09-10 Budget by John Peyton

[hanjin1]

Here's an exclusive email I got from my best friend John Peyton, we are so best friends he gave me this email.


Mayor John Peyton
FY 2009/2010 Budget Address
Jacksonville City Council Chambers
Monday, July 13, 2009

Mr. President, members of the City Council, honored guests, fellow employees and Citizens of Jacksonville:

Good morning. It is a pleasure to be here with you as I hand off the 2009-2010 budget.

I want to start first by thanking former Council President Ronnie Fussell for his strong leadership this past year. While I’ve known Ronnie for years, our working relationship was forged during Tropical Storm Fay. We spent hours together in the Emergency Operations Center and with EOC personnel surveying damage throughout our city. It has been smooth sailing ever since. And serving with you has been a pleasure.

I want to recognize this year’s Council President Richard Clark and Vice-President Jack Webb. We begin our work together this year with a storm of a different nature. I look forward to navigating these uncharted waters with you both in the coming year. Thank you both for your service.

By now, you are aware of Jacksonville’s budget circumstances …. By now, you have heard my three-part plan to solve it …. And by now you’ve heard from constituents who are concerned about either the cost of government or the loss of their quality of life and amenities and services that come with it.

But, before I turn this budget over to Chairman Joost and the Finance Committee, I’d first like to talk about What Kind Of City we want to live in. And, What Kind Of City our citizens should expect.

I want to live in a city that …. believes in job creation and economic development.

We’ve had a number of successes with corporations such as Mitsui, Hanjin, Pilot Pen, Alenia, Rail America and most recently Saft choosing our city over any other location in the world.

When Jacksonville has the opportunity to compete, we usually prevail. And because of it, job growth in our community continues to defy gravity. We have a strong workforce.  A welcoming municipal climate. And a streamlined permitting process. 

We have a growing deepwater port.  We have an expanding aerospace and aviation industry at Cecil Commerce Center. And we are one of the largest intermodal transportation hubs on the East Coast.

We are gaining prominence as a center for the bioscience and healthcare industries with more than 30 medical facilities in our community. This concentration of education, research and treatment has put Jacksonville on the map as a world-class healthcare provider.

None of these developments happened by chance. They resulted from a deliberate strategy and dedicated partnership between the city, including this council, the Chamber of Commerce and the Jacksonville Economic Development Commission.

In 2005, we began a collaborative community effort called Blueprint for Prosperity. Increasing economic opportunity and raising per capita income is our commitment to the people of Jacksonville. I am proud to say, that as a result of these efforts, we’ve seen great strides in the areas of personal income, high-school graduation rates and net job growth.

I want to live in a city that …. sees and understands the value of keeping the St. Johns River healthy and vibrant for generations to come.

Water quality, conservation and river access will continue to be a major focus of my administration. The health of the St. Johns River contributes directly to our economic viability â€" especially to the development and revitalization of our downtown.

It is for this reason that I’ve included in this year’s budget funding for the redevelopment of Metropolitan Park and improvements to our North and Southbank Riverwalk. The Riverwalk should be the common thread connecting downtown neighborhoods, sports complexes and park attractions along our river.

We’ve dedicated millions to restoring our river. Our public spaces along it should reflect that same commitment.

As for cleaning up our river, the biggest contributor of pollution is storm water run off. It is also the most expensive to treat. In 2006 we adopted The River Accord. And with council’s support, we formed critical partnerships and dedicated significant resources to begin restoring the health of the Lower St. Johns River Basin.

I want to live in a city that …. comes together to take back our neighborhoods with a comprehensive approach to fighting crime.

Engaging the intellect of our youth is key to our safety. Early learning is the number one predictor for how far a student will go in school … what type of job they’ll get … and whether they commit a crime.

Since I took office, literacy has been one of the major focuses of my administration. Rally Jacksonville has more than 43,000 book club members and will be adding another 10,000 this fall.

We have worked with more than 175 child care centers to transition them from custodial care into learning care. Research tells us we are moving the needle and leading the nation in early childhood development.

The Jacksonville Journey is the first comprehensive, citizen-driven initiative to reduce crime. Combining enforcement, prevention and intervention we are turning the tide on the epidemic of violence in our city.

