Council auditor flags revenue shortfall, departmental variances and leave-liability questions
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Summary
Council auditor Kim Taylor told the committee first-quarter projections show a roughly $5.6 million revenue shortfall, a $9.2 million projected decline in state-shared revenue, debt savings of $14.1 million, and lingering departmental lapses and leave liabilities that warrant further review.
Kim Taylor, council auditor, presented highlights from report number 900 and warned the Finance Committee the city’s first-quarter projections show pressure on state-shared revenue and several department-level variances.
Taylor said overall revenues were projected to be slightly down from budget by about $5.6 million and cited ad valorem receipts as projecting about $5.3 million higher due to final tax-roll collections. She flagged state-shared revenue—largely half-cent sales tax—as trending down roughly $9.2 million, noting the budget office’s rolling projection of state-shared revenue was nearer $120 million for the year. “Most of that is the half cent sales tax, that we are seeing trending down for the budget,” Taylor said, describing tax-holiday timing and shifts in consumer purchases as possible drivers.
On expenditures, Taylor said personnel savings (largely from JSO’s more than 200 vacancies) and debt-management timing had produced a locked-in debt savings of about $14.1 million. But she highlighted multiple departments with projected negative variances including Executive Office of the Mayor (in part due to a $435,000 salary reduction and an unbudgeted terminal-leave payout), Finance (a lapse causing a projected $190,000 shortfall), Fire Rescue (benefits and overtime pressure), and others that will require monitoring.
Councilmembers sought clarification about leave accrual and payout policy for appointed (non-public-safety) employees. Taylor and Mary Stifopoulos of the Office of General Counsel explained the appointed-pay plan allows accumulation up to 480 hours as a year-end cap though balances can exceed that during a fiscal year and excess hours typically roll into a critical leave bank for restricted use. Councilmember Salem said the 480-hour cap struck him as high compared with private-sector norms. “$480 is way high as compared to the private sector,” he said, urging the council to review the liability.
Taylor also summarized independent-authority positions: JPA projecting roughly a $1.5 million surplus, JEA projecting a water/sewer budget near break-even with a $65 million surplus attributed to deferred capital spending, and JAA projecting a roughly $6.9 million surplus. She warned that pending administration legislation and emergency repairs could reduce the city-side positive variance as bills are processed.
Next steps: Taylor offered to investigate state-shared revenue drivers in more detail and staff committed to provide additional detail about leave accruals and the appointed-pay plan when requested by councilmembers.
