Finance Committee - Budget Hearing - Meeting #4

>> Good morning, everyone. And welcome to meeting for to discuss the fiscal 26 27 proposed budget by the Finance Committee. Let's start with introductions to my left. >> Angela Moyer budget officer. Mike Weinstein mayor's office. Both Peterson Council under. Alright parks counselor's office. >> Mary Post Office of General Counsel. Good morning. Ruckman Johnson District 14. Good morning. Rory Diamond and George from District 13, the beaches. Good morning. Chris Miller at large group 5 will district 3 Terrance Freeman at large. My gay district, 2 Randy White District. Well. Mcallen, that large group, 3 Ron Salem group, 2 at large. >> All right. Good morning, everybody. And Happy GameDay. Couple had been notes. First off, we have no excuses for today. So because of that, our Corum is 5. George does not count. I asked he does not count as part of a quorum. We have a 3, the independent authorities this morning immediately following that, we're going to bring up the Wilson's request for approximately 2 million dollars one of our loose ends day one. Again, there's no action on this unless someone makes a motion. But I did want to come back to that because we had agreed to table that so council members could have more meetings to discuss that. So will sons will be right after we finished the 3 independent authorities like I've done every other day. Just one give a summary of where we at specifically with the General Fund budget. So get the mayor submitted a budget of 2 point '02 7 billion dollars already. We've reviewed 88% of that budget. About 1.7, 8, 6 billion and of that, we have amended approximately one percent of that overall budget. So we we are down to today and then next Wednesday to go department by department. And then next Thursday, the agenda will be coming in here to present their budget and then it will be wrapped up day, which I will get more communications out to not just finance committee, but all of our colleagues on how that process will work. So with that, I see no committee members in the queue cell turnover to MR. Peterson to kick it off with Jack Sport. Thank you, MISTER MR. Greedy for being here with us this morning as well. All rights that takes us to page 3 of our hand up. This is the jaxport proposed budget for 26 27. >> It does show the 25 26 budget. They're actual is through 8 months where they project to finish the year and then the 26 27 budget along with comparisons. I'm going to start on Page 4 with explanations operating revenues there, autos, budget of 20.4 million is an increase of little over 4 million your every year. That's primarily due to a new tenant that was planning operating the break ball category, converting their line of business to autos. This will expected to generate additional 3 and a half million and in red on a revenue. There's also growth at the new Blount Island Marine Terminal Southeast Toyota facility projected to increase revenues almost 500,000 within the break. Ball category. There is a decrease of little over 800,000 and that is due to the conversion of that tenant to autos had that has a decline of 1.9 million in this category. But there is an offset of 70700,000 due to increased vessel activity for another tenant within the liquid bulk category. Going down a little over 500,000 due to the loss of a regular vessel. The cruise. Line is increasing almost a million dollars up to 9.5 million that's result of Norwegian cruise line budgeting at 100% occupancy rate compared to 90% for the prior year. They're also going to have additional crews turns 3 additional ports of call for 26 27 within their operating expenditures. Salaries are budgeted at 19,009.3 million. That's an increase of 1.0 1 million year every year. 675,000 of that is for the 4% proposed increase based on union contracts, cost of living adjustments and various merit increases for union non-union employees. Employee benefits going up 731,000 to 9.4 million health insurance premiums, pension costs, and then standby pay related to union contracts. Also various payroll related increases based on the salary increases within the services and supplies line budget of 8.1 million is increasing 350,000 year over year. That's related to contractual services they are having an increase of 189,000 per Saint Johns River Water River monitoring, along with 49,000 in new ad, first aid equipment, their gas, oil and grease budget is increasing 209,000 considering the increase in fuel pricing. But they're meant maximum exposure is 3.49 a gallon. They are having decreases in parking management services. They are taking over the cruise terminal parking with part-time staff. Within their security services line. 7.9 million dollar budget, an increase of 270,000. The increase related to private security and then also 70,000 for jso cost increasing based on m o u between Jpa and jso, the utility Services line budget. 1.4 million. That's an increase of 100,000 year year due to increased utility costs Blount Island Talleyrand Marine Terminal. Their birth maintenance dredging line item budget at 10.5 million is a decrease of 650,000 year every year. And that's due to production of a reduction in cubic yards dredging within they're not operating revenues. Debt service is budgeted. 19.19 million. That's an increase of 2.3 million year every year. And that's due to the project. Acosta, new debt to be issued this year at approximately 50 million states share revenues from the primary government. That's the city's contribution to jpa the reduction there is related to prior years contribution to the Fulton cut. We will have a recommendation as it relates to this line item to get matched up with the city's budget. All of this results in net income before capital contribution of 14 million, 982,006 dollars flipping the page 9. You can see Jpa is proposed capital budget totaling 186.5 million. That is an increase of 13.4 million over the prior year. The breakdown of the 5 categories there representing the 186 million within the capital project funding. They have state funded at 45.0, 1 million, 30 million for a multi-use facility and real development at Talleyrand Marine Terminal. You can also see further detail of these projects on pages, 13 14. If you wanted to turn there. 9 million for birth, 20 construction Blount Island. Within the other local funded category. There's 12 and a half million for the full can cut power lines project. This is dollars that were budgeted and the prior year being re appropriated in the current year. Tenet contribution of 69.8 million, 50 million of that is for a port. Why terminal expansion, 4 to expand international container business at Blount Island and to further develop container operations. At Dames point, there's also 16 million for land acquisition funded by the tenant per You for the multi-use facility at Talleyrand. Turning to Page 11. We do have a couple recommendations. First is to recommend the following adjustments to schedule lies to correct various project name descriptions also decreasing the state shared revenue for the primary government line by 118,007 $2 down to 10 million, $298 to align with the amount the mayor's proposed budget. This will be also with a decrease of the debt service line. We also recommend amending schedule j to change the name of the project. Backflow 10 inch with shut off valves to West Terminal development. Phase 2, the wreck. These recommendations have no impact