This year we opened 15 new Team Up locations that serve more than 1,800 children each day. We sent 2,900 more children to summer camp. In October, we reopened the Juvenile Assessment Center. And as a result we’ve assisted over 5,000 youth. Because of the partnerships formed through The Journey, 84 students were awarded scholarships to attend local colleges.

Because of your support, we are engaging at-risk youth in this community at unprecedented levels. The Jacksonville Journey is making a difference.

Violent crime is down 15 percent, since this time last year. And the murder rate is down 22 percent for that same period. These statistics do not yet reflect a trend … but they certainly indicate progress.

Much of this progress is due to the good work of our Sheriff, our police officers and the priority we at City Hall place on public safety.

I want to live in a city that …. embraces its military community.

In Jacksonville we celebrate the more than 250,000 residents who are active duty, veterans and military retirees, and their families.

These individuals are not only defenders of our freedom … They’re our neighbors. They’re our friends. They’re our Sunday school teachers. And they’re our Little League coaches.

The annual economic impact of these good people, represents close to $12 billion. This is the closest thing we have to a recession-proof business.

We are proud to be home to the U.S. Navy’s Fourth Fleet, the U.S. Marine Corps’ Blount Island Command, 21 Naval ships and 24 aircraft squadrons, the largest training range complex on the East Coast and the future homeport of a nuclear aircraft carrier.

The Defense Department recognizes the value that Jacksonville provides. And we are proud to be the number one requested duty station in the Navy.

I am grateful for the unwavering support of our representatives in Washington: Congressman Ander Crenshaw, Congresswoman Corrine Brown, Senator Mel Martinez and Senator Bill Nelson.They have been tremendous partners as we’ve worked to ensure funding for a carrier at Naval Station Mayport.

I want to live in a city that …. values art and culture.

We have a world class symphony and a Cultural Council that provides support for some of our hallmark institutions including the Florida Theater, the Museum of Contemporary Art and the Cummer Museum of Art and Gardens.

Thanks to many of you, thousands enjoy monthly Downtown Art Walks and Saturdays at the Riverside Arts Market. Since its grand opening in April, the Riverside Arts Market has become a premier family entertainment destination on our beautiful St. Johns River.

Our Special Events team provides year-round, free and low-cost entertainment for our families and visitors alike. These events draw millions of people to our downtown to celebrate our cultural diversity, and provide an annual economic impact of well over $200 million.

I want to live in a city that …. takes care of its own and offers a critical safety net to our most vulnerable population.

Because of the down turn in the economy our social service providers are at crisis level. The profile of those seeking assistance has changed. We are seeing record numbers of families with children seeking support from our food banks, homeless shelters and victims’ assistance programs.

This is no time to cut back on our social safety net. By doing so, we would only realize short-term savings that will result in greater long-term human suffering and crippling, long-term financial costs.

We are compassionate people. And this budget should reflect it.

Granted, we are serving during an extraordinary time. We are facing issues and challenges that are unprecedented. I believe our contribution as public servants will be forever marked by how we manage through these perilous times.

We must not let the current economic environment lead to survivalist thinking or paralysis. It is time to be bold. It is time to be courageous. And it is time to do what is right. This may mean not doing what is politically expedient.

Last month, an important JCCI study said that we are at a point of financial crisis. I agree.

A budget crisis, however, does not mean we are going out of business, defaulting on our bonds or missing payroll. It means simply the math we’ve been using to balance this budget no longer works in today’s environment.

Despite the rejection of Amendment 1 by Jacksonville voters, the work of Tallahassee cost our city more than $100 million.That loss represents roughly 10 percent of our overall budget.

But our challenges go beyond what Tallahassee imposed. Jacksonville is also suffering the effects of the global recession. Property values have declined 6 percent over last year, which represents a loss of $3.5 billion on the tax roll. That reduction equates to about $30 million in lost revenue this year.

And to make matters worse, we have a city employee pension system that is unsustainable.

I am proposing a three-part plan that begins with identifying ways to reduce the cost of government.

My administration has consistently taken steps to eliminate reoccurring expenses. In fact, our overall non-public safety spending is less today than when I first took office. This year, we’ve asked department heads to cut even deeper. We have identified yet another $40 million in cuts.

