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Mayor Peyton To Seek Tax Hike

Sources Say Mayor To Ask For 1.2-Mil Property Tax Increase

POSTED: Tuesday, June 23, 2009
UPDATED: 10:18 am EDT June 24, 2009

At a Tuesday morning breakfast meeting, Jacksonville Mayor John Peyton unveiled plans to raise the property tax rate to avoid "draconian cuts" to the city budget.

Channel 4 learned that Peyton told the gathering of businessmen and community leaders at River City Brewing Company that he was soliciting their support for his "Fix It Now" plan to raise the tax rate 1.2 mils to avoid a proposed $65 million shortfall in the next fiscal year.

According to Fraternal Order of Police president Nelson Cuba -- one of three people at the meeting who spoke to the local station -- Peyton told the group the city has been run "on the cheap" for too long and he asked them lobby the City Council to pass an tax increase from 8.4 mills to 9.6 mills.

Peyton said the hike would generate $70 million to $80 million and avoid massive cuts to city services, including closing fire stations and libraries and prevent layoffs or furloughs of city employees.

"I think it's going to be up to the mayor to show the City Council and the citizens that there's nothing else you can streamline; there are no other programs we can cut if we want certain things in the city," Cuba said.

Peyton said every city department head except those in public safety has already been told to cut their budgets by 5 percent and even if the millage increase is approved, about 100 positions would be eliminated and a two-year salary freeze would remain in effect.

“He was just looking at business leaders to say this is my plan, get behind it, let's go,” said Firefighters Union Leader Randy Wise.

Wise was there at the meeting and said the mayor brought up a severe budget shortfall as the reason for possibly raising property taxes.

Wise said shutting down fire stations and libraries were brought up as a possibility unless a raise of 1.2 in the millage rate is passed. That equals out to around a $120 tax increase for every $100,000 a home is worth. Wise said he wants whatever it will take to save emergency services.

“You can't run the city on the cheap,” Wise said. “You can't continue to lower millage rate and institute more programs and continue to fund it.”

Channel 4 was told Peyton plans to announce to plan to the public on Thursday. His office would not confirm that the meeting took place or that he plans to seek a tax hike.

City Council members arriving for a regular meeting Tuesday night said told Channel 4 that they had no idea a millage hike proposal was in the works.

If approved, this would be the first millage rate increase in 17 years.
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