFL would be interested in buying the football stadium.

[mtraininjax]

Adam, tough days ahead for everyone, but I really must point out something I mentioned to my city council folks and a reply back to the fixitnow website. If you add up all the commercial and residential interests on the website at fixitnow, you find about 320,000 total properties. Whereas, the US Census bureau shows that Jax has, as of 2007, 805,000 total people. I had seen information where 25% of the population in Jacksonville rents properties.

I don't want to pay more taxes if I can avoid it, but if I must pay more for my house fine. However, the tenants of our properties are going to see us pass these taxes on to them. This in addition to a Stormwater tax, the JEA rate hikes, and the rental community, at 25% of the population will do exactly what we as citizens are going to do. We are going to stop spending at restaurants, stop spending on retail items, and hold the line as to where we spend our money.

Have you really thought how raising property taxes create a trickle down effect onto everyone, including those of us who own property, are going to pass these tax increases onto our tenants? I already passed Stormwater onto them, now another 10-20 a month for increased millage?

If you really want to help us, lower our property values, and advise Jim Overton and his people to include foreclosed properties in valuations. Right now, foreclosures are not seen as a true value of a property, yet the local banks mandate that all appraisals include at least 1 foreclosure in the neighborhood. Property owners have to get some break on this, it can't be up, up and up all the time.

[Adam Hollingsworth]

I've seen some good comments and questions...here's my best reply:

Why not raise the sales tax instead? Sales tax revenue can only be used for capital expenditures like roads, buildings, etc.  Local governments cannot use sales tax revenue for operating expenses like police and fire service, parks maintenance, etc.  It is operating expenses which comprise the vast majority of the general fund.  (You will remember that it was the BJP referendum that increased the sales tax to pay for that program's capital projects list.)

Why not sell city assets to raise revenue?  Good question.  However, the sale of assets is a one-time revenue source that should not be responsibly applied to ongoing, annual expenses.  That would sort of be like selling grandma's china to pay the mortgage payment.  What would you then do next month?  The city has a gap between service demand and the associated expenses and the revenue available to pay for those services.  A one-time/short-term fix only delays having to make the difficult choices for the long-term.

Why not lower property values?  As was alluded to, property assessments are performed by the county property appraiser.  It is not appropriate for the mayor to interfere in the assessment process or direct the setting of property values -- particularly to affect revenue to be ultimately received by the city.  (Can you imagine the skulduggery that could result..."Hey, hike up Joe's property values, his great uncle just died and he can afford it...and besides the government needs more money.")  Property owners who disagree with their valuation can appeal to the Value Adjustment Board. 

Have we considered the impact of property tax increases on renters, particularly in light of fees?  As the mayor said today, no elected official seeks office to raise taxes. However, it is also doubtful that any elected official ran for office to dismantle government and destroy a community's quality of life.  That is why the mayor is calling for $40 million in cuts and a modest increase in revenue.  The increase will cost the average homeowner $115 per year and Jacksonville will remain among the least tax/fee-burdened cities in the state.

[thelakelander]

Adam,

Why shoot for an extra $115 a month to maintain status quo?  If it has to go up, why not take it to $125 or so to fund things (improving existing parks, parks maintenance, etc.) that can actually enhance our quality of life?  Does the opposition really increase when the request is $5 to $10 more per property owner over what is needed to maintain status quo?

[Keith-N-Jax]

Lake, Alot of people are already struggling to pay bills. My mortgage has already gone up three times since 06. The city has shown in the past and especially this administration that they are very poor at managing money. How much revenue was lost with fail deals with city property, the landing and other properties the city continues to hold on to. Why doesnt this plan include this city selling its own property, an outline on what the money will be used for, what parks will be rehab, what new amenties will be added downtown. You see just giving the city more money just manage what we have will not do when there sitting on property that could be sold. I dont trust these people!!!

[thelakelander]

Lake, Alot of people are already struggling to pay bills.

^No doubt.  You can add me to this category.  I've been doing contract work since my firm went under last year.  In any event, its one thing if there is a choice of whether to cut services or increase property taxes $115 to remain status quo.  However, no one is going to lose their home over a $10 difference, assuming the decision is made to increase property taxes.  $115 or $120/$125, you're in the do-do with both.  Imo, if we're going to increase, that increase should be about enhancing current services, not remaining status quo.

[Keith-N-Jax]

$10 here and there, $111 waste management fees, here and there. Yeah to me with a good paying job not alot of money, but when I think of my grandmother and others on fixed incomes trying to keep up with all these fees then I get worried. Now I just read that the duval county schools is thinking about increasing fees. So where does it end. You mention enhancing current servies, well when its all said and done who will have any money to spend on any extra services.