First, all non-public safety departments will cut a minimum of 5 percent from their budgets. We will eliminate approximately 100 existing positions. This is on top of the nearly 400 positions we’ve eliminated since 2006.

In addition to departmental cuts, I will work to negotiate zero raises across the board and furloughs for all employees not serving in uniformed, public safety roles.

Let me be clear, our city employees are some of the hardest workers I’ve ever had the pleasure of working with. They have consistently risen to the occasion when asked to do more with less.

However, we can no longer continue to promise a retirement plan beyond what other Americans expect to receive. Six years ago, the city’s annual pension obligation was $40 million. Next year, it will be about $110 million. Ten years from now, the pension costs are estimated to be about $260 million. That will be a 550 percent increase since I first took office.

It has been suggested that previous administrations failed to make pension payments. That is not accurate. To set the record straight, the city has never missed a pension payment.

The driving force behind increasing pension costs is a growth in benefits, actuarial charts that masked the actual costs of benefits and the market’s failure to meet investment targets in a down economy.

Maintaining the current structure is not an option. However, I can assure you that any reform plan that we negotiate will be fair. It will be competitive. And it will be sustainable.

Furthermore, the plan I will propose will honor our commitment to current employees. At the collective bargaining table, I will propose a plan that takes a new approach, including:

•   8.4 percent guaranteed rate of return for retirees
•   Cost of living adjustments
•   Retirement based on years of service and minimum age
•   Surviving spousal benefits
•   Employee contributions and
•   Average pay calculations.

While the plan offers no short term relief, it will provide more than $1.3 billion in savings during the next 35 years …. If future mayors and future councils hold the line on new benefits.

But even after making $40 million in cuts and reforming pension, we were still $50 million away from a balanced budget. We had two options: come up with an additional $50 million in cuts …. or seek a modest revenue enhancement.

I can assure you this was not an easy decision and one that I personally struggled with. How could we ask a community â€" that is already feeling the effects of this economy â€" to pay more?

Let me share with you my process for making this decision.

As an exercise, I went through what $50 million in additional cuts does to our community. The realities were grim. It did not paint the picture of a city I want to live in. And, it did not paint a picture of a city I believe you want to live in.

While each one of us may have slightly different priorities for what to cut … the Draconian impact to our city is unavoidable.

I believe our citizens deserve better.

And that is why I am proposing a balanced budget that factors in a modest, 1.02 millage rate increase. To put that in perspective, the average homeowner in Duval County has an assessed home value of $145,000. That homeowner would pay an additional $97 next year â€" that’s about $8 a month.
   
That modest increase will fund core government functions at current levels, such as road work, recycling, park maintenance, trash pickup, public safety, libraries and community centers.

It is important to note … we are simply restoring the millage rate to what it was before Tallahassee started meddling in local government affairs.

Some will say government should do what families are doing and … “tighten its belt.” Councilmembers, I’ve said it before and I’ll say it again: That’s not a management plan. That’s a bumper sticker.

As good stewards I know you will scrutinize my three-part plan â€" and deservedly so. Taxpayers should expect no less. But if you intend to vote “no,” this community deserves to hear your plan for balancing this budget.

Is it your plan to close fire stations?
Is it your plan to cut libraries?
Is it your plan to cut community centers?
Is it your plan to eliminate the Cultural Council and Public Service Grants?
Is it your plan to … shut down assistance to crime victims, the homeless and those who have no where else to turn?
Is it your plan to eliminate programs for children?
Is it your plan to end recycling?
Is it your plan to shut down government?

If your plan involves balancing this budget without a revenue increase, let me assure you, the devastation you start this year will be even worse next year. Even if you’re successful in balancing this budget only with cuts, you will still have a $120 million hole in next year’s budget.

What is your plan for that?

My plan is to Fix It Now! And by working together, I believe we can.

I truly believe that we, as elected officials, serve because we believe in this city’s future â€" and inevitably we want to be a part of her success. It is my hope that as the elected leaders of this community, we work together to solve the budget challenges of Jacksonville.

Harry Truman said, “In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”

We must ask ourselves, “What kind of city do we want to live in?”

We owe it to the architects of Consolidation. We owe it to ourselves. And we owe it to the children who will inherit this place. With that, Mr. President, I present to you the proposed budget for fiscal year 2009-2010.