to special counsel contingency. Jpa is in agreement with these recommendations and these all of these actions are reflected on the schedules following on pages 12 through 14. And then if you wanted to see the five-year cip for Jpa is found on pages 15 through 17. And this is second on the recommendations. Customer Dundee with speak now or after on commission. Second unfair. The recommendation say Aye, aye. Any opposed, say nay. The recommendations passing councilor Dai when you're recognized. >> I think Chair I was livid when Jaxport comes because I say nice staff. It's awesome. This is a you know, we have to really keep an eye on independent agencies because we really are the people's voice when it comes to those and over the last 8 years on this council, I've had to, you know, do that. But 8 years, 8 years of saying great things about Jack sport and that doesn't happen on accident. You have to tell people the truth about the other ports. They have problems. They have corruption had issues. Ours is always doing great, sir. Huge juggernaut. That's a that's an issue of leaderships. I want to thank Eric Green and your whole team. Joey driving out there. Thank you for what you guys you. Thanks for making this job easy when it comes to Jack Sport and keep rocking. >> I think MR. Time the queues lighting up on the go to our council PRESIDENT First and then Councilmember Miller than Freeman. Then Salem. >> Thank you, MR. Chair 2 things I want to just say to Eric and Jpa Just remarkable presentation. Remarkable performance. There's 2 things that always astound pleasantly about the port. Number one is your diversification. You, Eric. I know that's been a kind of a mainstay in the strategic goal of yours for, you know, the last 5 to 6 years. And I think it's paid off because our port is so well diversified that if there's a macro economic shock, we survived and we do well and you're always looking to continue to diversify with the growth of crews and military eccentric center. Auto is growing crazy in this budget. That's because of the hard work you've done to make an attractive port for for auto shippers and manufacturers. The second thing I want to talk about is economic development that's in your eat those that's in the port city foes. I love it. And looking at 186 million dollars. That's what that means. That you're investing in our community and you're investing in our community in ways that create jobs. In fact, every time you talk about investment, you're talking about the jobs that you create, the economic upside that you drive. I love that. That's inury those. I appreciate your great team. Thanks again budget. That's where Miller. Thank you, MR. Chair through the chair, my colleagues went to college before me have a are ready. Said the main things I wanted to highlight, but I'm going to do it anyhow. >> I've been privileged to have up front first row seat. Serving as the council liaison to Jack Sport over the last two-plus years. And what my 2 colleagues have said before me, those those comments are exactly right. And I don't say that because I'm liaison. I say that because that is the way it is. Well, Ron, well led by MR. Green and and Bath and Joey and the rest of the team and you see it with every issue that comes up and what I love is the willing to listen and they're willing to take in comments recommendations and they're willing to then come back and goes through things with you and they see it as a partnership between the city council representing the city and Jack Sport and they are an integral part of our city and our economy going forward. I also say I love. That they strategically plan and execute for Jacksonville's future. And they're a big catalyst. 4. The companies in our region being able. To come here, have a presence have smoove. Process of everything coming and going from our port. And but it's because of the work they do and looking out to where they want to go setting that vision and doing the work during the paving doing the expansions, the things that they have to do. Capital wise and infrastructure wise to make that all happen. So I won't be saying this with with everyone. But again, I've seen it. Day after day and in the details as I've gone through everything they presented up to now. So kudos to you all. And I I appreciate what you do for our city. Thank you, MR. Chair. Councilor Freeman then gave in Salem. Freeman. Thank you, MR. Chair, I'll be brief one. Through chair to to the port. Congrats because you got my colleague COUNCILMAN Diamond to say some nice things about you in the budget cycle. So that. >> To me is very impressive. So kudos to you on that my colleagues have said it so eloquently. I don't want to repeat it. But there are some things that I do want to put out atmosphere as well. I believe our state has about 15 ports. All right. And so when you look at our seeding, we're always talking about the bull city to south and how great we can be we this is an example yet again of the competition that we face with other ports in the state. The things that i've heard in my meetings with the port, the things that I've heard around the state, Jacksonville is so well positioned because of the great work that the port is done. And council PRESIDENT Howland hit on a lot of those things with our highways. I-10 and 95 with our railways. And you know that people still trying to fight to get past rate the trains here. And then with our ports. I think that the port is really in the center of a lot of our economic development, in my opinion conversations as we continue move forward and especially for someone like myself as I can to move forward in my service to thank you all for the good work that you do. And as I said, for getting COUNCILMAN Diamond to be yes. Council are good. >> Thank you, MR. Echo the comments by all my colleagues up here. But I just want to and to it that we we it is so important. What what takes place out of the port and MR. Greene yells Team just excellent group. It's putting the city first because, you know, the port that's a look at that one of the major heartbeat of the city. And wood from from ship. Unreal. There's so much that takes place there and especially in my district in it. So many of my constituents a workout. There's been some fashion. They're connected with the with a port out there. And I appreciate you willingness where we've just opened up a a fire station out there. The worked with Jfrd to to make that happen. And just the the openness and willingness to help and support our community. Just measurable. And we appreciate do out there and good job. Thank you, Sir. Councilmember White and then Salem. Yes, sir, I beat and I agree with everything my colleague se, just MR. Gray just I want to thank you again for department partnership. You have j 40 and I know there's more things to come in the future and that's appreciated by the city and certainly by me, thank you. >> Counselors say limit now only allow hard questions at this point. I have a question, but I'll I'll make a comment first. Eric Strength, I think is the ability to bring together a team that is it super high. Had the opportunity. My first term to be their liaison and saw it firsthand. So and I all the other comments have been made. But I do have a question for Eric. Eric, what is the status of the lifting of the wires? For the port? If I MAY, MISTER Chair, I chair to COUNCILMAN Salem. >> The project is on schedule on time and on budget. It's