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City auditor: Jaguars rent accounted as design-credit; JTA revenue ran about $5.8 million over budget
Summary
The council auditor updated the committee on two follow-ups: Jaguars rent was applied as a design-cost credit rather than a cash payment, and the Jacksonville Transportation Authority reported roughly $5.8 million more revenue than budgeted across divisions in the quarter reviewed.
The council’s auditor updated the Finance Committee March 4 on two items the office has been tracking: the Jaguars stadium lease accounting and a quarterly summary from the Jacksonville Transportation Authority.
Kim Taylor, council auditor, said earlier committee materials misstated whether the Jacksonville Jaguars had paid first-quarter rent. Under the lease language, the organization did not exchange cash for the first-quarter rent; instead, the city received a credit against design costs as an in-kind offset. “They are in essence still paying that rent. We are getting credit for it through a reduction, a credit towards the design cost,” Taylor said. She told the committee staff will ensure the fund is made whole because the rent is budgeted and that whether legislation is required to effectuate the accounting remains under review.
On the Jacksonville Transportation Authority, the auditor’s office reported that total revenue ran about $5,800,000 over budget across JTA divisions in the quarter (the committee did not yet have JTA’s full audited financials). JTA CFO Raj Srinath attended and described the authority’s interest in improving last-mile access for workforce and apprenticeship programs, saying there are available seats on buses and urging better coordination so trainees can reach job-training sites. “We need to be able to give those individuals access to get to their training, get to their jobs so they continue to try to better themselves and their families,” Srinath told the committee.
Why it matters: The Jaguars rent accounting affects city budget entries and how the related design-cost fund is balanced; JTA’s over-budget revenues raise questions about quarterly forecasting and timing of authority financial reporting to the council. Committee members asked that JTA and auditors coordinate earlier notification when authorities see material budget variances.
Next steps: Auditors will follow up on whether legislation is required to formalize the rent-credit accounting and will continue to press authorities to notify the city earlier in the fiscal year when they encounter significant budget variances.
