Finance staff project $67.5M favorable general‑fund variance; cautions on VAB and group‑health fund use

Kim Taylor, the council auditor, reviewed the quarterly summary for the general fund and city funds at the Finance Committee meeting. She said the administration projects a $67.5 million favorable variance as of June 30, 2025, driven largely by a $36 million loan repayment related to the solid‑waste fee and some debt‑service savings. Taylor cautioned, however, that certified VAB (value‑adjustment board) numbers could change that favorable projection: after VAB adjustments she said the net variance could fall by roughly $5.4 million.

Taylor outlined department projections: Jacksonville Sheriff’s Office (JSO) projects a roughly $11 million favorable variance, mainly because of personnel vacancies; Fire Rescue shows a projected $1.1 million negative variance due to overtime. The group‑health fund shows a $4.8 million favorable variance, but Taylor explained that planned use of fund balance (about $15.8 million planned in the budget) would effectively bring cash to zero by year‑end unless reserves or alternate actions are used.

Council members asked whether the projected year‑end fund balance could be finalized now. Taylor recommended against firming the number before audit‑period post‑closing adjustments are completed; she emphasized many material audit adjustments occurred last year and that post‑close entries could change the reported totals.

Taylor also flagged pending legislation to use savings from the solid‑waste fee for a specific project to avoid debt issuance. Committee members asked staff to monitor department negatives and consider whether legislation will be needed to settle any shortfalls.

What happens next: Taylor and auditors will continue to review year‑end adjustments; council members signaled interest in tracking uses of one‑time savings and limiting mid‑year grabs of surplus funds.