scheduled to be completed at the end of this year. This calendar year. They've already started ringing wires across Lee wires to be able to pull the actual transmission lines. But I do want to thank our our sister. Organization, an independent authority Joey, are. >> That was an amazing partnership as well as city. I mean, look, you all have said here and you complimented me and my team and I do. I have an amazing team. I couldn't do any of this without any of them. But you need to compliment yourself. For a job well done and allowing us to do what we do every day and what we do every day, we wouldn't be able to do without you all. And the administration, obviously, we built some great partnerships from deepening power lines. Fire station ribbon, cutting just happen. This week. So thank you all for allowing us to be who we are. There's more great things to come. Trust me. >> So you indicated at the end of this calendar year, yes, sir. So I assume you've got ships scheduled better, much taller. That will be coming through there by the early next year. That kind of thing. Yes, sir, I just got in last night about 10:00pm from Panama. >> Speaking with meeting with Maurice Cole weekend, we're talking about some services that have larger ships and it's really the way to the ships are built this. The house itself some of the ship designs. But we truly can be looking at. We're already seeing 15,000 tu ships and there's a strong possibility in the future and the next year to we could be looking at 18,000 schip, which is, you know, it's like a moving city and itself. So. Thank you, MR. Green. Yes. >> All right. Thank you, MR. Green and thank you for your staff for being here today. So we're talking about 3 to put authorities today and just everyone knows this is not the only meeting we hear about their budget. There are pre meetings individually with all of us. So I like most everyone up here. I met with MISTER Me Green and MISTER Drive e and again, our job is to look for concerns when go line by line through this budget and just very happy to say there were no concerns that came up when it comes to Jack Sport. And really to me, Jack sports us more about excitement right now. This all the tremendous growth we're seeing jobs, trade, Internet, international recognition, bringing tourists to Jacksonville. So just a very great stuff going on at Jaxport. Incredibly thankful for the staff at Jaxport for a such a tight operation out there. Councilmember Johnson, you're in the queue. Know. >> Thanks so much, MISTER Chair. I just had a quick question that when I went through, I had no questions. Thank you, MR. Green screen. Did amazing and given all the details that I needed during my meetings to pri meetings with them. I'm just curious, though, and again and even when you talk to people outside of the city, as you know, just getting back in the League of Cities meeting. And one of the things that we are the envy of other cities around the state because of the great work of our Could those again to you, as my colleagues have said, I'm just curious with the new Norwegian cruise line coming up. One of the things I saw as I was point through the budget win. >> There is a a decrease of what is projected. What is the thing that you kind of move away from first that you don't fulfill first? Is that the cash on hand? Is it the operations? Is it like when we move, if that comes in lower than projected? I didn't have that. That wasn't finished with that part of it where it if it's lower than we project like, what are we? What do we move in? Chair 5, a COUNCILMAN. >> So so you're asking if our projections from a revenue standpoint, his last >> Where where are we? >> What is the plan? If there's a less than we projected, does that go? What is to come away from That was one of the questions I had as I was looking at trying to say here. So because they haven't at 100% occupancy based on what we saw like there. But let's say it comes in 75% occupancy where do you like is there is a cooked some what happens then? Just south, if I MAY chair And thank Jonathan. >> First off, we have a strong cash balance right? So we have that as protection. But one of the things that I started when I became the ceo in 17, we call it minimal and guarantees. So all of our tenants have contract right? So we project 80%. We're always dealing with 80%. But we our revenues exceed 80% that they have to pay. So if they move one box or 1000 boxes, we're still going to get that minimum annual guarantee. So we're never going to go in the hole as far as when we're talking about revenues and I'll use covid as an example when covid came about our Ted, it still had to pay their minimum annual guarantee. So we never moved away. We've never had any concerns about any revenues. That your question, ok? Thank you. All right. Thank you, MR. Green and the entire to export team. Thank you. >> So with that will now transition to jta and MR. Petersen, if you want to take it away. All right. On Page 18 of the handout is the start of >> And you can see Page 18, their total budget increasing. And I should point out these numbers are in thousands. So that's 2.9 billion in the 25. 26 going up to 3.1, 5 billion for 26 27. That's a 255 million dollar increase. Year-over-year for their whole system. The employee Capus increasing by 58 positions between the electric and water and wastewater systems. We show you that detail. The city contribution of the ga is making going down. 38.6 million year every year. And that was due to the one time 40 million dollar funding. That was in last year flipping to Page 19. This is the electric system explanations for this schedule can be found pages. 23, 24 of your hand out. I'm going to hit some of the high points as it relates to the fuel related revenues and expenses, budget of 515.8 million. The decrease of 35 million has driven by the reduction in expenses that will get to this revenue is intended to recover the actual fuel cost for j. Yay for their generated and purchased power provided to customers within the fuel related and purchased power expense. The decrease of 35 Million. He's due to a number of things. First off, 44 million in lower natural gas futures prices. 22 and a half million lower projected purchase power, wholesale market prices, which is driven by the natural gas market. 4 million in world. Well in diesel cost and then a slight decrease in the vocal fuel cost. These decreases are somewhat offset by budget sales being projected to increase by 3%, which causes an additional 17.2 million and additional cost within the base rate revenues and expenses base rate revenue budget. At 1.1 billion increase of 103 million year every year is due to the 7% rate increase. That will take effect OCTOBER. First of this year, along with increasing budget sales. Other revenues are increasing. 68 Million. That's due to increases of almost 65 million projected prior year surplus is being budgeted when there was nothing in the prior year. If this amount does not materialize, jta will reduce the amount that's contributed to the operating capital outlay within the expense item of operating and maintenance. There's an increase of 12 million dollars will get to a break out of this pages. 22 through 24 now if your purchase power is increasing, 41.6 million. Large reasons for that is an 18 million dollars. 