[Ocklawaha]

Adam, thank you for a thoughtful reply. As we are now facing a massive enlargement of rail passenger services nationwide, it seems to me and many others on this board that a combination of $40 Million cut in expenditures and a modest increase in revenue may indeed solve the "mortgage payment". But it does nothing to push us higher on the national transportation scope. We are the natural rail gateway to Florida and the Southeast. Getting the Convention Center relocated to the Courthouse/Hyatt site, and building a compact Transportation Center at JACKSONVILLE TERMINAL would assure us of 100's of new high paying jobs (Many of those train crews that would be staying in our downtown on layovers are making at or above $100,000 per year).

Compliment the downtown with the growth engine that streetcars provide and fund that 100% from the BJP right of way funding for transportation. With volunteers such as Dallas, Ft. Smith, Ft. Collins all use, we should be able to build for around $5 Million a mile or less, including the equipment. Cities with streetcars are STILL experiencing a $1,200 dollar return on every $1 invested, in the form of new development. Our one-two-three punch of SKYWAY-AMTRAK-STREETCAR would be a rocket powered income generator.

Finish the Skyway by directing JTA to aggressively complete shovel ready plans for San Marco (Atlantic at the FEC/West of tracks), Riverside (around Blue Cross), Stadium (at least Bay and Randolph).

Last but certainly not least is directing JAXPORT, JAA and JTA to persue the purchase and lease back of the entire former "S" line as well as the CSX from Springfield to Yulee. This gives us neutral access to our port, and offers a primary route for future expansion as well as future commuter rail.

Let me know if I can assist you in any way. Spike, Chris etc... all have my home phone number, so give me a call anytime.

THIS FROM JOHN MICA TODAY:

BLUEPRINT AMERICA: What is the likelihood of the transportation bill passing?

REP. MICA: It's 50-50. It's hard to say if we can get support. I think that with rolling the bill out this week, we will have an option of our bill versus the 18-month extension. Then you just have to work it, and see if you can bring a coalition of people who are interested in building and solving the problem of infrastructure now, rather than putting it off until later.

BLUEPRINT AMERICA: And, what would you say of the support right now for the transportation bill?

REP. MICA: Well, I think it could pass in the House.

BLUEPRINT AMERICA: What about the Senate?

REP. MICA: A little bit more dicey.

BLUEPRINT AMERICA: You were quoted as saying, referring to the Obama Administration wanting to delay authorization, “That’s a real slap in the face to a lot of hard work … I would have been mortified if this had been done to me under Bush.”

REP. MICA: I’m not Rep. Oberstar, but for his administration, after working as hard as he has to move the bill forward, to have the rug pulled out from under him, with this just out of the blue proposal, is a hard pill to swallow.

BLUEPRINT AMERICA: In terms of your role as a Representative from Florida, and getting funding for your state and your district, what needs to happen to that process?

REP. MICA: Well, I’m more interested in the country at large in terms of infrastructure. If we can provide adequate funds for improvements across the country, then it benefits every district â€" not just my own. Simply, I’m not taking a parochial viewpoint for my own district or for my own state.

BLUEPRINT AMERICA: You are a Republican â€" and you support transportation and infrastructure spending?

REP. MICA: Well, I tell you though, if you’re on the Transportation Committee long enough, even if you’re a fiscal conservative, which I consider myself to be, you quickly see the benefits of transportation investment. Simply, I became a mass transit fan because it’s so much more cost effective than building a highway. Also, it’s good for energy, it’s good for the environment â€" and that’s why I like it.

BLUEPRINT AMERICA: If anything, you’d say that your time in Congress and on the Transportation Committee has brought you around to these ideas?

REP. MICA: Yes. And, seeing the cost of one person in one car. The cost for construction. The cost for the environment. The cost for energy. You can pretty quickly be convinced that there’s got to be a more cost effective way. It’s going to take a little time, but we have to have good projects, they have to make sense â€" whether it’s high-speed rail or commuter rail or light rail. We got to have some alternatives helping people â€" even in the rural areas â€" to get around.

OCKLAWAHA

[thelakelander]

So where does it end.

Who knows?  I'm worried as well and I'm not saying I'm in favor of raising any fees but what is the solution if you want a better city?  Can it be achieved by cutting services?  To me something has to be done that encourages additional investment in this city.  Raising fees may not be the answer, but neither is remaining the same (which isn't good now) or cutting services.  The later options only lead to rust belt status, more blight, declining property values and crime.  That's something no one wants.

[Keith-N-Jax]

And where is the city going to get the money to move or build a new convention center, oh first is the city even thinking about a new convention center. Street cars, finishing the skyway, is JTA thinking about that. Dont get me wrong I am all for it., but when guys realize that this is not going to happen here. you'll either except it, or look elsehwere. WE do not HAVE the RIGHT leadership in place for any of this to HAPPEN this decade.

[Keith-N-Jax]

Crime is already here and getting worst!! Now if the mayor or some other mayor than this one we have had better vision and a real plan instead of whats going to be cut if this doesnt happen. Yeah if rasing taxes means a better Jackosinville than I'm for it,, but in this case it really means more money for them to waste. Fix it now,, whats being fix,, you mean maintaining the blight we already have. Fix it now means a new Mayor with strong leadership in coucil members, we have neither.