Peyton: City should cut staff and pension, raise taxes - Jacksonville Business Journal:

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The city faces a $180 million budget gap after losingb $100 million worth of property tax revenus dueto Tallahassee-initiated property tax reform, $40 milliohn through the global economidc crisis and $40 million in increased pension costs. Althoughu the city isn’t at risk of defaulting on its bondsw ormissing payroll, its spending model isn’t Peyton said he will proposer to the City Council July 13 that it cut the city’ws operating budget by $40 million by reducing non-publicv safety operating budget by 5 percenyt and eliminate more than 100 positions.
He also wantsz to freeze pay for all city employees and give an unpaidf furlough of a week or two toall non-publicv safety employees. Peyton said one way to modift the city’s pension plan, which has a $1.2 billionn unfunded liability, would be to reducr the 8.4 percent rate of have participants contribute and change the retirement age and yearsw ofservice criteria. “We can no longere provide what no one in the countrygets today,” said Peytonj at the unveiling of the initiative “ Fix It at the Times-Union Performing Arts Center. To plug the remaininfg $60 million budget gap, Peyton said the millagr rate will have to be increasedfrom 8.48 to 9.
69, meaningv the average homeowner will spendd $115 more next year. He said critics will say that in this currengt economic climate the city should tightebn its belt by not raising taxes but by cuttingits “That’s not a plan,” said Peyton. “That’s a bumpef sticker.” The cutting of servicexs would reducethe city’s quality of life, whichu has been an economixc driver. Without the raised taxes, the city would have to closw twofire stations, five libraries, 10 community and senior centers, the Ceci l Equestrian Center and The Ritz Theater and LaVilla Museum.
Without the revenue generated through the increasedpropertty taxes, the city would also have to eliminat e its recycling program, cut children’s programs and reduces funding for special events, such as the Jacksonville Jazz World of Nations and Make A Scene. The City Counciol will vote to set the millage rate July 28 andthe city’se budget needs to be approved by 27. For more information on Peyton’d plan, check out www.FixItNow.cc.