18 million dollar decrease in the use of the fuel rate stabilization fund. That results in an increase in cost. There's also a 7.8 million increase and spl natural gas purchase power agreement as well as almost a 7 million dollar increase in the fpl capacity payments and are not operating revenues and expenses. Debt service is increasing. 37 million dollars due to scheduled increases and principal payments as well as the cost of new debt to be issued this year operating capital outlay and increase of 110 million for capital projects that are outlined later on in your schedule, renewal or replacement. A budget of 80 3 Million. This is calculated at 5% of their. 25 26 operating revenues. And then there's the city's cut, the contribution to the city's general fund page. 22 is a budget schedule of the operating and maintenance expenses. Salaries are budgeted at 200.8 million in the electric system. That's a 7.4 million dollar increase reasons for the increase. They're adding 21 new positions, 4% increases for appointed in confidential employees and the pa bargaining unit and then 3 and a half percent increases for all their other bargaining units, employee benefits are increasing due to increased and pitching cost as well as the increase in the salaries line, supplies of materials going up, 3 million dollars. Most of that is personal protective equipment for schedule outages and maintenance at the Northside Generating Station, the other services and charges line increasing 12 million up 278 Million. 6 million of that is related to electric production at the Northside Generating Station and 3.6 million for contract meter reading collection fees within other operating reserves. That's going down 1.2 million to cover. That line item is for unforeseen emergency expenses and the reason it's going down they had set money aside related to labor negotiations that were mostly completed in. 25 26. And then the expense credit line going down almost 12 Million. That's due to shared service credits for central services paid for from the electric services that are then assigned to the water wastewater system. 3.2 fuel procurement handling credits on page. 25 you'll see the electric system, capital budget. Total of 612.9 million. That's 183 million dollar increase. Year-over-year debt is increasing on the 72 million year every year with other operating capital outlay funding, increasing 110 million coming from the operations. Pages. 26 through 34 are the je a five-year capital plan for the electric system. And if there are no questions, I'll move to Councilmember Time during the q, ok? Thank you. Alright Page, 35 starts the water and wastewater system budget with explanations on pages 30, 60, 40 of your hand out water and water and sewer revenues are increasing. Almost 49 Million. That's due to an 8% rate increase that will take effect OCTOBER 1st. They're also expecting an increase in the amount of water usage. And then there's a small increase related to reclaimed water activity. Capacity extension fees are decreasing. 26.2 million taking into account per what is happening in the current year. And this falls in line with their actuals from 24. 25 other revenues are increasing. 24.2 million. That's mainly due to budgeting prior year surplus. Is an increase of what was budgeted in the prior year under operating expenditures, operating and maintenance will have a breakout on pages. 38 40 of your hand out describing that 29.6 billion dollar increase and then debt service is increasing. 17.2 million due to new debt that was issued in the current year. The capacity fee transfer mirrors the reduction in the capacity fee revenue and then other caught operating capital outlay increasing. 24.5 million represents the funding that transfers from operations to the capital projects Page. 38 outlines the operating and maintenance expenses of the water wastewater system. Salaries are budgeted 104.6 million. That's an increase of almost 15 million year-over-year. 7.6 million of that is in overtime to better align with what they're experiencing with 7.2 million in salaries due to the adding of 37 new positions. And then once again, 4% increases for pointed employees and the pe a union and 3 and a half percent increases for all their other unions. Supplies of materials are increasing 5 million up to 33 Million. A 2.2 million of that is in chemicals and gases based cpi, price increases. And then 1.7 million and direct purchases once again due to price increases, other services in charge is increasing. 12.6 million 0. 1 million of that is an intercompany charges which come from the electric system and then 1.8 million in professional services driven by their integrated water resource plan, which is expected to be completed next year. Operating reserves going down 581,000 that once again related to labor negotiations being mostly handled in the current year. On page. 41 is the water wastewater system, capital budget. Total budget of 579 Million. That's a 5 million dollar increase. Year-over-year. The big items increasing. Our changing the transfer from operating capital outlay of little over 24 Million. And then the decrease in the capacity fee revenue Page is 42 through 40. 7 are the 5 year plan for the water system. Peach. 48 is the district energy system capital. This is their operating budget. Revenues are increasing 2.3 million due to projections for increased consumption. The Ed Ball building is expected to be connected, fully connected in March of 27 and then looking for the stadium. Once it's completed around APRIL of 2028, will then begin using the district energy system. Other revenues are increasing. This is related to how they budget for prior year surplus revenue, upper 80's operating and maintenance. There's a breakout on the following page similar to the prior 2 systems. Debt service is increasing due to higher interest costs for the revolving credit line. And then operating capital outlay. They're expecting to transfer 920,000 more due to how the system is performing Page 50 is the operating and maintenance budget for the district energy system. Salaries are increasing. Just 42,000 for him increases for pointed employees and the collective bargaining units. And then in the other services and charges line increasing million dollars, mainly due to increases in utilities. Page. 52 is the district energy system, capital budget. Total budget of 38 Million. That's a $500,000 increase. Year-over-year. And then on page, 53 is the 5 year capital budget for the district energy system. Page, 54 shows you ge a's debt and their related debt ceiling and I'll draw your attention the 3rd to last line that payable at 9, 30 2027 you'll see within the electric system. Almost 1.9 billion water wastewater system. 2.5 billion in the district energy system. At 94.5 million. The line below. Is there currents not to exceed debt authorization approved by City Council and then the last line, the debt ceiling ballots and either over or above their current authorization. There is a bill pending before you that is scheduled to be taken later in SEPTEMBER. That will raise the debt ceilings of for the electric system. Up to 3.9 billion for the water and sewer system up to 3.7 billion and then they propose keeping the district energy system flat at 150 Million. We do not have any recommendations. But I do want to remind you that this is one of the conflict bills that will be taken up separately as Bill 2026. 