In order to fill a budget hole uncovered last week, Jacksonville’s Finance Department has come up with several areas of savings which amount to about $11.85 million.
In a memo sent to Finance Committee Chair John Crescimbeni , other Finance members and the Council Auditor, CFO Ronnie Belton and Budget Officer Glen Hansen re-estimated the expected savings and revenue projections to meet the “task” they were given by the Finance Committee.
Only a portion of those savings would be used to pay down the budget hole. $4.5 would also compensate for money that was taken from Co0mmunity Redevelopment Areas (CRA’s), while another $465,000 would allow a scheduled fee increase to stop.
The first area of savings comes from competitive bidding over the facilities management contract and health benefits. While the memo acknowledges that neither of these bidding processes are complete, the office estimates $4.25 million in savings here which has not yet been built in to the budget.
Another area is debt service savings. The city will refund debt for the upcoming fiscal year which could save about $2 million. Additionally, the city is currently projected to hold about $1 million in funds budgeted for debt services from our current fiscal year, and this proposal would carry that over.
Another $1 million comes from staffing reductions based on staff departures which have occurred since the budget proposal submission and anticipated attrition. The savings here come from salary and benefits for those positions.
The Finance office also agreed with another $600,000 in savings outlines by the Council Auditor.
The final area where there will be change is revenue projections. The office says state revenue is growing, and the city can expect a $3 million increase there.
These proposals are just recommendations at this point. The memo’s authors write that they “look forward to discussing these recommendations” with the finance committee.
Finance Chair John Crescimbeni told me the committee will likely not discuss the memo at today’s budget meeting because most committee members have not yet looked it over completely. He expects to bring it up for discussion next week.