This is our best work.

Godspeed. God bless all of you who offer your time and talent for the betterment of our city. And God bless Jacksonville.

[reednavy]

this has to be the longest essay of his career

Of course, he didn't write it himself.

[hanjin1]

cut paste

[fsu813]

I agree with him on this one. We haven't had a property tax increase in 17 years. It's time.

[vicupstate]

I assure you taxes have gone up in the last 17 years, when property values in excess of inflation are factored in. Three times in the last 6 years in fact. In addition, virtually every fee or fine that the city levies has been increased, in most cases by 50%, 100%, 200% or more in the last 6 years.

This crisis is a result of not saving for a rainy day during the good times, postponing tough but necessary decisions, the real estate bubble, the stock market bubble, and Crist's hair-brained scheme to cut property taxes(which Jax could have avoided, but chose not to). 

One idea I have not heard discussed is to do what other governments have done, and require non-emergency personnel to take unpaid furlough days. It wouldn't fill the entire hole, but an extra (unpaid) day off at XMAS might be a start.     

[mtraininjax]

Vic - I agree, sales taxes have gone up in that time, 17 years. We have seen FEES go up, which are the same as taxes, so anyone who votes for taxes, saying that they have not risen in 17 years, is SMOKING THE SAME DOPE AS PEYTON.

Peyton knows how to kill some trees. Geez boy, just say it!

[Springfield Girl]

My taxes went down $150 last year. My stormwater and garbage fee was $190. I get tired of hearing about how our property taxes have been cut when in reality they have just been repackaged as fees. In the last year my utility bill has skyrocketed. I am using less energy but paying as much as double some months compared to last year. Other than closing fire stations I don't have a problem with making cuts to his other listed programs. I don't care what statistics the Mayor throws out, I do not see a measured improvement from the programs we are funding. As a taxpayer I contiue to experience a reduced quality of life.

[stjr]

My taxes went down $150 last year. My stormwater and garbage fee was $190. I get tired of hearing about how our property taxes have been cut when in reality they have just been repackaged as fees. In the last year my utility bill has skyrocketed. I am using less energy but paying as much as double some months compared to last year. Other than closing fire stations I don't have a problem with making cuts to his other listed programs. I don't care what statistics the Mayor throws out, I do not see a measured improvement from the programs we are funding. As a taxpayer I contiue to experience a reduced quality of life.

Your taxes vs. fees issue was created by slight of hand of Gov. Bush and Mr. Rubio of the state legislature.   What they did was tell everyone they were lowering your taxes so they could get your votes.  In reality, they did so without removing any State mandated expenses or maintaining services at any level that would suffice as satisfactory (see, for example "education").  They also were indiscriminate, punishing better managed North Florida counties for the sins of corrupt and poorly managed South Florida counties where their voter base resides.  They also failed to tell you that if you were a long time resident benefitting from the previously passed Save Our Homes cap, the "cuts" would be offset or exceeded by a continuing rise in your capped "taxable" values until they caught up to the much higher "market" values.  So, only those new arrivals creating all that suburban sprawl demand and the developers catering to them really benefitted from the "tax cuts".
 
Worse, they created a structure in which we are losing our average 1/3 Federal income tax subsidy by replacing tax deductible property taxes with nondeductible fees.   The taxpayers of the other 49 states thank Floridians immensely for returning this money to the rest of the country.  Stupid is as stupid does.

To his credit, Peyton and other locals worked hard to convince voters not to swallow this bait, but, alas, it wasn't to be. The voters never met a "tax cut" they could resist.    He warned us this would happen and it is.  Don't shoot the messenger, they are victims of this scam just like the rest of us.  Peyton did misstep on an already mishandled Courthouse but that was the Better Jax Plan and not the daily budget.

Duval has actually been reducing its millage rate for years.  I do agree this was a mistake and that, instead, we should have parked the excess for a rainy day which we should have known was inevitable.  Blame that on prior mayors and politicians who also pandered to get our votes.  Likewise, at the State level, instead of gutting property taxes, good stewards should have saved the excess for times like these.  But the politicos figured the voters would rather hear about tax cuts than fiscal responsibility.  After all, many voters weren't saving either.  The economy is cyclical and it doesn't take a rocket scientist to know all of us need to save for rainy days.   Why are so many acting surprised?