5.12 Councilor indictment. Thank you, MISTER Chair and appreciate the entire ga Friday. All this stuff and it's it's been a. >> been a rough 6 months. So I really do hope that the next 6 months to a year just calm and no drama and everything is good and is Katie comes back and we're all get there. So I really I'm hoping for and I think that's going to happen also good news. The combined cycle plant, the psc approved that that was that was genuinely giving the harbor. And so I'm glad that that bit of risk is off our table and it's all systems literally and figuratively to go ahead and get that built. And then every year make mention of this and I just have to do it again in my last time. But 140 million dollars is coming out of the pockets of the people of Jacksonville through their jta bills. And coming here to the city of Jacksonville. They're raising rates in OCTOBER high and we're still giving the mayor's budget gets hundreds of millions dollars to downtown developers. So let's be clear. The mayor's budget does not balance without raising your rates in OCTOBER. 1, 2, We are literally taking people's money that cannot afford it through their ga bills and balancing our budget. I think that's morally wrong. And I think we need to stop and keep people's rates flat. Finally. I have no one else in the accounts council PRESIDENT. You're in the queue. >> MR. Chair. I figured someone else will be in the queue and I'd let them talk before I I actually have a question probably for Jodi or Ted. And that question relates to The auditors did determine that there were 55 million dollars potentially over the last 20 years unbilled water capacity fees, whether that's the actual number, not I and the Financial Audit Oversight Committee and the auditors agreed that in the future we probably need to increase change of policy and increase our collections on capacity fees for many reasons. One of which, of course, is to protect the rate payers. Is there anything this budget that reflects new policy that will result increased collection of water capacity fees. >> Thank through. Get me through the chair and I'm Jodi Brooks and the interim ceo managing director through the chair of the council. PRESIDENT. >> We have been working very diligently on the capacity for the additional capacity. Issue we're in the process of putting a policy and procedure together that planning to take to the It's a tariff change that will require hearing that would go to the board called the here in OCTOBER, go the board in NOVEMBER when the idea starting to collect on additional capacity, things moving forward. This budget does not reflect anything on additional capacity fees, but all future budgets will have a breakout of additional capacities. How much we anticipate how much, bill, how much collected. >> Is the perfect answer. Thank you. That means that will be collecting the future and in some ways that will help to some degree put pressure on raising rates, you know, water rates toward, you know, rate payers in the future. So that was a perfect answer. Thank you so much. Councilmember gay. >> Thank you, MR. Chair just want to him in agreement with what council and island saying about the money that the jta puts back into the city. Definitely something that really needs to be considered and looked at. It is the burden is put on j and then is passed on to the to the taxpayers of other bills. And so there's a correlation there and that cannot be disconnected. But it's got to be connected of the burden on to the the rate payers. So i just want to agree with the COUNCILMAN Down on that. Thank you. >> council were gay. I have no, no, it's in the queue. So just a couple things that really more so for my colleagues. So and correct me if I'm wrong, MR. Peterson, we will take up the jta budget as an individual bill in Finance Committee. Correct. >> Through the chair. That's correct. That will be the second Finance Committee of SEPTEMBER. Okay. Thank you. And that I believe the debt ceiling Bill is running parallel with that and we'll take that up for action in the same meeting. >> chair? That is correct. Jay has requested a deferral next weekend financed and said that the 2 those could be taking up the same cycle. >> Ok, thank you. And to my colleagues that debt ceiling Bill is a little bit inside, encourage you to look at it ahead of time get your questions answered. Cause. >> It is one of the more complex ones that's come our way a little bit of a time with that. No one in the q. Thank you, for being here this morning. We appreciate your time. We did for us MR. Peterson kick it to you for the streets and highways. Five-year group. Five-year Rupert. I believe that's where a page 58. >> That's correct. Chair. And the next couple don't know 5 to 8 pages, maybe 10 pages. Revenues that the city collects that in one way or another we share with jta. And so we take city funds up and then move into the jta budget. So one page, 58 is the five-year road program. Also known as the Constitutional gas. Taxes is a $0.02 tax on every gallon of motor fuel in that is sold in Duval County State shared revenues of 4.6 million are decreasing 93,000. That's reflective of what we're seeing. An actual collections, the contributions from local units is out that the city received back from the fiscal agent. So the city receives all of all of the funding related to this. And this one's a little messy because the city of a portion of the constitutional gas tax is initially deposited in the general We talked about that on day one, the city since all of this gas taxes to a fiscal agent who then distributes the city's portion and jta portion. Should say that this this specific taxa split fifty-fifty between jt in the city under the expenditures. You can see the city is proposing to use its portion of the constitutional fuel tax between those 2 projects listed there, the ditch restoring and cleaning and work roadway resurfacing. And then the grants contributions is distribution to the fiscal agent. There's no service level changes new employees in this fund and we have the recommendations. And I do it in the Queue. Alright page, 59 is the half-cent Transportation tax. That is a half-cent on the sales taxes. The first absent after the state's 6% sales tax also known as the tax for tolls. This was approved in 1988 by the voters and all of ends up going to jta after related debt is paid. So the local option sales tax 123.6 million is going down. 13.7 million. And that's based on estimates by the budget office that matches up along what we're seeing actual collections in the current year and then under the expenditures, a line item. This is the passed through 2 jta after debt service payments are made. This supports their mass transit operations. No service level changes new employees in funding recommendations and known in the queue. All right. On Page 60 is the first local option gas tax. This is the original $0.06 a gas tax on gas and diesel. This was approved by council in 2013 to go until 2036. It was extended by council and 21 the fiscal year. 21. 