This article originally appeared on November 20, 2008--the month of JaxPoliticsOnline.com's inception.  In light of the recent special elections, where voter turnout in Jacksonville failed to top 20%, the points remain quite valid.

Duval County voters turned out in astonishing fashion in the 2008 Presidential race. When all was said and done, roughly 78% of the county’s voters found their ways to the polls to make their voices heard. This sense of civic duty was rather remarkable, particularly considering voter turnout in the 2007 City Elections, which featured a race for Mayor and every single City Council seat, was not even 20%.

In all fairness, 2008 turnout was somewhat of an anomaly. After all, a hotly contested Governor’s race in 2006 only drew 42% of Duval voters, slightly less than the equally febrile 2003 Mayor’s race, which managed to pique the interest of 50% of Jacksonville’s registered voters.

According to the Grand Jury report released in the Sunshine Law Investigation, the Grand Jury found that Duval County residents felt a disconnect from their local government. While many might be quick to point out the obvious—voters who don’t bother to show up at the polls will never have any sense of engagement in the process—what we really need to consider is why Jacksonville voters believe their voice counts in changing the direction of government in Washington, DC, but feel powerless to affect government within their own City?

Turning out voters is not only the responsibility of the Supervisor of Elections. In truth, there are many things that could be done both within and outside of government to improve voter involvement in local government. Here are a few suggestions:

1. For starters, our current elected officials could take steps to ensure openness and access to citizens. In this day of cutting edge technology, it’s rather bewildering that a majority of Jacksonville City Council members do not offer the public access to their incoming e-mail. No members offer access to outgoing e-mail. Town Hall Meetings seem to be few and far between. In fact, in my district, the only time I have heard of my Council member being available at a town hall-style meeting was when there was a public hearing over a zoning request change. There should also be more consideration given to the location and time of Council meetings. Most of the voting public works and finds it difficult to rush downtown for the opportunity to take advantage of the public comment time in a council meeting. (Not to mention the dearth of appropriately lit parking slots available.) I have to wonder what an occasional rotating Council meeting held, say, on a Saturday morning at alternating locations throughout the City (Mandarin, Beaches, etc) would do to increase public interest in City Council deliberations.

2. Our local media also needs to fully embrace their role as public watchdog. The Florida Times-Union did a sensational job in uncovering and investigating several recent major stories, including the Sunshine Law Violations and allegations of corruption at the Jacksonville Port Authority. Many of the local television stations have had similar pockets of success and Folio Weekly has long prided itself on its investigative prowess. Where are these media outlets; however, when local races are on the ballots? Is it too much to ask for our daily paper to commission a poll on the top five issues voters see as crucial in upcoming city elections? Such a poll could then be followed up with a five week series leading up to Election Day exploring these various issues, sharing proposed solutions and highlighting where the various candidates stand. Why couldn’t competing candidates for the Supervisor of Elections post write dueling op-ed pieces that lay out the challenges they see within the office and discuss the direction they would like to take it? Why can’t local television stations catch people walking around the St. Johns Town Center on a Sunday afternoon and ask them to pose a question to candidates running for City Council? Why couldn’t all of the outlets do a better job of expanding their online capabilities? After all, how difficult would it be to reach out to local blogs and forums to draw in educated and lively debate on issues? Why couldn’t candidate debates be posted in online formats, such as YouTube or iTunes, to make them more accessible to the public that might not be able to catch a specific program?

3. Candidates---and the political consultants that advise them---need to embrace modern technology in their campaigns. While campaign websites seem to be (ever so slowly) becoming a staple of political life in Jacksonville, one recent candidate for City Council featured a website that was absolutely appalling in its archaic insignificancy. The site was nothing more than a vapid one-page billboard—-quite startling for a city-wide election in a major population center with nearly 1 million residents. Campaigns are expensive, certainly, but many of the methods of modern media are free. Hopefully, the success of the Obama campaign should have forever established the importance of such outlets as Facebook (free), YouTube (free) and blogs (also free). Local candidates wishing to engage the ever-elusive younger voters should explore these types of mediums to communicate their messages.