Much of JEA's increase was to cover the cost of record fuel increases (remember $150/barrel?).  I bet your gasoline bill went up during the same time while you cut your driving too.  How is this the mayor's fault?  Yes, the JEA has raised some other costs but this is another example of paying for past sins.  JEA inherited a water works department years ago from the City that was poorly maintained and years behind in modernization.  That's why the City off loaded it to JEA so JEA could have the headaches they knew were coming.  JEA also skimped some in the electrical infrastructure area and now, finally, has to make up for it.  And, JEA has to pay the costs of urban sprawl and new environmental, anti-terrorism measures, etc. mandates.  P.S. JEA is an independent authority not under the direct control of the City.

How many of those complaining have written Bush and Rubio and how many are considering supporting Rubio for U.S. Senate where he can continue to pedal his snake oil?  Crist is a snake, but Rubio is a far bigger one.  While you are at it, thank Crist for signing into law a bill to let developers off the hook for the cost of the sprawl they create.  You can count on more tax increases to pay for roads, schools, and other infrastructure to support Charlie's builder friends.  I know you won't mind because he is an "anti-tax Republican" and they would never do anything to raise your taxes 

[tufsu1]

My taxes went down $150 last year. My stormwater and garbage fee was $190. I get tired of hearing about how our property taxes have been cut when in reality they have just been repackaged as fees.

Would you rather we not clean up the river?

[brainstormer]

You hit the nail straight on the head stjr.  As humans we give in easily to our wants and become the victims of ourselves.  I am currently trying to deal with my years of "free" credit.  It sucks now not to be able to spend like I used to.  But you know what?  It's my own fault, and I take full responsibility and will continue to spend less until I become financially stable.  I don't make enough to afford even a cheap home and still drive my 2001 Saturn.    But I have a place to live, a wonderful partner, good friends and still eat well.    It annoys me when the guy who owns a $450,000 home complains about his taxes going up so much.  Perhaps he bought more house than he needed in the first place.  Also annoying are parents who say they can't pay their electric bill but just bought their son/daughter another Wii game.  How many out there are still playing the blame game for their current financial state?  Unfortunately, politicians by nature pander for votes and often are very irresponsible in their promises.  Like many others, they are driven by greed, instead of what's right.  As a nation we need a financial sobering period.  I'm hoping that perhaps somewhere out there is a person willing to take on responsible leadership for city and state governments.  Someone willing to put the money where it is needed for the city's good, not their own good.  I'm hoping most people will learn something from our current recession, and I think we will be a better nation in the end.

[vicupstate]

stjr,  you are largely correct in your post, but you give Crist too little blame, IMO.  You also let Peyton off the hook for the state mandated tax cut, that could have been completely avoided if he had supported that choice.   

But you are 100% correct on the smoke and mirrors tax cut.  Crist has played FL for a fool, and continues to.

[tufsu1]

the real blame goes to us...the citizens/voters....we continue to want, want want...but at the same time think our taxes are too high.

It is truly sad that politicians win our votes by pledging to "cut" taxes.

[Keith-N-Jax]

The real blame goes to the mis managment of tax payer's money, ie city leaders who are clueless. Proof, just look downtown. I know people make mistakes, but its past time to start learning from them. I dont blame citizens for wanting. If increasing taxes means a better Jax I am for it, but we have seen first hand that this administration waste money as fast as we can make it. I cant wait til Peyton last few years are over with.

[Steve]

From the Daily Record:

A who’s who from the Jacksonville area have signed a petition urging City Council to support Mayor John Peyton’s proposed property tax hike. They include former Mayor and current UNF President John Delaney, Jacksonville Regional Chamber of Commerce Chair Mike Hightower, Florida State College at Jacksonville Dr. Steven Wallace, (Ret.) Ambassador John Rood, Gate Petroleum owner Herb Peyton, former Jacksonville Economic Development Commission Chair Ceree Harden and a host of others.

Well, imagine that.

[mtraininjax]

Anyone who thinks that the "stormwater fee" is going to clean up the river is just NUTS. All that revenue is going back to the City General Revenue Fund, to help make up shortfalls.

Wake up people! Any budget with 1 BILLION dollar budgeted is bound for serious cutting of fat.