22 to run to the full 30 years to 2046. Ones. The city receives one cent of this gas tax. The other $0.05 get passed on to jta and similar to the constitutional this gas tax. The city receives all of it center to the fiscal agent, the fiscal agent since the city, its portion and jta its portion. So the local option fuel tax is the gross amount thirty-one 0.3 million. That's an increase of 1.0 7 million year-over-year reflects what we're currently seeing. The contribution from the local units of the city's receiving its portion of 5.2 million back from the fiscal agent, the capital outlay. You can see page 60 how the city proposes to spend the 5.2 million. We do have a recommendation as it relates to that. Ordinance code requires that 20% of the collection's be spent on bicycle and pedestrian improvements and that requirement not met. And that's what the real recommendations related to Grant's aides and contributions is the transfer of the 400% to the fiscal agent. Their new service level changes new employees in this funding. Our recommendation is to based on discussions with the finance department, reducing the county wide intersection improvements project, an increase in the 88 complaint curb ramps and sidewalks project by $22,837 to be in compliance with that 20% requirement does not impact special counsel contingency. I was just saying I got councilmember how and in the queue and I'm sorry, council PRESIDENT And then I had a question as well. But accounts PRESIDENT, you're recognized yet. Thank you, MR. Share a quick question for Philip, whose the fiscal agent? >> For the local option, gas tax and how much who is at how much they charge and do do? We need one. Can't this just come in? The general fund get distributed jta afterwards. >> Unless it's ordained by code. Through the chair of the council PRESIDENT. I know in years past it was the bank of New York Mellon. I don't know if that still I'm getting and not from MR. Barnes said I'm going to go with. That's right. >> The reason the fiscal agent is is used is to make sure that every party is in agreement. I mean, I believe there were. There were disagreements in the past. And so that's how we got here. This was set up when bjp was in place in 2000. It also ensures that the debt is paid accurately. So I don't know what they charge meeting MR. Barnes does or so for the finance department. But that's kind of how we got here with its kind of ironic because MR. Barnes probably was in charge of it at some point, you know, for 5 years ago and >> now is on the jta side of is the cost material for. The fiscal Don't believe so. And rentals nodding in and a great >> All right. Don't even stop my line of questioning. Thank you. All right. Good morning, MR. Barnes and killer, MR. Pearson, what question I had. So the other $0.05 of this will get to where we go for James Budget. Correct? To the chair. That's correct. And then my follow-up question right now, the 80 to 20 split between roads and pedestrian bike paths. Is that something we decide the ratio and or is that a state code? What is that through the chair or to the chair and to the committee. That is a city self-imposed to requirements that was adopted. I want to say and 2013, 14, 15 time frame. >> That can be changed. The state lays out authorize uses of the funds, but the city put that 80 to 20 split on itself. So that's just an ordinance could change if you wanted to. Okay. Thank you. I mean, just think about like basic infrastructure needs 20% kind of seems a lot relative to what we spend on roads first, Pastor Basket. >> a conversation for another day with I got a motion second on the recommendation on favorite on sorry, Councilmember Freeman. >> Thank MARCH Aaron. I'm not quite sure if anyone remember this, but when this whole conversation was happening. I was a district and council member at the time. And one of the big concerns that I heard from my constituents was, you know, these things happen and then of the work is done in our district. And so this is with the previous administration. And so one of the agreements that was made and I'm not quite sure if it was done through My back. I believe it was was that this body would get a report of the projects based off of if it's done in Jacksonville, proper outside of it. And originally it was going to come from the city. I think it passed on to jta. They said that they wouldn't hear the list and then that is supposed to be given to us in a presentation. What happened over the course of time was instead of and coming to the podium and saying okay here, the roads that were done. Here's the list. Nobody was skipped. It started getting rolled into our actual budget. And so i have not seen that list I didn't think that this question to you all when you are and my office, but being that this is my last finance journey. That is important to me because that was one of the reasons the biggest reason pretty much the only reason that I supported this was that my members of my district, 10 that we're dealing with severe flooding. Rain on Monday. It was still flooded on Friday. And that was the tipping point was that they were going to be looked out for. So. You have to tell me now what if someone can circle back let me see the list of projects where we're at on him. How were so our Tyler prioritized as want to make sure that every zip code every community feels like they're benefiting from this. So thank you. MR. Pearson, do you have a commission partially answer that maybe fully answer it. So this is the original $0.06 that was extended. >> In 2030 or it was a 2013 bill approved in early 2014 by council. There were a list of approximately 20 projects that were attached to that extension. That jta was going to take on that were I believe all from the original bjp project listing counselor free. What I believe you're referring to is the additional $0.05 that was added, which we're going to get to. I think at the next page actually that was approved in 2021 2022 time frame when Mayor Curry was here and I Councilmember Herzer e was PRESIDENT At that time that had an additional list of over 400 million dollars worth of projects that Gta was going to take on they report on not only that list, but the list from the 2013 legislation on a quarterly basis at the bjp. What's called the fact Pack financial Advisory Committee and Planning Advisory committee. They do report on those on a quarterly basis. But those that knew $0.05 had to all be spent by jta on specific projects that were not specific projects that the city could spend its portion on chair. Thank you. And to the CHAIRMAN's to Thank you so much for that. I truly believe in and I hope I'm wrong. But in that original issue gave me it was always like a couple. We run out of money. And I thought that there were some pitches. Are some concerns of constituents about that original list and how some things that came in after the fact. >> We're super ceding that original list. And so therefore, I was trying to ensure that that process was transparent. So I you sing. It's been reported quarterly. You know, the asked that I had as a council member representing and Harriet, how where the buses didn't always get him to these meetings on time. But they could come watch these and see the archive was that it was presented to us as a finance committee or to our council as a whole was as district Council people, we could go to our town also, we could put it in our news letters, the communicated. So the fact that you to share that are doing a courtly love that, but I don't recall even getting those quarterly updates. And so I just like I said in my last lap around what make sure that when I go me use, as I do often that I can say I finished saying we have started fighting hard money for them. Okay. Thank you, COUNCILMAN Freeman. With that. We did have a motion second on the recommendation. All in favor of the recommendation. Say Aye. Aye. Any opposed. Say nay. The recommendation passes. >> We are on to