4. Local campaign finance reform is long overdue. For years, local fundraising has been dominated by a few industry segments (and individuals) who have opened their coffers and exploited loopholes to bankroll their preferred candidates, often leading to situations where a candidate can haul in thousands of dollars via one individual who also happens to have multiple corporations and partnerships. Several local activists, including former city council candidate Scott Shine, have worked to advance proposals that would ban corporate contributions to Duval County races. This is something the City Council should earnestly consider. Jacksonville is long overdue to return the responsibility for local governance to the voting public that pays the bulk of the property taxes in the City. Campaigns should be about a candidate’s vision for the City, not their ability to monopolize a select few donor sources to effectively overwhelm the competition.

5. Finally, and most importantly, voters need to realize that they alone have the ultimate responsibility to become actively engaged in the process. There are multiple tools available to the public to educate themselves on candidates for office. Google the names of candidates, find their websites, read local forums, blogs and the sample ballot from the Supervisor of Elections. And, for goodness sakes, show up to vote. In today’s world, where the two weeks before Election Day offer early voting, voting is easier than it has ever been.

Jacksonville has many things of which to be proud. Our river and our beaches provide scenic beauty that is only the beginning of the advantages we have over cities throughout the country. It’s certainly time that we add the active engagement of our voting public to that lineup.

The Jacksonville City Council's Finance Committee moved to close the city's $50 million deficit on Thursday by proposing a 3% across the board cut for every city department.  This cut, according to The Times-Union, would come on top of the 5% cut already ordered by Mayor John Peyton.  Of course, with the general fund accounts for most departments having already been drained over the past few years, this means that there will likely be few places for the cuts to come from.  The most likely source?  City employee salaries.

The salaries of city employees are a rather tricky matter.  While the Council may have ordered 3% cuts (which, when combined with the Mayor's proposed cuts will equal 8%), they have no authority to force salary cuts for union employees.  For any cuts in the salaries of city union employees, the Council---like the Mayor---is completely dependent on future negotiations with the unions.  Because union employees comprise a significant portion of city employees, it is entirely likely that the brunt of department cuts will be born by rather small percentage of individuals.

Sheriff John Rutherford isn't buying the Council's "solution."  A long-time employee of the Jacksonville Sheriff's Office, Rutherford is understandably sympathetic towards city employees.  “[T]hey want to take it out of the employees’ pockets,” he said. “It is wrong.”

Non-union civil service employees should not be unfairly punished for the city's financial problems.  They didn't create them and they should not be forced to bear the brunt of any attempts to right them.

Jacksonville City Council President Richard Clark has created a new "budget suggestion" e-mail address to allow citizens to have input during the 2-month budget-setting process.

“As Jacksonville faces its most difficult budget in many years, it just seems to make sense to seek out as many good ideas as possible to help sharpen our focus and find every possible cost savings that may be available” said Clark.  “The general public and the business community have been tightening their belts and squeezing down expenses for more than a year now, and perhaps they can help us with ideas and strategies that have worked for them that might be applied to the City budget as well.  I look forward to seeing the public’s creative ideas.”

E-mail your suggestions to BudgetSuggestions@coj.net.

Many people are wondering how Duval County's "rollback millage rate", which is set by the state, is actually higher than the County's current millage rate. After all, "rollback" would seemingly mean lower, right? Well, not always and there's a reason why. Check out this handy video tutorial from The Times-Union's Jonathan Bennett:

Merely one week after the Finance Committee voted to reject the Mayor's proposed millage rate hike, the full Jacksonville City Council will meet to vote on the 12% increase.  The debate, albeit brief, has been targeted, aggressive and, at times, personal.

Many have alleged that the Mayor strategically placed non-profit organizations with strong volunteer bases on the "endangered list", knowing full well that the non-profit groups would implore their donors to support the tax increase to preserve their funding.  While initial reaction to the proposed increase was overwhelmingly negative, the Mayor has elicited a great deal of support in the last few weeks as these organizations have been successful in raising awareness among their supporters.

