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Mayor Calls For Tax Hike, Budget Cuts

Peyton: 'We Have To Do What Is Difficult To Do What Is Right'

POSTED: Thursday, June 25, 2009
UPDATED: 7:58 am EDT July 13, 2009

Two days after privately briefing business and community leaders about plans to address a city funding crisis with a plan that includes a 12 percent property tax hike, Mayor John Peyton made the plan public on Thursday.

Peyton unveiled a three-part "Fix It Now" proposal than includes a 1.2-mil property tax hike, additional budget cuts and the revision of pension plans to address what could be a $65 million shortfall in next year's funding.

The tax increase -- from 8.4 to 9.6 mils would cost homeowners $120 for each $100,000 of appraised value.

Acknowledging that the tax hike will be unpopular, Peyton said it is necessary and will return to the rate of taxation of two years ago -- before lawmakers in Tallahassee "began meddling with tax reform."

"Saying that government needs to tighten its belt is not a plan and, my friends, it's not a strategy -- it is a bumper sticker," Peyton said.

Beyond the tax hike, the other two parts of the mayor's plan are $40 million in budget cuts as well as changes in the pension plan for city employees, including police and firefighters.

The "aggressive but responsible" budget cuts will come through freezing all city employees' pay, furloughs for non-public-safety employees, eliminating 100 positions and a 5 percent reduction in funding to every city department.

"The people who will feel it most are the men and women who work for the city of Jacksonville," Peyton said.

Peyton said he will negotiate with police and fire unions for sustainable health and pension plans, which he said is a looming, $1.2 billion unfunded liability for the city.

Peyton said he is asking that years of service for retirement increase from 20 to 25 years. He is also askng employees to contribute to the plan and will eliminate the 8.4 percent guaranteed rate of return.

  1.2  Mil Property Tax Increase  

 
 Taxable Value Range Increase from  FY 09 to FY 10 
$0 - $50,000 $31 
$50,001 - $75,000 $76 
$75,001 - $100,000 $107 
$100,001 - $160,000 $159 
$160,001 - $200,000 $220 
$200,001 - $300,000 $305 
$300,001 - $400,000 $428 
$400,001 - $500,000 $550 
$500,001 - $600,000 $672 
$600,001 - $700,000 $794 
$700,001 - $800,000 $916 
$800,001 - $900,000 $1,039 
$900,001 - $1,000,000 $1,161 
 
   
"We are dealing with the compensation of people we depend on and people we care about, but the truth of the matter is, we can no longer promise what no one else in America gets today," Peyton said.

Failing to make these cuts and increasing tax revenue, Peyton said the city would have to close two fire stations, five libraries, 10 community centers, the equestrian center and the Ritz Theater; eliminate the recycling program; and severely cut special events and children's programs.

"We'd be putting at risk, I think, some of the most vulnerable populations of our community: seniors and children," Peyton said.

The mayor will formally propose his budget to City Council on July 13. While the budget does not need to be passed until September, the millage rate has to be approved by July 28.

Peyton said he will spend the summer meeting with the public to get support for his plan -- including the tax hike.

"We have to do what is difficult to do what is right," Peyton said.

City Councilman John Crescimbeni, who attended the mayor's announcement Thursday, said deeper cut should be considered before asking taxpayers to pay more.

"We have some fire stations out there that are doing 20 percent of what other fire stations are doing. It might not make sence to keep those open," Crescimbeni told Channel 4's Adam Landau. "We need to take a look at those. And if it doesn't make sense, then I think the council has to have the courage to say 'We're closing that fire station.' The same may hold true for libraries."

A sampling of public opinions outside a Jacksonville library Thursday found support for Peyton's plan.

"I don't care if it's potholes, I don't care if it's a library, you've got to pay for it," Janice Wilkinson said. "Police, firemen -- you've got to pay for it."

More Online: Mayor's 'Fix It Now' Web Site

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