Page 62. Page. 62 is new $0.05 gas tax that went into effect JANUARY first of 2022. >> This is just on motor fuel. Not on diesel. Diesel is subject to an additional part of the Florida statutes charge throughout the state of this 5 since the city receives 2 and a half cents and jta receives 2 and a half cents. As I mentioned, there are sus a specific list of projects that gt has to spend these funds on to venture away from that project, less requires council approval and they're not authorized to use it on any of their mass transit operations until that list is completed. This operates the same way the city collects the full amount to the fiscal agent and that distributed to the 2 parties. So the local option fuel tax is that gross amount of 20.5 million. That's an increase 1.8 million year every year. The contributions from the local unit says the city receiving its portion from the fiscal agent at almost 10.3 million. You can see on Page 60 to the capital outlay how the city proposes to spend its 10.2 million and in the Grand Teton contribution to sending that 400% to the fiscal agent, new service level changes no employee kept changes are no employees and their recommendations. Councilor Dai, when you're recognized. >> Thank you, MR. I just wanted to jump in all. We're talking about a local option, gas tax to always. We have all these different gas taxes that are that are in here. And you know, when I think anybody who's a second term or we voted on this in 2021, and what was presented to us was, we're going to increase this local option, gas tax and then jta is going to get their happened in the city will get this money and then there's that list of projects for the city that I think COUNCILMAN Freeman is talking about for the city and then over at the jta side, what was promised was that they were going to build an autonomous, you know, network. And we're gonna deal to stuff the Skyway. And that's where that money was going to go. And I think all that has happened. Let's be 100% clear. But having now spoken to almost every member of the Board of jta have got some sense where I think this council might be. There is contract between jta and the city of Jacksonville and local agreement said, hey, you get half, we got half. Here's the list of projects as all gonna do with it. I think everybody's living up to the contract. I want to be fair about that. I do think there's probably appetite to renegotiate the contract. And I think literally every entity can win. And I just want to to bring it back to finance at some point. But I also think it's going to get Probably some other committees but at some point, I think the jta board will get their impression that it's a be a good idea. Obviously they're going to go through a ceo search and all arrested is no one today. You can say yeah, we like this idea because we don't have like a ceo operating right now. When we get there in the next couple of months. This committee and I think the council should move quickly to work with the administration work with jta to come up with a new list. But what the city wants out of that. And then we can unlock all this money that went for dta unlock this money. That's a postcode autonomous vehicles and the Nabi and all the rest. If that is going to die. And I think it all that goes away and they don't have that 4 million dollar expenditure anymore. And the 6 million a year for not being all the rest, then they've got that money for capital. And that doesn't necessarily mean that they can't move that that money around for other capital projects and unlock money to help Sol there operations budget. So there's a lot of ways to do a lot of good for the city. If we do a little bit of work, it's not going to be fun. It might get a little rodeo crazy. But I think at the end of the day we'll have a better product than what we're locked into from 2021, which doesn't really reflect the reality of what the autonomous vehicle thing did. And maybe this council in the administration's priorities had evolved in the last 5 years. And I just want to put that out there for us to start thinking about because it's a complicated issue, but it's one that I I think things could land in a good place. COUNCILMAN Diamond all put on the record as finance. Sure. I'll do whatever I can to help every prioritization of that project. Quest. >> Because I think there is the appetite. What can we do to find the best infrastructure for all parts of Jacksonville. So whatever I can do to help expedite that, you have the finance chair's attention. I'm sorry, counsel present. And I see there. Thank you, MR. Chair the project list being reference includes Emerald Trail, spend correct. MR. Petersen. Through the chair to the council PRESIDENT, how you're correct. Okay. I do have a question for whoever can address Emerald Trail regard on jta. And that question is this in Finance Committee last year, we talked at length about building the core of the trail. And, you know, particularly given the loss of the federal grant and not doing any more work on sections. 4, 6, 7, 8, I see there's been a lot of work done in the ensuing year in Section 4, 6, 7, 8, including a project development and environmental Environment. Study. And my question is, where is Groundworks or jta getting the money to do that pd any setting? On 4, 6, 7, Shepley you're recognized. >> Through the chair to council PRESIDENT Helen, good morning. The that the money for that is coming from the local option. Gas tax. >> Ok, thank you. So here's my discussion with the Finance Committee. We're focused this year on the court, doing the court right? Anything that's not core. We shouldn't be focused on. Of course, the definition of Coors in the eye of the holder. I tend to keep a tight others MAY, you know, say near Corydon Jason Corps are important and focused on that with the general fund. I think we should also be focused on the court. We talk about capital projects. Emerald Trail is one of them you know, I'm I'm looking at the hydra map right now and sections. 1, 2, 5, 9, 11, 10, seen great around the areas that were really developing. And I think you can make a great case for economic development. But I think if we're spending money on for 6, 7, 8, which are out, you know, areas that probably are right now could use money on. Paving roads, improving sidewalks, improving lighting and filling potholes. And we're not doing that as well as we could instead putting money in extending Emerald Trail just to capture more districts and capture more neighborhoods. I think we're doing the wrong thing. So as we look at this project list, I'd like to see focus on driving Near Mile Trail down to the core. The areas around downtown North banking Southbank and stopping any spend on for 6, 7, 8, which our way out there reaching neighborhoods that probably care more about their kids getting to school on on proper sidewalks and driving on roads that don't destroy shocks and their vehicles before they care about a fancy, you know, green colored bypass coming to their neighborhoods. I don't know how we address that, Philip, I don't know what the right approach is, but I'm I'm a little disturbed that we have continued to do a design study on for 6, 7, 8, when we know that we don't have the money for because we didn't win the federal grant MR. CHAIRMAN how we address that. >> Thank you. I do know that we do have a cip light out of next week so that our pre meeting on Monday, MR. Pearson, MR. Weinstein