Jacksonville remains a community divided.

Up to this point, the debate has raged over the Mayor's assurance that he has cut all possible inefficiencies out of City Hall and any additional "savings" would have to be realized by slashing arts and cultural funding, human services funding and closing libraries and fire stations.  The City Council will now determine whether that is indeed the case as they hammer together a budget over the next several months.  Just as the Mayor was constitutionally obligated to submit a budget, the Council has an obligation to Jacksonville's citizens to take its time in determining the best course of action for the city.  Their decision should not be rushed.

Despite the time afforded to work through the budget, the decision to determine the maximum millage rate is not one that can be put off---the Council will be forced to make that decision today.  If the Council elects to forgo a millage increase and maintain the current rate, they will force tens of millions in cuts to the city's budget.  If they are unable to identify sufficient areas to cut, or if negotiations with the city's unions do not fall in line with the Mayor's proposals, the Council could very well be forced to re-visit their millage rate-setting decision.  According to Jim Overton, the Duval County Property Appraiser, if the Council is forced to come back and later raise the rate, it would cost the city in excess of $200,000.

While some members of the Council have implied that $200,000 is hardly a significant amount in a nearly $1 billion budget, it's hard to imagine that voters would be forgiving of an expenditure of this size.

With that in mind, Council members need to carefully weigh their decision tonight.  If they are confident in their ability to cut city spending without drastically impacting the quality of life in Jacksonville, it is likely that they will vote to maintain the current millage rate.  If; however, they have reservations, they do have the option of opting for the higher cap in the short term.  There will still be time over the next few months to identify savings that would prevent them from actually being forced to institute the maximum rate.

For Jacksonville residents, any decision to hike taxes is particularly bitter in light of the tens of millions of dollars wasted over the past decade on ill-advised investments and poorly-written contracts.  These dollars have been lost on projects like the Duval County Courthouse, the Shipyards, cost overruns at the Main Library, no-bid contracts and numerous other controversies.  Yes, despite this irresponsible management of taxpayer dollars, voters have yet to really hold anyone---politicians or civil servants---accountable.  Voters are now painfully aware that they can no longer continue to exercise such a lackluster interest in how their taxpayer dollars are being spent.

In these tough economic times, the City Council is certainly aware of increased voter scrutiny.  While time remains to identify additional savings within the budget, the Council should avoid the potential wasting of taxpayer dollars---even an amount as supposedly insignificant as $200,000.

Jacksonville's nineteen city council members will now take up Mayor John Peyton's proposal for a 12% increase in the city's millage rate after the Council's Finance Committee voted 6-0 against the proposal.  Bill Bishop, one of the Committee's members, said that rejecting the Mayor's proposal would force the city to get serious about exploring inefficiences within city government.

“We won’t be able to raise the millage without going through a lot of hoops, a lot of serious, extensive analysis of where we can cut,” Bishop said. “If we have to ultimately raise the tax rate, we’ll be able to tell people this is what we did and this is what we are going to need to be able to run the city.”  If the Council is unable to identify cuts, it would cost the city an additional $200,000 to have to revisit the issue.  That's a risk Councilman Bishop says he is willing to take.

The full council will consider the millage increase proposal on July 28.

What has remained unmentioned throughout this entire process, despite the complaints of the Mayor and numerous members of the Council in regards to the millage cuts forced by the Legislature's passage of statutory tax cuts in the 2007 special session, is that this year is the last year the council could vote to override the cuts for Duval County.  In fact, it is quite surprising that the Council didn't do that last year after Amendment 1 failed to pass in Duval County---the only major county that it failed in---by a nearly 6-point margin.  It's beginning to look like the failure of the Mayor to seize on the unpopularity of Amendment 1 by asking Council to override the statutory tax cuts passed by the legislature was a major political miscalculation.

