Contact Us
  • Comment

Mayor Alvin Brown wants debt to pay for big city projects

Critics question Brown's financial stewardship

Posted: July 26, 2014 - 7:44pm  |  Updated: July 26, 2014 - 7:54pm
Back   Photo: 1 of 2  Next
Mayor Alvin Brown will make his proposals Tuesday to the Police and Fire Pension Fund for pension reform.  Dede.Smith@jacksonville.com
Dede.Smith@jacksonville.com
Mayor Alvin Brown will make his proposals Tuesday to the Police and Fire Pension Fund for pension reform.

Jacksonville Mayor Alvin Brown, who throughout his first term has trumpeted his frugal stewardship of taxpayer dollars in the face of a nearly $2 billion pension liability and more than $2.5 billion in existing debt, is pushing a city spending plan next year that calls for borrowing $235 million.

That debt will pay for much of the marquee, headline-grabbing largesse in Brown’s 2014-15 budget — investing millions of dollars in downtown enhancements, a makeover of Five Points and millions more in road and park improvements.

The proposed borrowing, like other aspects of his budget, has come under quick scrutiny by the City Council’s influential finance committee for its eye-popping amount, the wisdom of investments Brown wants to tie the city to paying off over a long period of time and if he should add to a list of debt-financed projects that have yet to be finished.

Brown’s office defends the proposals and the mayor’s record as a responsible spender, saying that not all of the $235 million will be borrowed next year but over the course of several.

Chris Hand, Brown’s chief of staff, said the ambitious list of projects is a response to a sense the city has recently “under-invested” in several areas. And he said some council critics who slammed last year’s lean budget with a far more modest capital projects list “can’t have it both ways.”

Several council members have already said Brown’s plan is unworkable and express frustration they are now left with the unenviable task of cutting popular projects the city simply can’t afford.

“It’s going to be highly scrutinized, and it’s going to be lowered down,” Council President Clay Yarborough said of the debt-financed projects list.

“When you look over the list of proposed projects, there are a lot of good things in there. But it’s really putting the council in the posture of possibly appearing again as the big, mean City Council. We’re going to have to go through there and make responsible decisions for taxpayers,” he said.

Indeed, even as skepticism rears its head, council members, community groups and residents are happy with many of the proposed investments, which stand in stark contrast to the bare-bones budgets the mayor has pursued in his earlier years in office.

“You have stopped the downward spiral in funding that has plagued the library for nearly a decade,” reads a letter from Brenda Simmons-Hutchins, chairwoman of the city’s Library Board of Trustees. She sent the letter to Brown after learning that under his plan the system would get hundreds of thousands of dollars for extra equipment, extended hours and capital improvements.

While the mayor says he’s chosen investments that will grow the city’s tax base and improve Jacksonville’s quality of life, his critics see a more cynical motive.

“To me, it’s just so obvious it’s a political ploy,” said Councilman Bill Gulliford, a frequent and vocal Brown critic who has considered running against Brown. “This is about passing out goodies and lollipops and soliciting votes accordingly. You got to call it the way it is. The fourth year [of his term], it’s opening the floodgates.”

Many other projects, however, will also have champions.

The capital budget includes $200,000 for buying land at 13th Street and Moncrief Road, an area with a long history of drug sales and outdoor crime where Councilwoman Denise Lee has focused efforts on reducing what she calls “human blight” that she says makes the neighborhood less attractive and less safe for the community around it. The $200,000 is encouraging, said Paul Tutwiler, executive director of the Northwest Jacksonville Community Development Corp., who has worked for more than a decade to improve the neighborhood.

“We’re very mindful of the tight budget years,” he said.

BORROWING MONEY

The budget proposes borrowing the $235 million from the city’s banking fund, an account used to pay for capital items that are repaid over time.

Approving the budget would give Brown the authorization to borrow up to $235 million, though he does not plan to take out all the money next fiscal year. When the money is actually borrowed will depend on the individual project, Hand said.

For example, if a construction project requires a formal bid process that ultimately takes more than a year, the money for that project will be borrowed in the banking fund.

Brown argues the projects list represents “strategic investments” that can be paid for using historically low interest rates.

Not everyone is convinced.

Yarborough said giving the mayor the authorization means he won’t have to come back to the council to actually take on the debt in the future. And the $235 million “sets the stage for future tax increases.”