less discussed to make sure we have the right people here to kind of give a holistic update on the Emerald Trail because I think I've been consistent past 3 years. I'm like I councilmember Diamond, whatever we can do to ensure a great infrastructure investment in all parts of Jacksonville rather than just specific parts of That's part of this. Again, we're big city. We need to make sure maximizing our infrastructure dollars at the best places all around the The queues lighting up now I'm going to go to council PRESIDENT. Thank I just want to one thing I said, my insulation speech that focusing on the court doesn't mean spending less on matters. That means trimming what matters in means trimming the extra so we can spend. >> More on what matters. And this is around. Emerald Trail is just that. It doesn't mean let's not spend any money. It means let's spend money on core elements. And by far sidewalks streets lighting and and drainage are far more core than the fancy green bike trail with benches. Thanks. Councilor Diamond actually accounts for a time to go to MISTER Peterson. First, the information share through the chair to the committee. So when we get to Gta is budget, there is a portion that they have allocated dollars 2 for the road trail. >> But that is reflective of what Councilmember Diamond was saying. That is part of the list of projects that they are required to complete under the inner local agreement. If you want to address possibly changing that, that would be opening up the inner local agreement. MISTER Dimon alluded to thank you, MR. Pearson and just take from the finance chair. I think this is bigger than just what will be able to solve during the budget hearings. >> But it sounds like there is consensus to look into this and see what we can do to better optimize that capital spend COUNCILMAN Time you're recognized. >> Yeah, I was going say exact same thing. We're just kind of locked in until we look at this. Look, my I actually have like an open mind going mostly I'm not worried that the city worry about the jta side where they're locked into all this stuff when it comes to the skyway and autonomous vehicles, I would like to unlock that value for jta which they're building the stuff for us, which is kind of strange in my book. You know, maybe we ought to be doing it. We've got a capital works group got a cip and all the rest like maybe date. We ought to be doing our work. But zinger right now is kind of the way they sold this bill of goods like I voted against. I think they only won, but he instead, but now that we have it like I really do think this needs to be looked at and I'm fine with putting guardrails to censure council include says going to jump up and down, say the group trials. The most wonderful thing in the world is going to cure cancer into all these things that matter. And that's great. Get it. He's got his job to do over there. I'm glad they showed up today. But that it is something we have to unlock in order to reprioritize. Thanks. >> And to address the medical benefits of the Emerald Trail, counselor police of thank you chair. Happy see come summer. Diamond also showed up to that. It was very good of him. So I do want to speak a little bit about the Emerald Trail >> the air, the literal segment that you just described are all disenfranchise black neighborhoods. We will. We want to make sure that we are providing additional transportation support for those communities. On top of the fact that it provides a massive economic development opportunity. As we look at some of these segments, one of them includes the Phoenix area. We know the Phoenix, our district is being developed right now. Part of the reason why they even want to go there was because of the Emerald Trail. It's just a matter of we discussed trail for years now and we were going to be putting real assets behind it. That's what part of the additional sense that we got from the jta, you know, portion was meant to do it was meant to provide that long-term funding. I'm just I'm just putting out there now. I know it's gonna be a long conversation. I hope that it is. I also do hope that we have a real conversation about. Both the Skyway and the autonomous vehicles. Everyone knows how critical I've been to that. And I still and I would I would work with COUNCILMAN Diamond or anyone else that was kind of have a longer conversation. But just keep in mind, this is not just about a pretty green line. It's just not the camel trail provides so much more vitality for those communities and provides real economic windfall. And if you look at the the way in Atlanta, you see it up their neighborhoods that were incredibly impoverished and downtrodden now have so much more economic vitality and they ever have. And with the work of groundwork Jax, we're making sure that nobody gets pushed out of those communities, right? Because that's always a concern. We do want to see gentrification also up here and I think segment you have the east side part of my district as well. A lot of folks out there that are very much waiting for the Emerald Trail to come through. She kind of putting that out. You know, it's just one thing to dangle. Something in front of communities have the funding for it and then pull back. Keep in mind this year, we have 35 million for road resurfacing. Something I've been pushing Everyone knows that more than we've seen in any number of years. We have over 11 million dollars for sidewalks. Incredibly excited to see both of those things in the cip. It definitely scratches that it's for now. I'd love to see his daughter numbers go up. Absolutely. I would just kind of putting out out there to to this body at this moment that, you know, if you're going to start talking about cutting things back for well planned project like the Emerald Trail. Listen, I'll be the first to say all their view to see or the autonomous vehicles were well planned at all. I think we all know that. So I'm fine upon those dollars back. But I'm I I just I think that it's it's wrong of us to look at the Emerald Trail from the from the prism of okay as big numbers here. But there's a lot of planning went into that. And we've all been at some of ribbon cuttings. We've seen what this is doing for a lot of communities. Flood prevention. You environmental quality quality of life is the kind of stuff that our districts want. Thank you. Thank you. And with that, I think we're ready to move on, MR. Peterson or did I MISS A recommendation? They're good. That takes us to Page 64. This is the what known as the 9th Cent fuel tax. It's actually only a one cent tax on motor feel. This was part of the 2021 extension or edition of the local option. Gas tax. This one sent to split fifty-fifty between the city and jta for them to contribute towards those projects as well and functions the same as the taxes we've talked about. So the local option, fuel tax of 4.6 million represents what we're seeing in current activity. The contributions from local unit says the city receiving its 50% back from the fiscal agent. The capital outlay is shows you how the city proposes to spend the 2.3 million and then Grant's aides and contributions is the sending of the full amount to the fiscal agent. Their service level changes, no employees. The recommendations. MR. Peterson. And I have known in the queue before we get into page 66, which is jt Hayes budget. If you recall on Wednesday when Mr, Pearson reviewed the quarterly report.