For their part, the  Mayor and Council's continued finger-pointing at Tallahassee is getting increasingly tiresome.  While the moves by the legislature resulted in millions of lost revenue for city coffers, the City had the express authority to change that last year.  They still have it this year.  Apparently, however, it's easier to point fingers at an overreaching state government than make a decision to assert the authority of the Jacksonville City Council in setting the city's future millage rates.

Folio Weekly's blog, Flog, had posted this letter Councilman John Crescimbeni sent in reply to an e-mail from a citizen.  For those who are looking for a glimpse into what some of the members of the Council are thinking as they prepare to take up the Mayor's proposed increase, Crescimbeni's letter represents an interesting point of view.  

From: Crescimbeni, John 
Sent: Thursday, July 16, 2009 4:14 PM
Subject: RE: NO MORE NEW TAXES IN DUVAL

Thank you for your email.

Although I have never campaigned on the promise of no new taxes, I did campaign on a promise to cut wasteful city spending. Unlike the mayor (who suggests belt tightening is a slogan for a bumper sticker), I think there is still waste in city government that has to be eliminated before the citizens are asked to pay higher taxes.

As you know, the mayor presented his proposed budget (for 2009-10) to the City Council on Monday. He is requesting a millage increase of 1.02 mils (about a 12% increase over last year’s rate). Now that the proposed budget has been submitted, the City Council will begin the long and arduous task of examining the same in an attempt to find additional savings or efficiencies. Generally, this review process will continue until late September at which point the City Council must finalize and approve a budget for the next fiscal year (which begins October 1).

There is no question that recent actions in Tallahassee have reduced revenues for cities and counties throughout Florida. The millage rollback mandated by the 2007 Legislature resulted in an adjustment to our local city millage rate from 9.64 mils (in the 2006-07 fiscal year) to 8.48 mils in the 2007-08 and 2008-09 fiscal years. The aggregate value of the mandated rollback reduced city revenues (from property taxes) by $67.2 million in the 2007-08 fiscal year and $68.8 million in the current (2008-09) fiscal year. As an attempt to offset some of that revenue loss, the City Council approved the following three new fees in September 2007: garbage fee, stormwater fee and the JEA franchise fee. In fiscal year 2007-08, approximately $29.8 million was collected in fees. In the current (2008-09) fiscal year, the city projects it will collect $75.8 million in fees. Unfortunately, the city incurs additional costs in collecting the stormwater and garbage fees (which are billed separately from property taxes). Those collection costs are estimated to be $740,000 for the current fiscal year.

In addition, the 2007 Legislature also created (for the first time) a $25,000 exemption for Tangible Personal Property Tax. Tangible Personal Property Tax is a tax levied against business assets such as equipment, furniture, computers, etc. A business owner with assets of $25,000 or more now saves $212.10 in city taxes. In the current fiscal year, the aggregate value of the $25,000 exemption reduced city revenues by $2.9 million.

Finally, Amendment 1, approved by Florida voters in January 2008 resulted in an additional $25,000 homestead exemption for homesteaded properties with an assessed value of $50,000 or more. Each homestead exemption is worth $212.10 in the current (2008-09) fiscal year budget. The aggregate value of the additional exemption is projected to further reduce city revenues from property taxes in the current fiscal year budget by $32.5 million.

It is also true that the city has not increased the millage rate in more than 17 years. For the 1991-92 fiscal year, the millage rate was set at 11.53 mils. As stated above, the present millage rate is $8.48. Over the years, the declining millage rate has resulted in an aggregate savings to taxpayers (and reduction in city revenues) of more than $725 million.

With that said, I still think there is opportunity for some belt tightening. Like most Americans who are now trying to get by on less, the city needs to participate in the same exercise. There is no question that the city’s three pension funds (city employees, correctional officers, and police and firefighters) are approaching unsustainable levels and need to be reformed. There is no question that salaries for every city employee need to be examined as does the need for the position itself. And there is no question (at least in my mind) that some wasteful spending in city government still exists and needs to be eliminated.

In closing, I thank you again for your email and I welcome your continued input as the City Council proceeds with the process of examining the mayor’s proposed budget. In addition, keep me posted on any more party invitations you receive!

