Jacksonville Finance Committee Budget Hearing #1 - August 13, 2026

The Jacksonville City Council Finance Committee held its first budget hearing on Thursday, August 13, 2026, to review the proposed Fiscal Year 2026-27 budget. The meeting began at 9:00 AM in Council Chambers and ran until approximately 5:00 PM, with a 20-minute lunch break. The committee heard from the administration, Council Auditor's Office, Property Appraiser, Fire & Rescue, Sheriff's Office, and other departments. Key topics included revenue projections, reserve levels, the five-year financial outlook, public service grants, and numerous direct contracts. The committee made several cuts and deferrals, including reducing council contingency funds and placing half of certain grant funding into a contingency tied to the November 3rd property tax amendment vote.

Revenue Overview & Auditor Recommendations

• Council Auditor Phillip Peterson walked through the proposed $2.026 billion general fund budget (total citywide budget: $9.2 billion).
• He noted that no reserves are used in the proposed budget, and the operating and emergency reserves combined equal $525.2 million, or 26.6% of the general fund budget.
• The committee unanimously approved three auditor revenue recommendations: reducing miscellaneous revenue by $585,000, removing a $10 million transfer from the local hospital tax fund (based on OGC advice), and increasing municipal revenue sharing by $10,719,366. The net positive impact was $13,351.
• Mr. Weinstein noted that all three rating agencies have affirmed the city's AA rating.

City Council Strategic Plan Contingency

• Councilmember Diamond motioned to reduce the $10 million council strategic plan contingency by $5 million. Councilmember Lennon amended to reduce it to $2.2 million to cover previously approved but unfunded council initiatives. The amendment passed (with Councilmember Johnson dissenting), directing $7.8 million to reserves.

Municipal Dues & Memberships

• Councilmember Diamond moved to remove all municipal dues ($237,427) for the Florida League of Cities, Florida Association of Counties, National League of Cities, and National Association of Counties. After debate, the amendment passed on a hand vote (6-1, with Councilmember White opposed). Councilmembers argued the leagues advocate against property tax relief and are not core services.

Northeast Florida Regional Council

• Councilmember Diamond moved to remove $390,000 for the Northeast Florida Regional Council. After debate, the motion failed, with only Diamond voting in favor. Opponents cited the council's role in public safety planning, jail studies, and support for the Town of Baldwin.

Telehealth Program

• Councilmember Diamond first moved to remove the entire $1.5 million telehealth contract, arguing it did not save the city money. Councilmember Johnson and others defended the program, citing benefits to reducing ER visits. Councilmember Diamond then amended his motion to put $750,000 below the line, which passed (with Johnson and White dissenting). The remaining $750,000 remains funded, but requires a two-thirds council vote to be restored if moved back.

WJCT Lease Payment

• Councilmember Diamond moved to remove the $30,000 annual payment to WJCT, calling it a subsidy to a "far-left news organization." The item was tabled for further research after OGC noted the payment originates from a 2002 land lease and continues through 2037.

Affordable Housing Trust

• The proposed budget included $4.9 million for an affordable housing trust: $1.5 million for down payment assistance, $2.4 million for a local capital stack for attainable housing, and $1 million for a tap fee fund. Councilmember Diamond moved to remove each component. All three were removed on separate votes, with Councilmember Johnson dissenting. Supporters of the funding pointed to workforce housing needs, but a majority agreed the city should not start new programs given revenue uncertainty.

Gator Bowl & Juvenile Justice Funding

• The committee approved auditor recommendations to place $464,409 for the Gator Bowl below the line until a new agreement is executed, and to reduce juvenile justice funding by $1,261,778 based on updated state requirements.

Debt Service Adjustments

• Technical amendments approved to correct debt accounting, with no impact to the special council contingency.

Property Appraiser Budget

• The committee approved a recommendation to remove funding for a commercial appraisal division chief position (net positive impact of $112,580). Property Appraiser Janet Morgan agreed with the recommendation. The overall budget for the office is $15.02 million, up $1.1 million.

Fire & Rescue Budget

• JFRD's total budget is $470 million (including unfunded liability). The increase is driven by a 5% collective bargaining raise, 22 new positions for temporary Fire Station 78, and equipment overhauls. No recommendations were made.
• The committee approved the Opioid Settlement Fund (no changes) and the Fire Inspections Fund (no changes).
• For the Homeless Initiative Fund, the committee approved adding authorization for contracts with Trinity Rescue Mission, City Rescue Mission, and Salvation Army for shelter beds ($1.3 million).

Sheriff's Office Budget

• The Sheriff's Office budget is $767 million (including unfunded liability). The increase funds a 5% FOP raise, 7% corrections raise, 52 new positions (including 20 crime scene technicians to free up officers), and full-year costs for the Florida Blue building lease. No recommendations were made.
• The 911 emergency user fee fund was also presented with no recommendations.

Five-Year Financial Outlook (B3)

• Council Auditor presented the revised five-year financial schedule, showing a combined deficit of $250.8 million over the next four years. The impact of Amendment 3 (property tax relief) would be $193 million in the first year and $300 million cumulative by the second year. The budget assumes 5% annual property tax growth, with each 1% difference equal to $13-17 million. The committee approved a technical update to the B3 schedule.

Public Service Grants & Cultural Service Grants

• The proposed budget includes $7.2 million for Public Service Grants and $7 million for Cultural Service Grants.
• This was the only hearing on these grants. Councilmember Lennon moved to put half of the funding into a contingency tied to the November 3rd property tax referendum, meaning half is available October 1st and half only if Amendment 3 fails. After debate and a reconsideration vote, the motion passed with Councilmember Johnson opposed. Councilmember Carlucci unsuccessfully pushed for 65% funding. Cultural Council representatives requested higher funding, citing children's programs and economic impact.

Direct Contracts

• The committee removed $300,000 for In the Word International's Eastside community center (motion by Diamond, passed).
• The Jacksonville Historical Society History Center ($200,000) was approved on the condition that a more definitive term sheet is attached.
• The Jacksonville Urban League's Community and Veterans Empowerment Center ($1,000,000) was initially challenged by Diamond, but his motion to remove failed on a 4-4 tie, so the funding remained. The committee subsequently approved technical amendments and required more detailed term sheets.
• Motions to remove items 6-12 (healthcare clinic direct contracts totaling $1.166 million) failed, so they remained. The clinics include Agape, Sulzbacher, GAP, and others, many coordinated with JaxCare Connect.
• United Way's 211 and 988 programs ($250,000 each) were approved. Eviction Diversion ($1 million) was split: $500,000 available immediately, $500,000 contingent on the November amendment outcome.
• Wolfson's Children's Hospital (GME drawdown) was tabled for further discussion.

City Council Budget, Tourist Development Council, General Counsel, Emergency Reserve

• The City Council's $13.9 million budget was reviewed, and three auditor recommendations passed (VAB fee increase, communications allowance, and salary corrections) with a net positive impact of $105,584.
• The Tourist Development Council budget (including a $1 million sports tourism initiative) was approved with a technical schedule correction.
• The General Counsel internal service fund and Emergency Reserve were reviewed with no recommendations.

Key Outcomes & Next Steps

• The committee passed multiple amendments reducing spending, including $237,427 in municipal dues, $4.9 million from affordable housing programs, $300,000 from In the Word, and $500,000 from telehealth. It placed $7.6 million into the "Amendment 3 contingency" for PSG/Cultural Grants and Eviction Diversion, and $12.7 million into reserves.
• The next budget hearing is scheduled for Friday, August 14, 2026, at 9:00 AM. The final budget is tentatively set for Council approval on September 22, 2026.