Council Auditor Kirk Sherman said the debt will ultimately cost a lot more than that top-line figure because the city will have to make long-term debt-service payments. Additionally, any construction projects will have recurring maintenance costs.

And, he said, even if all that money won’t get borrowed in the next year, it ideally will get borrowed “as soon as possible.”

“We are going to indeed do these projects over the next few years and complete them,” he said.

The prudence of some of Brown’s proposed investments is also under scrutiny.

He wants to use $34 million in borrowed money to replace the city’s aging vehicles, which skeptics say would tie the city up with years-long debt payments that will likely last longer than the vehicles purchased. City rules prohibit using the banking fund for expenses under $50,000; the proposed budget includes a waiver for that rule so vehicles could be bought.

Hand said the vehicle replacement proposal is in line with a recommendation from a budget analysis committee, which Yarborough chaired earlier this year, that issued a recommendation saying the council should “consider appropriating funding to replace outdated equipment and vehicles along with providing training dollars for operators.”

PAST PROJECTS

Councilwoman Lori Boyer wants to ensure the projects the council wants to get funded don’t fall through the cracks.

She’s long been concerned over a backlog of projects the council has authorized in prior years but that have never been funded with debt from the banking fund.

A special committee she chaired — tasked with examining the city’s consolidated government — investigated that issue and received a list showing about $168 million of authorized debt that had never been used for projects stretching back to 2009.

David DeCamp, Brown’s spokesman, said that list is a draft and should be taken with several caveats.

In some cases, for example, the full amount of money for a specific project may have not yet been issued because it hasn’t yet required it. In addition, the list doesn’t take recent actions on the budget and proposed capital list into account.

Still, Boyer knows of projects in her own district the council approved funding for but have never started, and she suspects the same is true in other districts.

Sherman said the city has been slow to close out projects in the banking fund, which has been a source of angst among council members.

“It seems like it takes forever to close out a project. … Meanwhile, new ones are coming up,” he said.

One valid question, Sherman said, is, “If we can’t handle what’s on our plate now, why put more on it?”

 

Nate Monroe: (904) 359-4289, nate.monroe@jacksonville.com

 

Christopher Hong: (904) 359-4272, christopher.hong@jacksonville.com

 

Proposed Banking Fund Spending

Comments (8)

ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
Hoosier1945
935
Points
Hoosier1945 07/27/14 - 10:30 pm
0
0
Premium Member

Budget may be tight but

Budget may be tight but spending is not. The general fund budget is up about 6.5% from last year and about 25% since Mayor Peyton's last budget 4 years ago. Since O'Bama took office, the Consumer Price Index is up about 11% and that was about 5 and 1/2 years ago. Clearly city spending is increasing faster than inflation and wages. I don't think we can call Mayor Brown anything but a big spender.

Noillusions
3194
Points
Noillusions 07/27/14 - 07:51 pm
0
0

Another caveat worth

Another caveat worth mentioning is I want my Taxes to be applied...as much as possible where I live...NOT exclusively in a dead d.t.

johnctaughtme
13377
Points
johnctaughtme 07/27/14 - 07:13 pm
0
0
Premium Member

Land acquisition to fight

Land acquisition to fight crime? Are they going to do that for parts of Arlington and the westside? Might need a bigger loan.

MikeatBeaches
4254
Points
MikeatBeaches 07/27/14 - 05:49 pm
0
0
Premium Member

Well! stated NoIllusions.

Well! stated NoIllusions.

Noillusions
3194
Points
Noillusions 07/27/14 - 04:53 pm
0
0

If there is a 3rd Tier Town

If there is a 3rd Tier Town that can waste Taxpayer $'s in a 1st Class Manner, it is JOKESONVILLE!!!
You would think this town would EVENTUALLY learn from previous Taxpayer Blackholes, but NO.

This town's Taxpayers cannot afford another silly project!!

Name 1 (just 1) major Corporation or Corporate Headquarters that's migrated to jax in the last 15 YEARS!

This silly budget, unrealistic vision, real debt and additional Taxpayer Blackholes (if passed) will likely become the doom of jax or at least its residents.

Totally IDIOTIC for a town that already has 12,000 VACATED HOUSES.
Where do these clowns come from?

Back to Top

 
Sign up for Jacksonville.com's morning newsletter and get top stories each morning in your inbox.