John R. Crescimbeni
City Councilman, At-Large, Group 2

The Jacksonville City Council is barely one month into their year under the new leadership team and rumblings are already being heard.  In all fairness, any year in which the Council is faced with difficult financial decisions that will force many of them to choose between the long-term financial stability of the city and powerful union constituencies would likely be a difficult year.  This year; however, looks like the mother of all years.

In addition to other tensions currently festering, a new announcement regarding the enforcement of council rules appears to be targeted towards one specific council member---one who is not likely to react all that kindly to being "singled out" under the new emphasis.

The Council President has announced his intention to strictly enforce Council Rule 4.805.  This rule specifies that "no Council Member shall speak more than five minutes the first time nor more than three minutes the second time on any subject, except by permission granted by the presiding officer, and the proponent of the measure shall have not more than two minutes to close."

Mr. Clark also informed Council Members that during public comments they are to ask questions only which pertain to the merits of the bill.  Their time limit during public comment will be limited to 3 minutes and they will not be allowed to debate or make a public display on the Council floor.  Additionally, no Council members will be allowed to give presentations in excess of 10 minutes per Council Meeting.  

The new rules were announced in a week where tensions have already boiled to the surface over the composition of the Finance Committee---the most powerful Committee on the Council.  

Lawsuits, Tax Hike Proposals, Pension Reform...it's going to be a tumultuous year.

Poor planning of a retention pond, a prominent local landowner and a Better Jacksonville project recently cost the City nearly $1,000,000.00. When the recent widening of the Kernan Boulevard and Kernan Parkway intersections called for the eminent domain seizure of one parcel of land, City Planners ended up land-locking a larger parcel held by the Hodges Trust.  The original parcel of land taken by the City was used to create a rainwater run-off collection pond which blocked ingress and egress to a larger adjacent tract of narrow, undeveloped and littered woodlands.

As a result of this planning oversight, Kernan R. Hodges filed lawsuit 2008-CA-004761 and disputed the value of the damages associated with the condemnation.  On May 8, 2009, City Attorney Margaret Sidman recommended that the City settle rather than fight the claim or incur the costs and risks of trial and authored Ordinance 2009-410-E. This bill appropriated $994,562.50 to settle the case and pay Ms. Hodges for the blocked woodlands as well as her attorney’s fees.  By May 12, 2009 the bill sailed through the Finance Committee, with only one amendment increasing the amount of the attorney’s fees to $169,562.50. On June 09, 2009 the bill was quietly passed by City Council with little opposition, discussion or debate.

Eminent domain issues are often litigious and fraught with many challenges for city planners and attorneys, but what is alarming about this case is the speed it moved from Committee to a City Council floor vote.  Even though this was not designated as an Emergency, under City Council Rules 4.901-4.906, it only took less than a month for elected officials to approve a nearly seven-figure expenditure of taxpayer dollars.

When the District’s Councilmember, Richard Clark, was asked why he voted in favor of the settlement he couldn’t recall the bill.  Mr. Clark wasn’t sure of what evidence the Office of General Counsel presented to support the settlement, but conceded that “the finance committee has shown it does not like to settle unless it is in our best interest.”  Other Councilmembers aren’t so convinced and have questioned if it was the best use of money; especially when the property could have likely been condemned through eminent domain proceedings anyway. 

Why the City chose to settle the case with Kernan R. Hodges is not clearly indicated in public records and leaves some wondering if this was the right choice. Perhaps the City’s position was so untenable that settlement was the only option, or maybe the Office of General Counsel did not want to take on a prominent local landowner.   Whatever the reason, one thing is clear ­­— the Kernan Boulevard improvements will now cost taxpayers an additional $994,562.50 and the Hodges Trust will reap the benefits of poor planning and an expeditious legislative process.

Below is the budget address the Mayor delivered to the City Council yesterday morning.  We will delve into it in the coming weeks.  Stay tuned.

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 – 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 – that is already feeling the effects of this economy – 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 – 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 – 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 – 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.